All Forum Posts by: Todd Willhoite

I prefer it at the end so I can ignore it.

I don't know anything about this specific park, but good mobile home parks are a hot commodity.  If it has been on loopnet for six months that could be a bad sign.  I would look very closely at it before purchasing it as your first park.  As mentioned before, the concerns are well water (potential big liability and what happens if well goes bad, is there another source of water?), septic (how was it constructed, how has it been maintained?), and park owned homes (can be time consuming renting and rehabbing).  Proceed with caution.

I purchased a private placement in an LLC through my self directed IRA. I am told I now need to have a form completed about the fair market value of the investment.

1. What is a practical way to comply with the form?  

2.  What happens if I can't get the information to comply with the request?

I would recommend studying the mobile home park business first as you can make some costly mistakes.  You can find formulas on this site and others that suggest a calculated fair price, but you need to know more than that before you enter into a contract.  Frank Rolfe and Dave Reynolds have a due diligence manual which I would recommend as the bare minimum to read.

Thank you @Mark Nolan

I have a business with no employees for which I want to establish a solo 401k.  I have another unrelated business with one full time employee.  My wife has a business with four full time employees.  Under the Controlled Group Rules I guess that I am unable to establish a solo 401k in the business with no employees because I am deemed to own 100% of my business with an employee and my wife's business.  Is there anyway the business with no employees can establish a 401k?

I see the benefit of a 401k to me in avoiding UDFI tax, not really for the tax deductions. I have an IRA that I could role over to fund the 401k.

If I can't form a solo 401k, are there any affordable 401k plans for small businesses?

If you are going to be there at least a year, you may want to consider a hud home (https://www.hudhomestore.com).  Owner occupants get to make offers before the investors do.  Depending on your market, you may be able to get a discount off of retail.  You must live in the house a year to qualify though as an owner occupant, so if you intend to move sooner, then you probably do not qualify.

I opened a Self directed IRA this year and purchased a small interest in a private placement LLC. (The LLC has just gotten started, raised money, bought two parcels of real estate, and have contracts on a few others.) My IRA custodian says they must have a Fair Market Valuation of my interest in the investment by a third party by January 31st. The people running the private placement LLC act like they can't provide that information before the 31st. What are some practical ways to get this accomplished? What happens if I can't provide it in time?

Great answer @Denise Evans, thank you so much.

I entered into a short sale contract June 3, 2016.  The bank has taken a long time to approve and now they say we need to close in 3 weeks.  The seller is now concerned that he may have income tax liability on the amount of debt that is forgiven.  He now says he won't close.  Bank has already gotten a judgment on him.  Seller's thoughts are "I will just let it sell at sheriff's sale and then when they get their deficiency judgment I will file bankruptcy and be free and clear with no tax liability."   Does anyone know what the income tax implications are to the seller either way?  What is the motivation for the seller to sell now if he has to pay income taxes on say a $30,000 forgiveness of debt?