All Forum Posts by: George Leeman

Hi, the last few years I have showed no income due to retirement account contributions and major repairs/depreciation. However I currently dont have any mortgages between me and a bank and I have 15+ properties. I want to cash out refinance some of my properties before the prices drop or interest rates rise, is there anyway for me to do that without proof of income? I will have proof of income in 2019 due to a large amount of taxable income this year. However I would like to begin refinancing properties now.

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I am interested in a basic diversified stock/bond portfolio, basic asset diversification following some guidelines I read about that help mitigate market risk. I want to purchase a rental property inside of my retirement account and use it to feed into stocks/bonds/gold.

Basically whats recommended is I learn how to manage my own retirement account that has the check book option? does anyone have any recommended reading on this?

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I am considering starting a s corperation to own my LLC's that I keep my rental properties in. From what I understand I could pay my self a small management salary of something like $6000-6500 per year, and receive the rest of the income in the form of long term capital gains?

I do almost no work in collecting the rent from my management company, I would think $800 a month would pay me $75 per hour for my "management work".

From what I understand, long term capital gains give you a 0% tax bracket up until $38,000 income, so I would essentially be recieving $32,000 of tax free income if I paid my self a $6000-6500 salary and received the rest as capital gain distributions?

Does the trumps 9000 tax deduction apply to capital gains?

For example, If I paid my self a $550 salary - 15% self employment tax, I would not have to pay federal taxes on the 6000 salary because it is under 9000. Then I would have 32,000 left over as capital gains distributions from the s-corp that had 0 taxes on it? or does the $38,000 tax free rule on capital gains start AFTER the 9000 trump tax deduction?

Meaning I would be able to receive a theoretical 47,000 in capital gains tax free if I had all my income in the form of capital gains? (9000 deduction + 38,000 capital gains tax free rule)

Can someone clarify and tell me if I understand this correctly? I would talk with a accountant right now but I do not have any that I can reach on short notice (or who know what they are talking about, sadly)

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Does anyone know a good self directed ira and 401k provider that also allows stock/bond/good investments that has Roth options and may even allow loans to be taken against it? I use quest ira and they don’t allow stock or bond or gold investing.

What self directed providers do you guys use?

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Originally posted by @Darrin Carey:

@George Leeman There are multiple companies that allow you to do just that via the crowd funding websites. They are one step removed from the deal though, and the details can be harder to evaluate.

Alternatively, you can work directly with a Hard Money Lender to pick and choose individual note(s) to fund. Then you have all the details on a specific borrower and property. Typically you'll need to find a local/regional lender that also works with individuals.

The big lenders already have large sources of funds established.

so you would recommend i contact hard money lenders in my area and assess the deals myself?

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Originally posted by @Timothy Maloney:

@George Leeman The best advice you'll ever receive is to stay with a larger, more established, company. HML by it's very nature is private. Few regulations and fewer laws exist in this space - You'll be at the mercy of the HML to provide whatever reporting they wish and you may never know what their return was (vs. yours). At least with a larger firm (some of which are on BP) you'll have audited financials.

can you recommend any companies to look at?

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I am not looking to start my own business in hard money lending, im wondering if there are any companies that work with investors such as myself? I have heard there are companies that allow you to diversify across multiple hard money loans and pay good interest.

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I am looking to get involved in note investing as well as tax lien certificate investing, what courses or books would be able to cover all the information I need?

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Originally posted by @Account Closed:

Originally posted by @George Leeman:

I usually live outside the USA all though I am born in the US, I was wondering if I could sign a limited power of attorney for my mother to be able to apply for home equity loans or mortgages on my behalf?

When I was a loan officer we could accept signatures of people outside the country (Canada for instance) simply by having the borrower notarize locally and Fed Ex the document to us. For someone in Europe a notary from the U.S. Consulate sufficed. If you travel to a country the U.S. doesn't do business with like Iran, Pakistan, North Korea, Syria, etc - you might have a problem. However, I just bought a house remotely using Docusign.com and all I had to do was to arrange the documents to be sent to my email. I clicked on the area I wanted my signature and it was automatically applied. I could of been in Timbuktu for all they cared. I am not aware that a POA would be any problem, but it is best to ask the bank or mortgage broker you are dealing with rather than relying on my experiences. The specific bank may or may not accept a POA, it's their investor's money and they make the decision under what circumstances to lend. Check several banks, I'm sure you'll find one that will or ask a mortgage broker, you just might need to check around a bit.

The house you purchased was on a mortgage? Perhaps I could use the same lender you did depending on the requirements?

Anyone else do this or anything like it? I would love to purchase houses on mortgages or take out home equity loans but I dont want to have to fly back to the US every time.

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All Forum Posts by: George Leeman

George Leeman has started 19 posts and replied 31 times.

Post: Cash out refinances without proof of income?

Post: Cash out refinances without proof of income?

Post: Self Directed Roth IRA/401k Providers?

Post: S corps and Distributions taxed as capital gains?

Post: Self Directed Roth IRA/401k Providers?

Post: How to become a hard money lender?

Post: How to become a hard money lender?

Post: How to become a hard money lender?

Post: Note investing and tax lien certificate courses or books?

Post: power of attorney for applying for loans while outside the US