All Forum Posts by: Donald S.

:) I love St. Louis, it's a great market, but as great as it is, it can be a minefield. A minefield that requires good skills and a lay of the land to navigate. As for Dutchtown, it's a hit and miss area, some parts of it have gotten better over the past few years, some have gotten much much worse. I have hopes that I'll get in there and help clean it up over the next few years, but haven't found the right place yet. (although I do know a nice 4plex that is for sale in the nicer part of dutchtown, I just don't have the $$ for it yet, pm me if you want details.) 

Bevo is where I'm at for now, and that is further along in redevelopment than Dutchtown is. If you need a local to help navigate for you, PM me, I grew up there and still have friends in the area and I'm not far from the area, especially now that I'm invested there (or will be in less than 48 hrs). 

@Louis A. thanks again, I am doing this for asset protection, mine and my partner (who has a lot more to lose than me at this point). I intend to grow fairly sizeable and it's best to start asset protection in the beginning than to try and do it once you've "made it". Plus my lawyer said a judgement entered against you can follow you essentially forever until it's fulfilled (ten year extensions etc.). 

@Costin I. I've decided to skip the trust, we'll risk the DOS and if the bank calls it for some reason then we'll deal with that. And yes we plan on using a warranty deed.

@Robert Gilstrap, thank you for that insight. I will probably look more into trust once I start accumulating more assets. As it stands we will be forming the Series LLC this week and transferring the deed into the LLC child A shortly after closing.

@Louis A. I have an umbrella policy and good coverage in place for this property when it closes. As a note, there's not much required to keep an LLC compliant, minutes and meetings are not required. Although minutes and meetings would be recommended as a way to protect against a "pierce the corporate veil" argument. It's not a ton of administrative work, just about 30 min to type up the minutes after having a meeting once or twice a year.

Well thank you, as of Friday the 23rd my LLC will be generating revenue, it will be the property management for my first rental (a triplex) with the rental owned by another entity and a PM agreement in place between the two entities. The pm company will have a 1% GP, will that matter? The property owning entity is a jv with a partner.

With all that in place, you think I could qualify to open the solo 401k? 

@George Blower I would prefer to do the solo 401k, but since that requires self employment income I'm not in a position to do so. while I have an LLC that is my pm company, I am not paying myself a salary in that business (not yet). who can I talk to about setting up my LLC properly to allow for the solo 401k? CPA , lawyer, 401k specialist?

Hi all. If I open a SDIRA rolled over from my TSP, about 66% traditional and 34% Roth if that matters, what tax hit am I looking at if I use the money to purchase by and hold rentals, using debt financing?

For easy numbers lets say I buy a property for 100k, with 25k from the SDIRA. How much of a tax hit is it? 

Also, if I PM the property with my PM LLC I already have setup, can the SDIRA pay me a PM fee, or is that a related transaction?

Thanks 

Cheers!

@Costin Iorgulescu thank you. please pm me whatever notes you have. The contradiction I spoke of was the 2nd lawyer saying he could come after my personal assets since I'd be the grantor to the trust, the 1st lawyer said that wouldn't be true with his system. I have decided to forgo the trusts at this time and open a series LLC and take the risk of due on sale. Most people say it's a small risk, hopefully they're right lol.

Originally posted by @Eric Groos:

Thanks Donald, however, I'm more concerned about my income tax and capital gains tax liability on receipt of the money.

 As far as you paying income or cap gains, if it's classified as a gift, the recipient never pays taxes unless the donor would be required to pay and doesnt. Although it's takes quite a substantial lifetime amount to have to pay. (Currently 5.49 million lifetime gifted iirc) 

So under normal circumstances you should be able to accept a gift and pay no taxes, income or otherwise. Although like I said, confirm with your CPA. 

I agree with @Caleb Heimsoth and everyone else on here said. there are a bunch of wholesalers here, but most are very bad. Just be accurate and provide a good service and you'll do well.

following, please keep updated