All Forum Posts by: Kevin S.

@Martin Yip Toll So You are making a mistake treating your debt relationships as strictly transactions. You are going to turn off a lot of lenders with your post because you are clearly going to shop every term sheet that's turned over to you with a focus exclusively terms with no regard for the servicing, loan administration and most importantly what that loan officer can offer you in the future. This is one of the biggest mistakes I observe.

While terms are important, take the time to get to know what each banker has to offer, their capacity and how they can help you grow. Bankers move around, rates increase and decrease, market conditions change, but these personal relationships can remain a constant throughout your career and will be critical to your success.

I continue to work with a number of loan officers who issued me my initial loans 12 years ago. The two primary banks I worked with no longer exist and all of my original banking relationships have moved onto different banks/lending institutions. In fact, I just originated a loan with a loan officer at the 4th bank in which we've originated loans together & now originate $8M loans with bankers who originated $80K loans for me when I started. These relationships, if cultivated properly, will allow your borrowing to outpace your balance sheet. The earlier you recognize this, the better off you will be in the long run

"I was wondering if any lenders out here on BP are willing to play game...." is not the best choice of words.

"there are 2 conditions I require..." is right behind it.

Stuart hit it on the head. Hope you change course and the rest a smooth sailing for you. Good luck.

1 Vote

@Dmitriy Fomichenko

Never mind about RMD question. My bad. You answered that. I'll check out your website later. The only question remaining is: How will the property pass down to heirs and the tax implications/inheritance tax etc. Thanks a lot.

0 Votes

Seattle, Washington

@Dmitriy Fomichenko

You are right about 7% return in the 401K and have been considering REI in 401k since joining BP.

I am not sure if RE is at 20% if I start now, with the rental @ 0.5% of RE value, higher down payment and high interest rate. My current RE returns will be at about 10-11% not including tax write-offs. Also, looking for answer as to what are the tax implications at RMD stage? Feel free to respond as a non-tax expert if you want. Thank you, Dmitriy.

0 Votes

Seattle, Washington

Quote from @Account Closed:

Quote from @Dmitriy Fomichenko:

@Zehua Zhou,

You have a flawed setup. A 401k does not require a custodian or a third-party administrator (TPA), and you don't need an LLC to have checkbook control for your 401k. You just need the right provider to set it up better. We set Solo 401k plans for our clients in the form of a trust instead of using a custodian. The trust will have its own EIN, and as a trustee, you control it. This way, you will eliminate the custodian completely with its fees, red tape, etc. The end result - are you truly in the driver's seat of your 401k!

As trustee of the plan, you can open a bank account in just a few hours at one of our preferred banks. If you need a brokerage account at Fidelity, you open Fidelity's Investment-Only Non-Prototype Retirement account for the 401k; there is no need for the LLC. Your structure is complex and not cost-effective. Try to always remember and apply the KISS principle (keep it simple).

I also would recommend Fidelity. They are easy to get started with an the support has been OK compared to others

I am going to jump in here for few questions.

Does it make sense to buy RE in retirement account(401K) as the tax benefit and write off are not similarly applicable as outside of 401K?

What happens to the REI/portfolio when it's time for RMD? Liquidate all properties? What are the tax implications then? How does it pass down to heirs? Thanks in advance.

0 Votes

Seattle, Washington

Quote from @Shawn McCormick:

@kevin

@Kevin S. If you are financing, you may be limited to closing in your name. If you are paying cash or seller finance etc, you'll have options.

I close in a land trust or transfer to a trust after if I'm financing. A land trust provides anonymity (you can hold and transfer properties outside of public records) Then I have my LLC be the beneficiary of the land trust. So liens and lawsuits become more difficult to pursue. I have two great contacts here in Orlando if you need.

Thank you Shawn. I will DM you later for the info!!

0 Votes

Orlando, Florida

Quote from @Bob Stevens:

Quote from @Kevin S.:

This will be my first...What do you suggest? Thanks.

Do one, then worry about how to set it up. It may take you months to get one. Worry about getting a deal closed, everything else is easy,

You can transfer to an LLC after,

All the best

Hi Bob, I am closing on the property in about 10 days and lender is asking what would I title the property under. Trust was one of the option given. Since I never heard of Trust mentioned on BP I got curious and put the question out here. Appreciate your input.

0 Votes

Orlando, Florida

This will be my first...What do you suggest? Thanks.

0 Votes

Orlando, Florida

Hi members,

What is the preferred way to hold investment properties? My attorney(estate planning attorney) suggested two options.

1. LLC or...

2. My JRT (joint revocable trust) that I already have and buy umbrella policy.

On BP forum it's usually mention of LLC or personal name with umbrella policy, don't remember mention of JRT.

What would you recommend and why? Thanks in advance!

1 Vote

Orlando, Florida

Quote from @Corby Goade:

Quote from @Kevin S.:

@Corby Goade

Thanks Corby.

There is no wording in the contract about re-inspection. Only mention the property has to be delivered in the condition it was during inspection. I don't know if I have "right" to re-inspection if I am out of inspection period. My guess is the seller will have no incentive to allow re-inspection. And if there is wind(roof) damage then a whole lot of question arises. Hoping some one here have had experience/knowledge of such event.

In my state there is boilerplate language in the contract stating that if there is damage after the inspection but before close, the seller must repair to the buyer satisfaction. The buyer cannot terminate based on the damage but the seller must repair and closing can be extended in order to accommodate this.

Seem about similar to contract here but worded differently. I will ask for re-inspection but if seller refuse and allow only walk through on day of closing I am no expert to know anything about the roof. So even though contract states what it states, how to go about it is the challenge. Thanks for your response, Corby.

0 Votes

Orlando, Florida

All Forum Posts by: Kevin S.

Kevin S. has started 22 posts and replied 378 times.

Post: Approved for a loan. Let's see if any lenders here can beat this rate!

Post: Approved for a loan. Let's see if any lenders here can beat this rate!

Post: How to handle the tax forms from the property manager and the bank?

Post: How to handle the tax forms from the property manager and the bank?

Post: How to handle the tax forms from the property manager and the bank?

Post: LLC or Trust to hold investment property?

Post: LLC or Trust to hold investment property?

Post: LLC or Trust to hold investment property?

Post: LLC or Trust to hold investment property?

Post: Re-Inspection after storm just passed through while under contract?