All Forum Posts by: Account Closed

John Moore Thank you for your help!

Ok great. Thanks for your help!

Hello everyone! I'm a newbie flipper/rehabber out of Texas and want to get some opinions on the best type(s) of insurance for a flip house. I know for sure I should get Builder's Risk Insurance and/or Empty House insurance. From what I've read, Builder's Risk Insurance is the better route since it's basically coverage for construction/remodeling a property. Do you agree? Also, I do not formally have any employees. Should I get Worker's Compensation as well just to protect me even further? I know independent contractors should carry their own policy of insurance but I want to be prepared for worst case scenario. What do you investors usually do?

Any advice would be greatly appreciated! Thanks.

Thank you for your help! I'm going to the link now.

NO WAY!!

In Texas, murders do not have to be disclosed but I still wouldn't even risk it. People are all over the board when it comes to caring about the history of a home but me, personally, could never purchase a home even to flip knowing THAT TYPE of baggage on a property. Especially if the fire/murder was reported on the news, one google search could let the cat out of the bag and you could lose numerous amounts of potential buyers.

I'm assuming everyone here knows the infamous Andrea Yates, the woman who drowned her 5 children in the bathtub of her Houston home. That home became more of a tourist stop than anything and remained empty for more than 3 years at A HUGE DISCOUNTED PRICE until a buyer came along that actually didn't mind the gruesome history of the house...

I wouldn't risk it but let us know if you decided to purchase!

Hello all. I live in Texas and am a newbie in the real estate investment business.
I formed an LLC to put all the investment properties under. I have my first foreclosure under contract and close on it next week.

I really need help from a flipper/rehabber who has knowledge about the process of hiring employees. I know a lot of investors who pay cash to their day laborers/independent contractors for a variety of reasons and I'm assuming you know why too...

My CPA told me this can get you in some serious high water with the IRS if you do not report the wages you are paying out. She suggested I have all my day laborers who are not independent contractors fill out a W-2 form and pay them by payroll. She suggested I have all the independent contractors supply me with a social, TIN # or EIN # in order to submit a 1099-MISC to the IRS at the end of the year and pay them by certified check.

But what if I only use a day laborer for let's say 3 days? Why would I formally employ them?

Does anyone have any suggestions/comments or a better method for this situation?

Any help would be greatly appreciated!!

Thanks,
T&B Realty of Texas, LLC