All Forum Posts by: Michael Bieler

Quote from @Ashish Acharya:

Please see below:

this is only 1 flip so would I just be taxed as short term gains of 15%? If not,am I taxed as regular income ? - yes,ordinay income I believe 24% tax bracket, plus NYS 6.25% (or would it be indiana ) plus a 15.3% self employment tax? Seems very high! - I know but that is roughly correct. If that's the case how can I minimize this? I have seen that opening a self directed IRA would help slightly - SDIRA will probably not help.

Depending on your other self-employment/W2 income, your tax advisor needs to do the tax-benefit analysis of S-corp. Make sure you consider, retirement accounts, home office, hiring your kids, writing off auto, and things like that. 

 Thanks so much for the response.  So realistically I’m better off holding it and renting it for a year then doing a 1031

Hey guys hope someone can help me. I am flipping a home, which It is to my understanding that I can not 1031 it. I'm curious as how I need to structure/ save for taxes on the sale. Here is a small run down, I formed an LLC in Indiana (where the property is) purchase with renovation and closing was $122k. Hard money lender is costing me around say $6000 interest only for this loan. Hoping to sell for $195k. Assuming 6% realtor fees and closing costs for selling estimate another $20k expense. Let's just say $45k net… how will I be taxed? A few friends who flip say I am not considered a "dealer" as this is only 1 flip so would I just be taxed as short term gains of 15%? If not,am I taxed as regular income ? I believe 24% tax bracket, plus NYS 6.25% (or would it be indiana ) plus a 15.3% self employment tax? Seems very high! If that's the case how can I minimize this? I have seen that opening a self directed IRA would help slightly. Depending on what you believe I would be taxed, Another option would be to throw a mortgage on the property and rent it out for a year, and THEN 1031 it. Let me know your thoughts! Thanks!

Quote from @Steve Vaughan:

I never regretted buying all my small residential rentals in my personal name.  Landlord insurance policies offer   $300k or $500k liability protection cheap.   I was also grateful for the awesome financing options.

I held my commercial assets inside LLCs.   It was expected and I needed commercial financing and all their more difficult terms anyway.  @Nathaniel K.

Hey can you message me who insures you? I’ve been looking for an umbrella policy basically for
my properties with no luck! 

I am a flipper In southern indiana. Currently flipping 2 homes, just closed today on the second. My issue that im having is my lender states that bc im getting properties for say 50k, with a rehab budget of 45k it's not worth it to them running interest only payments. They are looking for bigger deals. Is this normal? I feel like I'm being punished for getting properties on the cheaper side. Mind you ARV is 150k plus. Is there any lenders out there who are not going to be a pain with these types of deals ? Credit score 780, never a late payment on anything etc. if there are lenders out there please message me your origination fees, interest rate for say 6- 12 month term. Looking for 90% LTV with 100% rehab. If 100% funding for the whole project is a possibility even better! Looking to connect as soon as possible.

Quote from @Bob Stevens:

Quote from @Michael Bieler:

Quote from @Allan Smith:

a lot of red flags here, but probably the biggest one is asking that you don't pay points. Nobody is going to lend to someone who isn't willing to pay for the money, and to someone who thinks that they shouldn't have to.

I understand where you are coming from, but it can be structured differently, higher interest rate with a minimum amount of interest paid. Im mainly looking for a great lender to build a relationship with and do multiple deals with.  To the right lender I believe I’m a great candidate with extremely minimal risk. 

 So you want me for example, to put up all the money other words have all the risk. Sorry not going to happen, you have no experience, or skin in the game

Good luck 

I have a few rental properties and rehabs under my belt. I’ve done it the old fashioned slow way and looking to speed up this process.  Like I said I’m fine with throwing down 15-20% if I had to, paying out extra at the sale of the flip back to the lender (as I’ve done on the past), higher interest rate etc.  You guys are assuming I’m just asking for free money lol 

Quote from @Allan Smith:

a lot of red flags here, but probably the biggest one is asking that you don't pay points. Nobody is going to lend to someone who isn't willing to pay for the money, and to someone who thinks that they shouldn't have to.

I understand where you are coming from, but it can be structured differently, higher interest rate with a minimum amount of interest paid. Im mainly looking for a great lender to build a relationship with and do multiple deals with.  To the right lender I believe I’m a great candidate with extremely minimal risk. 

LOOKING FOR A LEGIT PRIVATE LENDER. Looking to borrow 65k for purchase, 45k for a rehab. ARV is around 160-190 conservatively. Looking to not pay points. Please let me know if anyone here is or has a great hard money lender. Looking for a 6-8 month loan hopefully sooner! . No pre payment penalties. Thanks guys please message me

Quote from @Chris Mignone:

Quote from @Cindy Ni:

Hi All - I am looking to buy my first investment property and I have been researching markets. I am currently in between Charleston, SC and Huntsville, AL. My goal is mostly around cashflow (with high mortgage rates, even a modest amount is good) in an area with a good amount of appreciation as well. I know it depends more on the neighborhood I choose in the area, but would love to know from the more experienced crowd here which market has a higher probability of meeting my goal. 

Also, I am based out of Jersey City and would have preferred to buy a property closer to me, but the properties in this area are way out of my budget and do not seem to cashflow at all. I am a bit nervous about buying a property so far away, so would love to hear if anyone has advice on this. Thank you!

 Hey Cindy, 

I live in NY and invest in Huntsville. I have been very happy doing so. I'm happy to discuss with you if you're interested!

Could you shoot me a message? I live in East islip  

Can you send me the agents number as well?

Quote from @Kyle Harmon:

Quote from @Barclay Chan:

Hi @Kyle Harmon, who did you end up getting your insurance with? Can you send me their contact information. I need to look for new insurance!

I used Fudge Insurance. I sent you a dm with the agents info. 

Quote from @Aaron Breckenridge:

Have you tried the Agent Finder?

 I did not even know that was available on here! Thanks so much