All Forum Posts by: Phil G.

If you're referring to the USDA Rural Development (RD) guaranteed or direct loan programs, they are for single family only. 

Multifamily financing that USDA does do is for development/preservation of affordable housing and is available to profit or non-profit entities.  These are not zero down and are competitively awarded when funds are made available by USDA.

You also have the option of using the Greater Boston Real Estate Board forms.

They sell hardcopy and e-forms to non-members at http://www.formsforrealestate.com/

Homepath mortgages and renovation mortgages were discontinued at the beginning of October, I believe.

I'm a customer of @Brian Eastman at Safeguard and definitely recommend them.

They set up both an IRA and a 401(k) for me. Good ongoing service and support.

I always seem to have the house for more than 90 days, but for you more efficient rehabbers:

http://www.latimes.com/business/realestate/la-fi-h...

If you have enough in the IRA for the down payment, closing costs and required reserves, you could use a non-recourse loan to purchase another property. Max LTV tends to be 60% on multifamilies and 70% on SFR properties.

If you don't have any cash, you could cash out one or both of your investment properties by taking on a non-recourse loan secured by the property.   

Two of the national lenders are NASB and First Western Federal Savings there are also some regional banks as well as private lenders in the IRA lending arena.

Be aware that using loans in an IRA will incur UDFI tax (Unrelated Debt Financed Income), which entails filing a form 990-T for the IRA.

401(k)s are not subject to UDFI.

IMHO, the best way to educate yourself is to use an attorney the first time..  Taking free advice off the internet, not the best way to go.

If you don't already have an IRA, you will be starting from scratch. You can either open an IRA with a bank, your investment brokerage, etc. and later do a custodian (bank/brokerage) to custodian (self-directed custodian) transfer or set up a self-directed IRA right away and make contributions to it.

You are limited to maximum contributions $5,500 per tax year. Since there aren't too many investments that won't take at least two or three years of contribution, I would probably open the IRA at bank/brokerage and avoid paying the maintenance fees that a self-directed custodian charges each year.

You might want to consider a ROTH IRA vs a traditional IRA.

@Jack Tucker

I was wondering if you had spoken to your accountant regarding a tax impact.  The advice I received was that since the IRS tends to look at rentals of less than seven days a business rather than passive income, that I would wind up paying UBIT.  Would be great if my accountant had that one wrong.

@Account Closed 

It's not the chain of title I'd be concerned about but potential obligations made in the LLCs name.  Just something that I wouldn't deal with personally.  It's an ugly hack to get around some closing costs.  Something some guru proliferated, I expect.