All Forum Posts by: Mas Yoshida

Looks like a lot of landlords are not being too lenient :(

https://www.theguardian.com/us-news/2017/sep/04/hu...

Appraisal occurred for a turnkey property which was still undergoing rehab. Apparently the expectation was that the appraiser would come back again to complete the appraisal once the rehab was complete. I am now getting charged a re-inspection fee from the lender to have the appraiser come out again once the rehab is done. 

Is this re-inspection fee normal and best practice? Lender is saying appraiser should have been told rehab is not complete and to come back when done. Turnkey provider is saying having the appraiser do a conditional approval and having them come back for a re-inspection is normal. 

Are they both right? How can this fee be avoided for future properties?

 Thanks Brian. Looks like I will need to talk one on one with a tax attorney.

Thank you @Daniel Dietz and @Brian Eastman for your insights on overall strategy.

I was not aware that SDIRA requires more % down when leveraging, and was also not aware that UDFI hit can be minimized through depreciation. I heard though that UDFI can be as high as 39% - is it still a non issue with that max tax rate?

I am leaning towards moving to SDIRA to invest in notes (either to father in-law or other available first position liens) and make a better educated / calculated call in the future once I have used all my available savings.

@Brian Eastman @Mark Nolan

Thanks for the confirmation that my father in-law is not a disqualified party. The current SDIRA administrator I am talking to says it's not mentioned specifically, and it's considered a gray area;  that most tax attorneys recommend to avoid it. Although it is permissible, does it complicate things?

Also, let's say I do end up with a promissory note to my father in-law through SDIRA. Eventually this property will be transferred to my wife (through inheritance or irrevocable trust). When that happens, I'm assuming that the property will need to be refinanced so that my SDIRA is not the note holder of the property.. Is that correct?

Thanks again for your feedback and inputs!

Hello fellow BPers!

I'm a newbie investor who has been looking for my first buy and hold property for the past couple months. As I continue my search for the first rental, I am debating my overall strategy on how I should use my capital currently sitting in my Roth IRA.

My question is three-fold:

1) I know there are two schools of thought on this.. but here it goes. Since I am in my growing stage of my hopefully long term real estate journey, I want to purchase as many buy and holds as quickly as I can (I am 30). The more properties I have with leverage, the faster I can save the CF gains towards the next property. With this in mind, I am contemplating taking capital out of my Roth IRA, take the penalty and tax hit to be able to grow as fast as possible in buy and holds. I don't have too much in my Roth, but it will allow me to buy at least one property with leverage. I can also just withdrawal the contribution amount and avoid the penalty and tax. I have a decent 401k for some diversification with stocks. Should I take the leap and use my IRA capital for real estate?

2) Based on my first question, a lot of folks will say to open a Self Directed IRA to avoid the tax and penalty. I am open to that. But back to being able to grow as fast as possible... I can purchase a rental using Self Directed IRA (with UDFI tax), but it will limit my ability to grow since I won't be able to say, 1031 into a multi-family or apartment using other properties/capital I have sitting outside the SDIRA. I can also invest in notes and diversify within real estate, but again will that diminish my ability to grow as fast as possible? Comfort level of risk comes into play as well, but has anyone crunched any numbers to determine what's the best path long term?

3) Let's assume I decide to open a Self Directed IRA and invest in mortgage notes. Is it within the rules to do private lending for a property that my father in-law holds the title for?

Any input is appreciated!

-Mas

"About 3,500 workers are expected to move into the two newest office towers in early 2017. In 10 years, the company projects that 16,000 people will work at the location in 4.7 million square feet of new office space."

Read more here: http://www.kansascity.com/news/business/developmen...

I think the question is where are the 3,500 and eventual 16K employees most likely want to reside? Are the IT folks coming more from the Lee's Summit / Blue Springs area or will Independence / Raytown area also benefit from Cerner? Or do folks think the employees will come from KS side (eg Overland Park)? 

@Jonathan M.: Check out the link below for KS heat map for good / bad areas for investment.

https://www.biggerpockets.com/forums/48/topics/276...

@Marc Oister - A little late, but thought I'd respond since I had the same issue as well. 

I called the 877 number where the website refers you for investors, but no one picked up that line or called back. After couple days I called the Memphis office and I left my contacts with the receptionist. I did get a call back from an investment advisor the next day, and also learned it seems there is more of an automated process set up if you sign-up for the 'Investment Starter Packet'.

Once you do talk to an advisor, they do have a very professional scheduling process. The advisor called me on time at the scheduled appointment time, and follows up quickly for any additional questions I may have.

Hi Jeff. I'm curious - is there a particular reason you are selling your current house instead of using that house as your first rental? Is it a cash flow issue? I am in a similar situation (also a newbie starting to learn this new world) and trying to decide how to prioritize: finding a new primary residence vs. finding my first rental property. If i were to rent out my current house I would have a negative cash flow (Aliso Viejo area). However, I want to avoid selling and buying a new house since that will only increase my expenses / liability (per Kiyosaki's logic in Rich Dad Poor Dad). Btw I am in very initial stages where I am reading lots of book / listening to podcasts and, figuring out my plan (step #1)!