All Forum Posts by: Jithesh Prabhakar

We purchased a 2 bedroom, 5 unit multifamily buliding in Jan 2014. The property is location in Hyattsville, Price George County. This is our first investment property. We are in the process of getting User and Occupancy certificate from the County.

The county is not ready to issue the certificate as there was a law passed in 1968, which restricts 2 bedroom only in 40% of the units. which means we can only have 2 units with 2 bedroom and the other 3 has to be converted to 1 bedroom.

The building was built in 1951 and to Grandfather and issue the certificate, the county wants me to furnish documents stating that the building was in use since at least 1968.

The county has no prior UnO Certificate and License. I have received Rental License since 1993 from the City. The county wants me to file a Maryland Public Information Request form for them to research and find older archive records.

Not sure how to go around proving this is they do not have any older records. Please share if you had such a situation and any guidance appreciated.

@Roy N. That's the main reason he does not want to earn any interest.

I am trying to find a friend in the USA who can lend. At least this way they get a 1099 from my 401K and they can show it as interest earned.

@Leon D. So I can get the loan from my Uncle, as far as he charges prime rate. Thanks for the info.

I have a situation (explained below) and need some advice.

Background :

* My LLC and Solo 401(k) signed a Land Installment Contract on Dec 6th 2013. The percentage of ownership was 60-40 respectively.

* Both the entities are making payment to the Previous owner and have invested money on rehabbing the property.

* The property is ready for sale and we have buyers for the property. Their bank wants to property to be transferred/purchased to the Entity (LLC and 401k) before they close.

* The LLC has its share of 60% but the Solo 401K has a shortage of $45,000/-

Question :

My Uncle who lives in Canada is ready to give a Non-Recourse loan to my 401K and I would like to know if he is a qualified person for this transaction.

Also note that my Uncle wants to give it at a 0% interest. Not sure if this will impact anything.

Please let me know if any one had this experience or knows about this.

Thanks in Advance.

Hi Daniel, Sorry for replying this late. The problem was solved as I took a non-recourse loan from a friend.

To answer your question, the LLC is owned by myself and my wife. The Solo 401K is my account and has nothing to do with my wife.

Strangely enough I am back in the same situation but with a bigger value :( This time the project has been completed and there is a contract on the house, however the lender does not want to double close.

There is so much to learn in creative financing...!

I bought a house and fixed it up with the intention of selling it, however when I look at the rental market in that area.. I feel I like have to keep this as a buy and hold.

Currently the property is owned by LLC 80% and Solo 401(k) 20%

Some banks wanted this property to be on a separate LLC and some did not like the fact that it was part owned by Solo 401(k).

Please can any one suggest any options I might have ? I think there should be a way to buy out Solo 401(k) and transfer the property to LLC.

@Chris I did not think about the accountability/Trust issue. However, on a coin machine, is there a counter which gives the overall count of runs.

I have also contacted Mac Gray, they have smart machines and one can monitor them online or on their app. Pretty sure this system is not for my 5 unit property, but you should contact them and check this out.

Hi @jimmy, a contract of ours finally got ratified (last week) after it got approved by the Bankruptcy court. The seller had filed Chapter 13 bankruptcy, thus had position and ownership of the property but needed approval to sell.

Depending on what type of bankruptcy, this might change. Also one thing I learnt from my experience was that the price of the property had to be justified and they would expect to see a BPO or an appraisal before approving.

In your case things are different as you would have been in a contract before they filing for bankruptcy. Note that as soon as the person files for bankruptcy, a letter will be sent to all creditors notifying the same.

I suggest you consult with a bankruptcy lawyer before you make a move.

Good luck..!

Jithesh

We have our first investment property under contract. Its a 5 unit multifamily property in PG County, Maryland. We are financing 75% through a local bank.

Currently there is one washer and one dryer in the building with a month to month lease. Previous years revenue is not that appealing, thus I have negotiated the below for the new contract.

1) New Energy efficient machine will be installed.

2) Coin Match will collect the cost of 1 cycle per machine per day and the remaining will be paid to the owner. Previously it was 50% split.

3) There will be a 7 year lease.

4) Once the contract is signed, there will be a 90 day turnaround to install the new machines.

Please let me know if there is anything I have not covered.

If you are local to me, inbox me and lets connect..!

I am working on a rehab currently and have moved the laundry to the second floor. It used to be in the kitchen and moving it out was the only option to get a decent size kitchen.

To overcome the fear of leaking, we are adding a drain pan with a drain.