Guest lojak Report post Posted November 22, 2004 (DISCLAIMER: I will be paying people [atty/cpa] for opinions on this - just looking for pros/cons on correct structure) Here's the basic business model: wholesale flips and assignments to generate cash, SFR L/O for cash and appreciation, and buying vacant land to put Mobile Homes on selling the MH and carrying the note and renting the lot. Here's what I propose: A C Corp to handle the flips (can also provide healthcare coverage for my family), an S for the L/O and to carry notes, and an LLC for the buy and hold properties with the properties held in land trusts. The main thing I want opinions on is whether there is any advantage to conglomerating all the entities (C & LLC held by S) or should they just all be set up with common ownership (me)? Thanks for your opinions. Share this post Link to post Share on other sites
Dave T 0 Report post Posted November 23, 2004 Sorry, your question is beyond my expertise. Entity structuring is best left to professionals to address. Share this post Link to post Share on other sites
Adam King (MI) 1 Report post Posted November 28, 2004 Lojak,You could get 15 different answers from 15 different people. I agree with Dave. I advocate continuing to do what you're doing and write out a full business plan. Once that's done, I would move to doing just ONE thing. So, what is that? Flipping? Mobile homes? There are advantages and disadvantages from having one or too many companies.In the beginning I was an S-Corp, now I'm a LLC. I still don't know why? Someone told me that I would be better off doing it that way. Still can't remember who that was either. I would try to focus on just one thing and ask your CPA/Attorney which would be the best entity to create for that venue.Just my two cents,AdamPS I'v made a TON more money doing CAs versus wholesaling.PPS I followed my 2004 business plan for about a month before it got totally changed. Share this post Link to post Share on other sites
Guest lojak Report post Posted December 1, 2004 Thanks, guys. Adam, I have a business plan (plan the work, work the plan). Long term I'll definitely be dropping wholesales but right now I need to generate cash b/c I'm uncomfortable doing deals and not having the cash to carry them. Once I have the cash, I'll work both CAs and Mobile until I decide which I like better. Share this post Link to post Share on other sites
Adam King (MI) 1 Report post Posted December 3, 2004 Lojak,CAs require no risk or cash. If you can afford a $1.00 sign in the front yard or a $10.00 ad in the paper, you're in.One of the hardest things to do in this business is to have a long term plan. My 2004 plan got thrown out the window last January! Yeah, it's not just a job; it's an adventure!Regards,Adam Share this post Link to post Share on other sites
dandxg 0 Report post Posted May 3, 2005 Lojak,CAs require no risk or cash. If you can afford a $1.00 sign in the front yard or a $10.00 ad in the paper, you're in.One of the hardest things to do in this business is to have a long term plan. My 2004 plan got thrown out the window last January! Yeah, it's not just a job; it's an adventure!Regards,Adam<{POST_SNAPBACK}> Adam for novice RE investor, like me, what are CA's? Share this post Link to post Share on other sites
MichaelC 160 Report post Posted May 3, 2005 Dan, you will see the term CA tossed about here all the time. It is short for Cooperative Assignment. It is one type of lease purchase deal whereby we, as the investor in the deal, put the deal together for a homeowner and get paid for doing so. It is literally risk free and pretty darn close to being cash free, (marketing does require some cash).Do a search for CA, and for Cooperative Assignment, and you'll find several days worth of reading. Enjoy. Share this post Link to post Share on other sites
