All Forum Posts by: Grace P.

I am sure this gets asked all the time but I can't seem to find our situation in any posts. Okay my husband and I have experience rehabbing, flipping, renting etc... We have partnered with some friends (another couple) who have no experience. We created an LLC and are in the process of selling the first flip with them. On this current deal each couple put in 50% of the capital and plan to split profits 50/50. We are all doing the work ourselves and keeping track of our hours. We will be compensated for hours worked after the sale. My husband who has the most experience will get a higher hourly wage than the other three. My husband and I feel that for the next flip we would like to adjust the profit splitting to 60/40 or 65/35 as we have mostly managed the project, did most of the work and carried the burden of the stress. They do work and are not silent partners but they need to be guided through the process. We don't want them to feel cheated but we feel we should be compensated for management of the project. What do you guys think is a fair split?

My husband and I own a few rentals mutually in both our own names (not in an LLC). We did one flip before. For that deal we started an LLC and filed as an S-Corp. 50/50 split for cost and return of profit. Our CPA at the times was not very helpful and we got all of our advice from reading blogs and articles from BP. We are now going to partner with another couple and not sure if we should do another LLC and file S-Corp or if there is an easier (least expensive/tax advantageous) way to structure this deal. This would also be 50/50 split of financial investment work and profit. We are looking for a CPA that specializes in Real Estate but haven't been able to connect with one yet. I know structuring questions are all over BP but I'm hoping for some quick solid advice as we currently have an offer out on a property. Thanks for your advice and guidance.

We are open remote consultants we just want to get solid advice on structuring and someone to prepare our returns. Looks like Natalie doesn't have any openings until August we have an offer out on a property so we need to move quickly on our structure. I think forming an LLC is the way to go but I would like to confirm before moving forward.

Hi,

I live in Anacortes, WA. Looking for a tax professional that specializes in Real Estate that can help guide us through the structuring process and beyond. My husband and I are partnering with a couple to flip a property. We have done one flip with a partner before and created and LLC and filed as an S-Corp. The CPA that we worked with was really no help at all. I got most of my info and guidance from BP. If anyone has a referrals I greatly appreciate it.