All Forum Posts by: Steeve Breton

@Kyle George Kohuth I should have also mentioned that you can check out the great meetups in the area.  Meet people in the game and learn what they're doing.  Maybe use partnerships to get started.  Great way to get started.  

Real Estate Professionals Of Metro West (Natick)

Black Diamond RE Investors (Worcester/Waltham)

Metrowest Property Owners Association (Marlboro)

@Kyle George Kohuth: Welcome to BP. I live around the corner from you and have been investing in Framingham for five years. Worcester and Marlborough maybe good bets for you. I’m happy to discuss strategy and location in detail if you want to connect.

Jeff Wallenius I don’t have the details in front of me. I am thinking 10-12% cash on cash with >15% IRR on a 5+ year hold. otherwise I wouldn’t be interested.

Excellent info.  

Agreed, if returns are high enough, then certainly worth taking on UDFI ... especially knowing that additional IRS scrutiny is unlikely.  Thanks again.

Thank you both for the quick response.

I know the 990-T filing process isn't a big deal (CPA will charge a nominal fee to prepare it once I've applied for a Fed Tax ID). However, I have an aversion to filing a 990-T. Perhaps this is unfounded. Are there any downsides to having the IRS peaking inside my IRA? Does this open a can of worms that would best be left unopened?

@Brian Eastman  You commented "If the fund is the sole member of each LLC, then the fund's return from that LLC is leveraged". If the LLCs have >1 owner, including the fund, does that someone eliminate the UDFI? I like your conservative approach as I have nearly 500k in this IRA and wouldn't want to completely invalidate it.

Hi All,

I've been investing with my SDIRA for years. I mostly stick to loans/notes or none-leveraged assets. I now have an opportunity to invest in a Mobile Home Park fund. The fund holds single property LLCs. Each LLC has approx 75% leverage on the property it holds. The Fund itself does not use leverage to purchase the LLCs. My $100,000 question is: Would *UDFI be triggered if investing in a fund which owns leveraged LLCs? ... does the Fund offer a degree of separation between my IRA and the leveraged LLC sufficient to nullify UDFI?  

I am pretty certain that UDFI would be triggered in the following scenarios (please confirm #2). 1. I buy a property in my IRA using a loan or 2. I invest, as a passive/limited partner, in an LLC which owns a leveraged property.

*unrelated debt financed income

@Brunno Goncalves I'm psyched to see you'll be re-starting the meetup.  Always a good time.  I'll be there!

Agreed, the Aegean is a quality place.

Congrats on the closing.  Hope all went well.

You'll want to inform the tenants of how/where to pay rent. I give all my tenants my bank account number and tell them to deposit at the bank on first day of month, or to send electronically.  You can also have them sign a no smoking addendum and any other additional lease provisions that aren't already in their leases.  Also let them know how they can reach you (e.g. they can email you for everything but emergencies).  Set expectations about what is an emergency... call 911 for some things, call/txt you when their is leaking water or flooding).

Best of luck!

I've got a local guy.  Reasonable cost.  PM me to discuss.

@andr  Natick is very expensive and low cash flowing.  Framingham is getting there as well.  Just south of rt 135 in downtown Framingham is the only area I try to avoid.  You can also check out Marlborough which is still reasonable.