All Forum Posts by: Andrew Pettit

Evening everyone,

         Is this a regularly occurring event? I can't attend this one but will be interested in the future. 

Thanks Andrew 

Hey Anthony & Frank,    

           Thanks for the in-depth response I really appricate it. To answer you question: "Do you already have the cash lined up and ready to go?" I do, and my brother (PETTIT Contrustion) is going to do the renovation. 

Afternoon BP,

I am looking for a reliable Wholesaler within Rhode Island so I can conduct my first BRRRR deal.

Thanks. 

Hey Mike, 

That is really the route that I am going the only reason I started the LLC was because I was conducting a BRRRR and the Hard Money Lender needed me to have a LLC. It doesn't matter now because I was able to get private money and like you said we are going through a attorney anyway.

Afternoon BB,

           I am looking into getting umbrella coverage through USAA for all of my properties? I was wondering if you could give me some advice. 

Thanks. 

Good Evening BB,

I am getting a loan from my folks in the form of a HELCO. We were able to settle on a HELOC and I was wondering if there was any consideration during tax time that my parents that are going to have to be aware of? I have already emailed mu CPA and have not heard anything back yet. I know it is not a taxable event for them but what would those tax implications be when I pay them back their principal balance?

Thanks

I already have a LLC set up

After Eamonn, 

      Here is his response to the 403b question. 

They should check the terms of their 403B loan, and consult with their financial advisor. I have limited experience with 403B loans, but from what I can tell they can only borrow up to $50K, and they have up to 5 years to pay it back with interest (up to 5%). It appears that because these loans are structured like a typical loan (i.e. there is no “final” distribution of pre-tax retirement funds) I don’t think there would be any tax consequences.

Mark Flynn CPA

Good afternoon BB,

I ask this question yesterday but I just want some further clarification, here is what my CPA sent me in response. Please let me know what you think, thanks BB.

Andrew,

You could elect Subchapter S-Corporation status for your real estate business, which means you would file both a personal tax return and S-Corp tax return. The income/loss from the S-Corp flows through to your personal tax return via a Form K-1. Electing S-Corp status would allow you to add your parents as shareholders, where they could “invest” in the corporation. However, there are higher costs to file as an S-Corp for both your tax returns and State fees. It would most likely not be worth it for you at this point.

Thanks gentlemen