All Forum Posts by: Bryan O.

@Harrison Liggett it isn't about "options" right now, it's about requirements. If your lease addresses early termination, then that is the current requirement. If it does not, then your state has a default early termination which is your current requirement. Explain the requirement to the tenant. If it is something you are willing to work with him/her on then you can negotiate from there. The lease is an agreement between 2 parties that can be modified if both parties agree... First, find the requirement. Second, decide if you will negotiate it.

Colorado's default requirement is that the tenant is responsible for rent and utilities until it is re-leased. The landlord is responsible for attempting to mitigate. My lease states that an early termination is a 2-month rent fee. Since my lease addresses it, that is the requirement. If it did not, then Colorado's default would be. I have worked with tenants in the past, but only if they earned it by being good tenants and because I would still benefit. If not, I would have simply explained the requirement and enforced it.

@Account Closed you will need to respect the terms of the least. Definitely approach the tenant to introduce yourself and get a feel for their situation. You can broach the topic of moving anytime you feel is best; I tell all my tenants when they move in that the lease is an agreement between 2 parties and that if there is a good reason to change it later we can look into it, but that it has to benefit both of us. Otherwise, I assume there is deferred maintenance that needs to be done. If they like lots of privacy then maybe knowing that you and contractors will be in there frequently (with correct notifications) may help them understand that it could be beneficial to move elsewhere. If they don't mind, that technique may just make them want to stay longer.

@Janis Mcquinton are you a good loan candidate? If you have high debt and possibly self-employed it might be hard to get qualified to pull equity out of your existing home and you may just need to wait for the payout you are expecting later.

If you are a good candidate, then you can get a cash-out refi (fixed interest rate) or a HELOC (variable typically) and continue investing. Not sure where in any of that you would need the attorney. For the CPA and agent, you probably want to check around the forums and meetups to see who is using a CPA familiar with your specific scenarios. For an agent you should probably specify where you are looking to invest.

@Travis Weese if you want to avoid all the DoS issues (I won't go into these since they're everywhere in the forums) you can:

• leave it in your name, get a cash-out refi, and go buy the next investment, or
• deed it to an LLC, get a Line of Credit (LoC) (or a cash-out commercial refi) on the property, and go buy the next investment

Either of those would be done in that order, but if you go the LOC route I would validate with whatever bank you are going to use that they are onboard before deeding it over.

@Nate Adams I use voip.ms. You can get a number for $0.99/month, then pay around $0.008 per minute. It's full VOIP capable, so you can set it up on your mobile phone, computer, VOIP phone, etc. but it does take doing the setup yourself. They give you the DID but you have to configure your things. Not hard once you figure it all out, but simple as heck and portable once you understand it all.

There are lots of them

@Brian Eastman thank you for the reply and well thought-out answer. The questions is specific to solo 401k's since IRAs have custodians. 403(m)(3) specifies "trustee described under subsection (a)", which is a bank (which I am not corrupt enough to qualify as) or "such other person who demonstrates to the satisfaction of the Secretary that the manner in which such other person will administer the trust will be consistent with the requirements of this section." which I believe is what the trustee of a 401k is. This is supported by the Satisfactory Opinion Letter provided by the IRS when they approve the 401k master/prototype plan (the plan that the end user, such as myself, adopts when they create a solo 401k) that allows the user to designate the Trustee.

Regarding the IRA LLCs and the boom in metal storage, I think you are right. I assume that is what spawned the IRS ruling from 2002 about storage of the bullion not being with a trustee or a bank, which rendered it considered as a collectible since consideration as bullion required it to be of a certain grade AND be stored by a trustee or bank.

Hi all, I have been trying to find the requirements for the physical storage of gold and silver in a solo401k. Sense Financial says that the IRS requires precious metals owned by a solo 401k to be held by a financial institution or US Bank. Over at solo401k.com, they state that, "With the solo 401k, you are your own custodian and trustee. This means that you can buy and store the metals yourself... you can store the coins in your own home..." Of course, they end with a disclaimer that it is generally recommended to keep the at your bank. On broadfinancial.com, they say you may need a bank to hold it, then maybe a safety deposit box at a bank, but that maybe American Eagles can be personally held.

To try and get rid of false information, I go to the source: IRC408(m)(3)(B), which is what authorizes the acquisition of precious metals: "any gold, silver, platinum, or palladium bullion ... (as described in section 5 of the Commodity Exchange Act, 7 U.S.C. 7) requires for metals which may be delivered in satisfaction of a regulated futures contract, if such bullion is in the physical possession of a trustee described under subsection (a) of this section." (emphasis added)

This indicates you can buy proper metals if it is in physical possession of a trustee defined in (a) (the top of the document). (a)(2) defines the trustee as "The trustee is a bank (as defined in sub-section (n)) or such other person who demonstrates to the satisfaction of the Secretary that the manner in which such other person will administer the trust will be consistent with the requirements of this section." (emphasis added)

This is where I lose the thread... in a physical world, the assets would be the gold and silver and "other property" could be personal property, but defining it that way makes the rest of the thought not work. After all, how can you commingle your gold with other property (like your personal house) except in a common trust fund of common investment fund? Since half the statement is the exception, and I cannot see any way to invoke the exception in a physical world representation, I do not think this definition works.

The other option is to read it as part of the paper-based investing world. This means the assets of the trust can be gold and silver, rental property, loan portfolio, stocks, etc. In this way, you could commingle because these can and are often bought with pooled assets (money).

With all that said, are there any actual cases where this has been tested or clarified by the IRS? I keep finding 408.06-00, but this seems to reinforce simply that the trustee or bank must be in physical possession, not that they cannot hold it. What do the ever-knowing BP 401k providers and experts say? Please back this with logic or evidence, not just "My company says x so I am telling you."

@Julianne Croegaert I have all adults complete the credit check. If their 18 year old child is living with them, they have to get screened as well. All adults.

@Scott Lewis I allow pets and charge a half-refundable fee when they move in. If you don't, then you'll end up having someone with an ESA that never told you in advance, then all your no-pet tenants will be upset that they can't have a pet, which makes them pay $50 to get their ESA, etc. I short circuit that madness just by allowing them and charging a little more. If their pet sucks, I charge them for damages while they still live there (you must do occasional inspections). This has them either shape up as owners or find somewhere else.