All Forum Posts by: Nick B.
Nick B. has started 48 posts and replied 1111 times.
Post: What Is Worrying You About This Part of The Market Cycle?
- Investor
- North Richland Hills, TX
- Posts 1,122
- Votes 1,112
I wonder how people underwrite when interest rates are close to 6% while cap rates are still barely over 5%.
My common sense tells me that buying for cash is the most feasible option at this point but I am yet to see a sponsor doing that.
Obviously, there are one-off deals that may trade at 7%+ actual cap rate but I am not talking about those.
Post: Strategies for Negative Leverage
- Investor
- North Richland Hills, TX
- Posts 1,122
- Votes 1,112
Why do you have negative leverage to begin with? The simplest mitigation is "Don't do it!"
Post: mom and pop apartment owners
- Investor
- North Richland Hills, TX
- Posts 1,122
- Votes 1,112
Quote from @Jason Malabute:
how can you systematically find mom and pop apartment owners on Biggerpockets with buildings that are at least 40 units?
I have tried craigslist, Facebook marketplace, etc
Try county property records. Look for properties with long term owners either individuals or LLC/Partnerships with residential addresses. Check corporationwiki.com to find owners of those LLCs.
Post: How to convert traditional IRA to Roth and pay very little taxes
- Investor
- North Richland Hills, TX
- Posts 1,122
- Votes 1,112
@Jonathan R McLaughlin, you're right about UBIT but it would apply only to some investments (e.g. apartment syndications) but not the other (e.g. index fund).
Post: How to convert traditional IRA to Roth and pay very little taxes
- Investor
- North Richland Hills, TX
- Posts 1,122
- Votes 1,112
@Jonathan R McLaughlin, if you refer to the Investment LLC, it is created to invest in other entities, securities, debt, etc. to generate profit. The tax advantage comes from the dividend rate disproportionate to the capital invested by traditional IRA vs Roth IRA.
Post: How to convert traditional IRA to Roth and pay very little taxes
- Investor
- North Richland Hills, TX
- Posts 1,122
- Votes 1,112
Quote from @James Sebastian:
It might be like using both SDIRA funds and personal funds to esablish a seperate SDIRA. I've read that this is OK on startup, but then neither "partner" can put in additional capital, and the combined entity has to hire out all work, like a pure SDIRA investment. That said, I wouldn't tread this close to the edge of the cliff myself...
There is no personal funds involved and no intent to add additional capital. Not sure what you mean by "hire all work". A beneficiary of a SDIRA can make investment decisions for the IRA. There is no any other "work".
Post: Alternative To Multi-Family Investing (for now).
- Investor
- North Richland Hills, TX
- Posts 1,122
- Votes 1,112
Quote from @Vitaly Mozeson:
As an investor, do you have to fund the entire loan amount or there is a possibility of multiple investors funding it collectively? E.g., $200K note is split among 4 investors, $50K each. All of them are in the 1st position.
Post: Alternative To Multi-Family Investing (for now).
- Investor
- North Richland Hills, TX
- Posts 1,122
- Votes 1,112
Vitaly,
Do you invest in individual notes or in a fund? If the latter, what kind of restrictions does the fund impose on withdrawals?
Thanks
Post: How to convert traditional IRA to Roth and pay very little taxes
- Investor
- North Richland Hills, TX
- Posts 1,122
- Votes 1,112
Quote from @Jeff Nash:
Hi Nick, I am familiar with the structure and set those up for clients. The way I read it the LLC was outside of the IRA as an investment holding company (not owned by the IRA) being invested in by the self-directed IRAs. Basically a self-dealing situation.
No, the LLC is owned by two IRAs and owns other investments. Is that good?
Post: How to convert traditional IRA to Roth and pay very little taxes
- Investor
- North Richland Hills, TX
- Posts 1,122
- Votes 1,112
Quote from @Ashish Acharya:
Harness losses from RE and do the conversion. That's all.
Also RE triggers UBIT if leverage is used.