All Forum Posts by: Daniel McNulty

@Cheryl Vargas

It just needs to still be open. Your funds can be in cash or invested, as long as it is within the HSA. When you invest the HSA proceeds, the funds are still within the HSA, merely held in an investment instead of just cash. There is no age limit associated with the HSA.

@Cheryl Vargas

Contact Hellofurther, TD or whoever your preferred provider is first and setup an account. Once it is setup, tell them you want to transfer funds from your old HSA. You will fill out some basic info on your old and new account and then they will make the transfer for you. 

As long as you dont take receipt of the funds yourself, there are no tax implications. If you do take receipt (which I don't recommend) you have 60 days to get it to your new account or you will be taxed.

As long as the funds stay in a HSA there are no taxes on the gains indefinitely. 

You can withdrawal it tax free too by using it for approved medical expenses. Often times we recommend saving medical receipts over the years, giving you the advantage to pull out larger sums at once. There is no limit on the amount or the length of time you can pull out at once if you have the receipts. Save them for years or decades if you want and make a big withdrawal tax free. 

Its the only vehicle that is tax deductible, has non taxable gains and can be withdrawn tax free. The triple tax advantaged account!

@Ryan Hesselberg

Kyle nailed it on the head. There are many ways to give them the agreed upon return. You need to decide:

1. Are they equity partners or lenders?

2. How soon will they get paid? Monthly? Yearly? Some now and more later? 

Once you have a conversation with the partners to answer some of these questions, you will be heading in the right direction...

There are many threads on BP of the pros and cons of equity vs debt partners if you take some time to look it up.

@Anastoshia McCrary

They are basically publicly traded companies that invest in real estate. Unlikely owning a property directly you will be subject to the rise and fall of the market. Over the long term, it can be an easy way into real estate with little money required to get started. Over the short term, that volatility can be a tough pill to swallow if you are not willing to hold it long term. 

@Alexander Rotolo

Your question is tough to answer with the few facts provided above. It would mostly depend on your debt to income ratio and your ability finance another property. It would also depend on your satisfaction with the current property and whether you want to keep living there. 

1031 (a fantastic tool by most standards) is akin to selling it in a tax deferred manner, both 1031 and a traditional sale would involve getting rid of your current units. Is that your goal or do you just want to add more units? If so, you can either house hack as you currently are doing with the duplex or finance it as a tradition investment property assuming you can secure the financing / down payment.

@Ryan Bird

To Pauls point, the complexities of planning around real estate cash flows or more generally the large outflows of an alternative investment portfolio is beyond the scope of many adviser. Thankfully there are some decent advisers on here who are real estate investors themselves. 

That being said, a strong CPA and Attorney team should always be on speed dial in this industry. Happy to refer some of my favorites in the midwest if you need anything.

@Simon K.

It would depend on whether you want to passively invest or make a career of it. In general, multi-family can offer better opportunities for passive investing. If you want to make a career of it or be more hands on, single family tends to have lower barriers to entry and requires less money to get started.

@Brian Geiger

Broadly speaking you nailed it. Both can use the same entity structures, its merely a matter of control. Syndicate investors expect to have rights to P/L, but not management decisions. JV partners should expect to have control to some degree.

Whether this is accomplished in a single entity or something much more complex is matter of preference. 

@Wade Calvert

One of the common troubles of single family still exists in multi-fam / syndicates, namely that of having adequate capital to make reasonably sized investments.

Most successful syndicators often will require you to invest 50k per property or 250k per fund.  It often even requires you to qualify as an accredited investor. 

If allocations of that size would amount to a large portion of your wealth, it may not be a wise way to learn the ropes of Real Estate. Syndications with materially lower barriers to entry are often new firms without track records or unable to raise capital from traditional sources, which could be a red flag. 

Either way you seem to be on the right track, just be mindful that proper due diligence on syndicates should be as thorough a process as directly buying a property on your own. 

@Terry Lawson

What investor group is charging you to learn? Most of the good ones I know of are free to join, network and learn. The only time you should have to use any money is when you are investing.

That being said, if you do not have experience in multi-family it could be very beneficial to have other experienced investors and operators around you. You or whoever you are investing with needs a strong, well documented process to evaluate the giant number of opportunities that will undoubtedly present themselves.