All Forum Posts by: Christopher Haney

Natalie Kolodij , Great thanks. That actually makes sense to me. So there really isn't anything different from the taxes I pay in my regular job and being Self Employed except that I pay both halves of the Social Security and Medicare taxes. Chris H.

Daniel Hyman Wayne Brooks George P. Thank you. I will get a professional with my specific situation. The biggest problem I had was I was under the impression that SE tax was the same as Federal Income tax. Now I know.

BP, Again I don't have a Flipping clue. Ok that was a lot funnier in my head. But seriously, I was reading several posts on here about SE taxes and got a little confused. What exactly gets taxed? Is it all profits the properties make or just the portion(s) that I payout to myself? Also I saw someone mention that I have to pay SE tax and regular taxes. What is the regular taxes? Is that like the income tax we pay if we work for someone else? My plan is to take 50% of the profits earned from each property and keep it in the business for future deals. The other 50% would be for my pay. Would I be paying these taxes on the entire 100% or just the 50%? Thank you for your time, Chris H

Braden Coast I do not intend on doing owner occupied. My plan would be to keep the property owned by my business entity and to rent it out. Bob Green I will take a look into it. Again any pointers is always appreciated. Chris H.

BP, With my initial intention being to fix and flip my properties I can't help but to ask the " What if..." questions. Specifically in this case it would be: "What if the house doesn't sell?" or "What if it takes a lot longer than expected to sell?" Well, if this happens my plan is to rent the property out. The potential problem that I'm seeing with my plan is financing. I know that most Hard Money lenders are short term (a year or less), and traditional lenders typically lend to individuals and not businesses for mortgages. Any ideas of an approach that I can't take? Thank you for your time, Chris H

Andrew/Jassem I appreciate the feedback. I plan on having contractors doing most if not all the work as I also have a full time job that can be very demanding on my time. Chris H

BP, I heard that Virginia has a law that states that in order to flip a house the owner/investor must hold a contractor license even if they have another contractor running the project. I tried searching Virginia's legal website (law.lis.virginia.gov) and found nothing stating that the investor needed a license. I understand why someone doing the work would need one. However, I don't see why a property owner would need one even if they intend to flip it. Additionally, I also heard that this would include landlords of rental properties. Does anyone know the exact laws that state this, or if the laws was superseded/cancelled, or never truly existed? I'm really wanting to start flipping when I get back to Virginia but have never been a contractor. Also do you have to have a Real Estate license to flip in Virginia? Thank you for your time, Chris H

Laura,

Any idea on what law(s) this was?  I tried looking up the laws for Virgina and found nothing.  Additionally, why would you need a contractors license if you buy a house and rent it out?

Chris H.