All Forum Posts by: Kris Wong

Your custodian should be able to answer these questions for you. My understanding is that any investments made from your IRA need to be passive in nature. For example, you can't use your IRA funds for a flip that you and/or your wife are actively working on. If you are involved in the business actively, that's a no no. In terms of distributing the asset out of the IRA, you would have to pay all taxes and penalties associated with an IRA distribution. But again, these are questions for your custodian.

I am surprised this thread didn't get removed. :P

I would second Old Capital for $1MM+. Specifically Hans Box is a great guy to work with, and back before COVID, you could run into him at all the commercial RE meetups around town.

https://oldcapitallending.com/our_team/hans-box/

https://www.gfh-law.com/ -- I've used them and have been happy with them.

This sounds like a valuable lesson learned. Once someone is living in your unit, they have certain rights, and it's your problem as the landlord. Pre-COVID, this would have been easy to deal with through eviction. Now you have a backlog of evictions ahead of you. Never let someone move into one of your units that you would not approve through your normal process. That's a violation of the existing lease and grounds for eviction.

Now your best option is cash for keys, as @Bjorn Ahlblad has suggested. You may have a professional tenant on your hands here, who has every intention of living for free until you can get her evicted.

The best way to know for sure is to read your policy document. I am sure this varies by carrier and by policy. Insurance is one of several "gotchas" in using an LLC with residential real estate.

It takes time to build the type of trust required to be able to raise large amounts of capital from investors. Your best bet is to start with your existing relationships, since those people already trust you (in theory). Given the impacts of COVID, networking is not really possible at this time, which means it's going to be extremely difficult to start building new relationships. There are many podcasts and books out there that discuss how to raise private capital.

You're asking a highly subjective question. I'd say it doesn't really matter what anyone else thinks, only which aspects you value more. Do you value the better amenities / cooler vibe, or affordability? It's an easy decision for me, but it's not my decision to make.

It sounds like you should also be considering the HOA dues, as Easton is likely to be significantly more.

A lawyer for what purpose? The (residential) contract in TX is a standard form contract developed by the Realtor Association and their attorneys. You will use a title office, and there are attorneys there that handle that aspect of the transaction. Unless you are trying to take title in an LLC (and therefore need to form one), then you should not need an attorney.

Thank you for sharing! it's great for the community to see actuals. This is what a solid deal can look like with proper due diligence. You can't skimp here, or these numbers can start to look very different.

There are a handful of meetups on meetup.com that address multifamily/commercial RE here in Austin.