All Forum Posts by: Alex Huang

 Someone can correct me if I'm mistaken, but if you have the proper entity setup within your flip, you can realize a good bit of tax relief.

The play is to do the flip within a LLC, pay yourself a salary (which is subject to the taxes you mentioned above), but then the rest can be released as a distribution or dividend which is at a different (lower) tax rate.

So to follow-up here, is my best play to:

1. Quit Claim Deed the house to my name, refinance, then once the refi is closed, I can do another Quit Claim Deed back to the LLC?

OR

2. Go through the formal process (through a title co.) and get the house back in my personal name, get the refi, then Quit Claim Deed to the LLC?

Or something else?

Purchased a home that is just about finished with its rehab. The house was purchased with cash and I would like to get the cashout done ASAP so that I can leverage the money to go buy something else.

Unfortunately, I made a mistake by purchasing the house in the name of a LLC. I'm the only one whose name is on the LLC, but banks won't do a conventional loan with the property being under a LLC.

Could I just use a Quit Claim Deed to get the title back in my personal name, which would allow me to get the conventional refinance? That seems like the cheapest option in lieu of formally getting the title back into my name through a title company.

If there are any other options, please advise. Thanks!

As others have mentioned, your best bet is to start networking and connecting with other investors.

Generally speaking, real estate investors are pretty warm to newbies and eager to share their stories and experiences. Connecting with these folks can help lead you to a good opportunity.

Also, you should get in the habit of running some numbers on properties that hit the market. Even if it is something that you are 100% uninterested in, it helps to exercise the brain and to go through the numbers and try to figure out what the property would rent for, sell for, cashflow for, etc. The more familiar you become with various neighborhoods, the better prepared you'll be when the right opportunity emerges.

Lastly, resist the urge to go buy something immediately now that you are approved. The profit-opportunity is on the buy-side. Trust the math and trust your analysis. You'll know when the right property is there.

Awesome story!

Hopefully I'll be able to make a similar post here in the next month or so...

Are you holding the property in your own name then (vs a LLC)? That's a problem I'm currently dealing with.

 Awesome.

Appreciate you sharing the info. It's always fascinating to hear how every one goes through stage-by-stage!

@Omid A.

Thanks for sharing and congrats! As someone who is looking to get into his first flip, I'd love to hear some more details if you are willing to share:

1. Materials - Did you source most of your materials through various stores? Or did you buy most of your items at one store like Home Depot? How much did you price shop?

2. Roughly how much did your subcontractors charge per hour? Obviously there are specialty rates for plumbing, etc, but what about for the other stuff like flooring / drywall, etc?

3. How did you stage the photos? Did you just rent furniture?

4. How confident were you with your ARV analysis before acquiring the property, and how close did you come to hitting those numbers? Would you mind sharing your list price / # offers / etc? I'm always curious to hear pricing strategies and the evolution to the final sale price.

Keep crushing!

 Thanks

Is there any penalty or disqualification of eligibility if I just get the property back under my personal name so I can use a standard refinance?

I am having some problems with the BRRR strategy, particularly with having my first property in the name of a LLC.

It seems that the banks in my area won't (can't?) refinance the property unless it is under my personal name. Since it is held under the name of a corporation, then it has to be done via commercial loan. Is this standard?

If it is, would I be better off transferring the title back into my personal name so that I can do a standard refinance? Or are there any loopholes or counter-strategies to get around this?

Thanks!

 Thanks

Can you give me an idea of what you're paying per sq ft for this flooring and also what type of rentals you're putting them in (eg avg rents, area, etc)?