The general partner may be subject to Self-Employment Tax.LLC taxed as an S-Corp you will pay ordinary tax; however, once you have an established income the IRS likes to see that individuals are paying the operators a "reasonable salary" for the work being done.

They are more established and have no reason to see you as competition.

If you're a one man show trying to wear all the hats, this will help you get more deals done while getting established.2)A couple months back, I had a buyer pull out 2 days before closing.

Also you should investigate the values, look for previous appraisals, comps (as you mentioned) tax values and anything else that helps establish a value and include these items with your quote request if possible.

Also, you must establish a bank account for the company, have an operating agreement in place and issue Ownership certificates, along with a few other things.

I also completely agree that it’s easier to loan on purchase price for all the reasons you mentioned, plus a few others. 1) Purchase price is a well-established number not subject to the interpretation of comps, as ARV is.

I think it both saved them money and helped them establish some ownership of the house.

If you are lending 100% of the after repaired value, as @Ellis San Jose says, that would be foolish.And for me, I would be reluctant to loan 100% of purchase + rehab costs until I had a more established relationship with the borrower.

As a professional I understand that if the phone rings it might be someone I'd like to establish a good relationship with, being courteous begins with answering the phone.

Pre-Sale Inspections are intended solely to establish that properties comply adequately with zoning and property maintenance codes.