All Forum Posts by: Tom Makinen

Might want to be careful as Seattle market is starting to tank, you might as well pay more and buy in the bay area or SAC

Go look up irs crack down on self directed ira properties from a few years ago.  They made it clear they will look at them closely.  You make one mistake and your entire house will be subject to income tax plus penalties.

If you are the homeowner, you will still be sued along with the property manager LLC in something like a slip and fall. It takes 5 minutes to get the ownership information from the city/county website.

You should pay money to use a land trust to get the property off your name and into your LLC. You can then manage the entire rental within the LLC and take distributions out after everything. There is also the privacy part, but its going to get more complicated and possibly expensive if you are just self managing.

If you can't sell it and make enough now, are you sure you can get enough to pay off all the liens.  

For 700K, I think you will be living in Oakland

There are more of them popping up but it looks like people are starting to have problems selling them.  You can see Dom is going up on them.  The $500k number might be over.  The rehab property are also getting more expensive now with most wanting to get near 400k for it.  The margin is starting to get thin and get pretty risky.  

I looked at one and had the same issue, they basically told us to use home equity or have a business so you can take a SBA 504.

What kind of discounts do you really get off market?  20-25?  I wouldn’t pay more than 50-60 of market.

At your age, I would think about a child.  I care more about living in a good area than making a few bucks off real estate.  There are many other investments to earn money in the short term.  Once you have more, you can start to really do more.  

it’s not crazy as it used to be here, but at one point houses only stay on the market for 9 days in my zip code.  

Problem won’t get much better with a few more companies going ipo.  There will be Couple more thousand people who can afford another house.  

I signed my deposit over from the back of the brokers SUV!