All Forum Posts by: Joe T.

You guys are awesome and thanks for the advice. 

@Michael Plaks @Eamonn McElroy - Do either of you do tax accounting for Indiana investors? Or do you know of anyone who does?

@Ashish Acharya

See this page:

https://www.legalzoom.com/articles/how-to-pay-your...

"If you are the only member of the LLC, you will pay income tax on your distributions and you will file Schedule C to report the profits and losses of the LLC with your personal tax return."

Does that mean that you pay income tax on the distributions, but your LLC won't have to pay tax on that amount since it is not profit?

Would it be better to keep the money with the LLC since businesses are taxed at a lower rate?

Thanks for the response. 

When you pay yourself through your LLC do you end up getting taxed twice?

(first time for LLC earning the money, through rent for example, then the second time when you pay yourself a salary)

I feel like there should be a way around this but I may be not understanding how it works.

Thanks in advance!

@Scott D Burrows I've already had people reach out to me with 100% financing. The profile was brand new and the terms were certainly a bit odd. I can see why caution is necessary. I do appreciate the heads up. 

A few questions about the business credit card - I assume that an LLC or some sort of business entity needs to be set up first?

So you use your business card for all investment related expenses? (PM, maintenance, contractors, etc..)

As I get deeper in, I may reach out to you with some questions. On the flip side, if you think I may be of help in any way please don't hesitate to ask. 

Thanks!

@Scott D Burrows Thank you for the referrals. I will be reaching out to Diana and Andrew. 

I'm not planning to do flips but I thought your comment was interesting. How would a flip lender be different from other lenders? Is it the shorter term loans ? Or is his team just more familiar with underwriting for flip projects?

I hear you on out-of-state investing. Right now the plan is to start small and take my first investment as more of an education. I've read the books and listened to the podcasts - and now we just have to go out and do it.

I'll make sure to provide updates and learnings!

Btw, what part of Indiana do you own rental properties?

Hey guys - I'm hearing conflicting advice on what lenders to go with for investing out of state.

Is it better to go with a lender who is local to the area of purchase? Or does it not matter, it really comes down to the numbers being offered?

Would love to get folk's thoughts on this.

thanks!

Is the general wisdom to start off with conventional financing until you hit your 10 loans limit? 

Are there better types of financing for newbies property investors who want to do the BRRRR approach?

I just feel like the 30 yr loan terms are much cheaper on a month to month basis compared to the other type of financing out there... but may I'm missing something?

Thanks!

@Stephanie Medellin Sort of like a small business loan. I don't think those need money down, but perhaps I'm wrong. 

Hypothetically, if this person was a scammer- the only reason why we are suspicious is the fact that they are offering 100% financing. So had they offered 90% LTV along with the origination fee how does one make sure they don't run away with the fee?

Is just a matter of research/references? Or are escrows used?

@Stephanie Medellin I definitely appreciate the advice and would not proceed until I understand this better.

However just to play devil's advocate, aren't normal business commercial loans (not referring to RE commercial loans) done with 0% down? You just borrow an amount.