All Forum Posts by: Brent Baumann

Exercise patience... Be careful not to make an emotional offer, remember this is your business and you need to be sure of your numbers. We all want a house (or more houses) but make sure your analysis is right before showing your hand.

1 Vote

I have a few electricians who work under me in the Cincinnati area. If you want to PM me what you need done, I can get you a quote.

0 Votes

I used Bob Hogue, passed in class and state exam first try with flying colors... Take that with a grain of salt, it is extremely rare for that to happen, many people fail up to 5 times. Also, re license are about 3,000$/yr to maintain/keep with membership fees and E&O insurance.

2 Votes

I would be interested in meeting, I'm in pasco/new tampa

0 Votes

@Nick L.: No need to see this as a failure. Keep your head up, you now know you need to bring more capital. Another property will pop up soon and you will be ready.

0 Votes

Milwaukee, Wisconsin

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I am an investing noob, so take my response with a grain of salt. I feel for that high of an initial outflow, the profit margin isnt high enough for the risk. You put out 350k and pay 65k a year to keep it running to net only 2.5k. You better have a solid relationship with your partner for this.

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Originally posted by @Steven Hamilton II:

Originally posted by @Brent Baumann:

I have an appointment to meet with a CPA on Monday, and am researching everything now to test his knowledge in real estate planning. (any specific questions to ask would be helpful)

I looked at all of the different taxes flippers are charged and broke it down if I were to make $100,000 in annual profits.

$100,000 net profit

(15,300) self employment taxes (social security/medicare)

(6,750) state/county tax (ohio)

(1,855) 10% of first $18,550 (filing joint married)

(8,512) 15% of 56,750

(6,750) 25% of 24,700 (bringing us to 100,000)

----

$61,407 take home or 38.6% taxation (absent deductions)

Am I missing anything? How is this possible, how can we really be taxed this much for working so hard?

I haven't researched what occurs when you form a LLC or S-corp yet, so there may be differences with this.

Thank you.

Brent,

What you did not factor in was your personal exemptions, standard or itemized deductions, etc. You can contribute to a 401k, provide yourself health insurance etc.

It only seams harsh because of the employers half of SS and Medicare 7.65%

This is one of the common reasons for forming an entity for investing.

https://www.biggerpockets.com/forums/51/topics/704...

For an accountant do not feel like you need to use someone local. Many of us accountants have clients worldwide. Payroll, bookkeeping, etc can mostly be done remotely.

Here is a great list of questions to ask a potential accountant:http://www.biggerpockets.com/forums/51/topics/70447-questions-to-ask-a-cpa

Also check out the www.NAEA.org page in your search. It should help you find someone local. If someone comes to me, I'll send them your way.

If you need help in your search or want to verify something don't hesitate to ask.

For example: I have clients worldwide and things are just as easy as I e-mail them, talking on the phone. I even use Skype and TeamViewer to communicate with clients so I'd highly recommend looking for one of the best with great references that interviews well with you.

So look for someone you can connect with that works out for your situation.

Feel free to ask here if you have questions.

Thank you for your response, I thought this thread was going to be overlooked. I guess it makes sense not having to work with someone local because taxes/deductions etc are universal (in a sense)

Thank you for the response. I will look into the links provided and will research for clarifications if needed.

-Brent

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I spoke with Bill Null, Senior VP of mortgages, and also Jon Morrell, VP com lending. I wouldnt throw my name around, I highly doubt theyll remember me as nothing came from our discussions.

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All Forum Posts by: Brent Baumann

Brent Baumann has started 1 posts and replied 20 times.

Post: How high can I go?

Post: Looking for an Electrical Contractor in Dayton

Post: Real estate license

Post: Tampa / Hillsborough County Foreclosure Auction Help!

Post: My failure at the Milwaukee County Sheriff's Sale

Post: Am I calculating this correctly? TAXES

Post: Am I calculating this correctly? TAXES

Post: Waterfront Mixed-Use With Dock!

Post: Am I calculating this correctly? TAXES

Post: New REI in Tampa searching for a Bank to open a business account