All Forum Posts by: David Roberts

I try to be honest with people and do things the right way in all aspects of my life.  I dont try to pull stuff on people because that's not what I would want done to me. Im sure this won't be the last time i find out something i should have known but didnt.  But the last thing i want to have to do is pay HIS taxes!

YEP in the future i will state that up front.   I just didnt even know i had to 1099 anyone.  Ignorance on my part. Like i said, i am new in business and learning.

For sure in the future i will do that.   The 1099 thing never came up in the beginning so it wasnt like we discussed a better cash deal.  The roofer informed me that "im acting like i did 15 roofs for u".  And he said he does this stuff on the side.   But he pulled permits for me each time.  And i paid him by check anyway,not cash.

Yes i.will tell everyone from now on up front.   In this case it was ignorance on my part, not knowing i had to 1099, and only thought about it after seeing that blog post (thanks bp).  Ive only been in business for 1 year and this is my first tax return for the business.   

But in the future for sure Ill get that info from contractors up front! 

I couldn't even get a word in to tell him what it was (he sounded like he really didn't know,  but saw that it was some " bs papers"). The guy is 50, and been around the block,  so im sure he knows what it is.  I just wonder if he doesn't report much for income and flies low.

Yes, my CPA said "you need to protect your business"...so I did.  

I will be sure to get a W9 filled out ahead of time for all future workers.   The dude was PISSED.  As soon as I saw his number I knew that's what it was for.  I tend to think he probably doesn't do the right thing on his end and that's why he's furious, or he really doesn't know what the 1099 is.  

He said nobody ever 1099s him.  Well, maybe everybody else he does work for pays him cash or doesn't run their business the right way.  

I just don't want to get stuck paying my taxes and his.

So 2015 was my first full year in the real estate business.  Someone published an article a week or two ago about making sure we get our 1099s together out to our contractors and such.  I honestly didn't know I had to do that, so I called my CPA and asked about it.

I told him that I had a roofer guy do 2 roofs for me (I paid him over 10k) and my main contractor which I paid 27k+ last year.

My CPA suggested I 1099 both of those guys, and to try to get their SSN but if not, still 1099 them to protect the business.

I called my contractor and he was ok with it, although he acted a little surprised I was asking.  He even gave me his SSN.  

The roofer,  I didn't bother to even ask.  He's a roughneck type and I knew he would not be happy.  So I just got the phone call.  I saw his name pop up, and I 'gulped' lol.

I'm not sure he was even aware of what the 1099 was, but he was livid. I  couldn't even get a sentence in without getting cut off repeatedly about how I'm acting like he's done 15 roofs for me and "I've done several others for everybody else and nobody's ever 1099'd me".

When i asked if I could explain what the paper was and why I had to issue it he just cut me off and said he didn't care to hear it.  At the end he told me to lose his number and never call him again.

Did I do anything wrong?  Should I not have sent him one?  I was just trying to protect the business and do the right thing.  I lost a good, cheap roofer over it, too.

me.  Lol

we use mysmartmove and let the tenant pay on their side.   

oh i didnt know your helocs were commercial.  Thats cool.   I think commercial loans are unlimited. Sounds like you are killing it.

 I also do the 6-mo refi and cash out almost everything, and yes this is a good no money down strategy after 6 months.  Your cash on cash return becomes 100%.  I think it is important to keep your money always moving around.  I have been burned in the stock market too many times, turning over all control.  Never aagain.

I have a 10-year interest only draw period HELOC on my home, but every time I risk it, I really don't feel comfortable. I'd rather risk someone else's money, but I don't like taking on equity partners, it's too expensive.

The bank told me HELOCs count as a mortgage against my 10-mortgage limit, which is why I don't want to open up any more.  

I'm trying to learn quickly about understanding multifamily.  Those deals are hard to come by, but in the meantime I want to learn to analyze and be ready to pounce.  I plan to transition into holding multifamily, and holding some, but mainly flipping single family.  That's the plan anyway. :)

 Sounds like your lender is allowing you to do 'delayed refinancing'...