All Forum Posts by: Chris Arce

@Wayne Brooks

Thanks, Wayne!

Im in the 22% tax bracket, and FICA is 15.3%

So I’m looking at a 37.3% tax bill on my net profits?

What can I reduce from my taxable income if Im already reducing the rehab costs to get to the Net Profit figure.

Thanks again!

Hi everyone!

Just closed my first flip!

Me and my partner created an LLC and purchased it in that name.

How will I file my taxes if we make money on this first flip? Is it the regular way I always file my taxes as ordinary income?

We opened a separate bank account and credit card to separate it from our personal expenses.

Also, will I have deductions on my taxes? Sorry taxes always confused me.

Thanks in advance for any guidance!

@Franky Davis thanks, Franky! This is something I’ve wanted for a very long time. Can’t wait for all the headaches and long nights

@Sandy Gabin thanks, Sandy!

@Craig Sloan thanks, Craig!

@Vince Mayer thanks, Vince!

@Alex Olson Arnold!

@Andrew Chapman

My partners brother is a well established REI in St. Louis. One of his guys sent him this deal which he gave to us since he only works on big projects now.

After years of listening to BP, reading books, talking to people, I have my first deal under contract.

It’s a 3-1 house in Missouri (I know 3-1s are tough to sell J Scott).

Paid $19K in cash needs about $35K in rehab with an ARV of $130K.

Amid the coronavirus with unemployment going up and demand going down I know it’s not an ideal time to be flipping, but I feel a house for $60K is hard to lose on.

I have multiple exit strategies. I figure if prices turn south, I can convert it into a rental. Similar homes are renting for $1250 a month.

So excited for what’s to come, and all the challenges that lie ahead!! Any advice as I start out on my journey?

I'm partnering with my best friend on the deal and we opened an LLC beforehand.

@Brandon Hayes

I agree totally, invest where the numbers make sense. Not only in your background. Especially since it make sense to diversify your portfolio and not just invest in one market. The only reason I haven’t pulled the trigger yet (and I know I’ll get scorned for this), is because of a looming recession.

Yes, I know that no one has a “crystal ball” to predict the next correction. And that people have been calling for a correction for years now, but I just feel like something has to happen here in the next 18 months. And I just feel like I can find a super deal when that time comes.

So for now I’m hoarding cash, getting all my connections in place, talking to lenders, etc.

I have some private money lined up and figure I could hit the ground running when that day comes.

Im very interested to see how the deal plays out for you, let’s keep in touch! Hope everything works smoothly for you as I plan to take the same approach and invest outside my backyard.

Goodluck Brandon!