All Forum Posts by: Brandi T

I'm not really defending Alexis McGee because I don't personally know anything about her but that quote you are referring to was actually made by someone named Brian Shaffner unless I'm reading the website incorrectly.

I decided 7 months ago that real estate investing was a good investment choice. Purchased the first buy/hold property in August that needed work - it became clear that because of the ARV that I should flip it instead of hold and use the profit to buy more property. The house is under contract - closing beginning of Feb.

Now, the problem. I am not sure what to do next! I feel very blessed that this flip went well but am feeling totally overwhelmed with information. I have thought about getting involved with a mentor so I can get advice on business plan, etc. but don't want to make a bad choice about education. I am the type of person that researches obsessively on my own (and this site is great!!) but I also would like to attend some live education events.

Any advice on how I should proceed? I want to build a business at warp speed since the market is ripe for investing but I don't want to make bad decisions. Any thoughts on education or mentors?

Thanks in advance!

I didn't make his position clear enough - if the property is owned by an LLC (members being my husband and myself) then the income percentage can be set by the LLC. If we designated 90% to my husband and 10% to myself then the SE tax hit will be less because my husband has a "W-2" job so he already maxes out. So, I agree with what you are saying but I still would argue that one property does not make a dealer - especially depending on what we do after this deal. Hope that makes sense.

Thanks for the information - seems pretty gray really. We purchased this property with the "intent" to hold as a rental. Once we started the rehab process we changed our mind because we want the profit out so we can buy several "hold" properties instead of having just one.

Haven't done the transfer yet but the plan was to transfer to the LLC out of our names. We just went past the 90-day mark from purchase.

We are getting ready to list the property for sale - our realtor has concerns about transferring now because of resetting the 90-day rule for FHA buyers. The reason we were going to transfer was because our CPA thought we would have to pay SE tax because we will be considered "dealers" - I am going to argue that point because this is our first property.

Any opinions on how many "buy/sell" transactions it takes to make you a "dealer" in the eyes of the IRS?

If I transfer a property into an LLC does that start the 90-day seasoning requirement for FHA loans over again even though I am the member of the LLC?

Thanks.

MikeOH - thanks for the opinion and just to assure everyone - this was a HYPOTHETICAL question - I DO NOT HAVE 100K IN THE BANK.

I was just trying to understand strategy.

I have a hypothetical question - if you have 100K to invest in real estate what do you buy and how do you do it?

Single family or multi family? What is your reason? How much down on each property?

Sorry such a simple question caused such controversy!