Updated over 4 years ago on . Most recent reply
Flipping profit advice needed
Hey BP family. I'm looking for some different avenues of approach for the following scenario. I'm currently flipping houses aka chasing cars for the last year and now that I've finally caught one, I'm not sure what to do haha. I'll pull in roughly 116k profit on this deal I'm closing on. I've done some research on how to allocate the funds between paying myself and maintaining money in the LLC's account. I don't have a flipper mentor so I'm reaching out here to see what other people are doing. Thanks for any help in advance!
What I've found with a profit first approach:
5-10% to myself as pure profit
35% allocated for salary (my monthly salary)
40% for operating capital (follow deals, floating contractors etc)
15-20% set aside for taxes.