Best way to get a start out in the business

[Casey Staidl]

I have a basic question for any seasoned flippers out here in the BP community: What way worked for you the best starting out?

Im kind of stuck right now as of which direction I should go. I have a great job, great credit, but not enough capital to venture on my own. I know cash is king, especially with the deals I have an opportunity to come across and snatch up. I also have a VERY experienced real estate and contracting team ready to go.

I keep thinking in circles on whether HML, personal loans or finding an investor is the best way. I understand everything carries risk and there is no "one" way to get into it, but I just want to hear a couple personal strategies that helped get you started. Thank you very much!

[Sebastian Caycedo]

LLC would be good to start. Although don't quote me on this, but I read this a couple months ago from a blog, he mentioned this:

"The trick to reducing your tax liability is two-fold: start an LLC but tax it as an S-Corp. Pay yourself a small but reasonable monthly salary and once per quarter you can take out a chunk of the profits as a distribution. You will pay standard tax on your monthly salary but the quarterly S-Corp distribution is not looked at as employee wages so you will not have to pay social security or medicare tax on this distribution amount"

Makes sense later down the road, something to think about. For now, most investors stick with an LLC.