All Forum Posts by: Robert Buck

Think of wholesaling just like the "wholesale" box stores. They order supplies from the manufacturer knowing they are going to sell them asap for a mark up.

No worries man all of us are learning I just didn't want you to research and head down the wrong road. From your numbers the houses are running at the 1% rule which is pretty tight especially if they need much work. But most definitely use the calculators here on bigger pockets and learn how to calculate a winner vs non winner.

Not sure what you're meaning by accidental wholesaler, unless you have a buyer in mind for the 3 single family houses and intend to get them under contract and assign that contract to your buyer for a higher price..

So went to a new title company and they said no problem doing this the deed restriction says I can't sell the property with in 90 days for more than $114k which is not a problem. So the new title company says this is easy and no problem, I don't even have to quit claim just a simple transfer with no additional transfer fees because im the principal owner of the LLc they have it all figured out and will have it ready at closing. Thanks everyone for the help. One note is they also restricted the deed that I can not finance more than $114k on the property for 90 days with a purchase price if 95k not sure how they expect me to rehab it but we are working through that easy enough. Thanks again everyone R. Buck

Thanks everyone for the replies the information came from the owner/lead attorney at the title company so I did call a couple others and am using a different title company. I was pretty sure when they told me I'd have to transfer all my investment properties to the llc that I was moving things elsewhere and that's what ended up happening.

That is exactly what everyone is telling me but the title company seems lost and it's making me nervous. I've used them for three closings this year but going to call around. This seems simple enough to me but they seem lost, even told me if I transferred one investment property to my llc I'd have to transfer all of my properties to it. I was amazed and replied ummmmm no!! Any recommendations for title companies around Hagerstown MD.

Property is in Washington County Maryland btw

Need quit claim deed advise. So I got a property under contract that we are going to flip. We did not have all of our paper work ready for the LLC at the time of sales contract so I put it in my personal name. It's a Fannie Mae Owned REO so I can't assign the contract I'm told. Doing a hard money loan which needs to lend to the llc, they are fine with me simply doing a quit claim deed at my original closing and transfer to the llc. The closing/title company seems a bit lost with this, not a new firm by any means. Anyone know the best route for me to accomplish this and am I going to get hit with double transfer fees etc?

One additional, we are currently setting up our LLC taxed S Corp for the fix and flips. I've read that being an owner of a real estate company will qualify us a real estate pro. Still requiring 500 hrs per rental prop unless aggregated.

So I have been reading everything I can on this and get the concept but what i don't get is why everyone says no way you can get pro status if you work a full time job outside of real estate. My wife works regular hours averaging 30 couple hours a week and night shift at that. I myself work a full time job but it equates to 2 days a week or 8-10 shifts a month. Obviously that gives both of us many days and hours off to do the real estate. This year we have looked at hundreds of houses put offers in on 20 or so and bought 2 plus a third under contract last week. We do all of our own managing of the rentals, all of our own repairs and rehab work. Just paid the first contractor work today actually. I understand logging time we spent doing real estate stuff is required which we did but everything still makes it sound as though if we claim pro status we will end up in tax court. We have all the closing cost, repair moneys, professional fees, educational cost etc invested this year and many more to come that we do what with? Rolling it over year to year won't work because our salaries exceed the 150k now and will in the future. We don't plan to sell the rentals anytime soon either. If this is the case why wouldn't we all be putting rentals that we manage and actively participate in inside of an S Corp and write off every expense and loss? Yes I have phone calls in to CPA and will get specific details there hopefully but looking for insight from the wealth here. Seems as those the rental tax advantages are null if you still work a w-2 job even if you legit spend more time doing the real estate. Sounds very much like the home office deduction scare from many.