All Forum Posts by: Account Closed

@David Krulac   

BTW I am looking forward to reading your book.  Keeps getting pushed back but I am intrigued by your experiance which is basically my market.   

@David Krulac

I was looking at a comp in Altoona today which was an REO, with nice siding, replacement windows and a fair interior. It was listed for 15k. I am looking at buying a 12k house up for sheriff sale thinking how can any make any money here. Rehab materials are up, taxes are up and sale prices are flat at best. I always would get a kick out of agents who would boast "we are back to 2006 prices", because that's still way behind inflation. I can understand they want to promote the area and such, but it just kinda stinks.

@David Krulac

And that probably doesn't even account for inflation

@Jon S.

Ill take a shot at it.

Your rental income is passive by nature, so there in no requirement to pay self employment tax  on it.  The partnership will have no bearing on your taxes, in other words it will allow your income to pass thru to you as passive income.

In the flip side, your flip income is considered active income and therefore subject to self employment tax. An approach to minimize some of the self employment tax is to pass some of that flip income to yourself in the form of a dividend. The LLC taxed as an s-corp provides you that opportunity.

Well thats not fun.  Seemed to good to be true.  Thanks for the quick shoot down;)

Would like the to understand if I can find a friend to invest in my company, while I invest in their company. Both of us using our self directed IRA. Loan amount of 200k. The way I see it, even they get into trouble and can't pay me back, I would still have their 200k. Or on the flip, if I got into trouble and could not pay it back. They would have my 200k. So in that sense it would be a secure loan. How would the IRS feel about such a relationship. If we both have real, working businesses and all is written up by the lawyers giving a reasonable rate, would it fly? Seems so much more free than trying to invest within a IRA.

@Ryan Dossey

This is an excellent real world look at what can happen if you put it out there.  Especially the guy with a bunch of houses to get rid of.  Very inspirational.  

try to start a relationship with a mentor in your area

@Jackie E.

I love your enthusiasm.  I am not a realtor but deal with them far more than I like.  My best advise, being on the customer end, always be available.  Nothing is worse than a realtor who does not get back to you ASAP.   I came across a statistic that something like 94% of the folks start looking for homes on their own, using the web.  Given that, 80% of the people use a realtor via word of mouth.  Real estate is a local market.  Treat folks well and you will be a success.    

@Jackie E.

Sorry to hear about you layoff.  One thing is for sure, that can't happen when your self employed.  I quit my job 7 month ago and started full time investing.  Actually I have done about 5 deals I your area.  The other day I looking in my van and came across a bottle of headache pills.  I used to get a headache every Monday when I went into work.  I was a bit of an epiphany of how my live use to be.  Of course now that I am full time I get headaches everyday of the week;)