All Forum Posts by: Tom Makinen

Bank loan of course, tax deductible.  

I have seen better numbers on crowdfunding sites with much less investment.  Do you think you can get to accredited?  

Most are showing 9% return with 1.9x on equity now

@Cameron Price  That's why they have CPAs to figure it out for you if you don't understand it. 

@Cameron Price  Once you get to a certain income level, I strongly suggest you hire a tax strategist.  With yourself being self employed, there are plenty of loop holes you can go through to save yourself money.  W2 monkeys like me, the only thing we have is 401K, mortgage interest and the SALT deduction.  SALT was limited, so that's basically useless to anyone in high tax states.  There is a cap on how expensive of a house you can purchase before the interest deduction phases out, so good bye to all the nice metro areas.

As far as who makes it and why they make it, it's mostly political and how much special interest and rich people line the pockets of politicians.  Do you really think the old geezers in DC knows what the difference between the tax bracket rate and the effective tax rate.  Progressive tax vs regressive tax.  What's in Sch A vs Sch B, C, D or E.  They are mostly lawyers and liars, I think there are only a handful of accountants in DC.  

Bottom line is that America loves business and they hate the working folks.  You might want to think about incorporating and become an employee to your own corp, it might end up working out better for you from a tax perspective.

@Jessica Mills  On the Milwaukee one, they literally have the little castle wall thing outside the balcony door.  How funny is that?

Falling in love with investment is definitely a nono, I did it once with my beach condo.  It took 3 years to recover from that last disaster.  

Remove that search with the keyword Tudor....

You can borrow up to 50% or $50K, you have to pay yourself interest on it.  If you leave and can't pay it back, you would be subject to a bunch of fees and tax

I have small gold bars that I would love to get rid of, find me a place that will take it without skimming 15% off the spot price.  

No offense but you live in South Carolina.  Try living in California where you got shafted hard by the salt tax limit and our property value got capped by the mortgage interest deduction.  I paid an extra five figures in taxes without changing much.  

Also are you sure you have to pay because they changed the tax withholdings?  In theory most people not in blue states or super poor got a slight tax cut, look at your effective tax rate between 2017 and 2018.  I should add people with lot of misc deductions got shafted too.

That's why you form a c Corp to do flips. All expenses offset the income generated from the flip. Yes it's true you won't be able to offset your own income, but it's better than paying that year. You can also pay yourself back via salary, subject to payroll taxes. If you do decide to keep it, you sell it to yourself or a LLC rolling to you so you can slowly depreciate the property.

@Andre Williams  I am in similar positions except my schedule isn't quite as hectic.  I do have to mention a few things.

#1  In your situation, whatever you take in as cash flow you will likely lose around 40% of it to the IRS unless you spend some money to get a firm working for you.  Keep that in mind when you make a decision on where and what you want to invest in.  Unless you need the money, think long term.  

#2  Please make sure you have a good asset protection strategy in place.  You, as a physician, are going to be a high target for lawsuit, just or not just.  You don't want your investment to get in the way of your personal stuff.

#3  If you really want real estate, you might want to get into crowdfunding or REITs.  They are truly passive income and they usually bring a decent return.  You won't be able to leverage it like you can with a mortgage, but your risk is much lower.  Also as a high income earner, you are likely going to be able to get into crowdfunding and many other alternative investment vehicles.  You can get in on some great commercial sites for about $15-25K.  I am currently earning close to 10% a year on one of my investment in just cash flow, my 25K will likely be worth 40-50K in 3-4 years.

#4 This is risky, but NNN lease is something you could consider. They are basically guarantee 5-8% in return, the question is what if they leave after 10 years. You would be stuck with a worthless piece of property.