All Forum Posts by: James Bynum

So, I'm investing with my parents doing flips, and we setup an LLC with me being a 50% member and my parents at 50%. From everything we've heard, if we make over $40,000 in profit that we should file as an S Corp and it will save us thousands come tax time.

The problem is, my parents have a lot more capital than I do and might want to take on bigger flips than I could go half on. So essentially I would come in at say 30% and my parents would come in at 70%. The problem that I'm seeing is that if we file as an S Corp we would have to distribute the profits evenly. I just can't figure out a way to make this work and not lose a ton of money to uncle sam.

Any help would be greatly appreciated. Thanks

Be ridiculously careful about buying a multi-unit from a wholesaler, especially if it's an as-is deal! We got burned bad here in Phoenix in December when we bought a tri-plex for what seemed to be a great price. Now $7,000 in repairs later from things lurking behind the walls, horrible tenants that were in place not paying their rent, and we are wishing we never did this deal.

Oh and about to drop another $2,000 on a bathroom remodel in another unit due to a heavy "mildew" problem.

Just be Careful!!

We are in the process of looking for our third house to flip, so if you have something let me know. Thanks

Awesome! Thanks Bob, just joined. We will do our best to show up for the next one, but we need a contractor like within the next week. Know of anyone good??

thanks for all the replies. I have rejected that tenant. It's in a low income area, and I have received almost 60 emails showing interest in the property, but almost every single person I've showed the place to has been disqualified for one reason or another. Starting to wonder if I need to revamp my qualifications. This is the first apartment I've tried to rent out so this has been an interesting learning process.

So I've had a couple tenant prospects ask me if we accept judgement tenants. I really don't know what this means. Does it mean she was going to be evicted or something? And would you accept a tenant with a judgment on their record?

So, if you've read my other posts, my family bought a money pit of a triplex in December of 2015. 

So far we've had to completely redo the bathroom in unit 2's shower due to there being floor to ceiling mold that was hiding behind the walls. Well as we were finishing that part up, not 1 but 2 water heaters went bad, so we just dropped another $1,000 for 2 new water heaters and installs.

During this process we realized that water bleeds over between apartments. We found this out because when unit 2's water heater went out completely and was not producing any hot water, we are still able to get hot water from the faucet, aka we are getting either unit 1 or unit 3's hot water.

These are pretty old units, we pay the entire water bill that isn't split up per unit. One unit is a duplex and then the other one is a single family, all on the same lot. I'm just trying to figure out if this is a common problem and I'm not the only one dealing with it. And 2, what possible affordable solutions can be taken to properly separate the units, so they are truly independent. 

Obviously it's not fair that a single person in 1 unit could be paying the electricity for the 6 people that live next door.

Hey all, my family started flipping about a year ago, and are doing fairly well so far. Currently we hold about 2 houses at a time and when one sells, we buy another one.

We work primarily in the under $250,000 range and the margins can be extremely tight, so I'm looking for a contractor that can do quality work but stick to a tight budget. 

We are mainly looking for a contractor that wants to grow with us, this isn't a one and done deal. No wham bam thank you mam type of stuff here. Once we really get going here we can start taking on even more flips at a time.

Best part is, we need someone now, we aren't really clicking with the person we are using right now, and the project hasn't even really begun yet, so we need someone that can step up to the plate right away!

If interested or if someone knows a good contractor in the Phoenix metro, please PM me!

Any help would be greatly appreciated.

My best guess is he wants someone to pay cash and not have to wait for loans to be approved and what not. Those rents are already borderline bad for the price, but then you add in the HOA fee, which for a townhome I'm guessing is a couple hundred a month, and then the deal is completely off the table for an investor.

We are looking for a contractor that can work with us on our fix and flips. We are hitting the ground running and need an affordable contractor to keep up with the demand. We currently have our first flip pending, we are right in the middle of another flip and need a contractor ASAP to get started, and we are actively looking for another property to buy in the next month. So we will keep you plenty busy.

Give me a call at: 480-422-4285 Ext. 702 or email me at [email protected]