All Forum Posts by: Dennis Tierney

@Wade Sorry it took so long to reply but the Wi-Fi company is Easy Answers LLC address is 4901 N 160th ST Omaha, Ne. We didn't sign the first contract and had them make some changes so read carefully.

@Brady Jones We signed an agreement with the company that puts in the equipment and does all of the monitoring/ repair of their equipment so they have the password/user agreement with the residents. It's completely hands off from our end.

@Brady Jones Yes, we recently put it into a complex that is a block from Bellevue U and they really liked that we had it and will be sending some students our way.

@David Stratton I also used Guidant to set up my SDIRA and have funded it a couple of times by transferring funds from another IRA into the SDIRA. You are correct that since the LLC is solely owned by the SDIRA there is not a disqualified person involved and all of the funds are owned by, invested by the SDIRA and the returns go back to the SDIRA so there is no disqualified transaction. I have found using the checkbook SDIRA Guidant set up to be very easy to use and as long as you follow the rules (not difficult) you can get great returns on investment that are free from the stock market gyrations. Good luck with it.

Jonathan: Sounds to me that the NOI is too high for that amount of rent. The 50% rule applies for small commercial properties so a more realistic NOI would be 42K. Yes you would have to get a commercial loan for this deal but the depreciation is still 27.5 yrs not 39. Your best bet is a small local bank and you need to go meet with several of them before you make the deal as the cost of the loan makes a significant difference in your investment return/cash flow. Good luck.

@Brady Jones Welcome to BP. You may want to consider joining MOPOA to network with other investors/landlords. We meet once a month for Sat. breakfast and Sept-June one Mon. eve for presentations from various sources. I've found it helpful. One tip if you are considering student rentals: consider putting in Wi-fi and rolling the cost into the rent. It helps to market the property, especially with that population.

@Chris Winterhalter I recently purchased a 48 unit that had two of 4 buildings in a flood zone and was shocked at the high flood insurance cost. You must also remember the quote you get now will be lower than what you will have to pay in subsequent years. I've never known insurances rates to fall. All things being equal I'd try to find a similar investment that doesn't need the flood protection.

I believe all of your scenario's would be prohibited transactions as both your son and you are disqualified persons in the eyes of the IRS regulations. The lawyers I've talked to about this have cautioned that even if your SDIRA gets no direct benefit from involvement from your son they have been going after the undoubted indirect benefit situations and you are playing roulette with your SDIRA by doing these types of transactions. If you have any doubt get legal advice from an attorney that has SDIRA expertise and you'll sleep a lot better.

@Serge S. Quality varies so widely and is mostly dependent on the builder's skill. The best quality construction of the apartments I have is a renovated school that was built in two phases, the first in 1899 and the second in 1929. They of course are all brick and will be around a lot longer than me.

If the owner pays utilities most would put the expenses of 60% of income instead of 50%. You can do a RUBS sytemtn to bill back the utilities to the tenants and lower your expenses to improve cash flow.