All Forum Posts by: Ilya Skolnikoff

Anyone have Jeremy Garcia's contact information?  Is he the same investor located in New Mexico?  

Thanks guys.  I appreciate your responses.  These are really great.  It is interesting that you both have such different opinions.  My friend who is an investor in Los Angeles has a person that he has known for many years in his Section 8 and everything is going well for him.  He lives in the same area as the property.  I was considering it for long distance.  I don't think that it seems like a good choice for me if it is long distance.  But I am keeping an open mind.  

I am trying to learn more about Section 8.  I know that it is guaranteed income because the government guarantees it.  However, what are the chances that the tenant trashes your place?  If they mess up your place then who will pay for the damage?  I am assuming that it is you.  If the Section 8 people move out, then can you rent the place to non Section 8 people?  Are there any other drawbacks to Section 8 besides the fact that they have a stronger likelihood of trashing your place and that you have to work with the government?  How does the government usually pay?  Do they do direct deposit?  Does anyone know of any other major concerns that I should be aware of?  This place would bring in a 9% Cash on Cash return assuming it would stay rented.  However, I have not yet gotten the deal...  I am just in the beginning stages...  The seller has a 1031 exchange that he is doing and needs to sell by the end of this month.  

I am not sure what you should do to be quite honest.  However, I would seriously consider what you will do when and if the economy falls and it is more challenging to rent the place out and everyone is out of work.  Just be prepared for a market shift.  If you are prepared for this and consider all of your options, then I think that things will go alright.  Using it as a long term rental seems wise.  

It is my understanding that the issue is government controlled.  It is not so much whether you can or can't.  It is more a matter of how much energy and effort and headache is it for you.  If you are having good results with Section 8, then that is great.  To me it just sounds too tricky.  Plus, I am not sure what very low income tenants would do to the property.  This might negatively affect the costs for repairs and future sale value.  

Is it a section 8 or just a regular property?  I am pretty sure you realize that if it is a section 8 then you will never really be able to increase the rent.  

Real Estate is not my specialty.  But, I have a background in business for about 25 years or so.  I would just return the $1500 and call it a loss.  This way you don't have to deal with it any more.  How much time and energy and thought are you putting into it.  Also, Andrew Bondarchuk's advice is great..... He said, "s there a way to return the deposit on the contingency that legal action from the "tenant" cannot follow?"  Have her sign a document or something like that which would state that she would not sue so long as you return the money.  

I am with Saj here.  I am in Novato / San Rafael.  Property taxes are about 2% or so.  I have never heard of less than 1% in this area.  Property taxes in the part of CA that I am in are sky high.  

Thanks again Carl. Yes, you asked and answered my question. If a property is $200,000 and the IRA pays for all $200,000 of the property but then there are expenses later down the road... and those expenses amount to more than the amount of money remaining in the IRA, then there are penalties for paying for the expenses from outside of the IRA. This is not so great in my situation because of several reasons. One reason is that the bookkeeping can be a nightmare. The other reason is that if the IRA runs out of money and repairs or other expenses on the property are needing to be made, there will be penalties for using outside money.

Hello Justin.  Ok, great.  I did not know that you owned the company.  From my limited  understanding of what you are saying and what your company does, it sounds like it allows people to move their retirement accounts into self-directed retirement accounts that can then invest in real estate.  I have a couple of questions you likely know the answers to.  

1.  Can multiple retirement accounts own the same real estate?  

2. Can the retirement account be a self-directed IRA that is a SEP IRA, Roth IRA, or Traditional IRA, or Beneficiary (inherited) IRA, or can it only be one of these? Can it be only one entity type?

3.  If the answer to #1 is Yes, then, how would one determine which account would pay for expenses with a check book?  Would it be based on funds available.  It would make more sense to me if the answer were "no," to this question.