All Forum Posts by: Braxton Johnson

 Thank you for the response! Do you have experience deeding that property over to the holding company without any trouble? I want to know if your accountant has confirmed that this isn't a taxable event. Also, when you say that you run everything through the development llc until the property in question has been titled, do you mean that you keep all expenses under the development companies books until you deed the title, and then change them over afterwards? 

Good Morning!

My company has been investing in real estate for a while now, focusing mostly on rental property, but also flipping houses and selling properties at wholesale as well.

We have recently moved to Indiana and still own property in Georgia. Right now we are trying to build a solid foundation for our company and create scalable systems. That being said, we have created a couple of different business entities for specific reasons.

First, we have an entity for operations and short-term holds (less than one year). These properties will be held on our books as current assets, all expenses related to the property will be recorded as COGS, and any profit will go against those expenses, as well as our operating expenses.

Second, we have an entity for all long-term holds. These will be held as fixed assets and all income will go against any opex/capex after the property has been stabilized.

Where I am getting hung up, from a tax and legal perspective, is how I can transition from acquiring the property through my operations entity (because we will be marketing through this entity) to holding the property in my long-term entity once it is stabilized? Should I be doing the renovations through my long-term entity to put it against my rental income? Are any of the marketing expenses that are used to acquire the property deductible from the long-term entity?

The difficult part about it is that, while we are doing the marketing through the short-term entity, we won't always know which investment strategy we will be implementing on the until sometime later in the closing process. At this point there will be marketing costs, EMD in some cases, maybe inspections and contractor fees, etc.. so hypothetically, if we decide that it should be held as a long term entity at the end, we have ran all of these costs through our short term entity.

In short, we are trying to avoid racking up a disproportional amount of expenses in our operations entity and leaving all of the taxable income in our long term entity with no expenses to put against.

I apologize, this stuff is pretty complex and I probably did a bad job of explaining it. Thanks in advance!

Good Morning! 

My company has been investing in residential property for the past few years. We are trying to broaden our scope into the new construction space but I am having a bit of trouble finding resources covering the investment strategy, what additional expenses might be incurred compared to renovating an existing home, what permits are required, the process behind working with a GC or home builder to get a project completed, etc...

Any and all advice would be greatly appreciated!

Hello Everyone, 

I have been a part of Biggerpockets for a while now, but this is my first post on the forums. First of all I'd like to say hello to everyone, and second I'd like to have an important discussion. What is everyone doing these days to acquire leads with the highest conversion and ultimately achieve the most success? 

I am not a Wholesaler but I am an investor with 5 properties and counting. I am about to start a marketing campaign and want to know everyone's take. Do you pull lists from Listsource or any other list-selling platform? If so what lists? If you use another platform for lists, which one do you use? Which marketing method yields you the highest returns? Any marketing apps/tools we just NEED to be using? 

If you have any other opinions, advice, or just want to partake in the conversation please leave a reply. Just try to stay on subject. 

Thank you!