All Forum Posts by: Bryan Casteel

Just did a quick MLS search on active properties in Hamilton County Ohio (Cincinnati area) between $249,000 and $251,000. Here are a few examples:

1: 3BD 2.5BA in Wyoming, OH - Consistently one of top 3 schools in the state - sold AS IS - pics look good, outdated cosmetics

2: 5BD 3.5BA in College Hill - Area has some good spots and some bad spots, house looks to be in excellent shape from the pictures on the MLS

3: 3BD 2BA in Anderson - JUST RENOVATED, pics look awesome, good area

You need to work with an accountant on these types of questions. If you are going to play in real estate game then you need to have experts around you: accountant, real estate lawyer and title company are a good start.

A rehabber that does any level of volume is going to be classified as a dealer by the IRS. Dealerships pay the highest tax rates. If you are going to turn these properties several times a year, you are just going to have to accept the fact that you are going to have to pay taxes. If you are holding these properties for more than a year (which it sounds like this one is), you will have to pay long-term capital gains which is a much more favorable rate.

Transfering the property into an LLC does not solve any problems with the IRS b/c the LLC is a pass-through entity. The two best ways to avoid paying taxes all together are
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Amy,
Great qoute and right on the money for real estate investing. Since turning "Pro" there have been noticeable cycles in my business. Times when the deals and the good news are coming left and right and then there are much darker times. I have been through a couple very slow patches and I can honestly say that just putting your head down and pushing through works. The law of averages catches up and the flood gates open.

Keep yourself on track to meet your goals this year. Decide what your goal profit for the year is going to be then work backwards to figure out how many offers to make on a daily or weekly basis. Consistency is the only way to make it in real estate. Make offers, offers, offers. Every week.

Kudos to the BiggerPockets founders on putting together a great site with a ton of information. I am a full time real estate investor in Cincinnati, OH. All I have to say to the new investors is...it works, just do it.