All Forum Posts by: Chris Soignier

Do you plan to be a REALTOR? It's almost a requirement here, if you want MLS access. If so, you'll be bound by the NAR Code of Ethics. Why not just do the right thing regardless of where you deal? It makes it that much easier, and you'll sleep better at night.

What's a stockpile of cash earn vs. how much does your HELOC cost on an after-tax basis? The answer wouldn't be so clear-cut if it was a home equity loan, but since it's a line of credit I recommend paying it down when you have no higher yielding investment options, and drawing from it to fund future investments as necessary.

Money is fungible, so it's really irrelevant whether the paydown comes from tenants or other sources.

That's one reason I'm not a big fan of mixing personal and rental use - it gets too complicated for tax purposes, and it's too easy to lose your personal residence tax exemption.

The way I see it, you have a few options:

1) Sell w/ seller finance, and recognize your gains over the term pro rata w/ the proceeds from the sale.

2) Move back in for 2 years, then sell as a personal residence? (note that I'm not an expert on how prior usage as a rental may influence tax exemption rules - do your due diligence)

3) Do a 1031 exchange.   Good for tax deferral, but won't solve your lack of income.

IRS rules sounding ridiculous?    Geez, that's a first!     ;)    Good luck!

Why would the borrower worsen his position by assigning collateral after the fact?    That would be just as big a mistake on their part as it was for you to lend on an unsecured basis.    I wish you the best of luck, but you may have to sue.   Winning will be the easy part, collecting on judgments isn't always easy.

The money should never go through your hands.   Have him wire the money (or provide certified funds) to the title company.    You should also sign a promissory note, and whatever security instrument (i.e. deed of trust, mortgage) the state where the property is located uses.

If your lender doesn't require a note or security interest in the property, send him or her my way!     :)    j/k

Last year, 8% was my bogey for B-C class MF in DFW area. Nowadays, 6-7% is more like the norm, which makes things pricey. Upside is that any given improvement in NOI at these cap rates creates a bigger lever to enhance value, w/ the risk being that cap rates go back up before you sell.

Also, note that you can only convert a traditional IRA to a Solo 401K - Roth IRA's are ineligible for conversion per IRS regs.

I hear real estate investment is a pretty popular business to support a Solo 401K around here....    ;)

@Nicole Fitzgerald, welcome to Texas!

I'd suggest the first step to getting started is acquiring the right mindset, if you haven't already done so. Why do you want to get into REI? It shouldn't be just to make money (though that's certainly a benefit), but a greater cause to keep you forging ahead when the going gets tough.

Next, I'd recommend honing in on no more than 3 strategies to start with, then most importantly, take action!

I'm a Realtor as well as an investor, and would be happy to either help you find properties &/or talk about pros/cons of getting a license.

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