All Forum Posts by: Dominik Makaneole

@Joshua Thompson You make valid financial planning points.  I would only consider the 401K option if there were 0 fees associated with it.  Looks like its not.  I consider these rentals my retirement plan and will hold them as long as possible to maximize the value at a later date.  I will be selling some of my portfolio to pay off all mortgages when I'm ready to retire.  I realize I will be losing tax benefits in doing so, however at some point in the near future I would like to simplify my workload in tax preparation and managing many different mortgages every month.  I prefer the simpler financial situation.  I'm not clear on the best route to minimize my risk exposure to hurricanes but I do see the value in diversifying assets.  Thank you again. 

Thank you for you responses, I would only consider this option if there was a way to avoid a tax penalty.  I only posed the question because I've recently watched a video where a couple rolled their 401K over to purchase a RV park.  

Aloha All, Looking for Tax specialist or investors who have experience with rolling over a 401K into investment properties.

My situation: 1) I have a military retirement so I'll always have something to eat and medical insurance.  2)  My wife and I have 8 rental units which all cashflow in the Hawaii market which sees higher rents and equity every year.  We are not at what the IRS considers retirement age.  We both are planning on changing jobs soon and our 401K's could pay off 4 rental units.  Our 401K's produce 10% a year.  Rents in Hawaii have climbed 22%-29%+ in 5 years. Average sale prices up 45% from last year.  

My wife and I have been land rich cash poor for many years because of our strategy to acquire property in an area with a high barrier of entry.  We are looking to minimize the risk of hurricanes, etc. by getting these mortgages paid off ASAP.  Our 401K should jump start the snow ball affect in paying off these loans.  Also, we want to enjoy life more now that we have young grandchildren.

Thank you for any advice you all can offer,  

Dominik Makaneole

I feel it's important to share a cautionary tale regarding my experience with Privy. Regrettably, their business practices have left much to be desired. Around a year ago, I decided to give Privy a try. Initially, the tool seemed promising, although I did notice some local listings were absent from the program, which was quite concerning. The tools they offered were valuable, provided the data was accurate and up-to-date. Unfortunately, that wasn't the case in my area.

Recently, I was shocked to receive a bill from Privy that not only charged me for my annual fee but doubled the charge. Despite no longer using Privy, I asked for a rebate, a request I believed was reasonable. However, they not only denied my request but also charged me for another full year of their service, which I no longer required. It would have been fair for them to bill me for the time I had used and refund the remainder, but that wasn't their approach. This incident has raised significant doubts about their integrity and business practices. I now find it difficult to trust a company with such questionable behavior moving forward.

I feel it's important to share a cautionary tale regarding my experience with Privy. Regrettably, their business practices have left much to be desired. Around a year ago, I decided to give Privy a try. Initially, the tool seemed promising, although I did notice some local listings were absent from the program, which was quite concerning. The tools they offered were valuable, provided the data was accurate and up-to-date. Unfortunately, that wasn't the case in my area.

Recently, I was shocked to receive a bill from Privy that not only charged me for my annual fee but doubled the charge. Despite no longer using Privy, I asked for a rebate, a request I believed was reasonable. However, they not only denied my request but also charged me for another full year of their service, which I no longer required. It would have been fair for them to bill me for the time I had used and refund the remainder, but that wasn't their approach. This incident has raised significant doubts about their integrity and business practices. I now find it difficult to trust a company with such questionable behavior moving forward.

I feel it's important to share a cautionary tale regarding my experience with Privy. Regrettably, their business practices have left much to be desired. Around a year ago, I decided to give Privy a try. Initially, the tool seemed promising, although I did notice some local listings were absent from the program, which was quite concerning. The tools they offered were valuable, provided the data was accurate and up-to-date. Unfortunately, that wasn't the case in my area.

Recently, I was shocked to receive a bill from Privy that not only charged me for my annual fee but doubled the charge. Despite no longer using Privy, I asked for a rebate, a request I believed was reasonable. However, they not only denied my request but also charged me for another full year of their service, which I no longer required. It would have been fair for them to bill me for the time I had used and refund the remainder, but that wasn't their approach. This incident has raised significant doubts about their integrity and business practices. I now find it difficult to trust a company with such questionable behavior moving forward.

I feel it’s important to share a cautionary tale regarding my experience with Privy. Regrettably, their business practices have left much to be desired. Around a year ago, I decided to give Privy a try. Initially, the tool seemed promising, although I did notice some local listings were absent from the program, which was quite concerning. The tools they offered were valuable, provided the data was accurate and up-to-date. Unfortunately, that wasn’t the case in my area.

Recently, I was shocked to receive a bill from Privy that not only charged me for my annual fee but doubled the charge. Despite no longer using Privy, I asked for a rebate, a request I believed was reasonable. However, they not only denied my request but also charged me for another full year of their service, which I no longer required. It would have been fair for them to bill me for the time I had used and refund the remainder, but that wasn’t their approach. This incident has raised significant doubts about their integrity and business practices. I now find it difficult to trust a company with such questionable behavior moving forward.

I can only give you my experience with privy which is their business model is less than desired.  What do I mean by this?  I signed up for Privy about a year ago.  It was a good tool.  I did notice there where local listings that didn't pop up on the program which was concerning.  But the tools it provided where great if the data was current.  I can say it wasn't current in my area.  I recently got a bill from Privy which double charged my annual fee.  I had stopped using Privy and asked for a rebate.  Most companies would honor that seemingly reasonable request.  They denied it and charged me for another year of a program I no longer need.  They could have charged me for the month and reimbursed the rest.  Nope.  The whole year.  I don't think they would have reimbursed the double charge if I hadn't said anything either.  I don't want to work with a company with shady business practices like this in the future.  But that's just my experience.  

Is it possible to take profits from the stock market and move them to real estate to avoid paying taxes? I have several rental properties that I would like to pay off with my profit from the stock market and pay taxes on the real estate rental profit instead

Get familiar with your area. try zillow.com.  Also, meet with a loan officer and get a preapproval so you know what you can afford.  If you are planning on house hacking go on craigslist and post a request to rent a room in your area and see what gets offered.  It will give you a good idea what you can rent a room for.

Couple things to know about VA loans. There is a service fee. about 3%. If you have a service connected injury that fee is waived. Make sure you don't pay PMI. Some banks will try to sneak it in. Usually with VA loans your property has to be livable. They wont fund you if it needs construction, so a fixer upper will be difficult to get funded.