All Forum Posts by: Edward Condon

@Kevin S.
You don't mention your age. But, if you are younger than 59 1/2, you could get whacked with a 10% tax penalty on the amount of the withdrawal.  Assuming you are not subject to penalties, do your analysis in after-tax dollars. (i.e. $500k becomes $350k and throws off taxable NOI, etc.) I strongly suspect your best move is to roll the TSP to a Traditional IRA and convert the IRA to a Roth, using non-retirement dollars to pay the income tax, even if you have to borrow the tax liability. Invest the Roth in a diversified pool of high-quality notes. (Do not buy actual real estate with IRA dollars!) Feel free to dm me. I'll show you concrete examples.

Real estate is inherently tax-efficient.  Use your least tax-efficient money to buy your most tax-efficient assets.  Use your most tax-efficient money (IRAs, etc.) to buy your least tax-efficient assets (notes, etc.).  Proper asset location is a non-trivial consideration!  Again, feel free to dm me.

I'd be happy to show you a perfectly plausible path to 15%-ish annual IRR on $300k. Approximately $3,750 per month, principal and interest. Or, I can show you a path to $3,000 per month, interest only. Principal to be returned in full at the end of the three-year term.  Feel free to dm me.
Best of luck!
PS Only T-Bills and FDIC Insured bank accounts are riskless.

@Kevin Coleman
@Account Closed
Please think long and hard about using a qualified account to purchase real estate. It is axiomatic, you should buy your least tax-efficient investments with your most tax-efficient dollars. And, your most tax-efficient investments with your least tax-efficient dollars. If you own real estate in an IRA, you will have higher LTV & higher interest. With after-tax dollars, paying capital gains on appreciated real estate is absolutely optional. All IRAs have to get emptied. When they are emptied, what otherwise would have been a capital gain will become ordinary income. If you have the choice, owning physical real estate in an IRA is just a bad idea. If your IRA is your only source of capital (and you feel compelled to own real estate), so be it.

You don't mention your age. But, if you are younger than 59 1/2, you could get whacked with $50k in tax penalties alone. Assuming you are not subject to penalties, do your analysis in after-tax dollars. (i.e. $500k becomes $350k and throws off taxable NOI, etc.) I strongly suspect your best move is to roll the TSP to a Traditional IRA and convert the IRA to a Roth, using non-retirement dollars to pay the income tax, even if you have to borrow the tax liability. Invest the Roth in a diversified pool of high-quality notes. (Do not buy actual real estate with IRA dollars!) Feel free to dm me. I'll show you concrete examples.

I'd be happy to show you a perfectly plausible path to 15%-ish annual IRR on $2MM. Approximately $25k per month, principal and interest. Or, I can show you a path to $20k per month, interest only. Principal to be returned in full at the end of the three-year term. Of course, if $10k is what you are after, you could take $10k & reinvest $10k and grow your future stream of income. Feel free to dm me. Best of luck!
PS Only T-Bills and FDIC Insured bank accounts are riskless.

https://docsend.com/view/at6uc34nwfqbq65s
$4.7MM at the moment. We create new assets continuously. Low LTV. High cash flow. All performing. 36 to 60 month terms. 13% to 16% IRRs to the buyer. These are Preferred Equity membership interests in LLCs owning cash-flowing real assets. If this interests you, please inquire. Thanks.

https://docsend.com/view/at6uc34nwfqbq65s
RE Nectar, Inc. continuously creates assets backed by low LTV, high cash-flow real estate assets. We currently have about $5.4MM in assets for sale. Terms range from 40 to 60 months. Asset values $100k to $600k. Priced to return 13% to 16% annual IRR to the investor. We will do whole assets or partials. However, these are not typical 1st or 2nd position mortgages. These are "Preferred Membership Interests" in the LLC that owns the tangible real estate asset. The analogy is to mezzanine debt. Arguably, Pref Equity is better than some mortgages. One never needs to foreclose, per se. In a default scenario, the Pref Member simply asserts his contract rights and takes complete control of the property. Assets include single-family (no owner occupied), multi-family, hotel & self-storage. Please invite me to connect with you & we'll talk. Regards, Ed Condon

Priced to investors at 13% to 16% annual IRRs.  60%-ish LTVs.  Good cash flow coverage.  40 to 60 month terms.  $100k to $600k asset sizes.  (We can do partials.)  No construction, development or lease-up risks.  Underlying real estate assets are in place & cash flowing.  Please inquire for details.

RE Nectar, Inc. continuously creates assets backed by low LTV, high cash-flow real estate assets. We currently have about $5.4MM in assets for sale. Terms range from 40 to 60 months. Asset values $100k to $600k. Priced to return 13% to 16% annual IRR to the investor. We will do whole assets or partials. However, these are not typical 1st or 2nd position mortgages. These are "Preferred Membership Interests" in the LLC that owns the tangible real estate asset. The analogy is to mezzanine debt. Arguably, Pref Equity is better than some mortgages. One never needs to foreclose, per se. In a default scenario, the Pref Member simply asserts his contract rights and takes complete control of the property. Assets include single-family (no owner occupied), multi-family, hotel & self-storage. Please invite me to connect with you & we'll talk. Regards, Ed Condon