All Forum Posts by: Anestis K.

Hey Bigger Pockets,

One of my 2020 goals is to open and transfer my properties to few LLC's. I started contacting lawyers and was told that I'm not allowed to transfer a personal loan to an LLC and if I did the bank could disqualify my loan.

Is that true, and if it is how is everyone going around it? 

Thank you 

Sorry for the late reply.  I didn't realize the post had some many replies.  Thank you everyone for your suggestions.  

I talk to my accountant and he basically said the same things I already knew about the penalties and then being taxed on the monies as income, but he also mentioned that on a 8-9% return a year investment it would benefit you after a few year.  However, I'm not ready to take a 30%-40% tax hit on a 401K withdrawal.  

Also as @Amy Beth mentioned.  Being diversified when retired is a good option also. 

@Kevin Sobilo I definitely have good equity on some properties, but i never liked the idea of financing 100% or the property especially since in my area the returns on your investment are not as high as some people mention on bigger pockets.  I also only take 15 year loans since I want to retire my 9-5 job ASAP so that means my expenses are much higher then 30 year terms

@Nick Conway & @George Blower I will look into the 401K Solo account. 

So at the end of the day, like Amy mentioned.  I might just have to hold off and save some cash!  but I'm open so ideas!

Thanks BP! 

Hey Bigger Pockets.... I had an idea and need your opinion.  I just closed on my 7th property, and for the first time made two purchases in one year.  Unfortunately, my cash reserves for down payments are gone but I don't want to wait till I save up another 25% that the bank requires for a loan, so here is my plan.  

I want to cash out some of my 401K to use either as down payment or full payment for another unit.  I understand that I would get penalizes 10%, and I would have to pay tax on the money as extra income, but if I find a real estate investment that has a return of 8-9%, I can have the 10% penalty paid back to me on the first year of owning the property and then I can utilize the future returns right away rather then waiting till I'm 62 with 401K.  In addition, I can boost my 401K contributions after the first year to catch up again since I'll have the 8-9% return from the real estate investment. 

Let me know your thoughts, and also any idea to get down payment  (The bank doesn't want to know me unless I have 25% down payment)

Thank you 

Brandon you have a great point, however with a full time job, kids etc. it gets hard to find properties on my own.  I depend on my realtor to do the searching., but I might have to find a little extra time to do a little research on "For Sale by Owner" properties.

Thank you! 

Hello, I'll try to keep this quick and simple.  In the past 10 years I have bought two, two family homes, two 10 acre lots, one condo and my personal residence.  I'm currently searching to purchase another condo but once again I have to deplete all my savings for the 25% down the bank needs plus closing costs. 

What other option do I have for down payment that the bank will not reject?  In addition, the investment properties are around the 100K price range.  Do I finance for 15 years and make $150-200 a month or 30 years and make 300?  

I like 15 years cause I want to retire early.  I'm 42 and my target retirement is 55.  I figured that if I do 15 year on the properties and buy one a year then every year I'm retired I'll be in a better place, as each year one property will be paid off and my retirement will get better and better the older I get. 

Your thoughts are greatly appreciated. 

I did screen the tenants.  He signed the lease and paid all the money to move in, but never read the lease.  He was under the impression that his security deposit was one months rent but in fact it was 1.5 months rent.  The remaining 1/2 security deposit happened to also be the same exact amount of the pro rated rent since he moved in, in the middle of the month.  So long story short, after explaining everything to him (which is clearly written in the lease), he still continued to argue and some threats were spoken towards me.  I was lost for words cause like I mentioned, it's all clearly mentioned in the lease.  So I spoke to tenant yesterday.  Seems that tempers have calm down, and after he apologized, he said he will make payment tomorrow, and also pay next month as well.  Lets hope he sticks to his word.  I'll keep you posted and thanks for everyone's  advice.  

Thank you @Darren Sager.  I will keep you posted on the outcome. 

@Vincent Priore thank you for the reply. 

@Darren Sager, YES.... he was under impression that part of the security deposit was going to be used for the first months rent.  Even after I showed him that he is wrong and made it obvious to him that he did not read the lease correctly, he still continued to threaten me that he can drag out the eviction and cause me hell if I don't use security for rent.  He has only been in the apartment for a month and a half and this is how this relationship is going to go from here on out. 

I called my lawyer and gave him a heads up.  Lets see how this ends up.  

Hey Bigger Pockets!! 

Questions, I recently bought a condo in NJ and it seems that tenant signed the lease without reading the lease and now is accusing me of wrong doing.  Either way, i'm curious to know if anyone has any idea of how long the eviction process takes?  I have units in PA and there is's a pretty quick process if you do everything right, but I'm not sure the process in NJ.  Also, does anyone recommend a good lawyer for the Monmouth County area of NJ?  

Thank you.