All Forum Posts by: Alexander Timberlake

@Cameron Hueston

http://reiahouston.com/

That is the website. There is a calendar with locations, etc. It is $100 to be a member, but you can go to your first meeting for free.

Hello,

I have potentially an ignorant question: What is all the hype about finding properties with equity in it? 

I have learned that a lot of REIs only market toward properties that have 50-70%+ equity.

I understand that if you own a home that has a lot of equity in it, you can borrow against that equity using a HELOC or Home Equity loan.

Here is the point I am hung up on... if you purchase a house that has 75% equity in it with conventional financing... doesn't this "reset" the equity in the house? The seller's mortgage will get paid for and your new mortgage will start. So if you made a 20% down-payment, then there is only 20% equity in the home.... 

The only situation I see equity as important is if you are a fix/flipper who is using private or hard money to purchase the property in cash. Then you can purchase the property without a mortgage and borrow all the old equity in the home with a HELOC or Home Equity Loan. This can fund the rehab costs of the fix/flipper

Am I missing something?

Hello,

I am an engineer in Houston, TX. I purchased my primary residence in 2016 and have happily been renting out the two spare bedrooms to friends. The cash flow covers about 90% of the mortgage. This has opened up my eyes to the great wealth generating potential real estate has.

I am actively participating in the Houston REIA and RENC. I am primarily looking to network with people to expand my knowledge and start putting together a team of like minded individuals who will assist each other executing deals.

My strategy thus far is to use my engineering income to help purchase strong cash flowing buy/hold properties. One day I hope to offset my engineering income with passive rental income.

If you are in the Houston area, I welcome you to add me to your network and potentially meet up and talk shop!

Best,

Alex

@Account Closed Thank you for the response. What is the escrow payment to the title company for?

Hello,

I am currently executing my first wholesale deal.

I have a property under contract that I am trying to wholesale. I have identified the buyer and I have a verbal agreement to assign the rights of the contract to him.

Questions:

1. What steps are left in the wholesaling process? (What do I have to do? What does the buyer have to do?) 

2. When do I collect the assignment fee?

3. Do I need to bring any money to closing?

@Dmitriy Fomichenko Why would I have to prove $225k of SE income to put $45k into the Solo 401k? Can you only put 20% of your SE income into the Solo 401k?

If I did 1 whole sale in 2017 that made me $5k, I wouldn't be able to put the full $5k into a Solo 401k?

@Dmitriy Fomichenko For clarification, using the same example:

Example:

-Salary from employer = $100k

-Employer matching contribution = 10%

-2017 401k deferral limit (from employee) = $18k

-2017 401k total contribution limit = $54k

I can collectively put up to $18k of my employer salary into the Solo 401k and Employer 401k. 

Example: I can put $9k into each of them ($18k total).

If I was to do this, I would still be able to put $45k of self-employed income into the Solo 401k to reach the $54k maximum.

Question: Does Wholesaling count as self - employed income?

Hello,

Is there a platform in bigger pockets to post deals you have such as:

-I have a property under contract and I'm looking for a buyer to wholesale too

-I am looking for a partner on a deal

-I am looking for financing

Or is this not allowed?

@Dmitriy Fomichenko Thanks for the reply. I purchased property in February of 2016. I live in one of the bedrooms and I am renting out two spare bedrooms for additional income. I have yet to do my taxes since owning this property. Will my rental income be claimed on a 1099 C?

@Justin Windham Thank you for the detailed answer. This is exactly the information I am looking for. Can you confirm my understanding below:

Example:

-Salary from employer = $100k

-Employer matching contribution = 10%

-2017 401k deferral limit (from employee) = $18k

-2017 401k total contribution limit = $54k

If I max out my traditional employer 401k with 18K (and they add 10k for the 10% match), I would still be able to put $54k-28k = $26k into a Solo 401k, correct?

Two additional questions:

What are some examples of legitimate self employment activity? 

What are the actionable steps I could take to opening a Solo 401k?