All Forum Posts by: Bryan O.

@Mike Desmarais are you talking to the commercial department, or the residential? A HELOC is typically the term for an owner occupied property. A LOC (or Business LOC) from the commercial department, secured by the property would not have them telling you to put it in your personal names. It sounds to me like you are talking to their residential department. Call and specifically ask for commercial lending, then ask about a secured business line of credit.

@Anthony Theokary go over and talk to him/her. Introduce yourself and then ask that they no longer park on your property. Since they're parked on your property, they're probably home ;)  If not, leave a note that says you're the new neighbor and ask them to call you. Talk over the phone.

*If those don't appeal, you could get an NPR interview, FaceBook live the gross violation of your rights, add the video to YouTube, get it to go viral, find an attorney to work pro bono for the media exposure, create a GoFundMe page to subsidize your days off needed to run the Movement, and eventually he'll come over and talk to you  ;)

*sarcasm

@Jeff Duford my lease specifies that I do not provide alternate housing in this type of scenario. @Nathan Gesner is right that this is something their renter's insurance should cover. The damage of their goods and any alternate housing is covered from their own end. I require renter's insurance for exactly that type of reason. I would give them a rent rebate for the loss of use of that room based on time and square footage (i.e. if the sq ft is 20% of the home, and it's down for 1/4 of the month, it would be 5% of their monthly rent paid back to them (not a discount, but returned after they pay on time as expected). if it's $1000/month rent in this example, that's $50.

@Raymond Northcutt if you decide to purchase up in McCall and need a residential or commercial inspector let me know. My brother lives in McCall (Elk Horn Inspections) and is great. Been in commercial construction, operations, and management his whole life and moved back up there last year to hang his own shingle (and hunt, and fish, and boat, and snow mobile...  ;)

@Daniel Dietz thank you for the update. You are saying you had an IRA LLC that was able to get a non-recourse loan without a personal guarantee with that LLC? If so, that is the scenario that I could not find a decent way out of after calling 10 banks and around 5 specialty retirement account lenders pulled from BP recommendations.

It looks like your loan was only 20 years though. Did they offer a 30? What year was it and what were the other terms if you don't mind sharing? The couple that I found required something like 20% of the value to sit in reserve and only loaned 50% of market value, which meant that pulling 30% of cash out was not worth the cost of the financing.

@Joe Arida

I have a setup similar to this, but with a solo 401k. it can be done, but you have to explicitly track what contributions and % was which account. You have to be able to definitively prove no commingling.

You also talk about UBTI and UDFI... If you are planning to buy any property with leverage DO NOT use the LLC! Call a few banks. Ask them about their non-recourse loans. Then ask them if you can have a non-recourse with your LLC. 100% of banks I spoke with require that any loan to an LLC have personal guarantees attached... Since you cannot personally guarantee for your IRA and the entity is an LLC not a standard IRA trust, you are stuck with the very few companies that do these types of loans. Typically, they aren't even worth using. If you are buying all cash and not using leverage then this isn't a problem and the LLC gives you faster responsiveness and likely lower cost.

@Abigail Montmigny is it something you want to do? Just because I work on my own cars doesn't mean I have any desire whatsoever to be a mechanic... not a fan of grease ;)  Are you a fan of tenants? Owners that only see what you tell them or shows up on their monthly breakdown? PM is a business and a job and you don't actually mention if you even have any desire to make that your full time job. If so, do it. If not, don't. If you have no idea, do it! You won't find out if you want to by asking around on a forum :)

@Jeremy Woods I haven't seen it posted, but it looks like you are using a property manager as your buy/sell agent just because he's going to manage afterwards. You know, "an agent's an agent". Not good. That's like saying you are going to have your mechanic go buy your car and then get mad that they don't know all the stuff in advance about what is needed to get the car loan. You are using the wrong specialty. Your manager needs to have input, but not be responsible for the buy/sell. He's on "the team" but he isn't the center.

As far as how to keep your cool, I don't have a whole lot of good advice. I used to be extremely confrontational and very assertive. I ended up in a job with a very quiet boss that always seemed to be unruffled by anything or anyone, but over time I saw that he was ridiculously successful. He bent and swayed without ever losing ground. I just hit back harder and smarter. We both won, but his wins usually somehow brought people onto his side and he built an army of people willing to help him. I would win every time, but I had to fight the hordes of foolishness alone. It gets tiring without others to help. Whenever I start losing my cool I try to remember that it is easy to prove someone wrong, but more valuable to help them learn to be right. Good luck; I still suck at it!

@Terry McMillan there isn't much information here to help with... If you already have a $300k 401k, then I assume you are a fairly high income earner, which means (usually) a very high expense life. How much do you need to live on each month? Could you take that $200k, but 2-5 properties (not sure your philosophy on leverage) to cash flow $2k/month and live on that? If you have part of your lifestyle established with $2k/month, does it mean anything? For example, could you then reduce your work hours? Many jobs are 0 or 100 and don't typically allow anything in the middle. How old are you? If you're anywhere near 59 1/2 then it is quite possible that you should just wait it out. What "financial freedoms concerning your current job" are you actually after? You may be able to look into ROBS for your 401k rather than cashing out.

Lots of options out there, but they're all just noise without factoring in all the "you" that is needed to make it "your" recommendation ;)   Best of luck!

@Brandon Ingegneri I agree with you on this, but only sometimes. I'll point out the other times that come to mind because everyone's life circumstance is different. For the single, young person with no stake yet in life, do it! If you believe that failures provide struggle, and struggle is where people primarily learn, then it's the right thing to do. We (those with W2 jobs using our bankable credentials to expand) play the risk vs. reward game conservatively because we have something to lose. We take low risks and have low rewards...they are better than "average people" but certainly not exponential. We're looking at the fall from the height we have already attained in life. The dropout with no options (and hopefully no student loan debt yet) is already at the bottom of what we think of as a fall, but they can go anywhere they want on the way up, using any path that works for them. How far could you stretch if there is little or no loss if you don't make it? In this case, 10x'ing that goal may be too small. Does having a great, bankable W2 job give you a leg up? Or does it handicap you from thinking about creative strategies like commercial loans, owner finance, private/hard money, etc.? Relying on your W2 automatically gives a huge bonus to small, single family type investments. Not having a W2 to give you 1 clear path may open up large apartments, trailer courts, self-storage, or anything that does not rely on a W2. Does your 10-loan limit give you broader horizons? Or does it put you into a defined rut that is hard to see your way out of? I love your post and I have given the same advice, but everyone's moment in life is different and that advice only works for 1 type of journey.

@Account Closed the government itself is the one that makes the "dire predictions" (not sure math is dire... that's more of a news spin ;) about Social Security: https://www.ssa.gov/OACT/TRSUM/index.html. 2018 is supposed to be the first time in 35'ish years that SS has lost more than it has made, with no expectation of reversal. Fun stuff.