All Forum Posts by: Kim Knaust

Still working on that myself - there are on-line investors, I have a couple of people that are willing to be personal investors and then I was taught to get several credit cards manage them (less than 40% balances or so) and use them as needed. 

I posted this on a forum that was 4 years old after clicking the link on line on a search, so i don't think it will go anywhere so thought it might be better to start a new discussion in regard to types of businesses to form.

The real estate class I was in taught to do rentals as an LLC and flips in a C Corp (said you could build credit better with banks and would protect us as far as liability?). In the old post I referred to I saw a lot of comments about LLC's and some about S Corp's for flipping.....confused now which is best?

Also, they taught for flipping to set up a C-Corp (in a state like WY or NV w/ best tax advantages) and then an LLC in the state I'm starting to work in UNDER the C Corp in WY or NV. I talked to a local state attorney that didn't like the idea of going this far to set up entities like this. What do you all do?

Any advice would be much appreciated! 

The real estate class I was in taught to do rentals as an LLC and flips in a C Corp (said you could build credit better with banks and would protect us as far as liability?). I'm seeing a lot of comments about LLC's and some about S Corp's for flipping.....confused now which is best?

Also, they taught for flipping to set up a C-Corp (in a state like WY or NV w/ best tax advantages) and then an LLC in the state I'm starting to work in UNDER the C Corp in WY or NV. I talked to a local state attorney that didn't like the idea of going this far to set up entities like this. What do you all do?

Thanks so much - your input is much appreciated!

Thank you, your replies have been very helpful!  Why do you say the 70% rule is nonsense, @Chance Housos?  Just trying to learn........

The group I learned that from is Nick Vertucci. They are also the ones that said they shoot for making $30-$50k per flip and avg $30k in rehab for houses $100k and less.  That's where I got the $30k (not 30%).  Wayne, are you meaning that $30k is not reasonable.  If not, what can you suggest is? 

Example - $103,000 ARV

ARV minus the following:

$4,120:   4% acquisition costs & holding costs (2% each)

$6,180:   6% real estate fee

$30,000:  avg rehab cost

$30,000:  avg profit

$32,700 offer price

However, the teach said to use .67-.72 of ARV if I'm a cash buyer to get the offer price and that would between $69,000 - $74,000, which is way off of the $32,700 above. 

What am I doing wrong??