All Forum Posts by: Steve Smith

Not necessarily, but depends on the lender. Most lenders will look at the investment house as an investment and it shouldn't affect a new loan, unless it's negative and not producing well. Also, a lot of lenders get turned off with investors once they get about 4 rental properties, then they get hard to deal with. There's an argument for seller financing and you don't have to deal with banks.

I'd stay close to where I lived. Long distant rentals and deals are a pita

You should be able to retitle it into another entity you own and normally would not have any sales fees due, but check with your county to be sure. I could strongly argue to use a trust for property ownership. 

Yes, you most likely can assume the note, but can buy the property without assuming the note; why not just take title "subject to" the mortgage.... which means you're not guaranteeing the note and obligating yourself, but you need to keep the note current if you're going to keep the property.
Now, you need to know what the note says and need to know a bit about the note holder..... will he try to call the note? Is there a due on sale clause? If it's a small bank, they might be more friendly. Generally, I don't ask the lender about the note, I just buy it subject too and keep making the payments... never had an issue doing several of these.

I'm not currently buying. We've got bidding wars and folks buying sight unseen at over asking (which is already stupid high. I don't compete in that market. However, I keep my eyes open and occasionally a FSBO comes a long that is a good deal, but not a lot.

I actually sold some properties and put that money in mineral rights where the return is stupid high right now and suspect it will last for a few years at which time I'll pick up a few more houses.

I'm strictky a SFH guy, buy mostly with seller financing, fix up an hold for a rental which has worked great for years. Also, buy close to where I live... no out of state stuff.

The prices may not go down but inventory will likely increase and the market will likely soften and that's a good time to buy.

Quote from @Brian Eastman:

@Steve Smith

It is generally the obligation of an issuer of income to report that income on form 1099-NEC.

If the recipient of the income is your IRA, then there is no confusion. The IRS will not expect to see that income on a tax return.

You can submit form W-9 to the issuer and illustrate the tax-exempt status of the IRA. In that case, they may choose not to issue form 1099.

Please work with your IRA custodian or tax counsel for detailed guidance.

Thanks, I'm working with the custodian but they don't give tax advise, and my accountant isn't 100% sure so looking fo other thoughts.

Quote from @Kristina Kuba:

@Tatiana Zagorovski I would recommend a land trust

Absolutely! However, the trust "may not" protect you, but much easier than an LLC, more private and flexible.
I use my LLC for management which works well most of the liability issues.

Need some professional advise:

Have mineral rights that we're buying thru trust owned by a Roth IRA and do not want the vendor to issue a 1099, which is not required by law. How do we deal with this in regard to the vendor. Can they force it on us or is there a way I can force them NOT to issue one? (The 1099 muddies the waters with the IRA and we don't want that)

Brandon,

You need to watch the laws in your state and county, but basically, you can discriminate with tenants, excepting the items protected by the feds. You don't have to respond to them, and you certainly can tell them they don't qualify. Also, you don't have to take the first.... take the BEST.
Now, some cities are making up their own rules. Recently one neighboring town requires you to take Section 8 if the qualify. You can make your rules to eliminate whom ever you want, including section 8, but carefully draft your rules.

Your lease spells out the terms but as mentioned, you have some clout in Florida. However, I'd not abuse it and make an effort to rent it out right away. Regardless of when I rented it, I'd not return the rent do on the lease. Just the cost and hassle of re-renting is worth two months rent.