All Forum Posts by: Kyle Weimer

Uh....we weren't talking about multi-memeber LLC's either. Most of the people on here are single-member quick start up LLC's because they think it's simple. They don't keep the paperwork, meetings , and such. A corp is much cleaner. All I'm saying. It's a fact.

On a side note, A bill in Colorado that would require ALL hardmoney lenders to be licensed is dead!!

Hallelujah!

We used to leave in a free market economy. So sad what some people are trying to make us become. Gotta keep fighting the good fight!!!

I know there is a great country somewhere underneath all the bureaucratic and political ignorance and hypocrisy.

My attorney has written numerous books and is an active invetsor. I believe at the moment he has 40-45 rentals just in my small Aurora, CO.

No, that doesnt make him god. He is sharp and I trust him. I guess as long as you trust your guy everything is great.

Good luck everyone. Lets make some money this year.

Well first off, as far as formalities. You are correct. Most states dont require you to have resolutions, minutes of meetings, and such for your LLC. But, if you dare to take aggressive tax deductions as a Corp can do, you better habe resolutions, meetings, and an iron clad operating agreement to take those or you can be in big trouble with the IRS. So, in essence its much "cleaner to operate out of a corporation, which if set up properly, intrinsically has all these instruments already incorporated. No pun intended.

Also,as far as asset protection goes, single member LLC's are VERY weak in this department! In fact, there have been two recent court cases, one in Colorado and one in Florida, in which it was determined that the single member LLC does not provide for complete asset protection, but still lawsuit protection. That is fact. Much harder to pierce a corporate veil if all the paperwork is in order.

Thats why I only put two to three rentals in one LLC. Because if something does happen and you get sued, which will haopen, they can only take the assets from that one LLC. Your rentals in the other LLc will be safe.

So, in essence, it just makes more sense to form a corporation for your for your flips and LLC's for rentals. You still must have agreements and paperwork, and resolutions to assure you can take your deductions that we all desire. Single member LLC's in my opinion are just to vulnerable. Thank you.

I'll let you do your own research. Your "CPA" is wrong. A Corp is the best for short term in and out strategies. As far as group health care. Who said anything about that??
As long as I buy health coverage with post tax dollars it is a 100% write off. That alone is a superb reason to incorporate. If you research there are other reasons as well. Look, I don't care what you do. But don't tell me I'm wrong when got don't have all your research. I'm not going to explain it all. I had to research and learn as should you. I know one of the best tax attorneys that is around. He practices in New York, Florida, California, and Colorado. Hes VERY well known! I'll put my money on that. Good day.

I guess J Scott and I will have to agree to disagree. Corp is proper for short term fix n flips and LLC's for buy and hold. That's how I roll and everyone I know rolls. Good luck. Keep on keepin on.

There are definite tax advantages to running your short term flips out of a corporation. Also other fringe benifits and such as far as health benefit deductions. Unless you ask the IRS to tax your LLC as an S-Corp, an LLC isn't recognized for tax purposes.
It's general consensus that it's beneficial to do your rehabs out of your Corp and keep your rentals in an LLC or multiple LLC's. I only use LLC's for rentals or my disposable LLC's when I'm going to wholesale flip to another investor.

There are other reasons as well. There are probably some good articles here on the subject. My tax attourney/mentor gave me this advice and he's pretty sharp. Good luck to you.

If your'e flipping you should probably be doing it out of a Corporation, not an LLC. Just my two cents. Good luck.

Also, just because the comps in that area that are for 125k won't be as nice of yours, doesn't necessarily mean your house with upgrades will sell for 15k more. Price is very neighborhood dependent and some neighborhoods won't justify the higher purchase price just because you have tile and other upgrades and the others dont. Just something to think about. Don't get burned.

Never use just a DBA when buying a property.
Never buy a property without an entity.
If you are flipping houses you probably should use a S Corp or C Corp.
Only use an LLC on your buy and hold properties, or when using a disposable LLC to wholesale assign a contract to another investor.
Just a thought. Good luck!