All Forum Posts by: Andrew Schmitt

You are only looking for a 6% return...you can almost hit that with current High Yield Savings accounts or CD's.  You don't have to do any investing or listen to any salespeople. 

Or you can give it to me and I'll give you a 10% guaranteed return.  $16,666.67/month.

Hi,

Myself and my partner(life) have a web of assets. We have a primary residence owned outright that we are both on the title of. We have a LLC treated as a S Corp that we flip houses in usually 3-4 month hold time. We have a separate S Corp that is involved in other business, but does hold a contractor license. She holds one other property under her name only that we let a manager for second S Corp live in and we use it for equipment storage and maintenance.

What is the best way or ideas for reducing the income of the real estate LLC? Since we flip the houses so fast there is no chance to use any type of depreciation. Would it be treated as short term capital gains or ordinary business income paid out as dividends from the LLC/S Corp? If we take a (reasonable salary) out of the first S Corp do we also have to take a (reasonable salary) out of the LLC/S Corp or just possibly reduce the income to nothing by transferring it to the other S Corp?

Also should we possibly put our primary residence into another LLC and lease it to one of the other S Corps as management housing?