All Forum Posts by: Jason Barnett

I don't know phpBB internals very well, but most likely you would have to custom code (or find an existing module) to add this functionality. It probably is easy to add this though...

I am not sure if I agree with the "no URL in any message" suggestion. I use URLs quite liberally in my posts if I think the URL will help expand on my point. For example I can talk about Mortgage Fraud without having to explain what Mortgage Fraud means. Instead I can focus on presenting my opinion, e.g. "be aware of any transaction where the seller is giving cash or other benefits to the buyer of the property."

OK, so I've heard about unsecured business loans and I've heard about unsecured business lines of credit.

I have seen some offers for up to $100K for the loan. Can anyone else here share offers that you have found for these types of loans? There are only 2 rules here:
1. It must be a source of money which is unsecured
2. It must be an option for a business (LLC, Corp., etc.)

I just realized a mistake in my previous post. You get to exempt the first $250K for a personal residence ($500K if married) and you pay no tax *at all*. The basic gist is the same, but you don't pay *any* tax on the first $250K if you live in the property for 2 out of 5 years... not even capital gains. That's what I get for typing faster than I'm thinking.

A 1031 exchange defers taxes to a later date (which is good), but the 2 of 5 personal residence exemption eliminates the liability forever (which is better). Always eliminate taxes entirely if possible, but defering taxes to a later time is also "A Good Thing" (tm).

Heated debates? It's quite chilly where I'm typing :D

If you decide to use a realtor just make sure that they have actually invested in real estate before. There are a lot of realtors out there that might know residential properties / appreciation, but don't know squat about rental rates rental markets in general.

The downside of using a knowledgable realtor is that you can pretty much guarantee you won't get a STEAL, but you should be able to find a good "starter" property.

If you plan on living there that long then you should consider selling this property outright after that time period. The reason? You can get capital gains tax treatment if you sell it after living in the house for 2 out of 5 years (READ: KEEP AN EXTRA $1000+ FOR EVERY $10,000 IN PROFIT).

Make it nice (visit your neighbors that have nice looking houses), not over the top, and take care of the house while you're living in it.

I have never invested in Pinnacle so I will not speak about them specifically. However, I am knowledgable about accounting and legal issues and here are a few things that every investor should know:

1. Financial statements can be doctored up pretty easily. Ideally you want to look at financial statements that are "audited" (and it has to have a clean audit from a reputable firm). For smaller companies they might provide you with "reviews" or "compilations" which are good, but not as good as audited statements. An ad in Newsweek means absolutely nothing about how credible (or not credible) the financial statements are.
2. If a company claims that it has 800+ investors then they are subject to SEC rules and regulations. This is especially true if they are taking investments from people nationwide that have no management over the business. So you could ask your local SEC enforcement agency for more information.
3. Companies must be registered to do business in (at a minimum) the state where they operate. So you can also check with the Georgia Secretary of State to find the articles of incorporation, etc. that tell you about the business.
4. Talk to the better business bureau of Georgia and ask about negative inquiries against Pinnacle.
5. Understand the type of investment you are making. If it is a partnership (!) then you might be in for some unexpected surprises if one of the partners screws up. So if Pinnacle (or you) do something illegal then the entire money invested in the partnership is at risk. Also realize that $20K might not sound like a lot, but $20K * 800 partners = $16 million dollars.
6. If a company is really creating partnerships as they claim then they must file partnership returns with the IRS. Ask them for copies of their returns and see if they are really as profitable as they claim.

Again, I know nothing about Pinnacle. But a dishonest person trying to screw someone over would make sure they created partnerships with as many uninformed investors as they possibly could. They would show unaudited financial statements and promise huge returns. They would refuse to show you IRS returns (possibly because they have never filed returns). They would try to get as many people as possible to make huge investments up front. They would also try to do business without registering with any legal authorities in the hopes that they could pull in as much money as possible before they got caught.

The readers of this forum are smart and (now?) they're educated. The choice is up to each person...

If someone wants to send some detailed information to me I will be happy to give my opinion on whether Pinnacle is legit or not.

I would rent for two reasons:

1. The costs really add up if you're going to move in a short period of time.
2. Detriot is not exactly a "hot market" so it's not like you need to worry about locking in your purchase price now to sell later. I think you will see some moderate growth, but nothing to get excited about in 2 to 8 years.

I'm going to simplify things a LOT...

Look at your mortgage. What is the interest rate?

Now look at your target REI market(s). Can you earn a higher rate of return than your mortgage? If so, then invest. If not, then pay down the mortgage.

Check out our tool on this site if you need help understanding ROI.

I'm sure biggerpo will give you some good advice. My 2 cents: network with investors and become a bird dog for them. Find deals and make money by selling the deal (but not doing the work) for a small profit.