All Forum Posts by: Tom Makinen

Nice goal.  

Maybe it’s because I grew up poor, but I don’t feel secure even with 7 figures in assets.  I am gonna work at Walmart at 70 as a greeter

Not sure if that answered my question, but don’t mean to offend regarding the weather.  I am simply stating the snow rain and cold will lead to more wear and tear 

In search of a market that can pass the 1% test, it seems to be Minneapolis might be close as they have houses in the 150K-200K range that can rent for 1300-1700.  They have super low inventory for rentals, which would help in any vacancy.  They also have a hot housing market with limited inventory, so there seems to be more play for appreciation.  On the flip side, the houses in that price range is 100 years old.  Most of them are in bad areas, so the potential of having repairs will be high.  Also with their crappy weather, maintenance could also be bad.  What is everyone's thoughts on it?  Is there any old neighborhood that is getting gentrify?  

Oh yeah they also have high taxes, so you are basically adding $20K to the cost of the house.

A lot of registered agents can do mail for you, that way you keep your name out of the public record

Hey guys,

I have a question. I am looking to start a small business and obtain a commercial property for it at the same time. Due to the nature of the business, I found it extremely difficult to get a SBA loan for it. Instead of a SBA, should I go straight to a commercial mortgage. Even though I have the income, credit and down payment for the property and mortgage, the banker did tell me I would have a tough time getting it since it only has 3 months left with the current tenant. I am not sure if it would be helpful if I just draft a contract between my LLC and Corporation to lease the building?

Or should I just skip the big banks and go with a different lender.  

@Cameron Tope If you take a mortgage on your investment home, the interest is deductible up to $1m. If you take a HELOC to payoff the investment, the HELOC interest is not deductible (Ryan/Trump took that away). If you do a cash out refi, the interest is deductible up to a certain point (I am pretty sure it is 50K for married). It is not an income, you can only deduct the interest.

In CA, reserve study is required every 3 years to prevent this from happening.  If you have the CC&R, pull it up and read it.  I have a good lawyer, but they will probably charge you $1000 to do this.

@Scott Smith I get the part about the land trust, but how do you get around not registering the LLC in California as a business. Without registration, you are subject to fine for operating a business in the state without a license. It could also void any contracts or disputes you have within the state. If you try to evict somebody, there is a chance the state won't recognize it.

I would love to avoid paying $1600 for my two companies, but I am not seeing how serial LLC is the answer.

There is also a matter of income state filing since there will be CA sourced income involved, the FTB will find out.

@Scotty Gifford  Ummm no.

You only pay 10% penalty on the earnings, not the contribution because he already put that in with post tax money (ROTH 401K).  For example if he contributed $100K and earned $10000 from it, his tax is 10% of that $10000.  If it is a traditional 401K, he would have to pay a lot of taxes.  Depending on his income, it could be 40-50% off that $110K balance as he has to pay income tax on the $110K and then another penalty on top.  Not worth it.

I don't know if Roth 401K has it, but you might be better off taking a 50K loan out and call it a day.  Although some employers force you to pay it when you leave, so you might want to double check.  Also if your employer offers 401K match, please don't waste it.  Roth 401K is post tax anyway, so stop contributing if you think you have enough money for retirement.