All Forum Posts by: Kris B.
Kris B. has started 4 posts and replied 7 times.
Question for agents. What's your take on no more 6% commission and how this will change the way you operate?
Post: Business structure in texas
- Posts 7
- Votes 6
Quote from @Lateefah Mathews:
@Kris B. A Series LLC is a complex entity and is only available in certain states. You should verify whether you can establish this type of LLC in Texas.
If you are seeking ultimate anonymity, the state where you domicile your corporation is crucial, as many states do not offer protections for its members or shareholders, which affects anonymity. I'm personally a fan of C-corporations, though they are also complicated. Many shy away from them because they do not want to deal with the extensive paper trail required to maintain separate tax filings for the business.
In short, for the type of protection you're looking for, Wyoming is currently at the top of the list. Nevada has become expensive and no longer offers the level of protection it once did to its owners. Delaware is next up to bat. Remember to file as a foreign corporation in any state where you plan to do business, especially once you start acquiring property, to protect your corporate veil.
Lastly, my Disclaimer: This is not legal advice. :)
Thank you @Lateefah Mathews This is very helpful!
Are aware of any software solutions/service provider for managing C-corp operations like payroll processing, book keeping etc ?
Post: Business structure in texas
- Posts 7
- Votes 6
What's the ideal business structure in Texas for sole-owner, flipping business that offers anonymity, tax efficiency and asset protection? Does anyone have a recommendation between Texas series LLC and WY(or NV) C-corp owning TX LLC?
Also, is C-corp an overkill, though it offers tax efficiency? Can you get same level of tax efficiency without C-Corp overhead?
How do you handle RE agent commission while flipping? Do you pay while buying and selling again for buyer and seller agents? Is there a standard % for a sfr (if anyone is around DFW market) ?
Hey folks. This is my post post in this community and I am super excited to join here. I am hoping to get some guidance. I am a newbie investor and working on a deal in Dallas area for Rehab, Rent and Hold. This is a SFR 2900 sq ft, 4/2.5 with 2 car garage. LP is 280,000, ARV is 425,000ish and renovation is about 75 ~ 80 grands (+20 grands for closing cost, first year taxes, reserve etc). Thinking of 25% cash down with the rest in HM. However, does this deal even make sense? This neighborhood has been a buyers market; more houses than buyers. This house has some equity already, but after closing cost for each transaction, cap expenses, property taxes in TX, do I really get anything out of this deal If I hold for 2-3 years?
The BP rental report shows below:
Monthly cash flow: -$349 /mo
Income: $2,300 /mo
Expenses: $2,649 /mo
CoC ROI: -2.79%
Pro Forma Cap Rate: 3.35%
Purchase Cap Rate: 5.10%
TIA!