All Forum Posts by: Stephanie Olsen

It's been 2 years since this post has been updated. Did you work with them? Any feedback on their turnkey property pipelines? We have properties already and I'm wondering if their pipelines are vetted and good or we should stay outside of the CFT community to find turn key?

It's been 2 years since this post. Did you work with them? Any feedback on their turnkey property pipelines? We have properties already and I'm wondering if their pipelines are vetted and good or we should stay outside of the CFT community to find turn key? 

I still don't understand. Isn't the cash surrender value the value of the policy? It's equal to keeping that money under my mattress, so (1) why is that a good thing and (2) what is the 'open market'? I.e. how would I recognize that value? 

I started a WL plan in over 6 years ago. I put $6k in each year. It now has a Cash Surrender value of $36k, which is basically worse than if I had kept this money in a high yield savings account. 

I haven't ever gotten a loan against it for real estate, but that was the reason I started it. Now, I'm wondering if I got scammed and should close it or I should pull a loan out to buy real estate and then somehow see a benefit I don't see today? Presumably, I would 'earn' on the $36k, even though I pulled it out, BUT I'm not earning anything on it as is. Why would that change if I pull it out? 

It's been some time since people posted here about this course. This gentleman came to a conference I was at this past weekend. Anyone have any results to share from his teachings or are you all retired on the beach of Bali by now?

Thats interesting, @Bill Exeter! Do you have any documentation I can share with our QI? It doesn't make much difference to us, as the 1031 Exchange is already done, and there's no difference to me whether we have a Qualified Escrow Account or a Traditional Escrow Account, but my QI was sure we needed one since we were in CA and the property was out of state. I'd love to send some info to him, if it's not needed. 

Are you looking for a HELOC on your primary or a rental? US Bank's HELOCs are around 65% for investment properties, but much higher for primary residence (perhaps 90% as the previous person stated - I never looked into that).

I haven't found any bank that is willing to do more than 75% for a HELOC on an investment (and I found that at a local charter bank - no big bank was close).

So, I didn't read all the responses, so apoligize if this is repeat.

You pay Capital Gains at the time of sale (well, that tax year, but it's not based on what you do with the property AFTER you sell). You should do a 1031 Exchange if you're current property meets the rules (an investment property for more than 2 out of the last 5 years) into the new property / properties. As soon as you touch those proceeds, you have to pay taxes. You'll need a Qualified Intermediary to do the 1031 Exchange properly and ensure you have the right kind of escrow account set up (CA requires a qualified escrow account, rather than a traditional escrow account). 

CA is awful for taxes. Not only do you pay Capital Gains, but you pay a few other "special taxes". 

- Capital gains (Depreciation will be taxed at 25% while the rest will be taxed at 15%)

- Net Investment Income Tax (this is a federal tax) at 3.8%

- CA income tax (the proceeds are taxed as ordinary income with a max rate of 10.3%)

You'll also have CA withholdings required, so you'll need to account for that at tax time. 

I can't say what you're exact math would be, but if you have a house that sells for $660K and you owe $335K, then your max proceeds pre-tax are $308K (assuming a 5% closing cost). If you don't do the exchange, then you're likely looking at proceeds closer to $220K. 

Be careful with adding such a clause. We own 9 properties and I've never charged interest for late payments. We look for payment or eviction. Very simple. 

There are laws around usury and how much interest rate you can charge. I'm not sure where this 18% was, but, certainly in CA, that is not legal. CA's legal interest rate charge is 10%, but there are stipulations around when you can charge that. Make sure to consult an attorney for any alterations outside of standard documentation. 

Hi!

I also just joined BP and jumped right to the forums. 

A quick introduction of myself. With over 15 years of strategic, Global management experience, I have developed a track record of success and leadership in operational excellence prior to becoming the co-founder and CEO of Nest Egg Assets, LLC. After more than a decade at Google Inc. and as a mother of twin girls, I am focused on helping others build wealth for themselves and for their families through trust deed investing. As CEO for Nest Egg Assets LLC, I have raised money for over $5M of various real estate finance and development projects in the last 3 years.

In my spare time, I am Vice President of the board of Gemini Cricket of Silicon Valley, a non-profit organization, focused on bettering the lives of parents of multiples. I am a member of several professional women’s associations, such as National Association of Professional Women and American Business Women Association. I am a graduate of St. Lawrence University and reside in the Bay Area with my husband and twin daughters.

In terms of Hard Money Brokers and their requirements. First, you should know this varies by state. In fact, some states require a license to be a broker while others do not. Be sure to check in with your professionals (and lawyers) before partaking in any deal, so that you know the risk of investing! 

Second, Hard Money Brokers will likely require a 25% to 30% down payment on a given property. They primary fund non-owner occupied, residential (1 - 4 units) with a Loan-to-Value on Purchase Price of <65% (hence, the downpayment requirement). I know very few HMB's who will allow no money down without cross-collateral. That said, you can use cross-collateralization for " no money down". For example, if you have a free-and-clear property that is worth $500,000, then a HMB would likely lend based on 50% of that value (or $250,000) towards the loan requested. 

Third, on top of Hard Money Brokers, there are Private Lenders, which is what my company does. A Private Lender will lend on a deal whereby the criteria from the HMB may not be able to be met. As an example, some Private Lenders in the Bay Area will lend up to 75% on After-Repair Value (ARV) with "skin in the game" (10% cash-in or cross-collateralization). The specifics around what types of terms are offered are specific to the Private Lender, but should always stay within Usury (http://www.investopedia.com/terms/u/usury-laws.asp). Private Lenders raise money from private investors to invest in real estate deals. 

I could write a lot more, but hope that small amount of info helps in some way!