She wrote the check for 104k total, I found the deal w/ my experience at auctions, evicted old tenants, managed the rehab, and will manage the rental for a 50/50 split of cash flow and equity earned beyond her 104k investment.

She wrote the check for 104k total, I found the deal w/ my experience at auctions, evicted old tenants, managed the rehab, and will manage the rental for a 50/50 split of cash flow and equity earned beyond her 104k investment.

@Anthony Blasko, put it in an interest free account or give any interest earned back to the tenant.

Hi Everyone,Does anyone knows what are the best legal ways to reduce your taxes when:1. you are giving hard money loan and getting interest on your money2. you are partnering with an LLC and giving money for a flip and the flip makes money

So depending on how your negotiation shakes out it can go down a few ways.Seller reduces price to the appraised value.You & seller meet in the middle at a new price between the original purchase price & the appraised price.You & seller decide to order a 2nd appraisal before doing anything further.

Making S-corp. election would be different story, actually it could reduce your tax liability since you won't have to pay SE tax on the entire earnings but only on reasonable salary corp. will pay to you.Contributions to 401K can only be made with earned income, so if there is no income - you won't be able to contribute. 

As a Canadian, we have to pay taxes on all our earnings worldwide.

The private money loan option will significantly reduce cash flow but would allow me to retain 100% ownership and decision making power.

Reducing your rent/mortgage though is one of the best steps to make.

As a licensed Broker and Agent in multiple states, there are pitfalls and contingencies that can be easily overlooked, and is where your Broker or a hired Agent truly earns their keep.