All Forum Posts by: Taylor Green

What a great thread... I was wondering if anybody was willing to share an example of a flipped property instead of a rental property and the way the taxes would be done, thanks!

J Scott, of that 15k or 15% profit you shoot for before tax, how much taxable income would usually be left after the deductions... Thanks

Taylor

Thank you guys.

I really appreciate it, I think I confused myself too much by reading about rental property deductions and cost basis...

On an average flip (mostly cosmetic) is there a rule of thumb percentage for how much taxable income would be left after deductions on a flip? Or is that an impossible question... Either way, thanks a lot for the help!

Thanks J Scott.

Would interest on hard money loans count as mortgage payments, therefore be deductible? Also, what about costs of improving the property? Are renovation costs deductible, like new flooring, counters, etc. How about hiring out contractors? Sorry if these questions are too simple, I read old threads and couldn't find out about deductions on flips, just what entities to hold flips in. Thanks.

Hi there,

Great to see an entire section dedicated to Canadians, I love it...

Anyways, I have recently started investing in the U.S. only because that's where I'm located for work. I am originally from Vancouver Island in B.C. I have noticed a few people on biggerpockets from BC and I was curious to see what the cap rates are roughly for smaller multi-family units. Also, are people making money on flipping homes? Thanks... Have a good one.

Hi,

I know this is an old thread, but I've been searching everywhere to find if there are any deductions you can take on a house flip profit. Are you able to write off interest from a hard money lender? Thanks.

Sarah, thank you for sharing that with me. That was very helpful!

Thank you for the responses!

Dustin that is a great line!

Karen, thanks for getting people involved in the conversation.. How would I go about finding a 'reputable broker'? Is it as simple as finding a lending broker and then giving my money to them to loan out? What are the standard returns you get back on the money?

Anne, thanks for the detailed response. I had no idea there were so many different ways to lend out money.

The average investment of the flippers in this area seems to between 175k-300k.

If I were to provide 'all of the money' does that mean I'd supply the entire purchase price, including the down payment, and the entire amount of the rehab costs? If so, what type of partner split would be reasonable? 50/50?

If I were to provide only the down payment, what type of partner split would be reasonable?

What would happen if I only had 300k to lend and the costs went higher than 300k on the project? Would the investor be able to use another financing source?

My original plan was to find an investor to where I could supply about 50% of the dollars they needed at a better rate than a hard money lender, in turn, I would get to learn the business, so in time I could do it myself... Do you think that strategy is no good?

Thanks again!

@Karen Margrave

@Ann Bellamy undefined

Hi,

I was wondering how much capital would be needed to become an equity partner for a fix and flip investor?

I have read thru old threads and was having a hard time coming up with an answer.

Also, if you couldn't supply the complete amount needed for the investor would there be a partnering structure that would work where in order to learn, you could offer them capital at a better rates than hard money rates?

I was just wondering if this made sense. Thanks.

Okay, thanks for the input! I wasn't sure if I should ask for a discount or not... That clears it up!

Thanks again...