All Forum Posts by: Basit Siddiqi

What is your plan on networking in NYC?
Do you plan to get a job in NYC and network with your co-workers?
Do you plan to go to real estate networking events?
Would it be better to stay in San Antonio and network with people in San Antonio?
You can also take a car ride and travel to Dallas, Houston or Austin.

I think NYC is a good city if you want to work and make a lot of money. There are a lot of people in the city but I find other cities more warm for connections / networking.

Just be mindful that you can't 1031 a personal residence but it might be eligible for capital gain exclusion from section 121.

You may want to make an introduction between your CPA to those 2 colleagues.
The CPA can go over their services and pricing to your colleagues.

I partner with many people on real estate deals - It never gets to a discussion on whether they do their own tax return or hire a professional.

If a partner mentions he will provide capital - does he provide the capital on a timely manner.
If a partner mentions he will find deals - does he find many deals and provide an analysis
If a partner mentions he will manage a property - does he manage the property well(find tenants, collect rent, communicate with contractors, etc)

Quote from @Curtis Cutler:

Hello all, I'm trying to rethink my retirement plans. I lived in NYC and worked for the city until I was terminated for not taking the covid vaccine. There's a lot more to the story. We had to move to SC. I have a 401k/457 sitting there as stagnant money in NYC. About 90k that will be taxed at 40% if I take it now. If I transfer the money to my current job I cant barrow from it. I also can take out a home equity line of credit on my current home....but I need direction. 

I'm thinking long term rentals will be a good retirement plan. I'm 45 years old. 

What is the interest rate on the HELOC?
Can you make a higher return than what the interest rate on the HELOC?
If the interest rate is 6%, are you sure you can make above 6%?

In the past, I cashed out my 401K(Paid income tax + Penalty). I used the funds to acquire real estate that appreciated signficantly. I am happy that I made the decision. However, I made the decision when interest rate was lower and there was support for an appreciating real estate market. I am not sure if I would make the same decision today.

However, if you think you can purchase real estate and have a SIGNIFICANT delta as an investment, I would not cash out the 401k now to buy real estate.

Quote from @Kristi K.:

Quote from @Curtis Cutler:

Hello all, I'm trying to rethink my retirement plans. I lived in NYC and worked for the city until I was terminated for not taking the covid vaccine. There's a lot more to the story. We had to move to SC. I have a 401k/457 sitting there as stagnant money in NYC. About 90k that will be taxed at 40% if I take it now. If I transfer the money to my current job I cant barrow from it. I also can take out a home equity line of credit on my current home....but I need direction. 

I'm thinking long term rentals will be a good retirement plan. I'm 45 years old. 

Transfer the $90K to a SDIRA, never transfer to a new company. You can buy a rental house, put $60,000 down and you will have to get a non-recourse loan for the rest of the mortgage. Then keep $30,000 in reserves in a hysa for emergencies. All rents you get from this property has to go back into the SDIRA but if you get a 20 year mortgage (that the rent can cover) and can pay the rental off by age 65 you will have turned that $90K into several hundred thousand’s of paid off real estate. You wont pay capital gains when you sell the house as long as it is in the SDIRA but you will have to pay normal income tax when you withdraw cash from the SDIRA after retirement but would you rather pay income tax on $90K or $300K?

Or take the 40% hit now and put the $54K into a Roth IRA and do something similar.

Best of luck!

In my opinion, $90,000 is too little capital to invest in real estate within a retirement account plan.

LTV's are lower when investing with a retirement account plan - Around 65%
Meaning if you were to use $60,000 as a down payment, you would likely only buy a house around $70,000.
$8,000 would likely go away in closing costs. You would then stress to not incur any improvement cost above $22,000 or you may have to liquidate the property.

In this scenariod, $60,000 if you are making an above return at 10% to 12% annually + $30,000 making $4% in a HYSA, the average return is maybe around 8%
The blended return would be about 9%

You may be better off investing in the stock market, get a slightly lower return but without all the added stress / work.

It is normally not a good sign if a company has to change their name. Considering they changed their name twice...

Has there been any communication from the GP to you?
What did they say is the plan?
Did they mention when distributions will resume?
Are you able to request their balance sheet / income statement?
If yes, how do the numbers look?

You mentioned student housing - What schools are they near? Do the schools have increasing or decreasing student enrollment?

It is normally not suggested to own appreciating property, such as real estate, within an S-Corp.

Quote from @Scott Trench:

Wait... the guy who buys all the ads (through Google) on BiggerPockets YouTube videos and attempts to reach BP viewers says that Tax Liens are the best way to build wealth, asking me repeatedly and agressively why I'm not doing it? 

Do you have any say over what ads can / can't be played during the biggerpockets youtube videos?

Quote from @Linda Weygant:

Do bear in mind that this legislation was proposed a week ago on a 100% tax for non-EU residents.

https://www.bbc.com/news/articles/cr7enzjrymxo

Thank you for sharing this article! 
This appears to be a 'transfer tax' instead of an income tax. 
However, this will be brutal for Non-EU countries including the United States. 
We would be at a disadvantage at both the purchase and annually with income taxes.

I hope this is just a scare tactic and this does not pass.

Quote from @Jaycee Greene:

@Basit Siddiqi Just sent you a DM

I read your message but I am not sure it is what I am looking for.

It appears that are a mortgage broker and help investors get financing (correct me if I am wrong)

I own a lot of properties free and clear. Getting more mortgages does not help me with the two issues I outlined - spending less time on real estate and freeing up head-space.