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Real Estate wholesaler needs help with taxes.
How soon do you plan on starting??
Every business person should have an Accountant, A Lawyer and an Insurance Agent.
*We would need to know a lot more about you before you can b*e* * consider self-employed.
Definition of self-employed. - - -
One person operating a business as an individual is self employed.
P S self employed is the most common form of business.
I plan on starting in less than one month.. but like i said i'm concerned with the simultaneous closing aspect of wholesale, like acting like a middle man between a distressed seller and a willing buyer, and making some profits in the process.
at this preliminary stage do I need to get an accountant, lawyer etc first? .. and what about the tax implications, if for example completed 5 deals within a tax year?
Good luck, when you start. That gives you some time.1 of 1 people found this helpful
Do you know about SCORE?? SCORE is FREE.
Do you need to get an accountant, lawyer first. NO, BUT you might
sleep better at night, (you can see I can not sleep)
and they will be on your side about tax implications.
I got it! thank you again LUCKIEST!
what is SCORE please?
1 of 1 people found this helpful
It does not sound like you are holding for any period of time or improving the property property. You would more likely be considered self employed than an investor if that is your question. Your expenses will reduce your SE income. You can incorporate if you want. However, it may add undesired complexity at closing.
One caution, you want to be sure that your are not performing activities that require a real estate license. If you are just holding the title briefly and profiting by the spread, you should be ok in most states. However, if either the buyer or seller is giving you ANY kind of "referral fee", you would need a license in almost any state. It does not matter what the fee is called. I am not aware of any state that allows an unlicensed person to receive any compensation for facilitating the transfer of real estate. Inroduction fees, consulting fees, referral fees - whatever it is called, you probably need a license. I don't mean to sound accusatory, I have just seen so many books and seminars that lie to people about what is permitted in this area.
your first paragraph describes exactly what I plan to do. In fact I would be closing within a day.
it wont be based on commisions or referral fee. Actually I determine what I get by negotiating at seperately at both sides of the table (that is first with the seller, and then with the buyer).. then I get the difference as income.
And I was told that this is allowed in some states
I wouldn't see any legal problems anywhere. I am not aware of any laws against flipping.
One thing that you may want to consider is setting up a retirement plan like a SEP IRA with some of your net profits, effectively up to 20% of what you make. This tax deferred savings plan will let you diversify some of your profits into investments with a different risk profile than your business if you don't already have non real estate investments.