All Forum Posts by: Daniel Patton

What are the tax benefits/downsides to making someone a 1099 employee vs a w-2 employee?

Is the time period between putting down your EMD and the point where your deposit "goes hard" called an inspection period? Are there any other terms for it? Also, are you able to cancel the contract at any time during that period for any reason?

@Chris Mason understood. thanks!

@Chris Mason does cap gain taxes apply to refinancing for more than you put in originally? 

I'm sure there are many creative ways to do this, but does anyone have a recommendations on how to structure this example? Potential Joint Venture on a duplex that two investors plan to rehab and refinance. Investor A lives out of market and finds the duplex significantly under market value. Plans to use hard money for 85% of purchase and all of rehab; 15% out of pocket for purchase + closing costs. Investor B lives in the market and visits the property to estimate rehab and confirm that it is a solid investment. would be in charge of the project, oversee construction, responsible for getting the property to the estimated ARV. Property gets finished and then refinanced and investor A gets their cash back out upon starting new mortgage. each investor agreed to take one of the units to own and rent out, assuming they are equal in value. My question is 1) seem like a fair split? and 2) how to structure the agreement between the investors from start to finish

I've heard about a strategy people use when buying, rehabbing and then refinancing to "get their cash out". Would anyone be willing to explain how refinancing a property works in an example like this? (excludes closing costs/other fees)

Purchase price: 150k

-127.5k from hard money lender (85%)

-22.5k personal funds (15%)

Rehab: 40k covered 100% by the hard money lender

ARV is now $300k

If I find a traditional mortgage loan where they will loan 70% of the home's value, that means that they will lend $210k, correct? Would they actually give you a loan that is technically making you a profit?

Thanks guys. What are the fees for this? Do you go through a title company?

How do you go about transferring title/ownership of a property from yourself to your own single member LLC, or from one of your LLCs to another? Probably a dumb question but you don't actually have to do a closing with yourself right?

So is that stated in the assignment contract between me and the end buyer and he pays me the $13 after closing?

Interested in a 2bd condo/townhouse (under $150k cash) or a duplex (under $200k cash) in really any area within 5-6 miles of the loop going West, NW or North. Something that needs to be fixed up (im sure you can tell by those price max's) so I would be able to refinance afterwards to get the cash back out. Typically looking at ARV x 75/80% minus repairs...