All Forum Posts by: Mike Reynolds
Mike Reynolds has started 31 posts and replied 2028 times.
Post: Strategies for using a Self-Directed IRA
- construction
- Nacogdoches, TX
- Posts 2,091
- Votes 1,164
Originally posted by @Justin Windham:
The Solo 401k is exempt from the specific type of UBIT (UDFI tax) on debt leveraged real estate investments. So, while a SD IRA would pay UDFI on profits from a real estate investment using a lender, the Solo 401k would not.
That's good to know. Thanks.
Post: Strategies for using a Self-Directed IRA
- construction
- Nacogdoches, TX
- Posts 2,091
- Votes 1,164
Originally posted by @Daniel Dietz:
@Todd Magin summed it up perfectly I think. One of the expenses you can count is depreciation on the portion that is financed (50% in his example). With that in mind, there might now even be any tax in the early years. One option to avoid that issue, if you qualify is a SOLO401K, which is not subject to taxes in the case of borrowing. We are doing all of our new purchases in our SOLO401Ks for that purpose, along with the much more generous contribution limits.
I also look at it I can make say 18% owning a rental in a SDIRA or 12% loaning money, Ill take the 18% ;-)
Dan Dietz
How does that work in the case of the solo k? Are you saying you can borrow money on a property and not pay UBIT?
Post: question about expand the house
- construction
- Nacogdoches, TX
- Posts 2,091
- Votes 1,164
You will probably need permits possibly an engineer. You can ask for free what you will need at your city/county permit department.
Post: "...no question...at later stages of...real estate cycle."
- construction
- Nacogdoches, TX
- Posts 2,091
- Votes 1,164
Originally posted by @Pete Perez:
Is there a question by OP?
Well in all fairness he did say "no question".
Post: Neighbors stealing power from the rental house when it is vacant
- construction
- Nacogdoches, TX
- Posts 2,091
- Votes 1,164
Originally posted by @Justin Fox:
I agree with @Mark H., kill the breakers and put a lock on the box.
Even better.
Post: Neighbors stealing power from the rental house when it is vacant
- construction
- Nacogdoches, TX
- Posts 2,091
- Votes 1,164
This is dangerous too. As a volunteer FF we had a fire and first cut the power and went in. Then had one of our guys get shocked pretty bad. He as OK but it could have been much worse. If it had went to court who would have been liable. Depends on who has the best lawyers.
There are more house fires on Christmas day than any other day of the year.
Something to think about.
Post: Filing for Homestead of 1st property - Houston, TX
- construction
- Nacogdoches, TX
- Posts 2,091
- Votes 1,164
Your thinking homestead exemption on the tax part. Filling for homestead as pertaining to your house is an old law in the books that dates back to the Republic of Texas. It's still valid too but gives you some relief toward the bankruptcy laws. Look up Lone Star law online and you can get a better picture of what it is.
Post: Building/Developing Land with Water Runoff?
- construction
- Nacogdoches, TX
- Posts 2,091
- Votes 1,164
I would say fairly expensive. You may can bring in fill and raise it up but you may run into issues as to where you direct it at. I would get a civil engineer and ask them. They can help you better.
Post: BRRRR in New Braunfels, TX
- construction
- Nacogdoches, TX
- Posts 2,091
- Votes 1,164
Originally posted by @Clifton Kaderli:
Also looking to BRRRR in New Braunfels and surrounding area. Connect with me anyone that would like to chase deals together or JV.
I might be interested. I live five hours from the but have built some commercial and rehabbed some condos there for the last three years. I know some really dependable subs there.
Post: Flip deal - raze, expand, or keep the house
- construction
- Nacogdoches, TX
- Posts 2,091
- Votes 1,164
Originally posted by @Dan Krupa:
Great advice. Thanks again Mike. I forgot to mention the roof needs a complete tear down/replacement. I understand expanding up is still a pain but is it more practical in that case? From what we have discussed, and I know, it sounds like expanding out is a better call then up.
Don't mean to quote you so much but my @feature doesn't seem to work on this phone.
Yes it would be if you plan on taking the rafters off too. The joist will also need to come off as well the ceiling drywall. No way you'll get four or five carpenters up there and not get it ruined anyway.
Here's a thought for the permit Dept for you. Suppose you do that and just add a 12/12 pitch. Do a half story with dormers. Maybe a few windows in the gables. The weight will be less and the foot print will be smaller. That's if they balk at a full third floor.