All Forum Posts by: Account Closed

@Jason Lieberman Good question. Generally, be upfront with your lender about transfers to the LLC or check the loan documents. Some do not mind at all.

As for future properties, I suggest an LLC per property with its own bank account.

Yesterday, a lengthy discussion started about LLCs that I think you find helpful in Tax and Legal.

Should You Form an LLC for Each Property

@Timothy M Weber Welcome to BP!

Here are some recommended resources (not paid for mentioning anything in this post:)

Personal Finance

I strongly suggest learning as much as possible about personal finance (if you haven’t already) as I believe strong personal finances is the foundation for a strong real estate portfolio. For starters, BP even has a Money Podcast now!

Software that’s helped me personally:

YNAB – zero based budgeting system and software; their philosophy will help you get out of debt and no longer live paycheck to paycheck

Personal Capital – a high-level net worth tracking software

Podcasts

Episode 108 - Grant Cardone... Just listen…

Episode 283 Paul Thompson - Quite a new episode but I would think everyone would agree this is a top episode. Mainly, the systems implemented are fascinating (VA, automated offers, etc.) Plus...escape velocity...

Episode 113 – Jay Papasan - Very practical slow and steady advice

Episode 221 - Tim Shiner - his concept of equity build up and "shearing the sheep" shows some of the flexibility of real estate vs a 401k

Last but not least, I also recommend all the tax advice given by my fellow CPAs on the BP Podcast.

Amanda Han Brandon Hall Tax Reform Update Linda Weygant

Books

I have to say all of the BP books…right? :)

The Millionaire Next Door, The Millionaire Real Estate Investor, What Every Investor Needs to Know About Cash Flow

Guides

Ultimate Beginners Guide, Forum Stickies, BP Calculators or spreadsheets uploaded by members

Hope this information can give you a good start. Feel free to reach out with any questions. 

@Chris De Castro Welcome to BP! As many will say, the deal is what matters. Buyers will come if you know your numbers and it's legitimate good deal. So work the BP calculators if you were a buy & hold investor or flipper. 

Here are some recommended resources (not paid for mentioning anything in this post:)

Personal Finance

I strongly suggest learning as much as possible about personal finance (if you haven’t already) as I believe strong personal finances is the foundation for a strong real estate portfolio. For starters, BP even has a Money Podcast now!

Software that’s helped me personally:

YNAB – zero based budgeting system and software; their philosophy will help you get out of debt and no longer live paycheck to paycheck

Personal Capital – a high-level net worth tracking software

Podcasts

Episode 108 - Grant Cardone... Just listen…

Episode 283 Paul Thompson - Quite a new episode but I would think everyone would agree this is a top episode. Mainly, the systems implemented are fascinating (VA, automated offers, etc.) Plus...escape velocity...

Episode 113 – Jay Papasan - Very practical slow and steady advice

Episode 221 - Tim Shiner - his concept of equity build up and "shearing the sheep" shows some of the flexibility of real estate vs a 401k

Last but not least, I also recommend all the tax advice given by my fellow CPAs on the BP Podcast.

Amanda Han Brandon Hall Tax Reform Update Linda Weygant

Books

I have to say all of the BP books…right? :)

The Millionaire Next Door, The Millionaire Real Estate Investor, What Every Investor Needs to Know About Cash Flow

Guides

Ultimate Beginners Guide, Forum Stickies, BP Calculators or spreadsheets uploaded by members

Hope this information can give you a good start. Feel free to reach out with any questions. 

@Mary Olynick Welcome to BP! As @Alex Deacon said the fundamentals will never change so just know that prices have changed significantly from the 1st episode. 

Here are some recommended resources (not paid for mentioning anything in this post:)

Personal Finance

I strongly suggest learning as much as possible about personal finance (if you haven’t already) as I believe strong personal finances is the foundation for a strong real estate portfolio. For starters, BP even has a Money Podcast now!

Software that’s helped me personally:

YNAB – zero based budgeting system and software; their philosophy will help you get out of debt and no longer live paycheck to paycheck

Personal Capital – a high-level net worth tracking software

Podcasts

Episode 108 - Grant Cardone... Just listen…

Episode 283 Paul Thompson - Quite a new episode but I would think everyone would agree this is a top episode. Mainly, the systems implemented are fascinating (VA, automated offers, etc.) Plus...escape velocity...

Episode 113 – Jay Papasan - Very practical slow and steady advice

Episode 221 - Tim Shiner - his concept of equity build up and "shearing the sheep" shows some of the flexibility of real estate vs a 401k

Last but not least, I also recommend all the tax advice given by my fellow CPAs on the BP Podcast.

Amanda Han Brandon Hall Tax Reform Update Linda Weygant

Books

I have to say all of the BP books…right? :)

The Millionaire Next Door, The Millionaire Real Estate Investor, What Every Investor Needs to Know About Cash Flow

Guides

Ultimate Beginners Guide, Forum Stickies, BP Calculators or spreadsheets uploaded by members

Hope this information can give you a good start. Feel free to reach out with any questions. 

@Todd Snyder Welcome to BP! 

Here are some recommended resources (not paid for mentioning anything in this post:)

Personal Finance

I strongly suggest learning as much as possible about personal finance (if you haven’t already) as I believe strong personal finances is the foundation for a strong real estate portfolio. BP even has a Money Podcast now!

Software that’s helped me personally:

YNAB – zero based budgeting system and software; their philosophy will help you get out of debt and no longer live paycheck to paycheck

Personal Capital – a high-level net worth tracking software

Podcasts

Episode 108 - Grant Cardone... Just listen…

Episode 283 Paul Thompson - Quite a new episode but I would think everyone would agree this is a top episode. Mainly, the systems implemented are fascinating (VA, automated offers, etc.) Plus...escape velocity...

Episode 113 – Jay Papasan - Very practical slow and steady advice

Episode 221 - Tim Shiner - his concept of equity build up and "shearing the sheep" shows some of the flexibility of real estate vs a 401k

Last but not least, I also recommend all the tax advice given by my fellow CPAs on the BP Podcast.

Amanda Han Brandon Hall Tax Reform Update Linda Weygant

Books

I have to say all of the BP books…right? :)

The Millionaire Next Door, The Millionaire Real Estate Investor, What Every Investor Needs to Know About Cash Flow

Guides

Ultimate Beginners Guide, Forum Stickies, BP Calculators or spreadsheets uploaded by members

Hope this information can give you a good start. Feel free to reach out with any questions. 

@Account Closed Welcome to Charlotte! 

@Emerson Irias Good question. When flipping, the purchase of the house becomes inventory. Meaning you cannot roll your profits into the next deal and receive a deduction. You will not receive a deduction until the year it's sold. 

For example:

Year 1

1st Flip: 200k sale of flip-100k costs=100k taxable profit

2nd Flip: Purchase 100k house 

Total Taxable profit - 100k (not zero because you purchased another house) 

Year 2 

2nd Flip: Sold 200k-150k costs=50k  taxable profit

In this simplified example, costs relating to the purchase are not deducted until the property is sold since the house is considered inventory until sold.

Let me know if any clarification is needed. 

@Max T. That's great! Definitely have seen banks more than willing to give out a loan more than double household income. Curious as to what everyone decides is comfortable for them.  

@Jeremiah Gaviña Good question. Taxable to you and the interest is reported on Schedule B of your tax return. 

@Chase Cline I agree the setup of multiple accounts can be cumbersome initially, but using accounting software (QuickBooks, Xero) you can have multiple bank accounts linked to one file. 

From there it's point and click categorizing and tagging of income/expenses to their respective properties. 

@Michael Plaks That LLC panel would of been enjoyable and interesting.