All Forum Posts by: Patrick J.

@Eamonn McElroy

What's the worst case scenario?? The IRS audits me which is unlikely and forces me to switch back to schedule c??

I rather save $300,000 in taxes over 20 years than pay $300,000 just because the the tax position might be a grey area. That 15.3% is straight robbery.

Do you hire a GC or subcontract the work yourself for flips and BRRRRs? What has your experience been hiring GCs?

@Dassi Lazar

Do you pay your accountant to do payroll and bookkeeping or do it yourself?? I think once its set up, it's easy.

I know some accountants that charge like $1000/month for payroll, bookeeping and taxes and at that point, its not worth paying the Accountant because the costs outweigh the tax benefits.

@Ronald P.

It opens up the door for more career opportunities.

- Residential sales.

- Commercial sales.

- Property management.

- Commercial leases.

- Residential leases.

- Working with banks.

- Saving money on the sale of your own property

- Earning a commission for investment properties you buy.

@Christy Osterkamp

Income approach. Comparables are useless for investment properties.

@Michael Plaks

It would run through a PLLC first and then choose to be taxed as an S-Corp.

@Steven Hamilton II

There are very few expenses as a Realtor so I just throw it on an excel spreadsheet + all of the income and expenses run through my business bank account.

Any high performing agents choose to be taxed as an S-corp??? I heard its expensive to manage and you have to do payroll and bookkeeping.

@Zeeshan Mallick

Something that might cash flow on paper might not cash flow in real life. You need to be patient and know how to analyze multiple properties on a daily basis 365 days a year.

You can find a cash flowing property making $1,000/year but cost you $50,000 in cash for a down payment + other costs to acquire the property. That means you're getting a 2% cash on cash return and it's going to take you 50 years to recoupe the cash you invested. This is not a deal you want unless you're banking on the property's appreciation going up by 20x. I was always told to invest based on cash flow and not appreciation and 10+% cash on cash is what you should be looking for. Value added properties. Most multifamily properties are overpriced in Phoenix so it's going to be hard for you to find solid deals.

@Calvin Ozanick

The only company?? EXP does the same and I've heard Keller Williams has similar profit sharing referral system.