All Forum Posts by: Ian Patrick
Ian Patrick has started 1 posts and replied 41 times.
Post: Experienced Investor will Answer Questions for next few days
- Real Estate Consultant
- Philadelphia, PA
- Posts 42
- Votes 10
Thanks and you are correct on much of what you said in regards to our business. I dont wholesale in my name. Everything is in our holding company Franchise Real Estate.
Originally posted by Dennis Treacy:
Originally posted by crosswind_:
Thanks,
Crosswind,
Ian gave you the only answer he could. I like Ian own a business, a great deal of money crosses my books. I also do not care about, or pay short term capital gains.
Ian is most likely an S or C corporation, this structure would allow him to take many pre-tax benefits, all of which would lessen the profits of his company maybe even into the loss category.
My corporation usually loses money most years, however I receive a great monthly rent as the owner of the building, the lease is triple net to boot, and not to forget the business meetings in vacation like settings, health care, life insurance, a vehicle and all costs of running the vehicle.
Meals at nice restaurants, some of my clothes, etc.
Did I mention the $5000 I pay each of my children a year for working for my real estate company?
This year my daughter used her pay check to help with her college tuition, my son used his to pay part of his private school bill.
Just think if you could cover 100% of the expenses you now pay out of pocket with after tax dollars, how much money would you really need to make a year in salary?
Btw, In those years when we lose money, I get to write those losses off against my personal taxes to the tune of my ownership interest in the corporation.
My advice is to start a LLC as soon as possible, ask your accountant what form it should take for you particular need. Don't worry about short term gains, you won't have any.
I think you are thinking of wholesaling in your personal name, don't do it. Or if you must, consider that no one actually sends a 1099 after you leave the settlement table.
You will have to figure out what to do with that large check.
Post: Experienced Investor will Answer Questions for next few days
- Real Estate Consultant
- Philadelphia, PA
- Posts 42
- Votes 10
The majority of our leads come from mailers and our canvas team right now. We have 4 people that canvas 5 days per week for leads and send out about 4000 mailers give or take per month.
Originally posted by Jeffrey Gordon:
jeffrey
Post: Experienced Investor will Answer Questions for next few days
- Real Estate Consultant
- Philadelphia, PA
- Posts 42
- Votes 10
Rich,
I have no problem with other investors contributing, but over my head is far from it. I'll let you know when I get there. Newbie , come on. Check our website. It's not a plug at all, just showing you that I am far from a newbie. Most of our properties sell in under 6 days. As far as flipping, wholesaling, renting , I know what I am doing. As far as commercial stuff, I dont know much. I know some basics with it as we've moved a few pieces, but I dont own any. I also know a good bit about private lending as we have a partnership with hardmoneybankers in Maryland. I am not an expert in lending, but if someone had a question, I would call my partner down there to ask his thoughts.
Originally posted by Rich Weese:
The question Jon K posted was simple. I've stated many times, there is NO secret to making money. The secret is keeping it. I've posted and blogged on that many times. I thought maybe the newbie had some good ideas, but as pointed out, he still has a bit to learn on that subject.
I agree that you con't entrust your tax consequesnces to any one else. No one will ever take better care of your money than you,,,period
Same question- how do you keep the short temr capital gains. Simple question Difficult answer. I've posted some of those numerous times, here and in a book.
By the way, I'll also be around to answer questions for more than a few times. I'm here to learn also, so tell me your plans and secrets. Thanks. Rich.
Post: Experienced Investor will Answer Questions for next few days
- Real Estate Consultant
- Philadelphia, PA
- Posts 42
- Votes 10
I am not trying to prove anything. I never said there werent experienced investors around here. In fact, several here have been of great help to me in the past. As far as questions I can answer questions in regards to wholesaling, rentals and flips. I dont do commercial, but I'm not against it. Dont know enough about it. Why would I lie about the amount of deals I do per month. I have no reason to. It's just an average. Ive had month I've done 4 and months Ive done 12. If the thread isnt of any use, I have no problem just stopping. Thought I would help with my experience. As far as the taxes go, I trust my partner to submit them to our accountant that I trust. Havent had a problem yet and you might be correct in that money could be left on the table. Might be worth looking into.
Originally posted by motiv8td:
Ian, have anything to share that would add some value to the community?
Could you possibly be more specific on the types of questions you're looking to answer to prove your savvy status instead of giving really vague answers to the questions that have been asked by experienced investors(which by the way this place is full of in case you were wondering)
Point is, if you're going to come out and offer whatever expertise you say you have(by the looks of it not much, anyone can say they wholesale 10 deals a month) you might consider to be ready give specific answers and examples and know that experience investors will easily and quickly tear apart any part of any answers that lack truth and credibility.
Welcome to BP btw
Post: Experienced Investor will Answer Questions for next few days
- Real Estate Consultant
- Philadelphia, PA
- Posts 42
- Votes 10
Got to love forums. Im not pretending to be a guru, I just said I am an experienced investor that can answer questions. Some things I know very well and other I dont. I have buyers that own 600-2000 properties that couldnt tell you the first thing about wholesaling properties, does that mean they arent qualified to give advice or help others? I didnt come here to prove anything, just helping out because I remember people that helped me when I first started.
Originally posted by Jeffrey Koenig:
Post: Experienced Investor will Answer Questions for next few days
- Real Estate Consultant
- Philadelphia, PA
- Posts 42
- Votes 10
You can go after REO's as there are an abundance right now. The market moves in swings with them. Right now we are overloaded. Our company sticks primarily private sellers, but we do pick up REO's from time to time. Make sure your numbers work regardless. Our market tends to be 65% ARV-Repairs - wholesale fee. If you arent sure what your market is, call your local HML's and see what they lend up to. The tends to be a good feel for it.
Originally posted by Joseph Arerdondo:
Originally posted by Ian Patrick:
Ian - I am new to REI(6 months) but have been getting all my education much like you via the internet. I have purchased a couple of books and DVD's (*************) and been on numerous REI forums gathering info and learning. But now I want to do. I do not have money now as I have used it for another investment I got into back in December. I am interested in flipping/wholesaling right now as that seem to be the way to get going quickly. My question - and I know it is very subjective - is what can I focus on right now that will allow me to do this considering this will be my first flip/buy. Should I try REO's and bid on FNMA since they seem to be easier to get around the seasoning issue and also the 120% rule. Or can you give me some other advice? I need to get rolling and hopefully be in a position to help others someday soon.
Thanks for all your help in advance.
Joseph Arredondo
Post: Experienced Investor will Answer Questions for next few days
- Real Estate Consultant
- Philadelphia, PA
- Posts 42
- Votes 10
It is run like a normal business and we dont have a creative tax structure. Our consulting fee/ assignment fee is to the company. We have normal overhead for marketing and such. We pay normal LLC taxes from there. This is not an area I would be considered an expert on. Our accountant is very REI savy and we trust him.
Post: Experienced Investor will Answer Questions for next few days
- Real Estate Consultant
- Philadelphia, PA
- Posts 42
- Votes 10
When you say, keep taxes down. What are you referencing? How our company pays out to us as the owners?
Post: Experienced Investor will Answer Questions for next few days
- Real Estate Consultant
- Philadelphia, PA
- Posts 42
- Votes 10
My intentions? Primarily to help others if they have questions as I would have liked the same when I first started.
Post: Experienced Investor will Answer Questions for next few days
- Real Estate Consultant
- Philadelphia, PA
- Posts 42
- Votes 10
As far as tax efficient, can you be more specific.
To answer what we do, we wholesale 8-10 deals per month, hold properties, flip and manage properties.
To analyze our market we look at DOM, crime and owner occ vs non owner occ to determine flip vs rent. This didnt determine if we wholesale or not, it determines the best exit strat. You can wholesale either way.