All Forum Posts by: Gary Baker

@Jay Hinrichs 

Thanks for the answer Jay. Honestly, if I wanted 2-3% off a tracker there are better stock market options available. REITS scare me because they tend to rise and fall more wildly than the stock market. I am also trying to play catch up as the stock market has kicked me more times than I care to think about, it appears that it is going to do it to me again.

I would also like to offer another perspective. I have had $28k doing nothing for 2years.

1. I am not comfortable handing any money over to people who have not been in a space for very long. I am dubious of all the ‘rockstars’ who made money in the last ten years on the back of printing presses and all the markets rising as they have done. 

2. I am at best a sophisticated investor, not a ‘SEC fancy’ earning 300k with 1m in investments. I lot of the investment houses ignore me as I am too much hassle to qualify.

3. If they will deal with you, then you are offered a much lower return on what essentially a high risk investment that can turn on a whim. 

4. Most investments have a minimum of $50k share. So immediately glossed over for the ‘better’ investors who don’t bring SEC attention and have ‘enough’ money. 

5. SDIra money requires more paperwork. 

So right now I wait, it is not a lot of money, but all I have in this sdira and as I have lost a lot of money in my past, I am wary of all these “experts” who have been lucky on one deal. At some point there is going to be a correction and the market will be in my favour again. 

@Lior Reich @Bruce Crawford

What are the tax implications? The US IRS have long arms and even without US assets they still require about 15% of an expats income unless you give up citizenship. How will owning an LLC impact you? Rhetorical questions but you need to consider all aspects. My LLC also has high costs in CPA fees.

Suggest you find someone who can set up a trust for probate etc and they can recommend which state for where your LLC should reside. My initial setup was so poorly managed that the IRS sent me a ‘late fee' for $2k; so being remote you need a good lawyer and Cpa.

@Patrick Snyder which bank?

Bank of Texas was adamant their loan would come due. They also don't bundle and sell on their mortgages, like a lot of banks. They also did not want to create a mortgage under an LLC. (Disclaimer: it might just be me, this was my experience)

I bet you have an argument about home owners who attempt to sell their own homes using a service to obtain a MLS listing. Some have no problems, others have an absolute mess.

I paid way over the odds to have a trust set up. After speaking with my CPA during tax filing time, I learnt it did not need to cost much. 

I have never used that service for a trust, but I know NOLO for rental documents is a little light weight and other generic online services for LLC setup etc can cause companies to have to change their articles later. You also have subtle differences between states that could cause issues.

I would agree with Lance, for his exact reasons, in x years time a relative might find out the trust is ‘broken’ and inadvertently your wishes not kept. Some things are too important not to do properly. 

Thank you @Dave Foster and @David Franecki 

CPA without a doubt.  I will look into the combining this note with a 1031 sale. The more you know, my CPA will surely need to do some investigation as well.

Render unto Caesar, what is Caesar's...

thanks

I found this all interesting, thanks for the insight. @David Franecki @Steve Vaughan @Derek Dombeck @Mike Flora

 I want to convert my current rental into a note and this is a good kick off point. I am sure there are multiple things that can go wrong and will research.

To piggyback off this thread, a question I have is will the 1031 exchange rules matter?  Will I be due to pay the capital gains taxes or is this considered an exchange?

Appreciate it.

I have a simple philosophy. Don’t nickle and dime the irs. At some point we all stand a chance of being audited, so why push it? As for the price of personal safety, if you are worried, why are you contemplating these areas and do a few dollars of tax savings really come into it?

What they said...

Having recently removed a tenant (different circumstances) for threatening behaviour. I was concerned for my other tenants and you have to consider yours. If she does anything to them it can be on you. 

Cash for keys, sometimes better to loose out now for a better future for all. 

Lawyer and CPA time. I have seen what money does within a family and it was not 1/20th of that amount. 

I have no clue on entity structure, but would a LLC within a trust not be the best?