All Forum Posts by: David Stratton

Joel,

Thank you as usual for all of the great advice you give.  I have a  Judgement, that she signed off on, for $3605 which is basically 2 months rent.  I had the deposit of $1500 (which has no bearing on the Judgement), so I only lost about a months worth of rent.  The good news is they didn't trash the house.  I have kind of written off the money, but I think it is more out of principle to help the next landlord down the road and to teach her a lesson. I have sent this attorney  a lot of work over the years, so maybe it is better to make a quick phone.

Thanks Again

Dave

Thank you everyone for the great advice. It is written to my LLC, so I was wondering if they would cash it. I figure I will bring as much paperwork for my LLC showing me as the manager and that the LLC owns the property. If I can at least find out if there is enough in the account, I can deposit in my account. Rod thank you for the information on the bankruptcy. I will let you know how I make out

I was figuring the same thing that it would bounce, but it is from  Bank of America and was thinking to go into one of their branches to cash it.  I think she forgot about it, so I will probably wait for a Friday and see if I get lucky.  

After I evicted the tenant she agreed to a settlement which awarded me a  judgement which stated she would pay $250 a month until the balance was paid.  She has not paid me (which I figured would be the case ), when I called her, she said she filed bankruptcy and was not going to pay. I really do not believe she did file, but just think it is another lie. When I went to garnish her wages, she has changed jobs and I do not know where she works now. After I filed for eviction, she tried to send me two rent payments with personal checks which I would not accept. I told her I would only accept a money order for the full amount, so I know she was playing games.  Each time she sent a check I returned it certified mail. She accepted and signed for the first check and then mailed another check the next day. When I returned the second one she never accepted it and the check was returned to me about a month later. I am wondering if I can cash the check and use it toward the judgement. Before I call my attorney, I was wondering if anyone has any experience with this situation. Personally I have moved on and found a great new tenant, paying a higher rent. However I have been looking at it on my desk for the past few weeks and it has me wondering.  

Loren, I am not a CPA or an Attorney, but with that logic how can the IRA ever do the initial funding of the LLC?

Dmitriy, I wish I could do the solo 401k, but I am only a part time agent. I have a full time job which I love, so I only do real estate part time. I use it for my own investments and help out a few other investors. I know it is a much better vehicle with so many more advantages.

Loren I appreciate the warning, when I setup my SDIRA I had two consultations with an Attorney which is very familiar with SDIRA. He said it is allowed as long as it is done correctly. I also spoke with two other Custodians and they said the same thing. I am sure they all have attorney's looking at everything. I have not done anything yet, but I would like the option. I think it looks like a gray area with many Attorney's having different opinions about the interpretation.

Dave

I just heard back from my Custodian's compliance department. They said I will be able to add funds, so I guess it is a matter of interpretation on section 4975. I spoke with 2 other companies and they also said I would be able to add funds as a single member LLC.

Dmitriy

Thank you for the quick response.The IRA is the only member of the LLC. I set it up with Guidant and the custodian is IRA Services. When I set it up, I had two consultations with an attorney that is very familiar with SDIRA's and he said I could add money. I specifically ask this question because I definitely wanted to add more money in the future. The reason I am asking is when I was dealing with a company that is preparing my 990t. I asked about this and they said it is not allowed because the IRA would be a disqualified person. So I went online and found people saying conflicting things If I can do this, can I also add the annual IRA contribution?

Dave

Is it possible to roll another personal IRA into an already established SDIRA and then into the LLC already established under this SDIRA. I already have two properties in the LLC and would like to move the money from my other IRA into my LLC. I understand everything must go through my Custodian. The reason I ask is I have found several companies that say it can be done and others that say it is a prohibited transaction.

Dave Stratton

Great, thank you very much for your help.

Dave