Dan Krupa and his wife Michelle had been investing in real estate off and on for 10 years. They had dabbled in long distance buy and hold, they had Bought-Rehabbed-Rented-Refinanced, flipped, house hacked, got taken to the cleaners by a couple of property managers and then decided to leave their W2 jobs and start a full time real estate investing business. They started with both of them getting a real estate license in Missouri and making the decision to focus on flipping houses to generate capital. Here we take a look at their first steps that others may find helpful in their process. Getting a Business Name They brainstormed and picked out two business names that they liked and were available on GoDaddy.com to purchase as a domain name. They turned to friends and family to vote on their two names and their favorite won out. They bought the domain name for their business on GoDaddy.com
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Then they went to 99designs.com to get a logo crated. At the time it cost $300 and they got a great logo sent to them in eps format (eps is used to place your logo on flyers, door hangers, signs, magnets, etc..), jpeg, tiff, etc... Setting Up the Business Next they took their name and formed an LLC. They did this through a local lawyer who speaks at the local REIAs, deals exclusively with real estate, and came recommended. LLC creation rules vary by state, I recommend you pay the $500 and use a lawyer. Also, don't be confused. If you are flipping you will create an LLC then your CPA will file a letter with the IRS to make your LLC an S Corp but it will only be an S Corp in the eyes of the IRS. It is an LLC for all other intents and purposes. Have your CPA file for your S Corp status if and only if you are flipping or actively working in real estate. We elected S-Corp because we both became agents and we are flipping. Ask your CPA why.
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