All Forum Posts by: Paul Gilo

gotcha. thanks!

@Justin R.

Your a good man. Thank you :)

@Justin R.

Appreciate your time and input. 

Access to a CPA is a bit more involved than communication on the forums, so thats why I posted it here. Just trying to wrap my mind around how to best approach these situations. 

Thanks again.

@Justin R.

I assume that this Owner Contribution can be pulled back out of the business at any time, such as a point when I can take a mortgage out on the investment property, to pull my initial investment out?

My understanding that when your buy it through the business and "for the business" then this can be filed as a business expense and therefore lowers your taxable income. If I just have a job, I dont think I'm able to do that. 

In regard to getting a bank loan and all the rates associated with that, I will have to look into that. But what is the alternative? Would you buy 4, 8, 12 unit property and keep it under your name? Seems like that could potentially give you more worries. And then there is the whole writing off the expenses thing. 

Appreciate the input and guidance.

@Dan Oliver

Whats the catch? :) 

I'm in Orlando and considering picking up a multifamily investment if buying a home for our selves does not work out. At this point I'm just trying to wrap my mind around this info and learn as much as I can. 

@Justin R.

Appreciate the response... even if I may not like it. :) 

But this is actually kind of how I saw it. Lets say that I let someone borrow 20k @ 10%, basically at the end of the year I show an income of 2k. And lets say my business does need a 1000 dollar laptop. So now I would be getting taxes on 1000 dollars, instead of the 2000 that the business actually made, correct?

But I guess the real question is, where/how does the business come to possess the 20k to lend? Am I lending it to the business and the business lends it to someone that will pay interest on it? So then the business had earned income via interest, as its also paying its loan to me over time? Does that make sense, or am I being too creative for IRS? :)

I am also looking to purchase an investment property and I want to put it under the business so that I can have protection for my personal assess and be able to deduct any expenses to reduce my overall taxable income. 

So lets say the property is 100k. How does the business get those funds? I'm thinking bout buying with cash to get the best deal and quickest closing. And then go to the bank and get a loan on the property to pull my money out.

So lets say I can get a 100k property for 80k, I can get the 80k I originally invested into the business to buy the property. After that any income and expenses will just need to be tracked in the business. Obviously at the end of the year, my NOI is 10k, I understand that that would roll down to me and i would have to pay taxes on that. I'm OK with that.

I really appreciate your time. Just trying to wrap my head around this process of how to fund and then separate my personal and business money and be able to expense out some stuff to ultimately save money on taxes.

Thanks again!

did i post in the wrong forum? 

Orlando FTW! Nice!

you plan on house hacking for 30 years? whats the exit strategy?

Go to the bank and talk to them about getting an FHA loan. See what they can do for you.