All Forum Posts by: Account Closed

You can call some of the income dividends and some salary. This saves you 15.3% on the funds you label dividends.

When I say "flip" I'm referring to any transaction where there's a quick turnover of contracts or the actual property. 

Also, the S corp would technically be your employer in the eyes of the IRS, eliminating any restrictions on the number of assignments you can do in your state if there is a limit (there is in Wisconsin). 

Always check with an attorney in YOUR state to verify everything. 

Bottom line is there's tax and legal advantages.  

The purpose of an earnest money deposit is to show that you're serious, in theory the higher the deposit the more serious you are. So the question might be: how can I show the seller I'm a serious buyer? Solution(s): Get a proof of funds letter from a transactional lender, operate as a business and not as an individual + set your business up to establish credibility (i.e website, logo, processes, scripts, etc). Also target and prescreen sellers, a truly motivated seller usually won't even bring up earnest money, from my experience.

If you're asking which is better for flipping houses I'd say S Corp, hands down. For tax reasons mainly.

The only thing is that I wish I had built up the capital from wholesaling before Facebook went public, If i had invested at the time I would have made 4x my money....I think about this every night. 

The best way, in my humble opinion, is to cash a big ol' fat check and take the wife shopping. 

I would never lend money that's being lent to me. 

I wanted to get rich. 

You cannot legally advertise any property you don't have an ownership interest in via signed purchase agreement. 

Get the buyers list first because you don't want to tie up a property and not know how you're going to liquidate your position. I truly do not understand this whole "find a deal first and the buyers will come" spiel. Understand that in order to have longevity in this business you're going to have to perform or be connected with people who can (cash buyers). I know this from experience, the first home I got under contract I had no buyers at all and actually cold called one of the "we buy houses" guys (I won't mention names...) in my city and he ended up being another wholesaler who kind of screwed the seller and tried to kick me out of the deal, I had no idea what I was doing at the time, didn't know what questions to ask to screen a buyer. 

Your customers are the buyers not the sellers, contrary to popular (and misguided) belief. You CAN get lucky but if you're trying to build a sustainable business you should build that buyers list first, how will you even know what a good deal truly looks like without vetting a few buyers? 

The buyer is clearly trying to kick you out of the deal AND what you're doing is brokering without a license from what I understand. Get a transnational or private lender and buyers list set up before you go out and market, it's important to have that foundation set before you speak with sellers. 

I don't know how familiar you are with your market but it seems as if you need to get a better grasp of market values, etc. not saying this to be mean but I promise if you set the foundation when you look back at this situation in the near future you'll laugh at because you'll be doing deals legally and making good money. Education is the first step.