All Forum Posts by: Bill Walston

Originally posted by J Scott:

Talk to an accountant/CPA, but he'll likely tell you to hold your flips in an S-Corp, as that will allow you to pass through some of the income as dividends instead of salary, which will not be subject to self-employment taxes.

And even better is the LLC that elects to be taxed as an S-Corp! :D

Originally posted by Bryan Freeman:

Will I have to pay capital gains on $9000, $6000, or somewhere in between? This is my first one, so I'm not sure how it works.

Most likely, somewhere in between. Your capital gain is the excess of your selling price over your cost basis (adjusted for improvements and selling expenses).

The attorney fees paid to get quiet title would be added to the cost basis. How you use the property during the year and a half would determine how your other expenses would be applied.

Originally posted by Steve Babiak:

Unless the income tax is actually being "forgiven" (it will not have to be paid on April 15), then this could cause more trouble. People have more in their paycheck and they spend it, but then the income tax bill comes due and they don't have the money - it was spent rather than being sent to IRS via withholding.

Steve - The proposed "holiday" is on payroll tax, not income. If enacted, there will be no affect on taxes due on 15 April.

Bob is a partner of Patrick Precourt. They've been doing short sales for quite some time up in CT. In addition to doing their own deals they have a pretty steep coaching program and short sale home study course. They do know their stuff and practice what they preach :-)

Originally posted by Mike Matthews:

My private lenders are afraid to play the game now do to this bs law.

In all of the versions of the SAFE Act that I have studied, only “residential mortgage loans†are covered. A “residential mortgage loan†is one that "is a loan primarily for personal, family, or household use." Loans made by private or hard money lenders to investors do not fall within that definition. It seems that any buying or selling that does not involve the END user of the property is exempt.

I enjoyed Multi-Family Millions and Commercial Real Estate Investing 101. Both are by Dave Lindahl. The latter is part of the Trump University series. Excellent info in both of these. (And they sure beat the cost of his bootcamp. :D )

Originally posted by Financexaminer:

Equity stripping or skimming is a whole different animal and occurs when excessive fees are charged in a preditory lending scam, or where equity is transferred to someone who is to acomplish a service in connection with a foreclosure or bankruptcy, such as a promise to save the equity for a homeowner who is about to go into foreclosure.

Equity stripping is also, as defined at Ivestopedia, "the process of reducing the overall equity in a property in order to avoid creditors." As this thread was discussing LLCs and asset protection this, of course, is how I was using the term. But then I think you probably know that. No one has advocated "filing a mortage [sic] or deed of trust as a security instrument for a debt that was never consumated [sic] or truly perfected." Equity stripping is just one of many asset protection strategies. It is not (and no one has claimed it to be) a "one size fits all." Like it or not, as I said before, the technique has been around for years, is recommended by several asset protection attorneys, and works like a charm when done properly. A good real estate attorney, of course, should be consulted. But then that's just my opinion!

Originally posted by Jimmy Hamilton:

This sounds great in theory, but would likely be considered a sham transaction.

What makes you say this Jimmy? Has this been your experience? I have to go with Denise on this one. This technique (also called "equity stripping") has been around for years and is recommended by quite a few prominent asset protection attorneys. It does have to be carefully structured but can work like a charm when done properly.

Originally posted by Terry Royce:

I'm trying to figure out how to forward several google voice numbers to the same end point. I want to have a philly number and a baltimore number for different mailing campaigns. Ideas?

I added the same "office" number to all of my google voice numbers in "settings." I had no trouble forwarding all of my numbers to this same "office number." I have my GV number show as the id number when the call is forwarded, so I know which of my GV numbers is forwarding the call. So far, this is working fine.

And now that GV allows you to make outgoing calls directly from a computer and uses your GV number for the caller ID it's going to work even better :-) I think Google Voice is gonna give Skype a run for its money.

Hi Shane! If you purchase the property in the name of the LLC, then the financing should be in the name of the LLC as well. This shouldn't be a problem, though you will most likely need to personally guarantee the loan.