All Forum Posts by: Mark S.

@Michael Kagan, you should be fine. My lowest purchase price for turnkey so far has been $73,000 SFR and I financed it with 20% down. There are lenders who specialize in this space. PM me if you want more info.

@Keleisha Carter, Mid South Home Buyers (MSHB).  Extremely long wait but well worth it. 

Servicing (10%) distributions are showing on my dashboard.   AHP Fund 2015A+ (12%) distributions are not showing on my dashboard, nor have they been paid to my bank account.  This is really odd because usually it’s the opposite; 12% pays like clockwork and 10% is delayed a couple of days.  This is starting to become more concerning, especially as the amount I have invested with them continues to grow and I’m considering investing even more with them. Not good.  

March’s distributions have been paid - they get paid in April.  Looked at my last email received in March and it said February distributions were paid.  We get paid on the 10th of each month for the prior month’s distributions.  Nothing posted to the portals yet, but I’m guessing might take an overnight cycle and will post tomorrow.  

Is anyone familiar with Iowa Street and the surrounding neighborhood in Lake Station, IN (Indiana) 46405?  Considering an out-of-state turnkey purchase there.  Trying to get a handle on the neighborhood w someone familiar.  Thanks in advance.

K-1s for AHP Fund 2015A+ (old, 12% preferred fund) are now on their (old) website.  Haven’t seen anything for AHP Servicing (current, 10% preferred fund) yet but supposedly this week.  

AHP Fund 2015A+ K-1 now shows majority of income as “Distributions” (box 19) as opposed to “Guaranteed Payments” like last year.  There is a very small amount relative to the “Distributions” as ordinary business income (box 1).  

A buddy of mine talked to his tax guy who told him these “Distributions” aren’t currently taxable right now and simply adjust the basis downwards (almost like a return of principal), but when the principal actually DOES get returned (generally about 5 years out in this case), that the difference between the amount returned and this downward adjusted basis is taxable at capital gains rates - if held longer than 1 year, generally 15% tax.  

Does anyone else / anyone else’s tax advisor view it this way?  I almost feel like no taxes now for 5 years and then capital gains tax at the end of 5 years is too good to be true, especially on a note fund.

I will discuss with my tax team to ensure this is correct and to get a better understanding of how this specifically affects my situation (with other passive income/losses, etc.).

@Paul Bommarito, are you concerned with their financials?

Did their ownership change relatively recently?  I thought it was Clayton but now appears to be someone else.  Wondering what happened there.  

@Matt G.,

Nothing yet.  It’s a little concerning, but my guess is because of the filing extension, they’re in no rush to get them out (even though we asked a while back and they said they were aiming for mid-March).  

On a slightly different note (no pun intended), has anyone looked at their financials through 8/31/2019?  Looks like they’re still operating at a loss if I’m interpreting correctly.  Does that concern you?

I have a lot of faith in Newberry, but the numbers are the numbers.

https://www.sec.gov/Archives/e...

@Amol K., I'm not a tax professional, but I will take a shot in the dark and guess that it possibly could. My understanding is that if HELOC funds are used for real estate investment purposes, they generally ARE deductible.

I think @David M.is correct in that HELOC funds from primary that are used for primary residence improvements are NOT deductible, but I think he is incorrect in that primary HELOC funds HAVE TO be used for a specific purpose. I believe it comes down to the ultimate USE OF the funds, among other factors, that determine whether or not the interest paid could be deductible.

As always, consult your tax advisor about your specific facts and circumstances to be sure.