All Forum Posts by: Stephen Sawrie

i have navigated HUD and fannie mae, but this is my first with VA.

can anyone out there explain the following statement further? it was included in a counter on what by all accounts is a very good opportunity.

i have navigated HUD and fannie mae, but this is my first with VA.

can anyone out there explain the following statement further?  it was included in a counter on what by all accounts is a very good opportunity.

@Account Closed.  thank you.  and thanks to all on this forum.  it is an absolute goldmine.

@Account Closed than you for your reply. with a patent atty brother, i have access to a tax atty in his firm and he said the same thing. the problem with trying to explain this situation is that most atty's and cpa's that i approach for advice get hung up with the SD-IRA issue, particularly when i throw in the LLC for checkbook control.

thanks to both.  sounds as if it won't work

@Dmitriy Fomichenko what if i was personally invested (with my after tax monies) in a third LLC that the company to which I am lending is also invested in?

IN OTHER WORDS.....my IRA LLC (company A) would be lending to a company in which i have no ownership (company B), but both companies A & B are invested in a third totally separate entity (company C).

hope this makes sense!

can i make a loan to another property company from my IRA-owned LLC? or would this be a prohibited transaction? i have no ownership in the company to which i would be making the loan.

thanks in advance

i have about 200K burning a hole in a newly minted SDIRA-owned LLC that needs investing. i have invested with after-tax dollars in this market and know it reasonably well. two options at this point. curious what others out there with more experience might add. any guidance or perspective would be appreciated.

1.  an 8 unit apt complex (2br/1ba, 800 sq ft each unit, 2 units per building, 4 buildings with a central parking lot, 2 spaces for each unit, all sitting on one acre, all brick, built in mid-90s, reasonably well positioned geographically, currently renting $500/unit, probably can't go beyond $550/unit in the foreseeable future, history or renting reasonable well).  price 250K, would lay out 150K cash, finance remainder over 10 years with non-recourse loan, which is pretty much already lined up with local banker.

2.  pay cash for 4 SFD, 3/2, each costing about 40K for purchase and renovation.  each rents for 750-800K/month, which is going rate for the area.  and yes, these are available, but it would likely take 6 months or so to find and purchase the four.  total cash outlay similar to option #1 above.  plan would be to add similar units as cash builds over time.

everything else being equal (and of course it never is), WWYD?

thanks in advance.

@Dmitriy Fomichenko i just got off the phone with my cpa.  good advice as always.  and i am also discovering that nearly every topic i bring up one this forum has been discussed thoroughly in the past.  the "search" feature of this site is invaluable.

@Dmitriy Fomichenko awesome info, thank you.  so if i finance 50%, then half of the income generated by the property is subject to UBIT?