All Forum Posts by: Tyler Standish

@Brandon Hall To clarify, when you say "once under contract," you mean once I set up the LLC/S-Corp? In which case, it would benefit me to set up now even though there is a chance that I won't purchase a property until 2017?

Thanks!

Hi,

I am wondering if I can deduct "business" expenses prior to purchasing any real estate? I eventually plan on purchasing an REO property and flipping (and will likely set up an S-Corp), but I might not even make my first purchase until 2017, as I am saving for a down payment. Can I still deduct expenses I incurred in 2016? For example, I have purchased books, office supplies, driven to possible properties (mileage). Would this be considered a business expense or capital loss, or neither for 2016? I am thinking maybe I should just set up the LLC/S-Corp now and if I don't make a profit this year (which I won't), I can at least deduct all my expenses (and wouldn't give myself a salary this year since I wouldn't be making any money). However, since I am trying to save for a down payment, I don't want to incur a lot of large expenses (not sure how much it would cost to set up the LLC). Also, in order to receive the benefits of the LLC/S-Corp. status, do I have to set that up before I make the first real estate purchase or can I do it while I am rehabbing?

Sorry, there ended up being more questions in there than I had planned :)

Thanks!

Thanks for the info everyone, much appreciated!

Hi,

I am new to the real estate investing world and am trying to learn as much as possible before making an offer. I have read conflicting information on the deals you can get on REO foreclosed properties. In some instances, I have read that banks are desperate to get rid of these homes (especially those that have been on the market for 3 months or more) and would be willing to take offers as low as 70-80% of the list price. Other things I have read said this is simply not true, and REO foreclosures often sell for more than the list price. Can anyone who does this type of real estate investing give me some ideas as to what is typical in these situations?

Thanks!

Thanks for the advice Ayana and Eric!  It probably will be best to at least start with an agent on my first few deals and then maybe later decide to pursue the license.  I just don't want to feel as though I am wasting an agent's time if I want to look at a ton of houses.  Also, is it difficult to find agents that specialize in investor real estate?  I would assume most buying agents are working with clients who are looking to purchase as homeowners.

Hi,

I am very new to all of this - just finished reading J. Scott's book. I agree that there are several perks to getting your real estate license, but I am wondering if it's worth it if I only want to use it for the buying side. I would most likely still have another agent list and sell my properties as I am not a huge people person (open houses and negotiations wouldn't be my strong suit) and also have a full time job as a CPA, so time isn't something I have a lot of. The dues for my local real estate board (including access to MLS) would be $961 per year, plus obviously the costs of taking the 75 hour course, the exam, and continuing education credit. If I use the license just for buying properties, is it typical to get better deals due to the fact that the sellers of these properties wouldn't be paying the 3% buyer's agent fee? I think the biggest advantage would be access to the MLS and being able to view as many properties as you would like at whatever time you would like without having to feel like you were a burden to your agent. However, if it doesn't make any financial sense, then maybe I should just hire a buying agent as well.

Thoughts???

Thanks!