New member and new investor in Cochise County, AZ. I'm glad I found BP. It's a great resource. I'm hoping to find an REI club in my area.

John

I believe that it is set up where I take a salary of $1500/mo and pay SE tax on that, the rest comes thru as dividends.

(Btw, he is very knowledgeable even though he is not an accountant).Your SE tax rate will include both Social Security and Medicare (15.3%) AND you Federal tax rate.

I have no real estate experience per se, but I am a SC Licensed Residential Builder (not how I make a living right now).

There is not much inventory lately in SE phx area.Regards,

A definitely Plus One for Bill Walston.That is correct, if the LO is assigned it is considered an assignment fee and is taxed as ordinary income and could be subject to SE tax if you are in the real estate business.

There is no assignment fee, per se, the wholesaler will effectively get his fee from the sale of the LLC.

They didn't bother too much with the receipts for repairs/expenses per se but wanted to interrogate the legal fees paid for property acquisition esp the fact I write off all the expenses I pay even though I financed the property for the investor.Legal fees: even though my attorney had detailed accounting on his letterhead for all services she still wanted cancelled checks to prove I paid!!!

I'm not a wholesaler, per se, but I do wholesale some deals when it makes more sense (from an ROI standpoint) than flipping does.

I have excellent credit: 780 in Dec; low income the last 2 years (@ $35k) due to many family emergencies (3 deaths); am self- employed - will file 2nd tax return as SE this year; excellent assets.