All Forum Posts by: James Triano

I've had similar situations and spoke with my CPA.  This is considered "self-dealing" and can be tricky.  The IRS doesn't typically like this and an expensive appraisal process (get 3 appraisals and take the middle) is typically how you have to go about doing these transfers (along with likely paying transfer taxes).  I'd consult your CPA though.  

@Liam Beard

I completely agree with @Scott Jensen

Keep your savings as liquid as possible right now.  Any returns you get in the current stock market are going to minimal in comparison to the risk you'll be taking.  We're likely near the top of a market cycle and you'll not want your hard earned savings dwindling in the event of a downturn - you'll want it in your pocket so you can buy a property at a depressed price.  

@Jordy Train

If you insist on keeping the life insurance payment of $100/month then that is fine.  This is highly dependent on your personal and family situation.  If we assume we're not touching that then I would:

1) Stop the extra payments on the credit card, and stop the money going to the Roth/Mutual Fund.  Instead allocate these funds to building up at least $5,000 in an emergency fund.  Put this in a money market/savings account.  You have a house now and one major repair will dissolve that instantly.  

2) Once $5,000 is achieved, I would then take all of the money left over each month and pay off your credit card.  Next, pay off your higher interest student loans.  You can leave the $66k at 5.75% there for now.  

3) At this point you can start to do some analysis on purchasing another property or paying down the $66k student loan.  However, until then, I wouldn't invest in another piece of RE until you're on more solid financial ground. 

@Jordy Train

It would be helpful to know out of your $1750/mo to debt repayment, which amount is specifically going to each one of the 3 debt services you mention.  

For starters, I would make sure you have 2-3 months in reserves as an emergency fund as it's not clear what sort of assets you have at this point.  Then, I would stop your contributions of $500/month to "savings" and just hammer out that credit card debt.  After answering Mark S.'s question, we can then help establish next steps. 

@Mohamed Nagoor No matter if you sell your flip or not, you will certainly have to file taxes for your LLC. Even with no flip revenue, you will likely have operating expenses that have come as a result of your business activity (LLC start up legal fees, office supplies, etc.). These are typically not capitalized into the value of the asset that you’re going to sell and can be expensed in the current tax year. Of course, if you sell your flip, you will have much more than the operating expenses to net against your flip income. I would advise reaching out to a local CPA or one of the many on BP for help with your specific situation.

@Karina Woodward

Send me a PM as well and I'll send along.  I've already sent this along to a few others in this thread. 

@Ashley Cote

As the others stated, I would try to get out of your lease or just wait until your lease is up to buy the property.  You can request to go month-to-month with your landlord until you close on your house.  It's definitely best to move in right away to avoid any issues.  However, as long as you have the unit you're planning on living in vacant and you've at least shown progress towards moving in, I'm sure you'll be fine.  

@Jason D.

No real precautions you need to take.  You can simply write a check from your personal account to the business and record it in the business as 'owner equity/contributions'.  This is just like buying stock.  There are no tax implications of these initial investments.  Also, since it's just you and your wife, you can just record the contributions as either an even split contribution between the two of you or 100% you/her. 

@Alex Flaugher

Send me a PM and I can send you my sheet as well. It's been built after a few years of trial and error. 

@Scott Trench

I believe it all comes down to "first things first". Successful people simply get up earlier than they need to and get the first (most important) things done first. I wake up at 5 AM to read, workout, review my goals, and eat a good breakfast with my wife. It's not the waking up early part that breeds success, it's the habits of success that people do first thing in the morning. Since I start my work at 8 AM, I need to be up by 5 AM to get those things done. If my schedule changed and I was starting my work at 12 PM, then maybe I would get up at 9 AM instead. 

I just know that the world will conspire against my reading, workouts, and quiet time if I don't get those important self-improvement items done in the morning. For instance, I usually sleep until 7 AM or later on the weekends because I don't start my work until about 10-11 AM so I can spend some time with family. It's what you do with the time your awake that counts.