All Forum Posts by: Lee Ali

Zillow rent estimate are fairly accurate.

I keep my rents below market have kept my tenants for up to 15 years. 

The gap might not be as big an issue as when you stated the current job. 

There are all kinds of programs out there that lean heavily on the gross monthly income, credit score, and down payment, etc. 

The real question is how much interest rate and how many points based on your specific profile, which will become clear when you provide all your information to a mortgage lender? 

Only talk to investor friendly lenders for BP or elsewhere. They know a lot how to keep investors going. 🙂

If you can execute it then you should sell and buy as big a property as possible.  The reason is depreciation. That will more than offset your net income. If you have good credit you can even buy a 4 family. 

With 1031 Exchange you are not paying any taxes. So your appreciation will go far, and 1031 Exchange your depreciation clock to 0 year.

Please talk to a 1031 Exchange expert, and a CPA who works with real estate professionals. 🙂

Disclaimer: I am not a tax professional. I am just discussing ideas with fellow investors. 🙂

Yes.

If you keep your real estate holdings in SDIRA any tax consequences are at the time of withdrawals from SDIRA depending on your age. It's like stocks appreciation or dividends. They aren't taxed in the year they are earned either. The depreciation is not used because it brings no value. It just simplifes your property income and tax calculations. 

If you cash out and then you lower the money to play with because you need to pay taxes in the year of withdrawal of the funds and penalty if you are under 59 1/2 years old.

But in this scenario depreciation and real estate professional status can work wonders if you are making a decent amount of money outside of real estate. 

What Carlos wrote is absolutely correct. Attend seminars, make personal contacts, offer value to the experienced investor. 

I can PM you about a few great free seminars that are coming up in Texas. I don't want to post them here because I don't know if it is allowed. 

There are a lot of good responses. 

This is what I would do:

Buy as large a property as I can. A $4 million property is better than a $2 million property.

Why?

A $4 million property will give you a depreciation of $145,440. So any net income you make would be essentially tax-free. You become a real estate professional and you can carry over any losses to subsequent years. 

Let the property appreciate a bit and cash out whatever you can while ensuring that you have all the expenses met and you have some money to live on. Then you either buy other properties or put the extra money into other types of investment vehicles, such as S&P 500 or treasury bills or whatever.

Now, if the $1 million is in a retirement account then you move it into a self-directed IRA and let your IRA buy the property. Then you only worry about taxes on the money you withdraw from your IRA. You may also convert your regular IRA to a Roth IRA and never have to worry about paying taxes for the rest of your life. :)

Above are just some ideas. Talk to a real estate-savvy tax/legal professional before you make the moves. 

I need cash out financing on single family houses in Bartlesville, OK and a commercial property in Bridgeport, CT.

I hope you have good luck with finding contractors in Tulsa, OK. If you do, then please let me know how you found them.

I have done a lot of renovation projects in CT, but have not had much luck in Bartlesville, OK, which is 40 miles north of Tulsa.

Try Oswaldo Torres at 

Las Americas Real Estate  

2190 Madison Ave, 

Bridgeport, CT 06606

I have worked with Oswaldo for the past 12+ years. Google his name and address to get the contact phone number as BP disallows such information.

Yes I am open to all markets with good returns on time and money. :)