I am Patti and fairly new to BP. Love reading all the different posts and information. Have learned a lot.
My husband and I have a few flips under our belts.
I just have a few questions to ask on what would be the best direction to go.
Those of you that are seasoned investors- how have you set up your business? S corp or LLC. Our accountant suggested S Corp.
Bringing on Partners? I.e. With construction back ground and no financial investment, they help with fixing up properties with a small income and then bonus after property closes.
I'm working on getting my RE license. And will work at a RE office. Not sure how that will effect our business once it is fully set up. Basically our construction and homes we acquire will be through our business and I'll list them through the RE office. Is this a conflict?
Hope these make sense.
Happy investing everyone!! Patti
I don't know Washington state laws, but there are many flippers in Texas with their license. In Texas, you have to "hang your license" with a broker to be active. So in your case "working with an office" would be working with a broker. That is not a conflict with your flipping business as long as Washington law allows agent/owners to be involved in those transactions.
In Texas, there's a disclosure line on our contract. We just have to disclose. So let's say I am a member of an LLC that flips properties. On the contract, I would disclose "Shane Woods, listing agent, is a member of Your Company LLC, which owns Property Address." Or something like that.
If I was not in an LLC, I would disclose "Shane Woods, Listing Agent, is (part?) owner of Property Address."
Thank you Shane!! That is very helpful.
Glad to help!
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