All Forum Posts by: Damian S.

@Account Closed Also, a bank that does non-recourse lending will require a cushion of 10-15% of the account sitting as cash in the IRA at the time of getting approved for the loan. You can keep it in cash once you get approved or buy additional other assets but if something unexpected comes up it's truly your fault.

If you have the know how you can always do it, but if something goes wrong with the structure or legal language there is no one there to save you. It will cost you between 250-500 in fees anyways so you won't be saving much.

If you are planning on holding the property long term, you will need to create an LLC. The election for S Corp is only good if you will be using the entity to conduct active business. I would also need to point out that if you purchase it outright, DOS clause will prevent you from transferring title to the LLC without consequence.

I would stay away from online places as they try to get you to sign with them based on a low price, but you will still need to pay the same filing fees either way . You will end up spending the same amount if you seek the service from a reputable attorney/CPA.

You will also need an LLC in every state that you own property in unless you plan on registering as a foreign entity and you will still end up spending about the same amount.

If you will not be using the car solely for business purposes there is no point of buying it using an LLC. You can keep a mileage log and your CPA will determine what you can deduct for legitimate business use.

No investor would put any money into this deal knowing you have no experience managing such a property. I would suggest to work your way up or like previously mentioned shadow someone who can make this work and negotiate a better price. Good luck!

Take care of the taxes and liens first. Maybe you can pool some money from friends and family or ask a reputable contractor/flipper that would want to do this and do the work for you and let him have some of the profit. You guys would need to come to an agreement on what would be a reasonable  split. Just some thoughs

@Shannon K. Basically you still want your investment to be comparable to other properties in the area but most of the time there is really no need to go over board. That's what I wanted to stress.

@Shannon K. My first mistake was to make the place be the best around but you should not over invest, since the average will always guide what your able to get in the end :)

I don't think a low end vanity should set you back more than $350 (including sink, faucet) and the install should be pretty straightforward. It just might make a difference for the next renters and I would even look on Craigslist to see if you can find a deal