All Forum Posts by: Adam Hershman

 No kidding! It is really attractive to people like me who want to move back to So. Cal but can't imagine paying the price for RE. I still wouldn't do it, but only because of the much higher cost of living, taxes, etc. Living in Las Vegas saves me enough to take a long weekend trip to So. Cal about once a month, I have family spread around the area, so it works for me, besides any more than once a month and I think they'd drive me nuts.

Adam

 Hey Shane, 

You would still use a FHA or VA loan, but this is actual assistance, or a grant, to people to help with down payment and closing costs. I live in Las Vegas, so I'll use the NV program as an example because I'm actually familiar with it. It works something like this:

You are a renter, and you want to buy a house. You don't make a lot of money, and you can manage to save a little bit each month, but nothing that would make a meaningful down payment. Maybe you don't have a high level of education, or no skills, depressed labor market, whatever the situation is, you are usually required to have low income (their term not mine, and subjective depending on where you live) to get the assistance (In NV income reported on your mortgage app must be less than $95k). The benefit is up to 4% of purchase price, so you can see if you have decent credit and end up with a 3.5% down payment on an FHA loan, you could use this assistance to essentially purchase a house with $0 down.

Adam

Generally assistance like this is intended for those that are buying a primary residence, which is what FHA and VA loans are also generally intended for. Investors for example, most likely wouldn't qualify based on income, but if somehow they did the counties generally don't want to give them down payment assistance.

Adam

I am not an RE pro by any means, but I can tell you right now the best source of capital is going to be that nasty 40 hour a week job. I know it sucks right now when all you can think about is RE, but you need it until you get to a place where you can pursue REI full time. Maybe think about switching careers to something involving RE, that way you can enjoy and learn during the 40 hours you spend at work a week, while still saving capital for your investments.

Adam

 I agree.

The whole point of a co-signer with good credit is that he has good credit, and as long as you subscribe the principles of most lenders, can be relied upon to satisfy debts. 

If you think it is too much of a risk then take a pass, if not have him sign. If hes a 750 plus score and advertises that he has good credit, he probably wont wan't to jeopardize that. 

Adam

 I agree with Jeff, I am in NO WAY condoning loopholes or tricks or pushing the limits of what you can get away with when it comes to taxes and the IRS. 

But...

If you are the type who likes to "get over on ole uncle sam" so to speak, then at least do it in a way that limits your risk. Take chances on things with relatively small penalties if you want to take chances, not on your SD IRA which can be fully and immediately distributed as of the first of the current calendar year if you are involved in a prohibited transaction.

I guess what I'm saying is if you're going to do something illegal, speed, don't murder someone. 

Just my two cents

 Hey Catherine, 

Like you said the easiest way to increase surveys is to incentivize leaving reviews. You could always try giving a discount to returning guests who have left reviews, but usually immediate reward works the best. I think the best option is to offer a small discount (something like $25) on their stay for leaving a review. I'm not sure how you would work it out though. 

The second thing you could do is find a loss leader, something like an tablet or cheaper TV and make it a prize, everyone who submits a review gets an entry. Even though you would have to do it semi-annually or annually for it to make any real financial sense, I think a free iPad or the like would encourage people to give reviews. 

Adam

Definitely do not use the 60-day indirect rollover as a short term loan. It's not what the IRS intended it to be used for and they are working to close this loophole. The latest development is the "once per year" rule which now restricts you to 1 indirect rollover per IRA PLAN as opposed to per IRA ACCOUNT. As for your OP, I would say only take a distribution from your 401k if the return on the investment will be lucrative enough for the returns to be in the black AFTER you include the portion lost in taxes and fees. That way it's truly a benefit to your overall financial picture, and not just a "good deal".

Adam

You nailed it. You would be surprised how many people out there only know of this process as the "60 IRA Loan". That's what the IRS is trying to crack down on, poorly informed people thinking they can have access to their retirement funds for 60 days instead of it being time to receive a check and deposit it at a new custodian, which the IRS intended.

Most "rollovers" now are direct transfers, custodian to custodian either via wire or ACAT transfer, and are non-reported transactions to the IRS (non-reported is a misnomer, it will be reported as a rollover contribution on your 5498, but you wont be issued a 1099 a distribution.)

Adam

 Actually RE is much more tax advantaged than traditional investments, and dividends are not considered tax-free, qualified dividends are subject to a 15% tax (same as cap gains) and NQ dividends are subject to earned income rate in most cases. Unless you're investing in government debt, in which case your interest may be local, state, and/or federal tax free depending on the debt issue.

Adam