All Forum Posts by: Lew Payne

Evelyn, as with many things, theory and reality are often disparate. Despite the onerous IRA requirements, these things are not an issue as long as the IRS is not aware of them. Should there be an audit of the IRA, and should evidence surface that funds were gifted by a third party (including a spouse), this could become an issue. However, if you can't remember where the money came from, or there was an oral agreement that the funds represented a gift to your husband followed by his contribution to his IRA, life is good.

I would give you the same advice that the gurus give everyone... take the course of action that yields you the greatest profits with the least possible exposure to risk.  Buy only properties that you know will go up in value, and only rent to quality tenants that will not cause you future problems.

Since this is being done within an LLC (as it should), and since there are different classes of membership interests (2 that I can ascertain), there are multiple factors to work out, some of which apply even when there's just one class of membership interest:

How initial capital contributions, for each given class, are booked.

How subsequent capital contributions, if any, for each given class, are booked.

How member loans are booked.

How each member's capital account will be handled pursuant to Treasury Regulation §1.704-1(b)(2)(iv), and how reevaluation of said accounts will take place per Treasury Regulation §1.704-1(b)(2)(iv)(f), to conform with §1.704-1(b)(2)(iv)(g).

How distributions will be allocated, including profits and losses, along with any resulting adjustment of percentage interests.

How tax allocations will be handled - and if the book value of any company property is adjusted per Treasury Regulation §1.704-3, how that affects member allocations.

I have not even covered every item that must be addressed (including voting rights, depreciation allocation, cash flow vs liquidation allocations (as in "when we sell a property - who gets how much of the appreciation, but what about the recapture, etc, etc.")).

Insufficient information... and it's time to meet my wife for dinner.

He "tested" it... just to make sure.  Then he took half of it, and left them a note saying their rent was paid up for the next three months.  Sorry - I couldn't help myself when I started reading this thread... some of these true-life encounters are more interesting than a novel!

Funny how many of these so-called guru seminars end up being sold on eBay and craigslist - at a fraction of the price - by former students who gave up on trying to make these methods work, or on trying to get a refund.  Caveat emptor.

I use the below plastic gutter screen, along with the associated clips.  Together, they form a semi-arc across the top of the gutter.  Large debris which typically obstructs the downspouts doesn't make its way in.

I use these on my personal residences, one of which has a shedding tree near the roof.

Given that it's a federal law, it applies to each state already.  Individual states may further tighten the requirements as they see fit, but may not loosen them beyond that which is allowed by this specific federal law.  There is nothing unusual or different about this piece of legislation, when compared to other legislation.

Because the real estate attorney wants to know if you're familiar with the Dodd-Frank Act... it's a simple "yes" or "no" question.  You are either familiar with laws that govern your business endeavors, or you are not.

Wow... 15 points, up front (immediately deducted from loan proceeds)?  Here I thought I was getting too much with the 2 points that I charge, and the 2 additional points for a one-time automatic loan extension (no additional paperwork - triggered by simply not paying it off on the initial due date).  But then again, I'm just a private individual and easily satisfied with a reasonable rate of return.

If you believe in anything other than guaranteed annual renewable term life insurance, only in the amount necessary to provide for your family during your earning years, I have an empty lot I'd like to sell you - in Israel.