All Forum Posts by: Shannon Cannon

Oh I hope you’re right, Mike! Appreciate your reply, will check tomorrow! Thank you!

Hey, guys, I just posted a listing on Zillow for a house we are wanting to sell. However, once I uploaded everything and went to view the “public” setting, it shows a picture of the house before it was renovated (along with my uploaded pics). It looks so bad, but when I try to edit the listing, the picture is not there to delete. Any ideas? Not looking forward to calling Zillow tomorrow, as I’m sure I’ll get an endless supply of automated questions. And not finding any info with a google search. So any advice would be much appreciated!! Hate for people to get turned off by the “before” pics. 🤨

Shannon

Hi, Jonathan, No never purchased mainly because the flood insurance would have been too costly for this property. But I did speak with a lender who would do the rehab loan, and another lender who would do the final loan-commercial. But the numbers just didn’t work for us to move forward with it. 😏

Thank you so much for your replies! I did speak with my accountant, and he suggested 50% dividends and 50% contributions-to be on the safe side. Thanks again!

Hello! We are about to close on a flip, and it's the first one that we set up as an LLC with S-corp tax. It is my husband, myself, and a partner as members of the LLC. How much can we "pay ourselves" from the profit to avoid additional taxes? Any advice would be most helpful! Thank you!

Shannon

Hi guys! I am doing a flip with a friend of mine.  This is my first time using a partner, (but not my first flip) and have a few questions. She provided the cash to purchase the house, we put it in her name, and I will be doing the renovations. We will split profit 50/50 at the end. At closing, how do we split profits legally, so that she doesn't end up paying all the capital gains? We haven't closed on the house yet, she just signed contracts. I haven't used any type of entities yet in my investments, but wondering if I should in this situation to protect her? Any advice is greatly welcomed!! Thank you!!

Shannon

Hi, Brandon, I agree with Joe. I'm an investor in the Baton Rouge area. Having personally flooded, and purchased gutted houses since the flood, houses that did not flood are selling for more than they might have before the flood, not crazy high, but definitely higher. Gutted houses have been selling quickly, even a year later. There's definitely deals to be had, it's just a matter of getting to them before all you other investors out there! Rental prices will most likely go up as a result of the housing shortage that will occur temporarily. So I guess it's just a matter of whether she wants to buy a flooded house or not. That will probably be her best deal. If not, it might be to her advantage to buy quickly before the prices start to go up. :)

I just won a house on auction.com a couple weeks ago. Both I and the seller have signed the contract but haven't closed yet. I drove by the house today, and a large tree limb is sticking straight out of the roof! It's hard to tell if it's completely through the ceiling or not. We are forecasted to get a good bit of rain next week with Hurricane Harvey remnants, and not sure how the house will be affected. I was going to replace the roof anyways, but there will be some additional expense I hadn't planned on. It's still a good deal regardless, but how does this work, since we haven't closed yet? Can I call them, let them know about the tree, and ask them to reduce the price? Have any of you encountered a similar situation? Appreciate your help! 

Shannon

Thank you all for the input! After reevaluating everything, it just doesn't look like the best investment. The owner is not wanting to come down on the price, so we will just keep looking for a better deal. Thanks again, I so appreciate you guys! 

It's in a flood zone, but not sure which one. I'm willing to bet AE. Owner didn't have flood insurance cause he owned them free and clear. After a little more talking with owner, parking lot apparently holds water too and needs to be raised. He's still not wanting to come down on the price, so we are probably going to wait and see if he'Il reconsider his offer. Thanks everyone for all of the helpful information!! It's so great to have people to go to for help!! 

Thanks again!

Shannon