All Forum Posts by: Daniel Dietz

Hello friends, I have been doing lot of reserarch and saving capital to start my realstate journy for a while now. I am looking forward to connect with people having a similar goal  or experience with multifamily rentals in great state of Wisconsin.

Hi! Does anyone have recommendations of who in the area can help with self directed IRA and solo 401k's. Looking to possibly transfer from my traditional 401k after leaving my W2 job. I've spoke with my accountant and we've discussed pro's and con's, but looking to take it a step further and learn more of the finer details. Thank you!

@Lisa Rodriguez

With 25 doors you might find that the minimums of some of the software are going to be cost prohibitive.  Some of the software require a minimum of 200 doors, etc.

I work with a lot of people in the property management industry, especially startups, and the best advice I can offer is to go try the software that offer free trials.  See which works well for you and feels good to you.  While doing that, try out their customer service and see who is friendly and knowledgeable about their product, and who answers the phone.  

Good luck with your choices!

I have note run into this personally, but a local landlord who owned about a dozen places and has now sold them ALL with Seller Financing (one or two per year) set his 'down payment price' AFTER talking to his Accountant/Tax Guy. He says the reason is because there is a large portion of the Depreciation Recapture dues at sale time. He did not want to come out of pocket for that himself.

 @Daniel Dietz - This is the first time I've heard someone mention a weighting of depreciation recapture in the first year when utilizing an installment sale. Would you mind elaborating? 

Hello BP Family!

I am hoping someone can give me a little direction.  I am looking to purchase my first owner-financed deal back in my home town in Nebraska.  The current investor owns the property free-and-clear and I think I almost have her convinced to sell me the house with owner-financing.   She does not want to take a big tax hit as she is currently retired, and I cannot use conventional financing as I have just changed careers and am no longer loan worthy.  So, I think this would be the perfect strategy to solve both of our problems!

Would anyone have some insight into where I could find resources to educate myself on the deal structure of owner financing?? I would like to be knowledgeable enough to effectively teach her about the structure of the deal so I can better resolve any apprehensions she may have.

Thank you in advance for any information you can provide!  

Alright, I have a question that I can't find information on anywhere. What better place than BiggerPockets to find an answer. So here goes!

For 2022 my taxable income is going to be just under 240k which includes; 90k in my earnings 25k of my wife's earnings, and 125k of IRA early withdrawal. The withdrawal was taken out to purchase a Short Term Rental and we paid the 10% early withdrawal tax penalty.

I qualify as a real estate professional. A cost segregation study shows that we can take 217k of bonus depreciation for 2022. Combined with our standard deduction, that puts our taxable income at $0.

My question is - will I receive a refund for the 10% tax penalty since my taxable income is $0, or is that a hard penalty that can't be refunded?

Any help or information would be great!