Real Estate

Earn back buyer's real estate agent commission - Become an Agent. New Humber College Course is now live!

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  • Oct 12th, 2020 3:34 pm
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[OP]
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Aug 2, 2010
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krysim wrote: I am writing my last exam this month. In addition to buying/selling homes for friends and family, I want to represent myself in the purchase of my own home. I want to be an agent part time and my marginal tax bracket is at 48-52% from my full time job.

If I am successful in an offer on a $2 million home and I represent myself on the buy side, I keep the 2.5% buyer agent fee so I have to report the $50,000 as income. Not only do I have to do the work being my own representative, with a 48% marginal bracket after taxes I only take home $26,000, even less if at 52% which gets me $24,000. And then I have to pay brokerage fees on the deal, etc. So less than 1.2-1.3% after taxes.

For the purchase of my own home, isn't it better for me just to find another agent that will give me 1-1.5% cashback and bank $20,000-$30,000 instead? As I understand, for a client's primary residence, the rebate is not taxable.
No
Jr. Member
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Aug 11, 2019
161 posts
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Toronto
My strategy so far has been to read the text books as a whole, and then do passit for a week before the exam.

I’m on my 5th course now (The Commercial Real Estate Transaction), and I want to try minicram.

If anyone has minicram for this course, would they mind sharing?

Thanks!
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GTA & Surrounding Areas
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Dec 11, 2005
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TO
Dayravi wrote: My strategy so far has been to read the text books as a whole, and then do passit for a week before the exam.

I’m on my 5th course now (The Commercial Real Estate Transaction), and I want to try minicram.

If anyone has minicram for this course, would they mind sharing?

Thanks!
Hi Dayravi I assume you're registered via the earlier Orea method and not Humber correct?
Achieva Financial /KOHO / STACK (0% FX Fee) /Tangerine / EQ Bank member / I use Plastiq for paying bills with my CC

"You can't soar with the eagles if you're hanging with the turkeys - Gary Kent
Jr. Member
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Aug 11, 2019
161 posts
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Toronto
TorontoEh wrote: Hi Dayravi I assume you're registered via the earlier Orea method and not Humber correct?
Yes, thru OREA.
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GTA & Surrounding Areas
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Oct 10, 2010
487 posts
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Hi,

Bit confused on when I can really join a brokerage and start doing sales. Is it after 4 courses or afer 3a/3b course (that exam)?

Thanks!
Sr. Member
Sep 16, 2010
842 posts
300 upvotes
Mississauga
nik707 wrote: Hi,

Bit confused on when I can really join a brokerage and start doing sales. Is it after 4 courses or afer 3a/3b course (that exam)?

Thanks!
After Course 5.
Newbie
Jun 21, 2018
8 posts
Hi there.

I was also curious about the minicram as I am writing my second test in December and have been using passit.

Does anyone here have minicram for the second course (Land, Structures and Real Estate Trading) and would be kind enough to share it?

I am registered under the old OREA curriculum.

thank you in advance.
Jr. Member
Mar 21, 2006
171 posts
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Curious if anyone has enrolled into the Brokers course?

If so which elective course did you end up taking?
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Dec 11, 2005
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TO
Anyone recently enrolled into the Humber program and can advise on if a lot has changed in terms of books etc from orea program? Do you buy books after enrolling in each course?
Achieva Financial /KOHO / STACK (0% FX Fee) /Tangerine / EQ Bank member / I use Plastiq for paying bills with my CC

"You can't soar with the eagles if you're hanging with the turkeys - Gary Kent
Newbie
Apr 18, 2009
41 posts
29 upvotes
Hi Guys,

just wanted to get some input. Last night in Ontario legislation passed to allow realtors to incorporate. I didnt realize they weren't allowed before in Ontario. I am currently going thru the OREA courses to become an agent.

Can someone please enlighten me on this. Is this a huge deal?..how does it affect the industry going forwards? Thanks
Sr. Member
Feb 19, 2019
817 posts
881 upvotes
Stouffville ON
rammar wrote: Hi Guys,

just wanted to get some input. Last night in Ontario legislation passed to allow realtors to incorporate. I didnt realize they weren't allowed before in Ontario. I am currently going thru the OREA courses to become an agent.

Can someone please enlighten me on this. Is this a huge deal?..how does it affect the industry going forwards? Thanks
It is not a big deal, and even lesser of a deal since the new TOSI rules introduced few years ago regarding dividends etc. It will be similar to other professions who already can incorporate. Similarly to other professional corporations if the agent gets sued for malpractice, corporation will not protect them, there will be protection from creditors, the biggest benefit will be tax deferral. For most agents it won’t make sense to incorporate, it may make sense for the agents who make good money and don’t spend it all.
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[OP]
Deal Expert
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Aug 2, 2010
15193 posts
4887 upvotes
Here 'n There
rammar wrote: Hi Guys,

just wanted to get some input. Last night in Ontario legislation passed to allow realtors to incorporate. I didnt realize they weren't allowed before in Ontario. I am currently going thru the OREA courses to become an agent.

Can someone please enlighten me on this. Is this a huge deal?..how does it affect the industry going forwards? Thanks
Not really as the CRA rules on the deduction of expenses are exactly the same whether you are incorporated or not. However, it will provide limited liability, but then your RECO insurance covers that except for insanely narrow situations. Keeping your earnings in the corporation for 10+ years and receiving a positive return will result in marginal tax savings but then who keeps $ in a corp that long? Almost no one, especially on an real estate salesperson's income. So, basically incorporating is a non-event and will just increase your cost of operating due to filing requirements, cost of preparing financial statements and corp tax returns and the like, etc.
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Apr 11, 2019
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Question on the same note - can one add "real estate agent" activity to existing corporation? (Federal corporation)
Deal Fanatic
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Dec 11, 2005
8004 posts
1115 upvotes
TO
rammar wrote: Hi Guys,

just wanted to get some input. Last night in Ontario legislation passed to allow realtors to incorporate. I didnt realize they weren't allowed before in Ontario. I am currently going thru the OREA courses to become an agent.

Can someone please enlighten me on this. Is this a huge deal?..how does it affect the industry going forwards? Thanks
I was surprised myself it wasn't allowed for that long. Aren't there agents who do few deals a year and work out of their home office?
Achieva Financial /KOHO / STACK (0% FX Fee) /Tangerine / EQ Bank member / I use Plastiq for paying bills with my CC

"You can't soar with the eagles if you're hanging with the turkeys - Gary Kent
Sr. Member
Feb 19, 2019
817 posts
881 upvotes
Stouffville ON
gospodar wrote: Question on the same note - can one add "real estate agent" activity to existing corporation? (Federal corporation)
Not likely, it will most likely be done via professional corporation. The link below describes differences between professional corporation and other corporations.
https://www.liveca.ca/what-is-a-profess ... -practice/
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