All Forum Posts by: Amy Vasquez

Thanks for your replies!

takleberry - Thanks, I didn't realize atty/client privelege was such a weak option. I could use someone else as trustee but it sure is a lot of paperwork.

As far as the LLC, its only about $250 to set it up in my state and the only yearly requirement is a $35 statement of information form you have to do. (vs Californias $800 privelege of doing business tax... ahem.. I mean AMT) However, that WOULD require a LOT of extra paperwork and accounting fees. I may have been a bit overzealous in my thinking. :D

I am just looking to protect my personal assets like my house in case a deal goes far, far south. Of course I do my research so the margin is well wide enough to avoid it but I like to be prepared for that what if.

I am also trying to avoid being labeled a dealer by the IRS and am unclear on how to avoid that. I have only read that I should not have the homes in my name.

BTW, I will be buying/rehabbing/selling quickly at retail SFRs with light fix up needed at first. What protection do you use in your RE business?
I will look into that umbrella policy

TN-Apprentice I definitely can't claim credit for this idea. I got it from several books I have read and thought it was worth looking into. I want to be sure I choose the best way to set up my company.

I'm not at the point of estate planning yet but I suppose I should think of that too. You're right, I am just trying to protect what I currently have.

I will have to discuss this with my attorney.... as soon as I find one LOL! And I'll ask you the same question as I asked takleberry...What protection do you use in your RE business?

Thanks for your suggestions!

Anyone know of good ones in AZ? I am looking to rehab and sell. I'd like to go the buying through a wholesaler route if there is enough profit for me in the deal

Anyone have any recommendations or experiences with AZ HMLs? I am looking to find/rehab a single family home... probably in the neighborhood of 150 -200k. I am not ready to buy yet but trying to line up finances. Thanks!

I agree, the realtor is the best bet. It is fast/easy for them to put the data into the mls and come up with comps based on all the characteristics of the house.

Another way to get comps is through your county recorder/assessor. You can look up deeds recorded. My assessor lists "comps" which show the sale price (looked my own house up for reference) I would still rather use a realtor because they have comps from homes that just sold but are not yet recorded. And they can narrow down things like beds/baths

Originally posted by "TN-Apprentice":

the LLC is specifically designed to be a "pass through" entity as far as taxes go, right?

Yes, thats exactly what it is BUT you can deduct expenses within the LLC before you pay it to your personal account where it is taxed. As noob said, you can even roll the profits back into your business so for tax purposes you didn't HAVE any taxable income paid to you. It stayed in the business. THAT is the advantage. If you did it as a private individual, you don't get to write off ALL those expenses... do you?

SORRY! :oops: Starting at THIS site is a given! :D

Thanks so much for your reply, it really helps! So wow, 70% is your max huh. I do seem to see others posting all the time about 65% and sometimes even 50. I;m going to write down your quote "you'll never lose money on a deal you walk away from" That's a great point to keep in mind when you're wanting to MAKE those #s work. Thanks!

For anyone willing to share, what do you typically profit (after all fees, not including capital gains) make on a single family home rehab with an ARV of say 200k? What is typical and what is the minimum you'll accept? Better yet, what were those (expected) numbers on your first few deals?

! know to pay "about" 70% ARV but really just as long as the numbers work but I'm really to hear about the bottom line you expect.

Thanks!

urcinus - so what happened at your meeting?

The more you know before you start, the less "stupid" mistakes you'll make. Check out your local library. Theres a wealth of info there FREE! OK, there was one little shelf but there were some good books on that shelf :D