All Forum Posts by: Amy Hu

FirstBank currently only offer services in Colorado, Arizona, and Palm Desert, California

Originally posted by @Dmitriy Fomichenko:

@Amy Hu, 

Here is a list of lenders offering non-recourse loans to retirement accounts. There are several banks as well as few brokers who have access to private money and might have lower loan amount requirements. You'd have to contact each lender directly and inquire about their terms:

https://www.biggerpockets.com/blogs/2810/50272-lis...

thanks for your reply. yes, I contacted several lenders including the two you mentioned.  No hope with our 40k SFR. My plan is to sell those rentals and buy more expensive properties to qualify for loan.
I'll look into the UBIT taxation on UDFI. Could you kindly direct me to more information on those?

Originally posted by @Brian Eastman:

@Amy Hu

An IRA may use non-recourse financing, just as a Solo 401(k) does. The issue and difference between the plans is that the IRA is subject to UBIT taxation on Unrelated Debt-Financed Income (UDFI). This tax is generally not a big cost, and the IRA will definitely receive a higher cash-on-cash return via the use of leverage, even with the tax and tax-prep cost. Sure, it is simpler to use leverage in a SoloK when that is an option, but an IRA can successfully use leverage too.

Have you spoken with the primary non-recourse lenders; First Western Federal Savings and North American Savings Bank?  They will sometimes do portfolio loans where they cross-collateralize multiple properties.  Yes, smaller individual properties are not worth their time, but perhaps bundling all 4 would be something they could do.

Painesville is okay in some southern areas or right near Lake Erie College. But there are some bad areas there that could be considered a C-. Near the Painesville exit off of RT 2 you can usually find some SFRs for 30k, which tells you something (not good). 

Mentor, Willoughby, Eastlake are all good. Mentor is higher class (especially southern) and homes go fast there when they are in the Mentor school district. I cant comment on much west of Painesville, but I do know that Perry is going through some turmoil with the power plant on the verge of closing so that area may become a bit more depressed for a few years if the plant closes and 700 jobs disappear. I passed on a duplex out there for that reason. If I can answer any specific questions you may have please don't hesitate to reach out.

Hi @Amy Hu not sure if you're in town now or not but there is a deal makers session going on at the Lakeside Yacht Club tonight from 7-9pm. Good opportunity to meet fellow investors. Also I'd be happy to meet with you as well. Hope your trip is good. 

@

Amy Hu

                            Are you coming in Next Saturday  with the group of about 50 ?