All Forum Posts by: Account Closed

As a follow up question, would it be advisable to just use a standard state contract. I just started a direct mail campaign, and I am hoping to not only find fix/flip deals, but also wholesale deals. I was planning on just using my standard offer to purchase contract from the state on NC for the seller, and then come up with an assignment contract for the buyer. Thoughts?

I just received an email saying my letters hit the mail today. Ready or not, its go time!

Well done Ben. Vacancy has been my #1 profit killer. I have been able to nail all of my estimates on expenses, rehabs, etc, but vacancy has been tough. That's what happens when you buy lower end properties. Lesson learned!

I am not a tax expert, but I am going through this right now with my CPA. 

Jon is correct in that you pay taxes on your NET income, not your GROSS income. In other words, you subtract out all costs associated with the acquisition, rehab and sale of the property. The taxes are still quite high since you have to pay income tax and self employment tax on the net profit. 

A good way to shield some of that self employment tax is to set your business up as an S Corp and pay yourself a salary. Then, you only have to pay the self employment tax on the salary you give yourself. You do still have to pay income tax on all of the profit.

Like I said before, I am no expert and you should consult with an accountant before making any decisions on how to structure your business.

Very cool @Michael Quarles !

Had this same thing happen to me several years ago. I have avoided them ever since.

The F bomber both scared the Hell out of me and made me laugh hard! I just sent my first round of yellow letters and I'm not sure if I'm ready for that kind of response.

Sounds great @Allison Ezzi . I would love to check it out sometime.

This marketing campaign is specifically targeted at the Waynesville, Canton and Clyde areas. They are just about 15-20 minutes west of Asheville.

@Christian Belleque 

This deal looks like it will get you in big trouble. Please pass on this one one find something else. Speaking from experience, if you have to modify your original numbers (ARV, rehab cost, etc.) to make the deal look good, the deal is BAD!

@Allison Ezzi 

This campaign is actually in the Waynesville, Canton, Clyde areas just west of Asheville. I certainly hope to come up with some wholesale deals, and will definitely send them your way.

Also, I'd love to hear more details on your flip in Asheville.