All Forum Posts by: Kent Chrisman

@Brian Eastman and @George Blower - thanks for your replies!

I'm looking into setting up a SD-IRA with an old employer retirement account in order to get into a syndication but I have 2 questions:

- I'm assuming that I will be subject to UBIT due to the operator/syndication getting financing in order to acquire the property. After all depreciation and operating expenses are subtracted from my SD-IRAs share of the profits, will the tax liability be paid from the SD-IRA or my own pocket? I'd assume out of the IRA...

- Since SD-IRAs are tax deferred and assuming that for the life of the SD-IRA I am paying UBIT, will I also have to pay income taxes upon receiving distributions or dissolving the SD-IRA after the age of 59 1/2?

Thanks for your input

@James Mc Ree no not necessarily, I guess I need to shop around. Honestly, when they told me they could not do it, I visualized my REI dreams going down the drain and so I freaked out a bit. All is well now, so thanks!!

Corby Goade (not sure why the name link thing isn't hoping up) - I'm looking to use it as a downpayment on a multifamily property and am weary of the potential for increased interest rates with the HELOC. As I understand it, they seem to be better for BRRRR or flips.

I bought a house from my parents before I knew much of anything about REI. I have a pretty good chunk of equity and was planning on doing a refi to get into the game but the mortgage company (Suntrust) just told me that Texas has a law that states a mortgage company must have a physical office in the state before they can do cash out refi's.

I guess I could do a HELOC but I'm a little hesitant. Does anyone have insights into how I can get the equity out of the house?

@Clayton Mobley fantastic reply 

Michael Pendleton I agree with Andrew Johnson. Evaluating the numbers would be a great exercise along with physically going to see the properties. If I remember correctly, you can get a sample NDA from Ken McElroy's website. If the numbers don't make sense, since pass, on the deal. It is better to be conservative than rushed into a deal that could potentially sink you for a long long time.

@Wendy Carpenter for a house of that age, I would be a bit more conservative and estimate 10% Capex as well as Maintenance/repairs which only further hurt your numbers... but it sounds like you've already made the right decision!

@Kay Kay Singh you should reach out to @David Thompson.  He's a very successful syndicator and has partnered with some of the major multifamily players here on BP.

@Chris Gladstone I was notified today that the PRO membership is going up $10 bucks a month so you might want to get in now and save the $120 a year!