All Forum Posts by: Patrick J.

@Anthony Contento

QBI gets automatically deducted by software. Have you used software last year?? It automatically deducts it.

As far as the more complex stuff, it would take time and you would have to drop off the paperwork with a cpa and pick it up later unless they allow you to sit there for 2 or 3 hours lol.

I am going to rent a private office and my plan is to make an LLC that collects rent from my personal business.

By doing this, my business income gets shifted into rental income thus avoiding a lot of the 15.3% Self Employment tax. This seems a lot simpler than going the S-Corp route although I could make an S-Corp + pay rent to myself saving me even more taxes.

From what I read online, it seems legal. The beauty of this is that my income would not affect lending guidelines for mortgages since it just gets shifted into rental income.

Any thoughts?

@Trevor Stratton

There a people who spend 30, 40, 50k on a wedding. Emotions cause irrational decision making and weddings are very emotionally driven. People take out loans for weddings. It's crazy.

But there is money to be made for venue owners and event management companies. It's a billionaire dollar business.

50% divorce rate means a man is likely to be married more than once which means more business 😂

@Cody Malave

99.99% chance you will never get sued so don't sweat it. Make an llc and don't have too much equity. When lawyers see a lot of equity in property, they're more likely to sue. Also, you can get insurance but tenants and lawyers are more likely to sue if you have insurance so it's a double edged sword.

Unless, someone owns huge multifamily properties, I think getting umbrella insurance is BS. The chance of a tenant suing is 0.1%. The chance of a lawyer taking on a case when the landlord has low equity, an llc and no insurance is zero percent. Then ask lawyers how likely it is for them to actually get the money. Lawyers want big fish, not bob who owns 4 properties in llcs and with no insurance and low equity.

@Sam Khamvongsa

You might be confusing taking a course with a school. In my state, you have to complete like 90 hours or something at a real estate school taking classes. Then you have to take the school exam and state exam. You can complete the online schooling for like $300-$500. Getting a license is the easy part.

You can look up your states requirements.

@Charlie MacPherson

An investor who takes the first deal presented to them or finds the property themselves is an easy check compared to someone who wants to look at 40 properties.

I would never in a million years drive around hundreds of miles and show 40 properties especially to an investor unless they were million dollar properties or someone who buys multiple every year. Working hard isn't always working smart.

@PJ Kolnik

Ya on the bright side, I believe you can deduct up to $25,000 in rental losses against other income like from your job and with depreciation, you should be showing a loss on your taxes but consult with an experienced Accountant, cpa, ea.

@Eli Gilbert

Young hungry agents will usually take anyone and work harder if they're hungry. You can try that route if they understand the basics of investing. A lot of investors themselves are ignorant though and just buy anything presented to them which is great for realtors because easy check.

Also, idk about your market but in this market, everything good is off market or bought within a few days with a dozen offers. Many agents sell the good stuff to their buddies or family members too.

@Eli Gilbert

Also, a realtor wants to know you're serious as an investor or buyer. Buyers and investors who string along agents when they're not serious and don't have the capital to buy are the worst.

@Eli Gilbert

It's normal as a seller to have that agreement

Many top agents have the same agreement with buyers but there are also many agents who don't have written agreements with buyers.

With investors, its also going to be 50/50 but if you don't have an agreement, no agent is going to waste time looking hard for you because you might end up choosing someone else. On the other hand, some agents will throw you garbage properties that have horrible cap rates and cash on cash return projections just to close a deal. You need to know what you're looking for and provide that information to the agent.

If I were you, I would provide him stats on what you're looking for and sign an agreement with him if he is a top agent. At the end of the day, if he brings you garbage properties, then wait until the agreement is over and move on or tell him to cancel the agreement. Its simple.