All Forum Posts by: Richard Adjou

@Jonathan Makovsky thanks that makes a lot of sense, I'm gathering some data to see if I can calculate some of those fixed costs in my area before hand. Maybe I can factor that all into a spreadsheet for quick evaluations or something. The construction side of things is not my strong suit either so I'm gonna stick to wholesaling for now but those projections can still come in handy as a marketing tool for buyers. 

Now regarding the desired profit, I assume that's the minimum profit margin your looking to get on the deal. Is that a standard figure or is it determined through the historical data you are finding with similar flips in your market?

Congrats on the rehab and wholesale, @Jonathan Makovsky  , could you share on some of the ways you got to practice analyzing deals? I want to get better at the whole valuation process and not sure the best approach to take to get that practice/experience. My biggest thing is that I don't want to come off as something I am not. 

@David White Nice! I've only been to a few so far but so far they've all had a pretty relaxed atmosphere. Depending on the club, there could be a speaker presenting some investing ideas and strategies that is working for them in the area. Be open to meeting new people and bring business cards if you have them. Which one are you attending? 

@Nicholas Miller hahaha thats awesome! I'll definitely have to keep that in mind when I come up with my next LLC. Your right though it really wasn't that hard to set up online, but this being my first one, I wasn't sure if I missed anything along the way. I guess at this point it doesn't matter all that much

I have to go look back at what we filed last year, but I believe we used the 1065 form. It was prepared for us by some tax professionals so I'm going to assume that they gave us the appropriate paperwork for filing. Can you explain to me what those quarterly b&o reports are? I feel like there's some routine compliance things that I missed along the way that I should be doing. But when I initially setup up the entity,as an LLC, we didn't have to do all of that stuff specific to the S corporation. But I'm not sure if that changes now that we're being taxed as in S corporation. Thanks Steve

hey BiggerPockets community, I'm just getting started in real estate and following popular belief, I was under the assumption that for tax and liability benefits the first step was to get some corporate entity set up to conduct business. So my partnerand I have an LLC that is being taxed as an S corporation for the past two years. the first year I benefited because we didn't have much success in the business and I was able to use those initial expenses to not owe much in taxes. Now in the current year I haven't done much with the business at all. I decided to take a break and focus other priorities and on learning as much as I could so we can do better next year. Now, I'm wondering what to do for the tax season. I'm not really sure what to expect and what I should be taking advantage of considering that the business hasn't made any money nor incurred any serious expenses. I do still have some startup expenses from the previous year (credit card debt) and could maybe expense some of that? Does anybody have any advice on what to do or what I can expect to owe in taxes?

PS I'm not sure if location plays a role in any of this but I live in Maryland.

Good to know, thanks OP, I'm new too