All Forum Posts by: John Karl

I am a licensed contractor in the area. Send me a message with the details of your project and what you are looking for. Thanks. 

I'll be there tonight. Thanks

Hello All,

Are we still planning a meetup for Monday April 4th? I will finally be in town then.

Thanks

Hello, 

I conducted an extensive search but could not find the best answer on structuring a private money loan for a fix and flip property, that minimizes the taxes for the Private money lender. Essentially one investor will put up the purchase and rehab costs, with the other doing all the work, equally a 50/50 split profit. For the private money lender what is the best way to structure the deal to pay the least taxes?

1. Set up a JV LLC with the investor lending the money to the company, then the LLC (taxed as S corp) pays the lending member back the loan as an expense, then splits the profits via salary/dispersment? This would entail the private lender pay a portion of self employment tax correct?

2. Have the lender loan the money to a LLC owner by the working partner, then the LLC will issue a 1099-int? This would be taxed as ordinary income. If a set interest amount was not established, how would the verbiage or documents need to be written to account for a equity share after the sale of the profit?

Not sure, just looking for the best set-up to pay the least taxes for the member funding the project since it is essentially a loan, but with a equity return instead of a set interest rate. 

Thanks

Sorry, Wont be able to make this one! I will be out of town the 1st-3rd.

Hello All, 

I would be interested in attending one of these informal meetings. I'm from the Niceville area looking to get to meet some local investors. Please let me know what you all come up with. 

Thanks