All Forum Posts by: Patrick Howell

thanks George!

Jon, thanks so much for your detailed reply. I'll let you know what I come up with.

Anyone aware of a spreadsheet/calculator that determines future cash flows based off acquiring X amount of properties per year that each have X operating parameters.

I'm trying to determine how my long term financial picture will change if I acquire 1-2 properties a year that cost X, with a mortgage of X, that rent for X, etc. etc. Any thoughts would be appreciated. Thanks!

Thanks for the feedback Joe and Rudy. As this topic is almost a year old now, I got the majority opinion awhile back.

Thanks Jeff, that's the info I was looking for!

Thanks Steven. How does your business entity's
Income statement etc., relate to the plan? I'm assuming
contributions from my LLC to the trust will be classified as
a non cash expense sort of like depreciation?

I've been looking a lot at a self-directed solo 401(k) as a long term tax shelter for investing in RE. My question is this, once I get it set up, where does it "exist?" I have a single member LLC and my understanding is that I would be setting up a separate checking account where I was appointed the trustee and that all income and expenses would flow in and out of this account.

Once the checking account/trust is created, how would you handle the financials for the actual 401k plan? In my case, I'm assuming this account wouldn't exist anywhere on my single member LLC's balance sheet? Or is the accounting method for this plan strictly arbitrary as long as all transactions pass through the assigned checking account?

Thanks Jeff and Jon,

Do you have any suggestions on how to request such a mortgage product? Would it be straightforward to ask my banker "I would like to look at refinancing all my existing mortgages into one rolled mortgage product?"

I also feel that the overall values of the combined properties is still under market value. Would this be a classic situation where I would be better off to get all of the properties reappraised to know exactly what the total values are? I'm assuming the bank might require new appraisals as well. Maybe I should try to sweet talk a local realtor to run comps on all the properties for me?

Hello,

Wanted to get your everyone's feedback on this scenario. I'm hoping to leverage some existing equity in my REI portfolio to pay off some student loans. I currently own 5 residential rental properties (with 5 different mortgages) that all have seasoned titles. Total Mortgage balance is 128,416 and the properties are valued at 165,000 all together. Before I approach my broker, I wanted to see what the typical commerical LTV cash-out refi loan requirements are....

Would it be reasonable to request 90% on the entire portfolio? i.e. 90% on 165k=148,500-balance owed (128,416)=approx 20k. Any other thoughts on how to approach this would be appreciated.

thanks for all the information.... sounds like there is no way around the seasoning requirement then?

I know that LTV is typically established by either the purchase price or appraisal (whichever is lower). Something just seems flawed about this to me.... If I purchased a place for 5k that appraised for 100k, most people would consider that the property has a REAL market value of more than the purchase price. (extreme example I know, but the same principle).