All Forum Posts by: Chris M.

@Chris M.

Borsa is simply the privately branded name of the ROBS program as offered by a particular vendor.

ROBS stands for Rollover as Business Startup.  Such plans allow you to utilize existing tax-deferred retirement savings to capitalize a business in which you are directly involved.  There are no taxes associated with having the retirement plan become a shareholder of your business, but the business itself will operate in the taxable realm as a sub-chapter C corporation.

This structure has been around since the 1980's and is commonly used in the franchise acquisition realm.  In the real estate space, such a program would work for someone interested in operating a real estate development and construction company, but not for passive investment holding activities.

Very few CPA's will be intimately familiar with this program, though surely some are.  Your real need for a CPA in this space is someone who can assist you in actually running the C-Corporation that will be the plan-funded business.  The intersection between the business and the retirement plan should mostly be handled by a quality ROBS plan provider, and they will generally work with your business CPA.

@Chris M.

Borsa is simply the privately branded name of the ROBS program as offered by a particular vendor.

ROBS stands for Rollover as Business Startup.  Such plans allow you to utilize existing tax-deferred retirement savings to capitalize a business in which you are directly involved.  There are no taxes associated with having the retirement plan become a shareholder of your business, but the business itself will operate in the taxable realm as a sub-chapter C corporation.

This structure has been around since the 1980's and is commonly used in the franchise acquisition realm.  In the real estate space, such a program would work for someone interested in operating a real estate development and construction company, but not for passive investment holding activities.

Very few CPA's will be intimately familiar with this program, though surely some are.  Your real need for a CPA in this space is someone who can assist you in actually running the C-Corporation that will be the plan-funded business.  The intersection between the business and the retirement plan should mostly be handled by a quality ROBS plan provider, and they will generally work with your business CPA.

@Chris M. what is BORSA?

Hi everyone,

My partner and I just completed our FIRST FLIP and we are so excited about it!!! We have both been in construction for nearly 10 years now, and have been talking about trying our hand at our own projects for awhile. Well, we finally took the leap and it was worth it! It was not easy, but we are so glad we did and now we cannot wait for the next one!

$163,000 - Purchase Price

$133,000 - Total Cost (Reno & Operating Expenses)

$17,000 - Commission

$378,000 - Sale Price

$65,000 - Profit

21% - ROI

The project took about 6.5 months. 3 bed, 2 bath 1,400 sq ft single family house outside of Greater Boston. Take a look at the photo's and let me know what you guys think! Also, a big Thank You to everyone who is a part of this great community!

@Eran Withana - Look for value and not at the price.  If you are going to save $10K, $25K, or $100K by developing a tax plan when you first start out, a $2-5K outlay seems pretty insignificant.  You also have to look at a few different things.  Any CPA/EA/Tax Preparer can DO your taxes.  The value comes from the conversations ahead of time that minimize taxes by providing a framework strategy and an evolving pathway that changes with each conversation with your tax strategist and new deal that your investing career contemplates.

@Caleb Heimsoth - With all due respect and I do mean with all due respect, if an investor goes to the lowest priced or an inexperienced real estate investing tax it is just setting themselves up for headaches.  Many of the tax professionals on this forum are not "cheap" but can make a good fee for fixing situations where investors relied on poor advice from cheap advisors.

My conclusion is to interview a few and go with a professional that you feel comfortable with no only their fee, but also their personality, their experience, their reputation, and their willingness to not only advise you as you start your journey but provide education and planning for what type of investor you want to be.  Best of luck!