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Updated over 3 years ago on . Most recent reply

User Stats

107
Posts
33
Votes
Brendon K.
  • Real Estate Agent
  • Los Angeles
33
Votes |
107
Posts

How do people hire help legally when they're starting out? (US)

Brendon K.
  • Real Estate Agent
  • Los Angeles
Posted
So I believe it's well known that when you're starting out in REI you should start out doing everything as a private person, not a business. For one, your appraisals use an entirely different method which can definitely be in your favor. This means that you'll be doing easier and insured bank mortgages, not business loans, for any property you have.

Check out this section from IRS.gov:

People such as doctors, dentists, veterinarians, lawyers, accountants, contractors, subcontractors, public stenographers, or auctioneers who are in an independent trade, business, or profession in which they offer their services to the general public are generally independent contractors. However, whether these people are independent contractors or employees depends on the facts in each case. The general rule is that
an individual is an independent contractor if the payer has the right to control or direct only the result of the work and not what will be done and how it will be done.


Since I'll be investing remotely I'll be requiring someone to help me out in the "bird dog" activity of finding properties through driving for dollars. Problem is, I'm going to have to tell this person exactly how to do it. Using an app to put in data, the app tells you how to get to the next location and what kinds of problems to look for and then prompts you to take pictures.

This seems to be as though we're telling them what will be done and how it will be done. I'd assume it would be the same even if you're putting a company such as Upwork in the middle of it. Is it unavoidable to become a business to pay for helpers in this scenario?

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