All Forum Posts by: Dennis Tierney

I've had several non recourse loans that were 25% equity down.

It was more than one problem tenant but yes we have been able to clean out the bad actors and the rest of the tenants are grateful.

Is anyone else getting much more intrusive demands from a bank regarding all rental properties? I have a bank with which I have some loans but now they are requiring all information including all rent rolls, tax records and even P&I payments on all of my properties, including ones that I have loans with other lenders. This seems way too intrusive to me. No other bank with which I do business requires this.

Insurance companies do non recourse loans, but tend to have high fees. I've several through NorthMarq a mortgage brokerage.

To quote

Jane Bryant Quinn: "The market timer's Hall of Fame is an empty room"

@Peter Thielemann You can't do repeated bonus depreciation on the same property but you could buy another property and do the same with that one.

@Peter Thielemann Sorry if I confused you with my explanation by being too brief. The way it works is you bonus depreciate the purchased property and in my experience it usually amounts to 25% of the purchase price. So if you buy a $180K property the depreciation comes to $45K. You take a $45K distribution from the 401K and get a $135K loan. The depreciation loss that year from the cost seg. study covers the $45K distribution so that you don't have to pay taxes on it. Hope that helps.

@Peter Thielemann You have to decide if you want to own equity or debt. I personally want to own equity. I'm going to throw you a curve ball here. Since you are over 59 1/2 you can take a distribution without penalty. If you want to own the real estate and want the income in retirement you could line up a purchase and the financing of real estate at 75% LTV
( your stake is 25%). Then take a distribution from the 401k if allowed and purchase the entity outside of retirement account and use a cost segregation study to 100% depreciate your distribution. That allows you to get the $ out of the retirement account and not have to pay taxes on the distribution and no worries about RMD when you hit 72. I have used this strategy the last couple of years to move $ out of the retirement account, have income producing property and not have to pay taxes on the distribution. The door is closing on this strategy as the law starts to sunset in 2023.

Larry Kudlow says the next stimulus package is to include an extension to the moratorium on evictions. If Trump's economic advisor says so it'll likely sand. No elaboration made but Pelosi's version had a 12 month moratorium. If that stands the rental business is in serious trouble. Landlords need to contact their Senator's and Reps. to object.

@Steve Morris The sale in a SDIRA is tax free only if unleveraged otherwise you pay cap gains on that portion still leveraged. The cost seg studies done this year and last have saved a tremendous amount of taxes I would have paid on taking distributions from the SDIRA.