All Forum Posts by: Bryce Davis

I can see where it is coming from though.

You remember in the movie Heat Al Pacino says "Don't waste my #$@ time"

I feel like posted that on all my ads. My time is valuable and I have idiots that call me about every little thing I sale and try to offer 10% 20%. Its freaking crazy.

It is really sad. But I am glad everyone does not try to succeed because it would be more competition.

I have tried to help homeless get off their feet. I have tried giving people a free place to stay so they can save. I have even tried to let people work to own part of a company. An example you work twenty to fort hours a week and we will apply your hours to a profit split. Then the next time you work less because you will have capital. The response I get is I don't want to be the labor. I want to be the person that pays.

yet they have no money.

They also don't realize the investor is always working. Just May not always be labor.

I also know people that won't do something because they say thete are experts doing it alteady. I could you compete with someone that knows the business. Its America Jack, learn the business.

Also how many of you have got the response "That can't be done" or "its hard" by people that have never ever attempted what they are commenting on.

I would love to hear more stories.

I am an experienced investor and have flipped many properties. I have a couple friends that wanted to get into the market therefore I decided to TRY and take them through one offer or two and split profits.

I if course assumed, once every few days, response to emails, etc..

What happens, weeks without responding to emails, phone calls once every two weeks etc..

Yes, I know these people are evidently not ready to pursue anything or have way too much going on in real lives.

I just find it so funny that people see or hear stories of success but no one wants to work for it. No one understands that in order to become wealthy in todays world you need to work more than 8 hours a day. People go to work 8-5 and expect to be rich. I just don't get it. I especially don't get it from people that are well educated have a great job and disposable income. The express so much interest but when it comes down to actually DOING SOMETHING and not just talking they are lazy as heck.

Would love to hear your stories!

Look at rentals near your or houses. Get very slightly better than their, nothing more. If your area consist of 1 per sq ft carpet and your put in 5, you will not see a return. I just got a fantastic deal on a custom home. This person put in custom everything would have cost twice what I paid to build. He lost all that money because no one cares when it comes to the appraisal. The only way to recoup that lost would be if someone paid the difference in cash. It happens but it is rare.

I do not understand how this is a great deal. Houses are selling at 145k, you technically offered him 133k. So you saved 13k? Seems like for that type of saving you could just make several offers in the area and not have to bother with the crap. Also a motivated seller would take a larger deduction. You are doing them a favor, least that is my opinion.

Jonathan,

I thought corps couldnt own a LLP just a LLC.

Limited Liability Company

LLC owners, called "members," can manage their businesses or hire professional managers. In addition, LLCs enjoy a lot of flexibility. For instance, they can have as many members as they like, and corporations are allowed to be members. LLCs enjoy freedom from the state-mandated membership and management reporting requirements that corporations have. Most important, LLCs do not have to pay taxes. Instead, their profits and losses are passed through to their members' individual tax returns in the same way as a partnership. As a result, members enjoy the advantages of avoiding the "double taxation" of corporations as well as receiving tax relief from the poor performance of their LLCs.

Limited Liability Partnership

LLPs have the same tax advantages of LLCs. They cannot, however, have corporations as owners. Perhaps the most significant difference between LLCs and LLPs is that LLPs must have at least one managing partner who bears liability for the partnership's actions. With an LLP, whoever is in charge is legally exposed in the same way owners of a simple partnership are exposed. Silent partners and investors in an LLP receive liability protection as long as they do not take on a managerial role. If they do, a court could pierce the veil of liability protection.

That being said, would it be best for each of us to own a S-Corp then form a LLC and both S-Corps wold be owners of that.

Thanks,

Bryce

Joe, I really appreciate the reply. Is that the same thing as a DBA (Doing Business As)?

The problem I have is coming up with a method that both parties own the house etc... but we are able to split the profits legally. Also to ensure to don't really screw ourselves when it comes to taxes.

That is why I thought two companies owning one property may be the best.

Are you suggested that in a series I could create a separate company for each flip?

Could you please help me design the perfect setup.

I have flipped before and under an LLC and am starting to ramp back up.

I am very good at taxes and don't want a full partnership to influence all of my deductions. Therefore I was thinking it would be best to start a business and have my partner start a business. Then both of our businesses would own one company. Is that possible? If it is possible what are the pros and cons.

Another method I had thought of is a business venture together.

Thanks in advance.

Has no one ever dealt with this before?

I was thinking we both would own separate S Corps, but what happens when it comes to taxes. Are their any negatives?

I would like to start by saying this is not my first rodeo but this is the first time I am faced with these circumstances. I have flipped houses before, with and without partners for the short term. Had a LLC and S Corp etc..

However this time I have someone that wants to go in an even 50 to 50 split on everything. I can do it without them but I think this will allow the business to grow faster. However, I have a few concerns.

I am a higher risk taker, I like choosing the properties, I know a lot more than this person since I have performed flips for years. Yes, I know taking on a partner has it drawbacks however I was thinking there may be a way to only be in a partnership for only particular properties.

Of course one way we could do it is form a S Corp and only go in together on the properties we want to share the profit. However, how can I pass the profit to lets say another S Corp with very minimal tax losses. This would allow the money to be made as a partnership in lets say S Corp A, pass the profits to S Corp B which I have sole control over and can invest how I see fit. My concern is double taxation, the income is taxed when moving from Corp A to B, then taxed as income from Corp B

Another option is each of us own our own S Corp, we buy the houses as 50% owners. Then sell and split the profits. My concern is the profits taxed at a higher rate because they are split between two corps without showing losses which may not be realized by the other corp. An example my Corp "Corp A' put more money into material cost and also pays for more labor. Therefore those are Corp A tax deductions. Can the profit be split then it is up to each individual to show profit and losses for their 50% or does it have to be calculated prior.

I am trying to think outside the box. Does anyone have any ideas for me to have a 100% ownership in a company and allow profit to transfer through with a lower tax rate. Each owner would have their own expenses, deductions etc..

Any ideas and discussions are welcome!