All Forum Posts by: Daniel Hart

I need to make my 2014 contributions ASAP in order to fund a self-directed 401k deal for a friend who needs help. My CPA says he's not comfortable with me making the 2014 contributions so soon because I haven't claimed any payroll from my S-Corp. (I'm the only employee) He didn't say I can't, he just said he doesn't want me doing it.

Has anyone done this?

Of 21 parcels owned in an LLC:

7 Owner financed (4 with same guy)

13 Private lender financed (5 with one guy, 5 with another guy, then 3 separate people)

1 Subject-to not in my name

I have 20+ rentals and need to start refinancing a few of them to take advantage of residential loan terms. I have no problem qualifying in terms of Credit, Income, Assets, and strong Appraisals. I was just notified today that my two rental cash out refinances that were in process were denied because I have more than 10 loans. I do not want to get a commercial loan yet because of the increased cost and less attractive terms - I was originally approved to refinance the rentals at 4.5% on a 30yr with 1 point and a 75% LTV, so that's what I'd like to achieve. I only need to refinance two or 3 houses at 75% to generate enough cash to eliminate my high rate debt.

Has anyone found a viable solution for this problem?

Some ideas we have:

1) Moving half the portfolio into a corporation (s?), might have tax consequences.

2) Paying off a few loans and consolidating loans with the same private lenders into one loan to create a perspective of no more than the 10 total loans. (we aren't sure if the rule is loans or financed properties)

3) Trying to find a residential portfolio lender that doesn't mind doing loans under $100k and whom can ignore the silly Fannie/Freddie 10 loan/house limit.

Thoughts?

Not directed at the OP, but I am tracking all properties that I have had interest in bidding on but didn't make it to the investor period. When I find that the properties are tenant occupied or resold I will be reporting the agents to FNMA and the property owner to their lender showing in the register of deeds. So fair warning, if you plan on cheating, you are being watched and there will be consequences.

Charles, There will definitely be no gain. I am willing to sell it at a loss. The challenge is how to make it a larger loss.

I am looking for creative ways to sell it so that I can realize a larger loss to offset gains on other property.

Hey Bryan, funny finding you here! The house is in enderly park, which is making it hard to unload..

I need to find losses for this year to offset some gains. I have a house that I don't care for, and my basis is $48k. I am already will to let it go for $40k, but its hard to find a buyer in this neighborhood.

Are there any creative strategies I can use to show this house being sold at a loss for tax purposes? Installment sales? Selling to another entity I control? Owner financing/installment sales?

I need tax deductions this year ........... :)

Jake, that's an easy one to answer... I don't have $1.3M :)

Karen, we did a different type of transaction so I can't base it on that.

I just want to get an idea of what others would see as being fair. I'm not worried about being at his mercy. He helped me out and I am happy to help him out. I was thinking 2%-3% would be fair, what does everyone think?

Karen, I don't know what's customary, that's why I'm posing the question :)

Also, in order to work the details out in writing I would need to know what amount to propose...