Posted by Patrick on March 28, 2001 at 14:30:08:
I have been reading for weeks off this site about flipping and wholesaling property and I must say I am very interested in learning the ins and outs of wholesaling. I have read through books at the local book stores here in st. louis but find very little if anything about wholesaling yet it is talked about everywhere on the internet. Can anyone suggest a means of education for me to get the knowledge to flip property correctly with out getting burned?
Also I do have a couple of questions:
For somone just starting with flipping property, the income generated, does that have to be claimed in your yearly taxes?
With that first question in mind does a person flipping property need to claim that as a business and pay taxes on the income generated or can it be considered a hobby and be tax free? (all these questions are based on me living in st. louis mo)
My intrest in wholesaling increased when my wife and i did out taxes this year and were hit pretty hard because we live in an apartment dont have many deductions other than our 6yr old, and made together 40,000 more in income than we did in the previous year. Well to make a long story short we decided it is time to buy a house and get some of our money back from uncle sam. Well we have decided to build and are waiting on approval from our lender to see if we can get home we want. But our biggest problem is we dont have much of a down payment as of yet. I’m positive that with over time and me working 2 jobs for the next 3 months while the house is being built that we can generate about 7,000.00 but I want to go higher than that if possible that is why I am looking into wholesaling. Besides that I have seen plenty of vacant houses around lately but just dont know how to cash in on them to help us get into our dream first home. Any suggestions?