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best way to invest in what I am doing

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  • best way to invest in what I am doing

    I am a physician that recently became a realtor.  I have made several connections with flippers and will be selling their houses and helping them find houses to flip. What is the safest and best way that I can also invest in these flippers?  Doing a "hard money" loan, setting up a fund with other investors, or buying the individuals houses with the flippers and figuring out a way to split the profits?  Thanks for your time and thanks for your website.  It has been very helpful!

  • #2
    You might want to ask those questions here:
    Erstwhile Dance Theatre of Dayton performer cum bellhop. Carried (many) bags for a lovely and gracious 59 yo Cyd Charisse. (RIP) Hosted epic company parties after Friday night rehearsals.


    • #3
      The safest way is to use other peoples money.


      • #4
        WCICON24 EarlyBird

        What is the safest and best way that I can also invest in these flippers?
        Click to expand...

        Do not do this without professional advice. Set up an LLC for this activity and see an attorney for a good basic contract with all of your potential "partners". You need to be aware that partners have unlimited liability for other partner's liabilities unless you are a limited partner, so you might want to invest through your LLC into any partnerships with other investors.

        You will be paying tax at your top marginal tax bracket, since flips are , by definition, short term. If it becomes a real business, the profits are potentially subject to FICA (Medicare, for you) taxes, also.
        My passion is protecting clients and others from predatory and ignorant advisors 270-247-6087 for CPA clients (we are Flat Fee for both CPA & Fee-Only Financial Planning)
        Johanna Fox, CPA, CFP is affiliated with Wrenne Financial for financial planning clients