All Forum Posts by: Tomekia Lloyd

Wow!  Sandra, you really inspired me today.  Two of my sisters (and their spouses) own rental properties, but they don't seem to want to grow to more than the one or two that they own.  On the other hand, Little Sis and Hubby over here are itching to just "get into the game" this year.

On another note, you're the second person that I heard this week say that you just targeted homeowners by sending letters to find your investment property. I thought only wholesalers that did a ton of deals were the only ones that used this method. I was wondering how to find a good deal because the MLS doesn't seem to have much down here in Houston. I think I may try this tactic this Spring.

Thanks for freely sharing so much information with us!

Jeremy,

Yes, you will still pay self-employment taxes with an LLC. You will just be required to report your LLC income and expenses on a different IRS form along with your 1040.

Please let me know if you have any other questions.

Tomekia Lloyd, Accountant

Hi,

Keep in mind that although you have your business set up in Utah, you will still need to register your Utah business in Texas to do business here legally.  Since many of your deals will be here, as well as your office, you have to register as a foreign entity which will cost an additional $750 on top of your registration for Utah (Yeah...Texas doesn't make it easy for you).  

Whether you're considered foreign is based on your state of formation, not your office location.  There are also penalties for commencing business in Texas, but failing to register here.

Setting up an LLC is pretty simple to do, unless you have a complex structure or ownership.

Let me know if I can guide you further.

@Michael L.

A lot to consider.  Is it very obvious this is my first investment?  Haha...I just want to get the biggest and best return for my money and time.

Thank you, guys.

@Michael L. and @Luis ----

Thanks for your response.   I wouldn't mind this route if the net cash flow is significant enough.  But, I'm curious as to how someone would move on to another property.  Is it difficult to get a second loan with one outstanding on the first property?  How do banks view this?  

My investment strategy preference is a flip...as I am trying to build up some cash reserves.  I would probably go the rental route later when I am winding down.

 I was thinking about this, but it seems that it would take awhile to build back cash reserves after the purchase, correct?  I am not starting out with a whole lot....using my accountant's salary and savings.

Good Afternoon, Folks.

I have a question that is stumping me.  I have my resources lined up for an actual rehab project this year.  Two of my clients are a house flipping company (helping me with advice) and a remodeling company that I absolutely trust.

However, I cannot seem to figure out which is the best path to take for my young family:

Should we buy our first family home, then use other assets (hard money, equity, or cash) to invest in a different property in the future...  Or should I jump right in by making my first house purchase my first investment deal to be put on the market immediately after renovations.  If I did the latter, I would assume that we would have to make frequent moves for some time until our cash reserves have built up a bit.....or continue to pay rent elsewhere.

More Family info: Currently renting with husband and three children under 7 years old.  We currently own no property (except heir property).  Husband previously owned property before marriage and sold it.

I am curious to see what strategies some of you folks with young families took.  Want this to be the least taxing on my kids as possible, but we are definitely ready to make sacrifices for our future financial security.

Thank you in advance for your wisdom.

 ---@John Matthews

Hi, I am an accountant that is interested in doing my first investment deal this year...

However, I think I can answer your question regarding your CPA's comment.

The purpose of an LLC is more for LEGAL liability, than for tax deduction, because you can typically deduct most of the same expenses whether you organize an LLC or operate in your own name.

So buying property through and LLC should give your more legal protection, but it doesn't necessarily provide more tax benefits, since all income passes through to you and you are taxed at the same income tax rate.

Hope that helps.