All Forum Posts by: Kent R.

Steven, this morning I actually wrote my post prior to seeing yours (I wouldn't have even posted if I had seen yours first because I've seen your other posts that have been spot on.)

What did I state in my post that caused you to caution me to be wary of my CPA's credentials? I thought we stated the same thing and were in agreement on which entity to use for short-term and long-term holds.

I'm just getting involved in the market and don't agree with the typical terms, but in Orlando here is the standard:

1) $2,000 deposit
2) Non-refundable
3) No inspection period

So, as you can see, you really have to do your due diligence and know your stuff when dealing with wholesalers.

My CPA recommends the same thing that Michael stated.

If you are holding long term use a LLC. If you are flipping short term then utilize your S Corp.

This way your long term holds won't get lumped in and considered as inventory with your short term flips (at a different tax rate).

If you are only holding long term properties, then use a LLC because of the the greater liability advantages it offers over the S Corp. A good CPA should be able to clarify for you.

I appreciate all the responses. It seems the key phrase here is "motivated Seller."

I like the idea of the "flips" instead of the longer term Sandwich and am interested in which technique folks are using... assigning to the Buyer or assigning Purchase Agreement back to the Seller?

Thanks for the quick response Rob! That makes it clearer for me along with the expanded answer.

If you don't mind my asking... do you assign your LO to the Buyer or do you assign the Buyers LO back to the Seller (the technique that Joe McCall uses)?

In reviewing how to wholesale a Lease Option, how do you get the Seller to not require an option fee from you?

You are asking the Buyer to provide you with at least a 3% Consideration Fee that you keep, yet you don't expect the Seller to ask the same of you?

What am I missing?