All Forum Posts by: Jason Hardin

I want some clarification on the process. 

Let's say I find what I think is a good deal, I make an offer and it gets accepted now we are in contract. What "outs" do you all put in the contract to safeguard you? 

Do you put in a contingency for the inspection?

Do you also put one in for if you can't get funding?

I would like to know what "exits" everyone uses so I can see how yours may play into my contracts in the near future. I get too worried about these small details and what if's. I'm extremely worried about not getting funding so I know I need an exit strategy for that one. I'm worried what if the inspector finds major problems that I don't want to tackle on a first flip. I'm sure there are more and I would really like to hear some that you all use so I make sure I cover my A$$ when the time comes.

Jason

Again, I have no clue about what LLC's actually give you. That's why I'm reading up on them and asking question about it. :)

How do you do your write offs for tax time if you have no business set up yet? It's my understanding that if I do have a business then all the little things become write-offs even so much as getting a haircut to "look presentable for your business" becomes a write-off. That's just one silly example among other things like your internet at house, a cell phone, one podcast said that you can take a $1,500 standard exemption for a home business. So things like that but I thought you would have to have a "formal" business in place before you could do that, like an LLC.

@Trevor Kolb

I wouldn't say it would give me an advantage so to speak. I'm just more worried about all the write offs for taxes and the little bit of LL it will offer. I really don't have a clue and this is the exact reason I'm on here posting this question so I can get feedback like you have just given me :) 

@Colin Smith

Thank you for your generosity! We are just looking around at the moment and trying to learn the ins and outs of it before we jump in and make a lot of mistakes. I'll definitely be in touch!

@Trevor Kolb

Thank you as well! It's eases the anxiety a little knowing there are people that actually are willing to just chat and talk about REI. Unfortunately, we have a wedding this weekend among a few other things for the kids but I will for sure get in touch with you soon so maybe we can meet up. That would be great!

@Al Williamson

But a big thing for me is, in Colorado it's only like $100 to start an LLC and I don't think we have any annual fees either. So very cheap to have one upfront.

@Al Williamson

So at what point did you "start" your business? Meaning, when did you actually get your LLC or business on paper?

Thanks for the info! That does make sense.

@Colin Smith

Thanks! (again and again) lol

What are some of the more normal policies for someone that is starting out? I just want to make sure my butt is covered :)

I'm a little confused on the whole "should I start an LLC or a business in any form" topic. A lot of people on here say to not start a business right off the bat but then a lot of the information pertains to having a business.

Example: Claims against you. If we start our first flip and just use our names and something happens then we are liable for it correct? Whereas, if we have an LLC then we are a little more covered and the risk is less correct? So why wouldn't I want to start a business right off the bat?

That's just one example while reading on the forums here but there are more things like taxes and what not.

Can some of you that have been flipping houses chime in and maybe explain what you did in the beginning? Did you start your business right off or did you wait? And maybe the reasoning behind it?

Jason

What insurance companies are good for fix and flips? What type of policies do you all get when doing a flip?

@Simen Gundersen

I am planning on get in touch with some people locally as well. Just thought I would start here. I really don't want to DO a deal so to speak. Right now, I would really just like someone to let me watch them do a deal, I wouldn't have a problem with pitching in on demo or something like that for their rehab and I wouldn't expect any of the profits for it. 

I'm a visual person and I need to see something be done before all the pieces of the puzzle click together for me. So someone that would just let me sit on the sidelines and watch how they do it would be awesome so I could just jot down some notes. 

But also the same person or someone else that would answer a few emails for me would be cool too.

Jason