All Forum Posts by: Michael W.

The idea of creating a C corp with the same name, with the intent of deceiving the loan company, does not seem to be an ethical way of doing things. You just might have to either find a private lender, or exit the deal.

Thanks to all who have posted on this thread, it has been interesting, informative, and exciting. I have learned a lot, but I have a question concerning etiquette, can a bird dogger honorably bird dog for more than one investor, and can the bird dogger give each investor the same leads?

Frank, thank you for the advice and encouragement, I agree that I will need experience to more fully know what I am doing and the expected results, and that asking questions (and heeding the answers) will reduce bad experiences.

Ned, an LPA is a licensed public accountant, my Grandfather said that he could have been a CPA, but he didn't see the need to take the test and pay the fee to do what he was already doing. So in your opinion, the certification brings no legal asset to my asset protection?

Another related question: is there a legal reason for a CPA as opposed to an LPA? My Grandpa was an LPA and could do anything (accounting and bookkeeping wise) a CPA could do, so to use an LPA would be les expensive, so what is the worth of the CPA?

Thank you Ned

I am a newbie, I have not done any deals yet, and I know I will be getting a CPA/bookkeeper; my question is: in general terms how much should I expect to pay in taxes? For instance, if I buy a house with an ARV of 150k for 75k, and wholesale it for 85k, how much should I expect the tax bill to be; will the tax be based on whole of the 85k, or the 10k profit? If on the 85k, will I have anything after tax for profit? If only on the 10k, I suspect about 50% left.

Thanks Mike, I'll look into an operational agreement soon, how it should be written, if it needs to be filed at the same time I file the articles of organization, ect.

Hi, I am starting an LLC here in Oregon because the outfit I will get my first financing from will only loan to an entity. I plan to file a simple LLC, I've seen the articles of organization form, its pretty simple, I think I can do it, but I have some questions: what is being a "benefit company" about?

"The company elects to indemnify its members, managers, employees, agents for liability and related expenses under ORS 63.160 - 63.170." What does this mean, and is it worthwhile to select this option? I am inclined to choose this option.

My business plan is to wholesale the first few deals to get money in my account, then to buy, rehab, and sell (flip); holding every 4th or 5th deal for rentals for the passive income.

I am seeing talk about operational agreements; since it is my Mom and me starting out, and I will be making the decisions (with abundant input from Mom), do I need such a document right away (I looked at LegalZoom.com, and IF I were to use them to set up my LLC, one of the documents I would get is an operational agreement)?

What other questions should I be asking myself and others? I have done some learning, and I feel as though I sometimes don't know enough to know to ask a question.

Thank you Eric Blanchard and Blake C for the encouragement. It does help to know that some successful flippers had as slow a start as me (or is it I?). The idea of working for free to build experience is a good one, and I will work on that idea. I know a company that did a house down the street from me and I will contact him. He already said that he might be willing to do a joint venture, so I'll see where that leads with the offer to help him for free.