datechboss101

I am currently in the process of getting my real estate license in Florida, and have been looking around on what my ideal market would be. However, from my personal experience, I do know some people judge others for the type of vehicle that is driven. I did look at online articles to help me out to narrow my choices but to no avail. I would not prefer to use my 2017 MDX for business/work related use since its more of a personal and family vehicle. And with the upcoming academic year rolling in, my mileage would definitely sky rocket on the MDX to my usual miles from commuting to and from Miami. Now, with that said, I did observe the types of vehicles that are being driven in the area, and most of these vehicles has a max MSRP of $100k with the occasional Bentley, Lamborghini, Ferrari, and Rolls (I am not going to be dealing with the Top 1% clientele market base). The $100k is JLR, GM, other luxury brands. I do know that at least for half the year I have to use my MDX for this job since I don't have enough for down payment and my credit history is very thin, but I do have a great credit score (not sure how lenders would evaluate me).

Knowing the MPG of the MDX, this would be a high reason why I am looking at a potential vehicle purchase since I would be doing a lot of city driving. For some reason, my MAX budget is $30k (my OTD, not vehicle price before taxes and title fee). This would fit in line with what the average house hold has in their family vehicle fleet. If I do go with name brand CPO vehicles, would I loose clients or would I get more clients and business?

I did have a list that I have made but need some input for both new and used (NOTE: All vehicles I list are NOT AWD, since there is no use for that in Florida):

1. 2021 Toyota Camry SE
2. 2021 Honda Accord Sport 2.0T
3. 2018 BMW 320i
4. 2018 BMW 328i
5. 2021 Nissan Rogue SV
6. 2017-2019 Acura RDX
7. 2015-2017 Honda Odyssey Touring
8. 2021 Honda Civic Sport
9. 2016-2018 Lexus NX/RX (depending on price and MPG)

If you have any other suggestion, that would be great as well!

00TL-P3.2

Of those, I'd scratch the BMWs, Civic & Rogue, and maybe the NX off the list. Assuming you'll be driving clients around, those are going to be too tight in the back seat, IMO.

Our realtor drove a Ford Edge Titanium, which was roomy & comfortable enough for a day of showings.

oo7spy

Moving this from Ramblings to car talk so it stays on topic.

00TL-P3.2

Expanding on my earlier thoughts.

I'd think a mid-size SUV would be ideal. Something like a newer Explorer or Traverse sized vehicle, even Tahoe/Expedition-sized, preferably with 2nd row captains chairs. Likely easier to enter/exit & has the 3rd row in the event you have a family with kids.

knight rider

iTrader: (1)

My vote is for the Accord. Stylish enough, new, fairly roomy back seat, better on gas than a crossover / SUV, and reliable. I think you can be respected as a Realtor in a new Accord. Just up your clothing game and stay well groomed and you'll have no problem "looking the part" if that's a concern.

I was just watching this yesterday.

nist7

Be careful with your assumptions here.

I've heard of wealthy people who judge people the opposite of what you would normally think.....ie, if you drive a flashy car they may look down on you because an expensive car is a depreciating asset whereas a more practical car is seen as a smart use of money.

But depending on the clientele, that certainly is not the case 100% of the time.

justnspace

iTrader: (1)

what a horrible time to buy single family homes right now...
yet, people are still conducting bidding wars on already overpriced dwellings.

Good luck with your new venture as real estate agent

Chief F1 Fan

I'd scratch all of those vehicles until you actually start making money in a successful fashion unless you're flush with cash.

datechboss101

I learned how to execute the clothing game and grooming pretty well considering I was once in a fraternity (co-ed, medical) during my freshman year, and attended bunch of interviews that also took place during my freshman year too. I was about to pull the trigger on a 2020 Accord Sport 2.0T in Still Night Pearl in Mid-February, if we went the new car route, but it also gave my father a chance to buy his dream car (BMW X5); but due to the pandemic, with me staying at home for the past 9 months, we didn't bother to buy a new car. I fully took over the MDX where my dad took over the Rogue (its his work vehicle now, but I still drive him around in the MDX), and my mom is finally glad she doesn't have to drive anymore (she was afraid to drive since 05 when our 04 Elantra Hatchback was crash head-on by a Chevy Express).

I did watch that exact video last night, and it only talked about the sub-compact segment. But even with the misleading title, its definitely obvious affordable cars are going bye-bye, because people want soooo much new technology crap, that nowadays, cars are becoming more of computers. I would be kind of happy if the vehicle I did purchase doesn't have a push button ignition; its something I missed ever since we traded in our 6th gen Accord back in end of 2018. I definitely would have kept the base Accord as an option if Honda did kept the K24 NA block, but they put an L15, which I don't like any motors that has a liter size below 2 liters and a small displacement with a turbo charger means reliability in my view isn't there anymore. Hence, CRV and Civic EX+ is not on my list at all.

I did look into that area. Given my record of 2020, I am leaning towards SUVs, and I have experienced the Traverse High Country, Dodge Journey SXT, Honda Pilot Touring (neighbor gave me rides), Nissan Pathfinder (rental), Ford Explorer (rental), Dodge Caravan (rental) and of course Honda Odyssey (owned for 10 years). From experience, I can say, the Traverse is not on my list, since my previous vehicle was "faster" than it (the CG Accord with the F23a1 and 4spd Auto was faster too); Dodge's quality isn't there, since we rented two: Journey SXT and Grand Caravan GT. Pathfinder is a huge no-no in terms of powertrain (V6 with a crapper CVT). Pilot is on my list, but it is going to be the 2016-2018 MY since they do have the 6spd Auto and front end doesn't look as ugly as the 2019-2021. The explorer, we rented one back in 2013, but it was comfortable as a family when we were visiting our former hometown. In terms of minivan, would the 3rd gen Odyssey be too old or should I look into the later 4th gens?

From this list of SUVs/Minivans I did break it down, even added some more vehicles into list (my brother constantly said look at the Buick Enclave):

1. 2016-2018 Honda Pilot EX-L
2. 2015-2018 Chevrolet Tahoe LS/LT
3. 2013-2019 Ford Explorer
4. 2015-2018 Buick Enclave (please give input on this vehicle)
5. Honda Odyssey

So I am guessing from your perspective, if I use the MDX for house showings and listings, it would be considered an expensive car. Pretty much my assumptions is coming from a specific demographic group (Indians, but rich and poor), who clearly still make negative remarks even though we technically own a luxury vehicle (they drive Audis, BMWs, MB, Tesla, JLR, Lexus, Bentley, etc), a huge and paid off house (relatively new house, built in 2014 and we are first owners); but, from what I understand of your saying, I should look for something that is in the middle, which is not bare bones (screams im too cheap) nor super flashy (screams im rich or make a ton off of house deals). And from my first job with my previous car (2016 Nissan Rogue SL in Artic Blue Metallic) and delivering pizzas for Pizza Hut, I met a rich family (Caucasian family, if you are wondering about race and that stuff) who said that my hand-me down Rogue was super nice (it has damages on the liftgate spoiler and the right rear quarter, because my parents trusted me with that vehicle, which technically is my still dad's favorite, since it was cheap to operate and has the 360 camera, while I had my learners); it almost does fit your line of flashy vehicle. I did got a ton of positive comments from my peers on that vehicle too, and Nissan tried to buy it multiple times since we kept it in clean condition.

That's actually my plan, have enough in the account to buy one. I prefer to do cash transaction in car deals, but for credit purposes, I am doing financing, since I have the sin from Dave Ramsey of having a credit card. With going the financing route, it should help me be less of a risk to lenders, so in a few years I can secure a mortgage loan to buy a house.

SamDoe1

This.

There's nothing wrong with a 17 MDX for showing people around. Miles can be expensed. Get something else when you can afford to buy it and not when your downpayment is limited and your credit history is thin.

nist7

Exactly. Don't try to "look" flashy...as clients who are easily impressed by such an asset may not be impressed by "poser" luxe items (base level luxury brands, higher trim of economy brands, etc.). Given your age, a "mid level" vehicle is probably IMO more than reasonable. You'll be much more impressionable by obviously your work ethic, knowledge of the industry, and keeping that vehicle spotless clean! (Get rid of odors/stains...etc.), and of course drive well.

When you've reached the stage where you're regularly selling multi-million dollar homes...then you may need to step up to a vehicle that is in line with the clients/neighborhood of those caliber of homes.

But then again I know very little about the real estate business so maybe checking out BiggerPockets could also be helpful (huge online real estate community)

SamDoe1

You're new at this, that much will be obvious to high end buyers. They aren't stupid and, chances are, this isn't their first time buying a house. You showing up with an expensive car when they know you're new at this will backfire spectacularly. Our realtor who we know quite well drives a 2012 Lexus RX with nearly 150k on the clock. He sells millions in real estate every year to all kinds of buyers. None of them give a fuck.

00TL-P3.2

A clean & comfortable car should be sufficient, as long as it's not something like a Daewoo Nubria.

Our first realtor drove a Chrysler 300, but we ended up just following her from house to house. she didn't last long as our realtor.
2nd one & the one my in-laws used as well when they moved here from CA, as said above, drives a 2012 Edge Titanium.

Coworker was working on getting her RE license & bought an Audi A6. Not sure if she followed through on the license. She's also got a paid off '07 GS350

Even the neighborhood next to us, which has houses averaging around 700k-1M, I see a lot of realtors in things like Ford Escapes & a variety of Lexus.

RPhilMan1

Are you sure you're going to be driving around clients any time soon? I think most will simply meet you there if they are going to a physical showing.

Buying a car strictly for "real estate duty" doesn't seem like a good idea in today's society, especially with more virtual/3D tours available.

Save your money.

datechboss101

I have no clue if the MDX is considered a flashy vehicle. Plus it needs a bit of body work cuz I done a hacked up job with touch up paint and it needs $1400 in repair due to the hit and run incident (2-time rear end collisions). Financial standpoint, my MDX has been paid off (bought in cash back in 2017). I could use my parents vehicle which is a 2019 Nissan Rogue (also been paid off) to show & list houses. Plus my main motive is to get something that sips fuel, not drinking it in city driving. I remember paying roughly $100 a week just on fuel alone when I had my previous car and from my MPG calculations for this year, I am averaging 21 MPG with my lowest being 16 MPG.

@nist7 Any suggestions for mid-level vehicle?

@SamDoe1 Yeah I am pretty new to this stuff, that's why I am asking. Should I use my MDX and hopefully not loose clients or get something that's more of a common car (i.e.: CRV, Civic, Accord, Camry, Rav4, Rogue)? One of our realtors drove an RX back when we were selling our house in PA.

@00TL-P3.2 I tend to keep my cars clean and maintain them as much as possible (OCD kills me when it comes to cars). I do wax and clay once every 3-4 months, but going to have a professional detail it before I start representing clients. But I have to get an interior color change since my seat (Drivers seat) on the MDX is loosing the color (I've been using Maguires leather cleaner 3-in-1 and the occasional Chemical Guys APC, and with a microfiber towel.

@RPhilMan1 This is going to be more than just a real estate duty only vehicle. I do plan on expanding in terms of business opportunities, additional job opportunities and my future. My MDX on the other hand, I am honestly planning on personalizing it more (bags, new wheels, Thule roof box, interior color swap from beige to black or chocolate, ASPEC bumper conversions, etc.). And from recent years, we have been seeing out of state traffic moving into our area, so I am sure there will be times I have to give rides, but not sure if its going to be anytime soon.

SamDoe1

Use the MDX.

/thread.

datechboss101

For tax purposes, how should I report the miles to the IRS? I tend to keep a journal/notebook documenting the start and end mileage of each time I use for work purpose.

SamDoe1

No clue.

Talk to a tax accountant.

nist7

Check this out: https://www.irs.gov/taxtopics/tc510 and also this: https://www.irs.gov/publications/p463

Basically, it has to be over 50% of miles (if its less than 50% I don't you can deduct the miles for business purposes), and basically you have to track it on a weekly basis. There are some apps for this but an excel or good old fashioned pen and paper would work too. Just make sure you can produce records if audited. If you keep daily track, that's great already

For mid-level car? I think keeping the MDX you have is perfectly fine. Keep it very clean and non-odorous

wackjum

When I was relatively early in my career as an attorney, I resolved a (to me at the time) fairly big case and got paid well. I went out and bought an Omega Seamaster "Bond" watch for about $6,000.00 or so because I thought I had earned it.

Skip ahead about 7 years, and one day I found myself working together with a very well-respected, nationally famous attorney on a case. While sitting in opulence discussing strategy in his office, I noticed he was wearing a simple Timex watch. It got me thinking, what is the point of being flashy?

Now I've been practicing for about 12 years now. These days I wear a Casio World Time watch I bought on sale on Amazon for $12. I love it. My Omega is sitting in an unplugged watch winder case in the back of my closet.


Just something to think about....

Will Y.

None of the minivans or SUVs on your list will improve on your gas mileage.
They will all get less than 20 mpg on the street. The Pilot and Odyssey are pretty much the same as your MDX, since they have common engines, transmissions and 4000+ lbs of curb hugging weight.

I'm located in West Los Angeles, where half of the realtors drive Priuses and the rest drive [leased] mid-size Audis and BMWs.

I have a Timex for casual work days and a Casio analog watch for weekends.

BEAR-AvHistory

If I need to see the time I look at my phone. For real estate anything thats easy to get in & out of for the client. Personally I think the client does not give a shit what the agent drives as long as its clean, does not smell & you can get into it without any contortions. Never been in real estate but have bought houses.

datechboss101

I already do keep a track on my gas spending on Google sheets. Would I make similar data points for the spreadsheet for the miles driven to deduct? Also, I would be putting roughly 20k miles in 8 months if my graduation plan is on track, for just commuting to and from university, so not sure how that will help in tax purposes though.

My MDX is clean to the naked eye in the interior (unlike my parents Rogue), but since the exterior is Black Copper Pearl (two tone color of black and brown), it tends to get dirty easily. And pair that with the beige interior, and I got a lot of work to keep it clean. Going into detailing, would a steam clean with a clean rag over the nozzle be the safest way to steam clean the seats while using APC and conditioner?

I have been using some off brand cheapo analog watch from Wal-Mart for the past 2 years now (cost me $10), since I never bothered about getting a Timex or Rolex. Just thought why spend money on a watch, where I can use that money as part of a 20% down payment for a house or for a car, or mods for my current car.

We never leased a vehicle before, but I was thinking about a hybrid within my budget. I really contemplated with BMW since I made a relation with a sales manager over at the local BMW dealership, but from the general consensus of the forum, I am better off using my MDX for multiple purposes and can use the mileage to deduct for work.

We do have running boards attached to the vehicle, which tend to get in my way of getting in and out of the MDX. My father personally is looking to buy rental properties soon, and we both went to house showings which helped me understand how this works more in depth.

justnspace

iTrader: (1)

Quote:

That's actually my plan, have enough in the account to buy one. I prefer to do cash transaction in car deals, but for credit purposes, I am doing financing, since I have the sin from Dave Ramsey of having a credit card. With going the financing route, it should help me be less of a risk to lenders, so in a few years I can secure a mortgage loan to buy a house.

uhhhhh, that's not how any of that works....
You DONT have to go in DEBT to build credit....

you build credit by paying on time, every time forever. meaning; PAY off your credit cards in full every month. do this FOREVER. until you're 100 years old
the more debt you have the more risky you are to lenders. it's the Debt to income ratio...so if you got a car note, credit card bills, school loans...you're a higher risk. you could possibly secure a mortgage loan, but then you're over leveraging yourself and have become a super high risk to lenders.

thus why the advice was to scrap all of those cars you listed...because you simply cant afford them

datechboss101

I only use roughly $200 out of a $2300 limit on my credit card and I pay it off every month. I don't have school loans, since I am blessed that my parents are paying my tuition fees every semester. The only two bills aside from credit card that I have is Geico and Verizon. I do pay those monthly as well. I started my Verizon bill January of 2019 (before I got my own insurance and my own credit card), and that never came up to my credit report that I am paying early each month for the past 23 months. And with the DV check I am getting from Progressive, I would be paying off the remaining balance on Geico for my new 6-month coverage, and putting the rest into savings.

Aside from being fairly new to the financial world, would I be approved from any bank just for having a low debt-to-income ratio, a thin credit profile (according to the three credit bureaus) and for having money stored in a savings for a down payment to get a loan? And I will be cancelling my credit card in the near future (probably when I get approved for a house mortgage).

Legend2TL

Keep the MDX, and save your money as others have said. Work your way up.
Besides the utility of the SUV will come in handy with real estate stuff (signs, open house food/drink,...) once COVID19 subsides.

justnspace

iTrader: (1)

already thin credit history and then wanna cancel the card????
that would leave you with an extra thin credit history. Dont cancel the card.

lenders want to see long term on time payments with lots of open accounts. this shows that you can manage your money and debt.

long term meaning FOREVER.
I have 7 or 8 cards with the oldest card being 15 years and none of the cards carry a balance.
that's what lenders want to see..

wackjum

The point was supposed to be, new/young people to the field always want to be flashy and get nice stuff because they think it is a way to prove their creds. But the reality is that stuff doesn't matter. It comes down to the knowledge and experience of the person and the reputation they've set from prior clients. Also, you know a Timex is a cheap watch they sell at Wal-Mart, etc right?

I know plenty of realtors. The ones that are barely making it seem to be the ones driving the leased German luxury cars. The most successful one I know drives a Dodge Ram (and also has a team of realtors under him).

As long as your car is clean, in decent exterior and mechanical condition (like not spewing smoke, metal on metal noises, etc) and large enough to comfortably accommodate a family, I think you'll be fine.

wackjum

Wow, I'm sorry. Shows how out of touch I am. I grew up with "Timex" being cheap (but very functional) electronic watches. Apparently now Timex has gone mid-market...

But they still sell their classic line. This watch is what the attorney in my story was wearing:

datechboss101

Oh, now I see the point. Yeah, definitely not what I want to do first, since I am very young and inexperienced in the field. I try to avoid flashy things, hence my original list included affordable cars, and I was also leaning towards the used market too, since I personally felt pulling up in a MDX and being young and inexperience would leave a sour taste for the prospective clients. I am really okay with getting a Civic LX (local Honda dealer has lease special for $60 per month for 2 yrs right now). I do plan on getting a broker's license eventually, probably in 3 to 4 years, once I build a positive reputation and have enough experience in the field, since I always dreamt of having my own business (that's where I would prefer to use a luxury branded vehicle). The exterior on my MDX is kind of decent (lots of paint chips & scratches, half done touch-up paint jobs, curbed wheels, a $1400 rear bumper damage, side mirror damage, etc.). I got a quote from a mobile wheel repair guy for $300 to repair the wheels and to repaint them to black (in the process of building my MDX to my taste).

Yeah I was contemplating it so that once I graduate I could get a different card since this is a student credit card where all the benefits associated with that specific card ends by graduation. Also, wouldn't a car loan help me in a sense with the whole credit thing, even if the APR is gonna kill me in terms of payments? I don't got any student loans but not sure how much the bank would give me with a thin credit. What other things I could do to show to lenders I am not considered as a high risk? Next month would be 1 year since I opened my credit card. According to Experian's Fico Score 8 system, it shows I have a credit score of 750, with no missed payments.

datechboss101

Apologies in advance for double quoting to you and this specific comment.

I was reading the longer article that was written by the IRS. Its really confusing on what I can claim and not to claim. Just from this alone, I feel the MDX isn't the vehicle suited for this job, because of the specifics that the IRS has listed. If I go by mileage, I would not be able to deduct for oil, gas, insurance, lease/finance payments, etc.; if I go the other way, it would interfere with my personal miles, which then the IRS would not reimburse me for those expenses. More in-depth reading gave me an understanding that I won't meet the 50% minimum on the MDX that is business/work related. The IRS Section 719 is very extensive and confusing for me.

nist7

Yeah, has to meet the basic 50% rule. There have been lot of tax loop holes in the past that I'm sure is now less likely to be taken advantage of. It's to try to prevent people from getting a posh car and then claim it as a "business" expense.

But yes...you can EITHER deduct expenses....OR do the mileage. Can't do both. Business-wise you'll need to make a decision as to whether it is worth it to buy a car specifically use it for business purposes and keep one for total personal use.

Or you can buy a cheap 2nd hand car for personal use and then exclusively put the MDX to business duty.

Clearly don't take tax advice from internet strangers. Keep reading the IRS articles and if you have the time/money, consult a tax professional as well.

Good luck man.

datechboss101

Trust me, I ask people for input, especially those on the forums, since they are more wiser than me and my immediate group. I am still debating on what option best suits for this application. Looks like I still got to do a ton more research on this specific area.

For the first two years or so, I know I will have an additional phone bill (work phone & personal phone) and car expenses. I have to calculate everything to see which option fits perfectly. I am actually thinking about whether to go new or used if I do go the route of a dedicated work/business vehicle for tax purposes.

datechboss101

Well, I also forgot to mention... I am planning to start my own property management company as per dad's request, so would prefer to integrate the real estate vehicle and the property management vehicle into one vehicle, and keep the MDX as the personal vehicle.

wackjum

If you're doing property management, you need a pickup.

justnspace

iTrader: (1)

750 is prime already, you don't get much benefit of having a higher credit score other than bragging rights.

You know you can have multiple cards right?
Keep the student card and just open new credit cards as you see fit...ie; store cards that offer promotions, real credit cards that offer free money, etc.

Like started, I've got like 7 or 8 with that carry zero balances.
The biggest factor is time. The longer you are responsible, the better your credit score will be.
I've got 15 years of no missed payments..

1StGenCL

So many words, I read the majority though. As a new Realtor, go with what you have, the MDX it seems. No one really cares what you drive and if they do, you probably don't want to deal with them, especially in Miami.

Our first Realtor was a cool dude, older brother owned the business and had done extremely well (large yacht behind his house well) but he wanted his younger brother, our realtor to learn the business. He had been doing it for a few years and while good, wasn't selling that many homes and had only sold one house at the $600k mark, meaning he isn't rolling in money so spend carefully.

Judging by all the thoughts and ideas in your posts, real estate is a back up/part time thing so again, spend carefully.

datechboss101

Well yeah. I got plans and aspirations, and having this on my resume makes a better applicant for medical schools. I am going the non-traditional route for med school by-the-way. Eventually, I would love to expand to Miami, Naples, Tampa, Daytona Beach, Jacksonville, Tallahassee, and to other states as well, since the Florida license is recognized in 11 other states (GA, CT, AL, MS, etc.). My starting base is in Orlando. Plus, I gotta make use of this college degree that I spent 3-4 years in Miami. I am graduating from university in end of July.

justnspace

iTrader: (1)

I think you are putting the cart before the horse...you haven't even made money yet...
a $30k vehicle is a depreciating asset. if your goals are to maximize investments...a $30k depreciating asset would be a very poor choice in use of funds... especially if you're using debt to fund this dream.
debt can be a good thing, but it's also can get you in trouble very quickly.

a $30k depreciating asset is a very poor choice of debt, especially if one ISNT making a high income yet.
again, we arent trying to stomp on your dreams and aspirations...it's just the aspirations are a little large...gotta crawl before you walk type of deal.

When you become a broker and when you are making six figures is when you can buy the $30k+ vehicle. not before it
plus, how can you maximize investments if you're spending all your money into a car and house that eats your money?

Aman

To say the least...

OP, you have a car in good working condition that isn't costing you money. This is great. It's especially great because you haven't started making any money yet.

Don't fuck with what isn't broken. You're at least a year away from considering changing vehicles, and that's only if the MDX has proven to be a poor fit. That's unlikely