All Forum Posts by: Dell Epps

I'm going to one on Friday. I'll drop my updated review. I'm just looking for a few key nuggets to get my flipping biz off the ground.

There's actually like 3 options: you can have an S-Corp, an LLC, or an LLC that's taxed an and S-Corp. personally for flipping, I like S-Corp tax advantages although there's more paperwork and bookkeeping required. Definitely talk to a local CPA as things can vary city to city, state to state.

I agree with J as the taxation differences is why I wanted to establish as an S-Corp vs LLC. However, in my own research I never came across or was told anything about capital requirements. Maybe that's a differentiation in your state? If you find out, I'd love to hear more on that. They would certainly know more than me in that area.

Doing my own tax research, I've come to the conclusion that I am going to hold my rentals in an LLC, and handle the flipping under an S-Corp. However, I've learned that it is possible to get an LLC taxed as an S-Corp as well.

Try Realeflow as well. I just started a trial and liking what I'm seeing so far. I'm going to try Appfolio as well as I've never heard of it. Trying to locate that perfect solution for my needs.

Well, I learned early on that you don't need a RE license to invest. Many investors don't. However, it does give an investor a bit more control over their deals, and access to the MLS. One thing that @Brandon Turner preaches across BiggerPockets is the title of his book: The Book on Investing in Real Estate with No (and Low) Money Down. It all depends on what aspect of REI you actually want to get into: do you want buy and hold rental properties? fix and flips deals? wholesaling? Either way, you can always try to find a private lender/hard money lender or a traditional loan if you want to invest and don't have enough personal funds.

Are you all able to call up the old landlord and find out what's going on? I think that would be easiest before getting legalities involved, but also think that the parameters of this type of situation can vary from place to place.

Great info here guys. Down the road I hoped to branch out into various investment opportunities and thought about becoming a HML or private lender for some others, that is after I get a better handle on all the things related to real estate. As with any business, you need to run it efficiently, do your marketing and stay on top of things to keep that boat afloat.

I agree with @Brandon Battle, definitely go LLC with S-Corp election. I did a lot of reading on my own about that as far as tax benefits. However, its all depends on your investing goals. Some advice I learned from a CPA: do your house flipping inside an S-Corp, and hold your rentals in an LLC. That's what I'm doing for my situation.

Before you take anyone's advice, definitely talk to a CPA about your specific situation.

Originally posted by @Ashley Pimsner:

@John Rocker, one way would be to approach a local community bank or credit union in the area you are buying and ask to speak with VP on commercial side about a loan for an investment property. 

Even though the property might be considered residential they will still lend to you if the numbers work.

They will only lend to a business entity like a LLC and look at the metrics of DCR around 1.2 and ARV of between 65-75%.

Welcome to BP...your are in the right place!

 Finding deals, putting those numbers into one of BP's calculators to present a full report to lenders and investors was always my plan. I think if you can show any lender the hard numbers, they'd go for the deal. At least this is my assumption, but I will find out on a case by case basis.