All Forum Posts by: Daniel McNulty

@DaJuan Marshall

What type of sub are you looking for specifically? They run the gamut. If you are just looking to build a team, a strong general contractor is arguably more useful. 

@Catherine Peters

The trust document likely outlines what you can and cannot within the trust. If you are able to locate the trust documents you should be half way to your answer.

From a tax standpoint, distribution of principle is generally tax free where as distribution of income is generally taxable. 

I am happy to provide my preferred real estate attorney / tax experts if it would be of value. 

Danny McNulty

@Jess Archives

You really should hire a pro to put together the details of such a partnership, specifically because of all the intricacies you called out above. BP advice is a great starting place, but is no substitute for specific advice. 

Generally speaking, it is a little unclear what your plans are, so its tough to help. Are you hoping to form a partnership that holds / owns the property and then contribute the assets to a land trust (that will also need created), with the partnership as the trustee? 

I am not sure what your end goal is, but that may be way more complex than necessary for the average person. If you go this route, you should have insurance for the partnership. You will need to contribute property in-kind to the partnership and have it re-titled so the partnership is the new owner. Your question about mortgages and a cash out refinance in your own names would no longer apply if you are utilizing this complex structure.

Partnerships and trusts are only useful if they are used correctly.

If your intention is to form a land trust and both contribute independently to it with the partnership as the trustee, I would suggest you likely are going about it wrong. 

@Chris Seveney @Nikhil Nirmel

There are separate regulations than 506b for crowd funding that do allow non accredited investors. Last I checked, they still had an income and net worth test, but even lower middle class people could qualify.

That being said and to Chris's point, regulatory filings and operating costs on such a venture can add up. 

Assuming you have already enlisted a strong securities attorney to prepare your offering documents, which you will no doubt need to legally operate and raise capital, IRA's are a perfectly viable source of capital. Mind you retirement assets come with many other compliance burdens, especially if you have enough to be considered a fiduciary.

Good luck with your new venture! 

Danny McNulty

Financial Advisor

@Charlie Haa

Its all about perspective. Everything has the "potential" to cash flow and can come in any size you like. My experience has been that syndicates and other passive partnerships have yielded the best outcomes, when I factor in the value of my own time. 

Whatever you do, I would be tactful in your approach and not necessarily put all your eggs in one basket because it has the largest "potential". If its turnkey your interested in, I would dig through the forums and educate yourself. The same goes for all other opportunities. We all have our niches. As I already mentioned, I prefer passive partnerships, but you'll have to do some soul searching. 

Good Luck

Danny McNulty

Financial Advisor

@Todd Goedeke

I've found it much easier to passively invest in pools of notes or syndicates. The additional effort of sourcing, underwriting, funding and securing a single note at a time is not worth the small premium in my personal opinion. To each his or her own though.

Either way, real estate is excellent in all varieties of retirement assets if you know what you are doing. 

@Marcia Langley

You could take the distributions in an unlimited number of ways. Your best bet is to try to forecast current and future years of income and see what schedule of distributions offer the lowest tax bill.

To be frank, its unlikely that taxes will be lower ten years down the line, but its a complex conversation either way.

Good Luck!

Danny McNulty

Financial Advisor

@Michelle Dong

I would take a look at the near east side or bates hendricks for a B class duplex. Or if you don't know the area well yet, just look to the east or just south of 70 splitting the city. If your house hacking, the additional premium for the purchase should not be substantial. As pointed out above, it may be a more enjoyable location for you to live, moving from the sunshine state. 

Good Luck!

Danny McNulty

Financial Advisor

@Jason Malabute

Its all about the network. To @Lee Ripma point it never hurts to have an understanding with your agent. You should be serious and ready to purchase. Do what you can to make that evident and you'll have better luck than most.

Happy to share resources if its of any value.

Good Luck

Danny McNulty

Financial Advisor

@Carter Groskreutz

If you graduated in December, I assume you are on the hunt for a job? You can always wait until you have a steady W2 income. Conventional lending standards are not terribly difficult to qualify for if you are house hacking. 

It never hurts to have excess reserves for whatever rehab you line up on your house hack if you have to wait.

You may also consider a co-signer from a parent or relative if that is available. 

Good Luck

Danny McNulty

Financial Advisor