The reason fix and flippers should have business credit on standby!!
#1 Rehabbing & House Flipping Contributor
- NY
every single time that I get a fix and flippers access to 0%apr business funding (the utilization doesn't report to the credit bureaus) they say man you saved my deal, I underestimated how much this would cost. That's why it's keen to have extra capital around so you don't have to dig into your savings to get the deal done now you can scale.
- Nicholas Floyd
Most Popular Reply
#1 Tax, SDIRAs & Cost Segregation Contributor
- CPA, CFP®, PFS
- FL
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#1 Tax, SDIRAs & Cost Segregation Contributor
- CPA, CFP®, PFS
- FL
@Nicholas Floyd, The tax and bookkeeping side matters. Each draw should be traced to the specific property and expense. Depending on the facts, interest may be deductible, limited, or capitalized into the project, while acquisition and renovation costs for a property held primarily for resale may need to be treated as inventory costs rather than immediate deductions. Flip profits are generally ordinary business income, so investors should also reserve for taxes instead of reinvesting every dollar into the next deal.
Having funding available is valuable, but having the accounting and tax plan ready before using it is what protects the profit.
Happy to connect!
- Ashish Acharya
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