All Forum Posts by: Mike Stadel

@Alex Deacon

@Andrew Postell, @ alex deacon

Thanks guys for the info I’ll see what I can find here in SD. I know it pretty limited for options.

Does anyone have a suggestion for a hard money lender to put up I spec house. The loan would be around 250k. As you can imagine banks are not willing to play ball with all that’s going on. And to add to the mix it is my first spec, I am not a stranger to construction. I am an active flipper and have been doing it for a yr n half. I’m looking to expand to specs as a GC to compliment the flips because the inventory is pretty used up and competition is fierce in my town when they come up. Banks here don’t seem to understand or maybe care that when there’s nothing to buy there is no work and hence no income. I am in Rapid City, South Dakota FYI

Thanks for any input

@Denisse Lara

Nice out of the box idea I think your on to something there...

@Collin Cameron

Sorry to hear about the bad luck

On the properties I have bought (not refinanced) the banks do an employment verification which seems to be towards the beginning of the process so they could have already checked that off. If they haven’t done it or check later on they may give you a call if they dig something up. Additionally I have never had any employment verification happen during a closing.

I agree with Matt and I’d do the same, don’t ask don’t tell approach..

@Brett Palmer

I would buy more rentals or flips with the excess cash. With that much you should be able to buy enough new properties to get you to the 2000/ month easily

@Eamonn McElroy

@Ashish Acharya

Thank you guys for your insight

@Eamonn McElroy I am set up as a disregarded entity and the 80k would be taxable income so it appears that I would benefit by electing s-Corp status. On another note he also said that I should file for a license if I’m “flipping” and by license he is referring to excise tax. No-one I have talked to has ever had to do this

@Ashish Acharya she is suggesting that option so I can get insurance as an employee instead of individual and so I can maintain my providers as other companies in my area don’t work with my providers in network. Also worth a mention she has planned a hdhp hsa plan and I believe that would be even more tax write off for me as well? My accountant is a seasoned cpa and works specifically with real estate but is hesitant when it comes to ideas like this when I bring them to him.

I am newly self employed after leaving my w-2 job and benefits to flip houses and dive into multi family. Due to circumstances I ended up making this move sooner than I planned so long story short I now need to utilize the house flipping for living income. My problem starts with health insurance which I need because of medical reasons and need to stay on BcBs. My insurance people told me to file a 941 under my llc which has been inactive but I have kept it in good standing. By doing this it would allow me to stay with BcBs on a group of one plan. I told my accountant that my insurance gal wanted us to do this on Jan one so I could get enrolled. He basically said it was way more hassle than it was worth because of the extra filings because it makes me an scorp now. I also asked my accountant during another visit about being taxed as an s Corp instead of a llc because of the volume of flips (something I read on BP) and he said again that it’s more work than it’s worth.. I expect to make a minimum of 80k flipping annually if the world doesn’t go down the drain. I’m asking if this is as big of hassle as what my accountant is telling me or have any other advice you can share?