All Forum Posts by: Jim Hlavacek

With the new tax laws that have changed, I see that you can not write off interest paid on a HELOC on your "primary residence" unless it’s used for the repair, improvement or purchase of property. My 2 questions are, 1. On an "investment property", because it’s a part of the investment property's business expense, wouldn't any interest paid still be able to be written off, regardless of what I used the HELOC for? So if I paid off student debt, etc, It would still be an investment expense, allowing me to write off the interest expense, since our AGI is above the threshold to write off the student loan interest on its own. 2. If the interest on the investment property's HELOC is not able to be written off, would it make sense to consider an All In One loan instead (which is considered a 30 year note but is revolving simple ave. daily balance interest ) instead of the HELOC? I'm under the impression that all the interest on the AIO loan would be able to be written off.

The notes are currently held with Wells Fargo, United, Freedom mortgage, Nationstar me Cooper and Loancare who services for Lakeview and New Rez. The Wells Fargo is an FHA, all the others are conventional loans. the 2 reasons we we're looking to move them into LLC are of course asset protection, and the possibility of reducing our tax liability, I've seen several postings and videos from @Clint Coons, and was very interested in some of his techniques. My local attorney who has done most of my closings said its either one or the other in regards to trusts and LLC's, I like the series LLC option but don't feel we are organized enough for that model

@Axel Meierhoefer it does not give me the option to PM, Can you PM me?

@Axel Meierhoefer how do I PM on this platform?

I've heard its possible to move the properties into a land trust, and then move the land trust into the LLC? One attorney said this works, and then another said you cant do that?

Hi, We have 6 properties that we personally own, and are interested in moving them into an LLC for protection. What is the best to accomplish this without causing the lender to accelerate the note.

Hi, We are in the process of converting several of our investment properties from 30 year notes to 1st position HELOC's, and move to the velocity banking / paycheck parking strategy, with the focus on paying down the principle balances. Has anyone had personal experience with this. Running the numbers on spreadsheets, I would have 2 properties paid off in about 5.5 years. We are using 1st lien /position HELOC's, not 2nd position. We've had a tough time finding companies offering HELOC's on investment properties, and we're looking for additional options to the one we are considering as well. At this point I've called more than 100 lenders.

I have 5 multi family investment properties. the easiest and cheapest is to up the rent $25-$50/month depending on how many people in the unit, and just buy a set off craigslist for $200 total. However, I have done both. If your going to go the route of coin op, here is what I have learned. First off, do not buy both a washer and dryer coin op, and I'll tell you why. 1. Their expensive. 2. Typically the average is $1.50 wash and $1.50 dry ($3.00 total) 3. Only buy a Coin op washer, not the dryer, replace the Vertical 8 coin slide (the most common slide) with a vertical 7 which can be ordered on line for $40. The vertical 8 only allows a max of $2.00, the vertical 7 coin slide allows up to $3.25. Then buy a regular cheap dryer. 4. Get your $3.00 up front in the washer, and let them dry for free. This makes sure your getting the full amount regardless if they use the dryer, or if they would normally hang their clothes to dry to save money which you would lose the $1.50 for the dry. 5. If the dryer breaks, its much cheaper to fix or replace. 6. Make sure both the washer and dryer are on the tenants electric, not the house or common meter. If you have multiple tenants, get multiple sets, 1 set dedicated for each unit so the electric and gas expense is not yours.