All Forum Posts by: Jonathan Makovsky

Welcome @Anthony Zeolla!

DEFINITION of 'C Corporation'

A legal structure that businesses can choose to organize themselves under in order to limit their owners' legal and financial liabilities. C corporations are legally considered separate entities from their owners. In a C corporation, income is taxed at the corporate level and is taxed again when it is distributed to owners.

Credit: Investopedia 

@Corwin Hernandez

Re: partnerships the reason I like to use LLC's is that each LLC is its own entity and its own deal.

So you and I can partner on one deal, and then in a different LLC you own you might want to partner with a family member, but since your family member and I are in different LLC's we should be shielded from each other's liabilities. (Which would be different if we owned it personally together and there was a major lawsuit that one property didn't cover than the plaintiff can go after the other property.)

Hope this helps!

@Corwin Hernandez 

The LLC serves a few purposes, but I believe the two big ones are:

• It protects your ASSets:
  • One of the primary reasons people set-up corporations are to shield them from liability. So as an example in the event of a lawsuit, the LLC shields liability to just the LLC and does not hold you liable personally
• You do not pay double taxation
  • Different than a "C-Corp", in an LLC the taxes are passed through the corporation (and not taxed on the corporate level) and only taxed to the members.

Congrats @Kris Haskins!

@Andrea Vanias welcome to Miami and best of luck!

Welcome @Vincent Matulewich! Looking forward to seeing you on the site and staying in touch.

@Reginald Dearmon it's a real personal question.

How much time do you have to invest/money in getting licensed? If it will take you a while to get licensed and you are only planning on doing very limited deals per year then it might not be a good use of your time.

However, if you have the time to get licensed, and plan to do a number of deals per year then I think it's a great investment. I think the education is great too, BUT I would not get my license just for the education - there are cheaper and more effective ways to learn it than by taking a RE class.

@Bob Ebaugh I agree and think you answered your own question, go higher and see how much demand you're getting.

Did you go on Craigslist and other rental websites to see how much other landlords are getting? Can you call other landlords or brokers in your area to get other opinions? 

Good luck and please keep us posted.

@Jay Anthony Tatum good questions!

1) At the beginning it's important to go see as many homes as you feasibly can regardless of the motivation. It's good practice to start talking to sellers, putting numbers together, making offers, and other things that you will naturally be more comfortable with time.

2) "Lives out of state, so in no rush." Usually there is more motivation when out of state since everything is just a little more challenging to do then living five minutes away from the property (on the other hand he may not be motivated at all if he has great tenants and someone local that he trusts). But he might say that because he wants a higher number, yet feel free to offer him what you think is right.

Good luck!