All Forum Posts by: Shane Smith

Im a member in a 50/50 partnership LLC that flips homes. I have shifted gears from real estate podcasts and books to advanced tax books. I consistently hear that the rich tax savvy individuals buy property and equipment in the businesses name. How do I physically do that?

For example, my business has identified the need for a quality hydraulic dump trailer. How do i write that off and time that purchase? Also, I could seriously use more space as the business grows. There is a run down garage near me that im interested in, how do i purchase that in the businesses name?

Note, my business hasn’t made any profit yet. Our first flip goes on the market this month, so no regular income. I plan on discussing this with a CPA soon, im using this discussion as a sounding board to work out the dumb misguided ideas so i sound at least a little knowledge. Thank you.

@Marek Javorek

Correct me if im wrong tax experts, but a slight way around this would be to contribute max amount to an IRA and then take a loan (no interest or penalties) from said IRA. This would likely take a couple of years before you could really use that loan..

Reference: I'm in the military and have a TSP. I contribute monthly, pre tax dollars. Then can take a 0% loan out. Because I'm federal its a pretty good deal on the repayment, only fee associated is $50 processing fee. I may be off the path that you were discussing though.

sounds like you need a JV partner.

Its legal tender, spend it. At least its not nickels and dimes.

@Ehsan Rishat thank you for the detailed response.

@Francisco Torres get your hustle on brother! If they clerks are heisman’ing you over the phone then go down to the tax office and track down your list. A box of pastries can go a long way for something you want.

So i have requested and received a couple of county tax delinquency reports, whats next? How do you use these reports to target properties? The reports i received had over 500 lines of properties, so they are extremely large (at least it seems that way for me).

My first step was to extract all of the properties in one city then to only target properties from 2018. What next? Driving for dollars to analyze properties, google research looking for a contact info, or just direct mail?

What am I missing?

@Daniel Molina I appreciate your time and insight. That was very helpful!

Im interested in bidding at an upcoming auction and curious about the steps after winning (hopefully) the auction. I understand the amount i need to pay as soon as i win as well as the method, but what happens next? In my limited research of podcasts and youtube videos i know that i need to secure a hard money lender for the remaining balance that i will owe. If im purchasing this property by myself do i need an LLC (certain hard money lenders mentioned this as a requirement?). It's something that i want but with the time limit i dont have time to draft one before this auction; would that be a problem with the hard money lender? I understand each institution has different requirements but does anyone have any personal experience with auctions and hard money lenders. Any info is extremely helpful.

Great work joe! Looks amazing.