All Forum Posts by: Marc Donovan

Call Vern and get on his list 888-0078

I bought my last flip from him and recommend highly. He is a premium member on bp.

I get 2-3 deals in my inbox weekly. 

I'm paying sales taxes for my supplies when I flip a house. The IRS considers my house as inventory since I am a dealer. If this is inventory, I shouldn't have to pay state sales taxes for the supplies -- but I don't charge my end-buyers sales taxes, so I will never collect nor owe sales taxes. So do I sign up with the state as a merchant and submit refund returns for all of the sales taxes I put into my properties? Or something different?

I am in Denver CO, if it matters.

http://www.inspectionnews.net/home_inspection/electrical-systems-home-inspection-commercial-inspection/15305-new-installation-two-prong-receptacles.html This is a thread where home inspectors are discussing the "replace three prong with two" Apparently you are not allowed to do that and remain legal.

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The whole deal hinges on a few outlets? Jeez... Must be a very tight profit margin.

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Ive had a ton of mobile home tenants and they are some of the worst when it comes to rent-on-time. I found that the first time they are late, I show up with a 3-day that shows that I mean business. Then we have a heart-to-heart. I explain that I am a nice guy, but I don't let anyone walk on me. I tell them that excuses only work for a while. After that it is out you go.

MH's are typically a lot of drama unless you make it clear that you don't put up with that.

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I would think as long as there is some pitch, roll would be OK, but is there building code rules that say no?

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The UBIT for flipping comes from the same tax code as for non-profit companies. If you are performing as a business and not as a non-profit, then you are putting your competitors at a big disadvantage since they have to pay taxes and you don't. When you are flipping in an IRA, you are putting your fellow flippers in a disadvantage.

A good example, let's say a non-profit University started selling hot dogs on campus. They must pay UBIT taxes on their hot dog profits. Otherwise they could sell them for half of what the vendor down the road sells them for.

The purpose of your IRA is to invest for your retirement, and any business it does that is not directly related to that investing is taxed.

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You don't like zillow?

Careful here!

If you meet the four parameters of the Howey test, you are treading on thin ice.

1. investment of money due to
2. an expectation of profits arising from
3. a common enterprise
4. which depends solely on the efforts of a promoter or third party.

If your deal looks like this, then you must register or use an exemption, especially if you have solicited your investors using the mail or the Internet.

See SEC vs W. J. Howey Co.

http://www.biggerpockets.com/blogs/862/blog_posts/4376-the-howie-test-otherwise-known-as-why-private-money-investing-involves-the-sec-

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