All Forum Posts by: Jennifer Jackson

 Thank you John.  Can we connect?  I have sent you a message.

Yes, sounds crazy, but I sold my home last year when the market was good and received a generous profit which is exempt from bankruptcy creditors in the state of MN.  However, I didn't make enough to pay off the bankruptcy.  Our attorney said we can keep the money we received from selling our home.  So, I am investing.  

 Yes, the idea is because of the Ch13, any profit would just remain in the C-Corp.  They said I could always change to an S-Corp later after Ch13 is over.  

 Since this post, I researched more and it appears there is a way to avoid double taxation with paying myself a salary and/or paying through fringe benefits.  I would have to understand this more.

Hello!

I live in Minnesota and am a new investor and new to everything.  I am confused and unsure of what to do.  I am trying my best to educate myself, but when there is conflicting information, I second guess everything.  I signed up as a Platinum member with Anderson Advisors.  They seemed to be highly recommended and know real estate investing, taxes and asset protection.  I was advised to create a C-Corp because I am currently in a Chapter 13 (I don't have enough to pay off my Chapter 13, so please don't judge or ask questions about that).  I am simply looking for advice on the structure of my business.

I created an LLC and am in a Partnership agreement for a Flip I am doing in Tennessee using my LLC. The LLC is not on Title of the property. I am only a Capital partner and provided $20k in funds for Interest and Holding costs. We are looking to sell the Flip, but with the turn in the market, it may not sell as much as we had planned. So, we may have to turn it into a Rental or she may buy me out. It all depends.

I also purchased Digital Real Estate and was also advised that I use the C-Corp for the passive income for this business as well.

I do want to do more flips in the Future and eventually have Rentals as well.  

Anderson told me it would be best to create a C-Corp because I am in bankruptcy so that any money I made would flow through the C-Corp and would remain in the C-Corp.  But, when I talked with my Accountant, he didn't understand why I would use a C-Corp and explained that I would be double taxed if I would take out any money.  He said eventually, I will need to take money out.  So, now I am confused as to what I should do.  My accountant seemed very frustrated with me and asked more about Anderson and what training I was going through.  I have sent my Accountant the information I learned from Anderson and what they advised me to do.  I just want to do what is best to protect myself and do things the right way.  

Does anyone have advice or experience with Real estate investing while in a Chapter 13?  Or whether a C-Corp would be a good move or not?  Is there a way to avoid double taxation?  This is all so overwhelming to me and I don't know what to do if my Accountant and Anderson are saying different things.  I am leaning towards doing whatever my Accountant says I should do. Any advice would be appreciated.

 @Raymond J. Rodrigues thank you for the referral!

I also thought Hillsborough had a 7 night minimum and St. Pete and Clearwater was 30 days. I'm interested in getting a STR in Hillsborough or Pinellas County if you have leads. I'm interested to hear more about the Clearwater/St. Pete areas that allow nightly rentals. I had not heard that or have seen where that is documented. Please send my way.

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $99,000

I am partnering with an investor who lives in another state and we are doing a long-distance fix and flip. The home is a SFH with 2 beds/2 baths. We appraised for $240,000 with the basement being finished.

What made you interested in investing in this type of deal?

I saw an opportunity that happened to come across my path that fit my qualifications, so I jumped on it.

How did you find this deal and how did you negotiate it?

I joined a community of other investors and one had posted an opportunity to be a partner on a fix and flip. I was ready to jump into something quickly and felt it was a good move for me to gain experience from another investor. I contacted the investor right away and told her that I had the capital she was looking for. She wanted to partner with me because she thought it would be a good learning experience for me.

How did you finance this deal?

My partner was able to get a hard money loan for the purchase price as well as the rehab costs. I helped with the Earnest money (EMD) and the Closing costs.

How did you add value to the deal?

We are updating all rooms, replacing appliances, roof, flooring, doors and had to fix septic (unexpected cost).  

What was the outcome?

We just closed 4/1/22 and hope to complete everything by end of June 2022.

Lessons learned? Challenges?

The property is in a Rural area so we had to get a septic inspection completed and there needs repair done. It was unexpected costs we were not looking to do. We also planned to finish the basement, but with the extra costs, we will not finish the basement. So, appraisal will come out different once we are done.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

We are working with a real estate agent and general contractors.

Glad I looked here because I was also contacted by them and didn't see much else about their company except on their website.  Glad I didn't complete their application.