How do real estate referrals work? What is a normal percentage of the total commission a referring agent should expect? What does a referral entail?
A referral, as it applies to a real estate transaction, is when one agent refers a client to another agent in return for a share in the eventual commission earned from closing a home while representing that client.The normal referral fee is 25% of the take home commission of the agent the client was referred to. Referral fees can range from 20% - 35% depending on the agents involved and the likelihood the client will close.In order to successfully complete a referral agreement, you must either be a broker or get your broker to sign off on the referral. It will require both brokers (agents) involved to sign an agreement stating who the client is, how long the referral agreement will last, what types of transactions will be covered and the fee to be received.Some agreements persist for years providing a referral commission for every transaction a client closes with the agent they've been referred to.
How does California tax rental income?
There are many variables to this question but Ill assume you are a Cali resident with 1 rental property, for example. California Counties each have their own Property Tax Rates paid in two installments, usually in Nov and February of two calendar years. They may use the term 2017-18 Property Tax Bill. That being said you don't pay a Rental Property Tax Debt to the state directly. So there is no California Rental Income Tax per se…HOWEVER, any and all income from any source must be applied to your Federal Income Tax Return in any number of categories. For this instance your Rental Income, AFTER you've deducted mortgage interest, expenses, repairs etc. will be calculated with all other income sources on your federal return. Have I lost you, yet?! Once you've completed your federal return you will have aquired an ADJUSTED GROSS INCOME. California will use this number, along with more adding and subtracting to come to an amount, as a whole (that your rental income is baked in there with all other income) that California will now apply a tax rate to, and depending on how much you had witheld or not will be your California Tax Liability. You can always go to Franchise Tax Board Homepage for more specific information.
Does the landlord or tenant pay property taxes?
Hi Kendra, thanks for the A2A.As others have told you, normally the landlord/owner pays real estate taxes on the property they own. Unless your lease states that you pay them. Commercial property is different.In a way, a tenant pays for the taxes or mortgage because of the rental paid to the owner/landlord.
Mortgage question-why so high?
At 0% interest, you could pay off $200,000 over 30 years with only $555.56 per month. But no one is going to give you free money. Modern mortgages came about in order to allow you to not have to make larger payments at the beginning of the loan. If you didn't amortize, the first month you'd pay $1,430.56 ($875 in interest (5.25% x $200,000/12) plus $555.56 principal payment), with monthly payments gradually diminishing as the loan was paid off until your last payment was only $557.98 total (only $2.42 interest). A fully amortized home loan allows you to make the same payment every month and pay the whole thing off within the loan term. At the beginning of the term, the payment is mostly interest, but as time goes by more and more of it goes toward paying down principal. On a $200,000 loan, on a 30-year loan with a fixed 5.25% rate, the payment would be $1,104.41. On the first month's payment, $875 of that goes toward interest (5.25%/12 x $200,000) and only $229.41 goes paying down the principal from $200,000 to $199,770.59. The next month the payment is the same, but $874 goes toward interest (6%/12 x $199,770.59) and $230.41 goes toward paying down the principal. By the last payment, only $4.80 is going toward interest. Yes, you end up paying almost as much in interest over the life of the loan as you pay in principal ($197,585 in interest total over the life of the loan plus $200,000 in principal). But the alternative would be to require you to first save up the $200,000 before you buy the house - and no one wants to wait that much of their life before they can start living in a house. Historically, 5.25% is a very low rate - about as low as you could expect in your lifetime. It may be hard now, but even if your income only increases 3% per year, after a while it won't seem like such a large payment. I know it can seem daunting - but I'm supporting my family with a house payment in San Diego and I wish I had such a low payment. Good luck to you.
Why is money so important?
we use money to buy food. prices are going higher to buy gas and food. people get robbed everyday. people use money to buy junk and drugs, cigarettes and beer. over 3000 dollars are being wasted per year on junk for a average person. we need money to live in a house. we need money for heat and water. we need money for eletricity. money gives some people power. people get jobs that pay more money. people buy houses that cost more money. people spend thousands on cloths that they wear olny once each year. people even spend money on dates, ect. MONEY MONEY MONEY!!!!!!! i dont see why money is so important. a average person of one (no family), can live off of no more that of 800$ tops each month. with a family of 4 perhaps 1600$ tops each month. but one person can easily make over 2000$. but uses it all for himself. why are people so greedy and money hungry. i see no pleasure in money.money is just paper to me. or coins.
What are some of the best places to buy a rental property in 2016?
Nowadays, the luxury condominiums are some of the best places to reside on rental basis. The oceanfront luxury condominiums offer amazing range of residential features and facilities to the people. These magnificent condos have enabled people to acquire the taste of luxury living by renting a spectacular unit in these luxury real estate properties. The emergence of these luxury real estate properties has changed the way people perceive luxury living. The renting facility of these condos has enabled people to live in an ultra-luxurious unit while being in a vacation or tour. You can obtain more details on your query by taking assistance from the various sources of information for a better understanding of the rented features and facilities that the luxury condos provide people.