Posted by Jesse on February 14, 2005 at 01:06:25:
Mike, I have done this type of work for the past few years through a non-profit. It is possible, but you have to know what you are doing. email me directly & I can point you in the right direction. scoreinvestments@yahoo.com Jesse
Non-Profits for buying HUD’s…issues? - Posted by Mike
Posted by Mike on February 07, 2005 at 14:02:48:
My business partner and I have noticed we get outbid for HUD homes quite regularly by non-profits. After doing the research- we have found out that non-profits get a substantial discount on their purchase price.
So we have decided it may be a good idea to form a non-profit to buy HUDs, pay ourselves a salary, and give the remaining profits to charity. We get a nice salary out it- and we can help various charitable organizations in the meantime.
Has anyone else out there done this? What are the legal ramifications? I spoke with one attorney who suggested the salary we can take out may not be as much as we would like. He also suggested that income that is not used as donations- i.e. income that pays our salaries- may actually be taxable.
If you have done this- please help me understand the issues involved…and if you were successful.
Mike