All Forum Posts by: Waldy Corniel

I'm not sure how much to offer to private investors to help me fund my flips?

I would suggest Wisdom capital.  They have helped me a lot in my investment journey. 

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $315,000
Cash invested: $31,000

3 bed 3 bath

What made you interested in investing in this type of deal?

getting started

How did you find this deal and how did you negotiate it?

mls

How did you finance this deal?

hardmoney

@Waldy Corniel

LLC Tax Benefits for Rental Property

One of the major advantages of using a limited liability company for your rental property is pass-through taxation.

This means that the LLC does not pay taxes; the business owner pays the taxes, thus eliminating the double taxation that occurs if you were to form a corporation instead. If you are the sole member of your LLC, you will be taxed similarly to a sole proprietorship while enjoying the additional benefit of liability protection.

If you own a multi-member LLC, then the taxes may be handled differently and you also have a few options for how to file your company with the IRS. Taxes are still passed through the LLC to the members; however, the members must complete a Schedule C, Schedule K, or Form 1065 with their income tax return. Each member of the LLC will claim their share of the income, not the entire income that the LLC earned that year. You might also elect to have your LLC taxed as an S corporation or a C corporation for a different tax structure. Prior to setting up your LLC, it is advisable to discuss your situation with a tax professional to find out the best way to set up the company and to minimize your tax burden.

One of the major benefits of having your property owned by an LLC is that you will be able to take certain deductions on your taxes that you otherwise would not be eligible for. Additionally, if you run your company out of a home office, you may even be eligible for other additional deductions, such as utilities, repairs and maintenance, or dwelling insurance costs.

@Waldy Corniel

How to Use an LLC for Rental Property

If you choose to use an LLC for your rental property, this means that your company will officially operate as the landlord, rather than you as the individual. This business structure will give you added personal liability protection, as well as additional benefits, such as a more professional business appearance. If you use an LLC for your rental property, you will also have some flexibility in how you choose to structure your company. You can be the sole owner of your company or you can include a spouse or other business partners in your ownership. The way your LLC's taxes are handled can vary depending on how many owners your company has and how you choose to set this up with the IRS. As is discussed later, you have some options in this area and can decide which tax situation is most beneficial for you.

You will then acquire your rental property in the LLC's name. Ideally, it can be simpler to form your new company before acquiring rental properties. This way, your LLC can hold the property title from the start, which saves you a bit of time.; oOn the other hand, transferring existing property ownership from yourself to the LLC will require a few additional steps.

Once you register your LLC, there are a few basic steps you will need to take in order to set up your rental company, such as the following:

Obtain a Tax Identification Number (otherwise known as an Employer Identification Number or EIN).Open a bank account in the name of the LLC.If your rental homes are currently in your name, you will then need to file the appropriate deed—usually a quit claim deed—to transfer the title of the property to the LLC. If possible, refinance the property into the LLC's name or ask your bank whether you can transfer the mortgage to the LLC without refinancing. Always contact your lender or bank before taking this step. If your mortgage has a due-on-sale clause, it could cause you to have to pay the mortgage in full if you transfer without contacting the mortgage lender first.

If you have more than one rental property, you will need to decide whether to set up separate LLCs for each property. As discussed below, doing this can make financial matters more distinct between properties and easier to avoid commingling funds, but you will also need to consider any additional costs that may be associated with setting up and maintaining multiple companies.

@Waldy Corniel

Using a limited liability company for a rental property business is a great way to protect your liability, get tax benefits, and gain other advantages for your business. Not only are your personal assets protected in the event of a lawsuit related to injury on your property, but you will also be able to keep any rental-related debts separate from your own, thanks to the liability protection that an LLC offers. Before you make the decision to form an LLC for your rental property, you should be sure to consider all of the advantages and disadvantages that come along with it.

Protecting Your Assets

If you are sued because someone is injured on your rental property, including a guest of the tenant, then your personal assets are not necessarily protected as an individual landlord. Regardless of how small or insignificant the lawsuit may seem, it can be a costly process to defend your assets. If you put your rental properties in an LLC, you will still have to pay for the cost of for an attorney should you be involved in a lawsuit; however, because the LLC is acting as the landlord, your personal assets are protected. The party that is suing may only go after the assets held in the LLC. Thus, if you have several properties, you may want to have a separate LLC for each property for added asset protection. Keeping each property in separate companies will further limit the assets that are vulnerable in a given lawsuit involving one of your properties.

You will also have liability protection that applies to situations involving creditors that are seeking to resolve debts. If you keep your rental property and your personal affairs completely separate from each other, your company assets can be protected from creditors in issues involving your personal debt and vice versa.

@Joe Jung

At Flatiron You can talk to Seena Talas .

I also do business with Wisdom Ventures LLC.

There you talk get in contact with Chris Reilly.

Me personally I like them caused of their process is much better and faster .

@Joe Jung

Initially they seemed to go really fast , then they slowed down drastically, so I had to go in a different direction. I would suggest you to go with Dominion financial. As they can qualify you for a revolving line of credit , that you'll be able to reuse again and again to fund your deals . This can give you a lot more speed .

I'm looking for an investor to help me with cash for a 3 fam in Mount Vernon NY.

Purchase price $320k

Renovation needed $200k .

ARV $750k.

The property is a 6 bed 4bath

3 , 2 beds apartment each can generate :

$2200 each apt in the low and $2500 in the high.