All Forum Posts by: Phil B.

@Frank R.  I just totally cracked up with your post.  Check this out:

http://www.biggerpockets.com/forums/87/topics/1384...

I am exactly one of those people this post is about basically but I am just starting out.  I can tell you first hand the books pump you up and if I were a bit more naive, I would believe the hype.  I haven't even closed on my first deal yet but am 8k in the hole getting my first marketing pieces together, web sites built, domain names purchased, call center set up, postal permit, printers, vanity number rented, bandit signs purchased, etc, etc.  Its a lot of dough for a newbie and I can't see doing without that investment.  

I happen to have another business that does well so I am fortunate to be able to finance the real estate operation but I am certain not everyone has the means to do that.  I also have a ton of marketing expertise from the other business ranging from television and radio commercials to magazines to internet marketing.  These are skills that took me 20 years of grinding in a competitive business to achieve.  

Time will tell if my prior experience in unrelated work will help but I am fairly certain I will be part of the number that succeeds.  I guess everyone does.

I am, however, putting out 6000 mail pieces a month....my first large volume batch of letters are being printed right now.  I am hoping that kind of volume brings me something.....anything to at least get me started.  Taking the plunge is what stops people.  My risk tolerance because of where I am at in my life and my other businesses also helps.  I couldn't do this 12 years ago.  Its not easy for a kid out of college to get started without all that support, regardless of his or her determination.  It does require other things....money.....marketing expertise........and determination.

You will be each taxed based on how much income you paid yourself. With the S election, since the income passes through personally, if you have another job lets say, the income from the LLC is added to your personal income from wherever else and that could push you up a tax bracket or two...

No, in fact the nice thing about an LLC vs. a corp is that you can distribute earnings to any partner in any way. Let's say you are 50/50 partners with someone. In a corp, distributions need to be distributed evenly 50/50. In an LLC you can give the other partner 20% of the distributions and you take 80% if he doesn't work as much let's say.

Im an LLC S-Corp election.

The main difference is the way earnings are taxed. With an S-Corp election earnings are passed through to the owner in the form of wages and/or distributions and distributions aren't taxed for FICA and Medicare. With a regular LLC all earnings are passed to you as income and you have to pay tax on the whole amount as far as I understand it.

Applying for a tax ID is free on the IRS web site and so is the S-Corp election. I usually file both at the same time. Your state might have a fee to set up an LLC. Here in FL it was $125 or $175 I think it was - not a crazy amount.

As far as what's best for you, I can't answer that one.  I would really run that by an accountant to see what he or she says is best for your individual situation.

Sometimes when you step away for a little bit you make your biggest strides forward.  You need a break.  33 is a little young to "retire" even if you were a bazillionaire.  You need to occupy your mind.

Step back a bit, automate whatever you can automate and smell the roses.  While you do, contemplate what you want to do with yourself.  Im 44.  Usually that burnt out feeling doesn't hit until around 38 or so - you are a little young to be so stressed.  You obviously need to step back. 

Money doesn't mean jack if you don't have time to see your kids grow up - trust me on this one.  I learned the hard way and thankfully I caught my own workaholism early enough to make up for a little lost time while my kids were still young and could appreciate me.  Im tighter than ever with my boys and now I dictate the way my work goes - not the other way around like it used to be.

The house is very dark.  I would try to break up the darkness with some color or a lighter color skirting - a light stone would probably look pretty cool if you can handle the expense and work involved - if you can find something that brings together the dark brown of the house and bright green of the surrounding grass  - something like a light green tint/yellow green - it would tie everything together.

Thank you!  

My "show enhanced signature" was already checked and that did not make my logo appear, however, "Use my name and company in my forum signature" did work to get the logo up and that box was NOT checked until now.

Thanks again.

Phil

hello,

I just joined as a pro subscriber.  I also set up a business page for my company.

I see some personal profiles with their company logo in the signature and was wondering how I do that?  I can't seem to find it anywhere.

Thanks.

Phil

I don't have a lot of real estate experience yet but have a ton of experience with start ups and consulting start ups. Killing time contemplating a name in a business that really doesn't need to be branded is not a great idea. The name doesn't matter that much when it's all said and done and if you do find you must brand the business or a portion of it, you can very easily set up a DBA (doing business as) and use that for branding.

I picked NightHawk Homes because the domain was available and because my sons team was the Nighthawks.  Has nothing to do with real estate and it really doesn't matter to be honest.  Don't kill yourself over the name really.  Businesses change so much as time goes on the name probably won't match your business in 3 years from now any way.  It's a different story if your goal is to build a brand but even then, brands are usually built around products, not companies.