All Forum Posts by: Mike Rice

@Wesley I.

I'm good at door dashing and I have an ebay seller account as a hobby too. I was under the impression I was in business the moment I started doing business related activities, purchases or sales, but it's good to know that may not be the case. I'll definitely have to keep track off all the start up costs. I'll have to get a CPA too it seems

I think I'll take the advice from @Tom Hacku and reach out to Bill / Pilc & Moseley.  And/ or @Ryan Arsenault suggesting Prime Corporate Services.

Thank you all!

@Wayne Xie

Thank you! I was looking for options! I appreciate you sharing some I can look into. I don't know much about subject-to, but I just heard about leasing/subleasing options recently. I'm relieved that it's still possible to move forward too! Just differently.

@Bill Brandt

Thanks again! Adding complexity and cost is something I'd like to avoid. There's enough of that already. Ill have to look for other more productive uses of my time and energy and come back to the LLC part later.

I should probably still talk to a CPA though about the tax strategies. I'm definitely spending more time on this then I spend on my normal job, especially if learning counts!

@Bill Brandt

Thank you for the reply!

You're right I don't have a lot of assets to protect. None actually. But Is there any benefit to NOT creating an LLC? Not for liability purposes but for several other reasons:

Establishing credit and a history of income for one.

I have a decent credit score, but no "useable income". My lender said even though I make more/ year "part time" than I did "full time" I only have a 6 months history "doing part time work" so we can't use that.

I could benefit from intro bonus offers for business bank accounts, phone service discounts, among other things, I'm sure.

Having a business checking/credit card would help keep expenses organized. I would be eligible for a Tax ID Number which would give me the ability to buy from manufacturers and resell online to raise money for Real Estate. (If this is even legal)

If I'm going to be spending money on books, Pro memberships, conventions, etc. why not have it go through an LLC building business credit?

I'm starting from scratch on the W2 side it looks like. But I've been selling on eBay and door dashing for years as a hobby.

Am I way off?

Can I literally do all of this as a person with a SSN?

Hey, my name is Mike. I've been learning about RE investing for years, stuck in analysis paralysis. Just started to actually do things and am hitting roadblocks. But it's okay, we just need to find another road, or get around the block somehow. Keep solving the problems as they come until we make it! Right?!

I'm at the point I finally called a RE agent, and had a lender run my credit. Everything was going well until they asked about my employment history. I make the same $$/year as I've always made, but I only work half the hours now which makes me "part time". I only have a 6 month history of working part time, so we can't use that income as "income" according to my lender. Live and learn! Ha ha!

Now, I'm thinking about arbitrage or Turo in the meantime. I'm not actually sure, but that's another post. I'm just glad to finally be reaching out, posting to the forums and getting things done!

Forgive me if I'm posting in the wrong place, but I'm stuck and I'm not sure where to turn. Any direction would be appreciated.

I'm certainly spending a lot of money, time, and miles on my car, but I don't own any property yet and may not be able to for a year or two. In the meantime, I've been thinking about arbitrage, or possibly renting out my car on that AIR BNB for cars thing BP keeps advertising.

I want to reduce my tax burden as much as possible in order to put that savings toward actually owning a property, so long as I can do it all legally.

I currently work in phone sales at my W-2 job, in Richmond, Virginia. It's not Real Estate related at all. However all of my free time I'm either learning, driving around or on the internet looking at deals, analyzing deals. I put a lot of time into this even though I don't have my first property yet. I'm waiting for Jan 1 to file for an LLC, get the Tax ID number, open a bank account in it's name to start building credit and to keep the business finances separate from my own.

Some of my questions are:

1.) Do I qualify as a "Real Estate professional" to the point I could deduct my business expenses losses against my W-2 income to lower my tax burden? If not, what would I have to do to legally qualify for that this year or next?

2.) Do I actually need to qualify as a "Real Estate Professional" to deduct losses from my business's first or second year from my W-2 income?

3.) Can I somehow write off many of the miles I've driven this year or next on my car? Every mile I drive, I'm listening to a podcast or checking out neighborhoods, etc..

4.) Should I just wait until Jan 1 to create the LLC and tax ID number, and bank account?

5.) After creating the LLC and the Business bank account. Is there a legitimate way to provide those who work in the business with me a cell phone, myself included? Or would I have to have 2 completely separate phone numbers on completely separate accounts if I choose to use my business line to make personal calls as well?

6.) Could/should my LLC own my car?

7.) Who do I need to talk to before I make a move, and what do I need? I assume I need a consultation with someone. But do I need a CPA, or a tax attorney, or do I need H&R Block or what? I'm okay with hiring a professional for professional services, I just don't want to spend money in the wrong places.

Can anyone out there point me in the right direction? I would be forever grateful!

Forgive me if I'm posting in the wrong place, but I'm stuck and I'm not sure where to turn. Any direction would be appreciated.

I'm certainly spending a lot of money, time, and miles on my car, but I don't own any property yet and may not be able to for a year or two. In the meantime, I've been thinking about arbitrage, or possibly renting out my car on that AIR BNB for cars thing BP keeps advertising.

I want to reduce my tax burden as much as possible in order to put that savings toward actually owning a property, so long as I can do it all legally.

I currently work in phone sales at my W-2 job, so it's not Real Estate related at all. However all of my free time I'm either learning, driving around or on the internet looking at deals, analyzing deals. I put a lot of time into this even though I don't have my first property yet. I'm waiting for Jan 1 to file for an LLC, get the Tax ID number, open a bank account in it's name to start building credit and to keep the business finances separate from my own.

Some of my questions are:

1.) Do I qualify as a "Real Estate professional" to the point I could deduct my business expenses losses against my W-2 income to lower my tax burden? If not, what would I have to do to legally qualify for that this year or next?

2.) Do I actually need to qualify as a "Real Estate Professional" to deduct losses from my business's first or second year from my W-2 income?

3.) Can I somehow write off many of the miles I've driven this year or next on my car? Every mile I drive, I'm listening to a podcast or checking out neighborhoods, etc..

4.) Should I just wait until Jan 1 to create the LLC and tax ID number, and bank account?

5.) After creating the LLC and the Business bank account. Is there a legitimate way to provide those who work in the business with me a cell phone, myself included? Or would I have to have 2 completely separate phone numbers on completely separate accounts if I choose to use my business line to make personal calls as well?

6.) Could/should my LLC own my car?

7.) Who do I need to talk to before I make a move, and what do I need? I assume I need a consultation with someone. But do I need a CPA, or a tax attorney, or do I need H&R Block or what? I'm okay with hiring a professional for professional services, I just don't want to spend money in the wrong places.

Can anyone out there point me in the right direction? I would be forever grateful!

Thank you