Rookie Question on Mindset with Taxes Looming

Rookie Question on Mindset with Taxes Looming

Real Estate Agent · Carmel, CA · Member since 2018 · 8 posts · 0 votes

Hi all, 

My name is Zach, I live in California and after reading David Green’s book on Long Distance RE investing, I’ve identified a great market and I’m ready to start investing. I’m a full time Realtor, so I’m on a 1099. My commissions are not taxed, and while I intend to start paying quarterly taxes instead of waiting until tax season to pay the full sum like I did in 2017, I am behind on that this year. My question is - when you have taxes looming over your head, do you set that money aside for taxes, or do you invest it in a deal to make more? Kind of a mindset question, and maybe it all depends on your comfort level. I’m wondering if anyone else is comfortable investing the money instead of setting it aside. Thanks! Lot of great info here! 

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  • Rental Property Investor · Augusta, GA · Member since 2017 · 825 posts · 278 votes
    8y

    I recommend reading "Profit First" by Mike M-something. I'd rather go slower and not get myself noticed by the IRS. You will want the habit when you have real estate, anyway, and need to set aside money for cap ex and taxes.

  • Real Estate Agent · Carmel, CA · Member since 2018 · 8 posts · 0 votes
    8y

    Thanks Amanda! I've heard that's a great read, and I appreciate your advice. 

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