All Forum Posts by: Jeff Severson

I own a vacation property on Gasparilla Island with market value of $2.5M

I am looking for a quick sale.  Are there any wholesale buyers for this type of property?

Seems like the messaging from the Fed is that bank liquidity (reserves) won't be an issue.   The Fed is putting lots of cash into the banking system by buying treasury notes and bonds.   Yes, I guess that glass of warm milk is sour.  Stocks will sink like a brick in a swimming pool tomorrow morning when markets open.

Just noticed Will's comment...I think when interest rates are already so low, that the cuts the Fed have made are intended a psychological warm glass of milk for the markets, but will have a negligable economic impact.   Fiscal stimulus would be more helpful to the economy, but the US already has such a huge budget deficit after corporate rates got cut from 35 to 21 with very little offsetting revenue.  But who knows, maybe congress will decide to spend even more and increase the deficit more.   Back in the day congress had to weigh a bigger deficit against the likelihood of higher interest rates, but these days bigger deficits don't seem to push interest rates up.

As a 63-year-old with a BA in Economics and lots of treasury experience, I have concluded that the Economic principles I was taught in college and experienced in my treasury career often no longer apply.  How can it be that we have record-high federal and trade deficits, and record low interest rates (even before the current Corona scare)?    As to your question,  my impression is after the crash of 2008 banks are now required to have much more risk-adjusted capital to support various stress tests imposed by the regulators.   And I am going to assume that if they have adequate capital, they can raise cash from the Federal Reserve or from other banks, so that they would not need to liquidate loans.

I own a bond mutual fund that holds high yield corporate bonds.  All bonds in the fund mature in 2020 and the fund will liquidate at the end of 2020.  The SEC yield has gone from 3.5 percent to 8 percent.   I am considering additional investment in the mutual fund with the premise that during 2020 the 70 companies in this fund should be able to pay off or refinance their bonds.  Also wondering if note yields have or will increase similar to non-investment grade bonds.  Thoughts?

Thanks for the replies.  OK, I will ask some sponsors. 

If I invest $100,000 is a typical syndicated passive investment real estate deal that also funds the investment with loans (uses leverage), what is the approximate amount of my first year taxable loss?

Thanks for all the great replies!

I am looking for a real estate or self-storage investment/syndication that will produce a tax loss this year.   Let's assume I invest $100,000 in a syndication that also uses loans to fund the investments.  I am looking for a rough estimate of what my first-year tax loss would be.  I realize it depends on my factors.  Just looking for a guestimate. Thanks

I am a newbie. If I purchased a SFR income property for $200,000, can you give me the typical range of the dollar amount of bonus depreciation and/or Section 179 deductions that would result in the first year? Would the deductions be the same for personal property I purchased to improve the property (new) vs personal property that existed at the time of purchase? I do realize there are limitations to how much of the deductions may be used.