All Forum Posts by: Christopher Fougere

Have a vacancy and need quotes.  Looking for recommendations

I still think the cons outweigh the pros.

I want access to my money - I'm not worried about the taxes, my properties all operate at a loss on paper.  I also want to use Fannie and Freddie's money as much as possible.

I pay an independent FA and CPA for their advice, and they both agree.

@Carl Fischer

I'm not a fan of holding RE assets in a retirement fund. Too many hassels with custodians, you lose the depreciation deduction, access to your $$$, and the ability to use leverage.

My thought is to either BRRRR (if that's even possible at a distance) or just buy more leveraged deals

I'm reaching out to my Tax professional to get their advice.  I found out today my salary would be reduced by 15% so I'm thinking I would qualify??

There won't be a 10% penalty on the 401k withdrawal - that is the whole reason I am considering this.  It's part of the CARES act.

I think we are missing the point.  I WANT to take the tax hit.  Taking the tax hit now spread over 3 yrs with the rates as low as they are vs unknown tax rates 25 yrs from now.

As far as taking money out when the market is down - I'm not sure I see that point either?  I'd be taking money out that has been sitting in money markets for the past year and putting it towards assets that have tax benefits and provide more cash flow and possible equity.

I'm curious as to whether investors are viewing the early 401k withdrawal as an opportunity to gain access to pre tax dollars, pay tax on them now at a lower rate and move them out of the market and into real estate.

About a year ago we each moved half of our 401k into stable value waiting for an opportunity to buy back into the SP500 as our FA advised us the market was far above the historical average and was due for correction.  Seeing as there is no real end in sight or confidence in the market, the early 401k withdrawal is  intriguing.

We currently own 10 SFH properties (5 notes each) in B+ neighborhoods in MO and OH, and we are considering taking the 200k from the stable value and picking up some similar homes once the dust settles and opportunity arises.

Thoughts?

Sorry I missed this - been disconnected for a bit now.  I'll try and make the next one.

@Jay Mitiguy @Graham Mink

Does this group still meet?  Would like to compare notes sometime.

So I have found out a few things about my PM company in Cleveland, that I found surprising as I was not used to this in other states.

1. Portal activation fee for propertyware access.

2. 100% Lease up fee PLUS an additional monthly PM charge for that month.

3. 10% admin fee on top of billed maintenance costs.

These are fees that I was not expecting, or perhaps I have it too good in other states.  Does anyone else pay these fees?

Thanks!