All Forum Posts by: Tyler Sample

Thank you for the input. What would be a reason someone would file an LLC as an S Corp?

 1) Financing because I only have so much cash to put towards the 19ac. The only income that will come from it is a livestock lease which is fairly cheap. 

2) My income right now from my job? 75K. No income from any RE investments yet. 

and thank you!

My questions are:

1) I intend to be a life-long real estate investor within the State of Texas. I will be inheriting one property in the next month that I will turn around and sell immediately and then potentially purchasing 19ac in the next few months (financing the 19ac). Should I create a Series LLC before I own both of these properties? What are the issues with owning both properties and then transferring title to the SLLC? i.e. Due On Sale Clauses, loans, etc.

2) Should I file as a S Corp for tax purposes? I understand this means I am an "employee" of the SLLC but I'm not sure what I should list my own salary as if one at all or how that works. I just know the pass-through taxation is a benefit of up to 20% more to write off or something like that.

3) Do I even need to create an SLLC at all? I think it would be a good idea to go ahead and create one since I intend to own at least 10+ properties within the next 7-8 years. 

4) LegalZoom or talk to an attorney?

I am inheriting a vacant lot from my grandparents and have the neighboring land owner willing to purchase it as soon as the deed is in my name. There is also a lot next to mine that I want to reach out to the owner and give him a cash offer but do not want to directly let him know I will be wholesaling both lots once I have them. I am a realtor in Texas so my question is, is it illegal for me to give a cash offer for the lot next to mine and tell him I am buying it for a different purpose? My license is valid but I am not active.

@Jim K. and everyone else - Thank you for the replies! This has really helped. Jim - yes, I have about 50K between my student loans and my new car. Student loans I couldn't help but now I'm focusing on paying down the car, refinancing, and maybe trading it for a beater. It was an impulse buy. So once I get rid of the car payment I can afford a $1400-$1500 mortgage pretty easily. Thank you for the book recommendation. I will definitely check it out. 

Would you recommend me looking at a duplex rather than a quadplex since I don't know much about hacking and because of my current debt? 

@Parker Eberhard Very good points. Right now I see it purely as an investment, a good #1 to start my portfolio and get my feet wet. Maybe that should've been my original question - what is a good first buying situation if I want to get into investing?

I am willing to live in something small, I like the idea of living in a tiny home and having small investments like that. But from reading articles online it seems owning a full-size home is a better investment when your talking about 10 years or longer. However, I would like to be on the aggressive side when it comes to buying and selling real estate. Preferably sell my first home after 2-3 years, then start decreasing flip time, given that I am gaining the understanding of this game. 

So you're saying just find a house to flip? or to rent?

Hey guys, I am a 25 year old business consultant that makes 75K a year right now. I can confidently say I am expecting to be making six figures in the next two years. I want to buy a home and stop renting but am looking for a "safe" way to do it. What would you say if I told you I have been brainstorming a plan to buy a piece of land, live in a camper, and while living in the camper start building a home at the front of the property? I could then rent out the camper for passive income, and I plan to rent out at least one of my house bedrooms to a trusted friend. In my head, I could live mortgage free while making my normal house payment, therefore paying down my mortgage twice as fast. Any thoughts? Has anyone tried or done this successfully? What are the pros and cons of my utopia plan here?

@Michael Laniak No sir I have not yet! I am working a full-time business development job and trying to get my student debt under control. Debating whether or not I should have even gone for a degree LOL.