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All Forum Posts by: Chris R.

Chris R. has started 12 posts and replied 36 times.

Post: How can you avoid the tax on self directed IRA and multi fam

Chris R.Posted
  • Apartment Syndicator
  • University Place, WA
  • Posts 40
  • Votes 10

Rock star! Thanks, I really was looking for if  the exemption on tax when the solo 401k is invested in multi family.  And you answered it, I appreciate the post. 

I may have not been clear on the 21% as most of the research was not clear. I’ve been discussing not. With CPA’s and attorneys  as well. 

Post: How can you avoid the tax on self directed IRA and multi fam

Chris R.Posted
  • Apartment Syndicator
  • University Place, WA
  • Posts 40
  • Votes 10

I've researched a bit about the conversion on an IRA to a self-directed or solo 401K and how to avoid the UBIT tax on larger syndicated multi-family non-recourse deals. From what I can tell from some of the research it looks like you can only get the tax on returns down to about 21%, but I've heard that you can avoid it altogether.

The first question is, does anyone have a good reference to a company that can convert?

The second question is, has anyone done this and realized or seen the benefits or results yet?

The third question is, does anyone have a good reference to a tax or investment professional that has experience on this topic?

I know there is data out there on this, but nothing has been really clear and I would love to know. 

Thanks, and make it a great day!!

Post: Build an ADU (Additional Dwelling Unit)

Chris R.Posted
  • Apartment Syndicator
  • University Place, WA
  • Posts 40
  • Votes 10

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $170,000
Cash invested: $25,000

Build a house on my property below my primary residence to rent. Build cost is around $170,000, final appraised value around $250-$270,000. All in cost per month $1200 and it will rent for $1975 per month. The home is a 1250 square foot single story residence with three bedrooms and 2 bathrooms on 1/3 acre.

What made you interested in investing in this type of deal?

The numbers made sense and I had the resources. Credit lines were the key here to build before the eventual refi. This was much easier than a conventional construction loan.

How did you find this deal and how did you negotiate it?

I researched and built the unit using my local contractor.

How did you finance this deal?

Traditional back and credit lines.

How did you add value to the deal?

Negotiating, a little pocket cash, I owned the land as part of my several acre estate.

What was the outcome?

I have at least $600 positive cash flow of this one unit.

Lessons learned? Challenges?

Construction cost soar so plan for at least 30% increases.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Has Rohr owner and builder of Platinum Homes in Pierce County Wa. and Tay Toliver branch manager with Wells Fargo bank.

Post: Triplex Fully Rented Potential 14.31% cap rate

Chris R.Posted
  • Apartment Syndicator
  • University Place, WA
  • Posts 40
  • Votes 10

Can I get some detail on the utilities?

[email protected]

Post: Affordable Fourplex with Great Financials

Chris R.Posted
  • Apartment Syndicator
  • University Place, WA
  • Posts 40
  • Votes 10

Post: Affordable Fourplex with Great Financials

Chris R.Posted
  • Apartment Syndicator
  • University Place, WA
  • Posts 40
  • Votes 10

Is this still available?

Post: Flip or BRRR - Off Market Rambler in Tacoma, WA - $280K ARV

Chris R.Posted
  • Apartment Syndicator
  • University Place, WA
  • Posts 40
  • Votes 10

Is this still available?

Post: Comps for a fourplex

Chris R.Posted
  • Apartment Syndicator
  • University Place, WA
  • Posts 40
  • Votes 10

Thats a tough one.. I'm closing on two duplexes in a a few days and had a difficult time with comps as well. I used some of Joshes vairiables in my offer. 

Cash flow per unit

Some equity

Cash on cash return

1% rule, ect.. 

I negotiated arounf 20K off the selling price and the owner is going to do some work.. You can also factor upsides like splitting meters, charging tennants for utilities, carports, storage or garages. Lot size is goot but depending on the permiting process and building cost a large lot may not add as much value. 

I comped some cost per foot when copaired to the nearest larger city and matched that to the average household income to get a better idea. Multii family for me is more about good cash flow than equity. 

Good luck!

Post: How many units do you own?

Chris R.Posted
  • Apartment Syndicator
  • University Place, WA
  • Posts 40
  • Votes 10
I have 2 single family as rentals and am closing on two duplexes next week with a partner. I also have a wonderful primary property with acreage. Started slow in 2014 but sold a few of the original four units I purchased. I’m starting to ramp up and look forward to buy and hold and well as using the flip option. Six total rentals with great cash flow. Started with about 20k in cash to invest in late 2014. Bigger Pokers is a great way to network and share! Love this site

Post: South King County, Des Moines, Burien, and Tacoma Multifamily

Chris R.Posted
  • Apartment Syndicator
  • University Place, WA
  • Posts 40
  • Votes 10

Daniel, have you run this kind of deal in the past? I have several properties in my portfolio including a 4 plex I'm closing in about 10 days. 7% seems very conservative, I think you could find some deals with an cash on cash of at least 10-15% if structured and purchased correctly. I'm working a deal now that will return one of my investors around 9% on the first 12 months and and an all in cash out return on the 13th month of 20%.. Basically he will kick in $40k on one of the deals I'm working and he will share in the return on the rent roll, after 12 months he can cash out a piece of the earned equity. Not bad for all involved.. My partner and I will also have a healthy return.. I love these type of deals. Buy and hold, flip, etc.

I would possibly be interested in partnering  in a few months if you find something. 

Good luck!