How to meet your Cap. Keep your business bankable! #shortvideo #shorts #short #money #tips

16 Dec 2024 · 1 min

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Steve D Valentine explains how to keep a real estate business bankable by paying yourself commission twice on each deal: once as the agent, once as the investor. On a $518,000 purchase, he paid himself $20,000 as the agent, using state contracts to structure commissions as bonus income rather than ordinary income.

Questions this video answers

$20,000

Himself (Steve D Valentine) — he represented the buyer who is also the investor.

Chapters

Wholesale commission. So on that 518, when I buy a house, I'm going to pay me as the realtor, because I represented me as the agent, as the investor. This is where I change my cap. Me, the agent. I'm going to make 20 grand. Me, the investor. I'm paying my agent 20 grand to find me this deal. Why is that important? Well, think about what company we're at. Technically, I represented a buyer, which is me. I'm going to pay myself a part of the profit in commission for two reasons. One, helps me meet my cap, helps me get to elite. That's important. Two, it keeps my real estate business very bankable. See, when we're collecting big profits and flips, it's not ordinary income or it's not on your taxes as your regular commissions, it's an offset. So they're going to count it as a bonus or something of that nature. So I like to make sure when we're buying things, acquiring things, that I'm paying myself through real. We run everything through there, all the state contracts, all the things, because I want it in multiple places for that.