All Forum Posts by: Dylan Doone

Just to preface I'm not a tax advisor or attorney and do not provide tax advice, but it's my understanding that If your IRA is an owner in an LLC, LP, or other partnership, then the Partnership should file a 1065 Tax Return for the company to the IRS and should issue a K-1 to your IRA for its share of income or loss. Make sure the account preparing the company return knows to use your custodian's tax ID for your IRA's K-1's and not your personal SSN. If your IRA owns an LLC 100%, then it is disregarded (single member LLC) and the LLC does not need to file a tax return to the IRS. This may change from year to year so go on IRS.gov to get the updated guidelines and also there are articles on the journal of accountancy website regarding the complexities.

https://www.irs.gov/pub/irs-pdf/i1065.pdf

All the best!

-Dylan

Hey Brady,

The data that applies in one market may admittedly differ from another. If you are looking for population growth estimates you can use https://factfinder.census.gov to help you out. For the distressed property price points you may need to be a bit more hands on since each local entity has a different way to search this. It is all public information regarding the sale itself however. In my experience with research it may be in your best interest to contact the municipality directly to see if they have any advice about where to get information about foreclosures, taxes, utilities, new construction, etc. For the other info getting access to the MLS may be helpful or just asking a realtor about construction vs. resale of older properties.

All the best and good luck!

-Dylan

If you were doing conventional financing I'd suggest a 203k loan to help you renovate the damage left over. You may have to be creative with this one since the seller is financing it to you. You could always look into hard money (higher interest rates) in order to take a short term loan to fix it up and force appreciation. If you were doing this with a conventional loan and then you re-fi'd after the renovation ideally you'd be able to pull the extra value out of the home to pay off the hard money loan. Keep in mind the ARV, FMV, and monthly rents you will be expecting. You could pull money out of your own home by doing a HELOC on it therefore keeping the interest rates low. You could take a loan from a 401k which you'd typically pay back through payroll deductions over a set amount of time (loan to yourself). Or lastly that I can think of you could do a partnership with someone in order to put up the cash to reno and give them a share of the profits from the rents you receive or alternatively a set ROR over the value loaned to rehab. You may need to post more specific info about the situation to get more specific advice.

All the best and good luck!

-Dylan

Hey Henry and Curt I really appreciate both of your feedback. i'll reach out to those suggested and let you know what my results are. 

All the best!

-Dylan

Firstly, it's never too late. I spoke with a gentlemen today who began investing at age 60, used the cash flow for retirement (from his real estate notes) and left a legacy for his grandkids. Don't be too overwhelmed by feeling that you have missed out bc even though we may all have a similar interest our starting points are simply that... a starting point. Our ending points are more defined by the amount of dedication, action, and thought you want to put into the venture than where you begin. 

As for the risk involved, that part is inherent so you need to manage the investment style, options, and angles that you are comfortable with in order to make sure you understand them and also are able to leverage the profitability. Keep your head up, do your research, and don't get paralysis analysis. See you around the site Josh.

All the best!

-Dylan

Well firstly you will want to check with your homeowners association to assure that you are indeed able to rent out your original condo. Assuming that is allowed I believe the 1-2 year timeline your referring to is in regards to a mortgage broker and their underwriting team taking your rental income into account for your DTI ratio. If you haven't been renting it out in the past, until you have a track record of rental income (usually 1-3 years depending on the lending institution) they will not want to count that income because they see it as potential income not historically proven. View this as a separate issue than the actual acquisition of a new loan.

The type of loan you are anticipating getting may come into play as well. It's my understanding that you can only have one FHA loan at a time so often people will re-fi their FHA (original loan) into a conventional loan and then use the FHA loan on the next home purchase with the lower 3.5% down. Aside from you not being able to take on more than one FHA loan it shouldn't prohibit you from getting another loan bc it actually is for your primary residence (after all you are moving into the new home).

I may post some more details about the loans you have and are pursuing currently.

Hopefully this helps! 

All the best.

-Dylan

Hey guys! Looking for turnkey quad-plexes in the Midwest! Anyone have any good contact or sites? 

It may be in your best interests to open a business checking and pay directly from that account. Therefore you build up a credit history for the business and at the same time have a proven record keeping strategy which isn't convoluted with personal purchases. It could even possibly help you get lower interest rates from the bank. Consumer protection may be slightly lower on a business credit card if you go that route but a simple checking may be what's best in your case. More than anything i would keep it separate to keep the accounting and bookkeeping headache to a minimum. hope this helps! 

All the best.

-Dylan 

If you are referring to notes you may want to look into pprnoteco.com. They have guideline and you have to be an accredited investor to participate however. I know Dave VanHorn the president of PPR is a relatively active member on the site and perhaps he would be able to lend you some guidance.  That may be a good place to start!

Thanks Leury! Well you are relatively close to me so maybe if we stick with it we will see each other around! Where were you thinking of investing?