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All Forum Posts by: Limor Hanannia

Limor Hanannia has started 3 posts and replied 10 times.

Quote from @Brett Synicky:
Quote from @Limor Hanannia:

Hello everyone, I'm curious if anyone has insights on where to find loans of this nature. I recently completed reading a book on flipping and attended the author's webinar yesterday. During the webinar, the author mentioned a specific type of loan that offers tax benefits or potentially exempts taxes when used for flipping purposes. While my explanation might not be entirely accurate, I'd greatly appreciate it if anyone could share information on this topic.

Thanks!

 To clarify what @Pete M. meant about loan option with the solo vs. the SDIRA he's referencing the participant loan.  You as the plan fiduciary can borrow up to 50k or 50% whichever is less and use it for virtually any purpose including what would normally be a prohibited transaction. Both SDIRA and Solo 401k can use leverage on Real Estate.  Both must use non-recourse loans only (property is the only security) and only the Solo will avoid the UDFI which kicks off UBIT on the income from the financed portion of the real estate.   

Also bear in mind @Limor Hanannia that if the IRS thinks you're running a business within your SDIRA or Solo 401k you will be taxed on UBIT for that as well which scales up to 37% so it can be quite hefty.  Flipping is a business and is not a passive activity even if you delegate all the physical work which you have to do no matter way on either option.  If you normally buy and hold and flip one or two per year cause that exit strategy makes more sense you'll probably be ok but if you're primarily flipping and doing multiple that will be deemed as running a business.   Hope this helps

Thanks for the explanation!
Quote from @Pete M.:

@Limor Hanannia Are you asking to learn more about SD-IRAs in general, or what's your specific question?  Are you looking to use your own funds, or someone else's?  Note that SD-IRAs do not offer a loan option, only SD-401ks.

SD-IRAs & SD-401ks are two ways of being able to put qualified retirement funds towards real estate investments.  SD-IRAs are subject to UDFI (and you must use a non-recourse loan); SD-401ks are not subject to UDFI.  @Chris Seveney gave a good quick overcap of what that is.

Someone else's funds. 

Quote from @Ned Carey:

@Limor Hanannia You need reread the book or watch the web and get clearer on what he or she was talking about.

They could have been talking about lending money or borrowing money. There is no tax on borrowing money, your IRA can borrow money but there IS a tax for that. Your IRA can loan money to others ( but not yourself) and there is no tax on the interest.

While you have gotten some good answers here, you have to be more specific about what you are asking.


I want to take a loan from someone who has it. I will look into that more. Thanks

I realized. I want to take a loan from someone who has it. I will look into that more. Thanks!

Hello everyone, I'm curious if anyone has insights on where to find loans of this nature. I recently completed reading a book on flipping and attended the author's webinar yesterday. During the webinar, the author mentioned a specific type of loan that offers tax benefits or potentially exempts taxes when used for flipping purposes. While my explanation might not be entirely accurate, I'd greatly appreciate it if anyone could share information on this topic.

Thanks!

Post: Ready to start my portfolio

Limor HananniaPosted
  • Posts 11
  • Votes 1

Hello,

It's wonderful to hear about your plans to build a portfolio with rental properties, especially in out-of-state markets. Your choice of Texas cities like DFW, Houston, and Fort Worth seems promising, considering their real estate potential and growth.

I'm excited to share that I'm also in the process of buying my first house within the next 30 days! It's great to connect with someone who's similarly enthusiastic about real estate investments. I believe that collaboration and sharing experiences can be incredibly valuable on this journey.

If you're open to it, I'd love to hear more about your progress and insights as you navigate through property acquisitions. Perhaps we could even explore opportunities to collaborate or share tips that we come across. Feel free to reach out, and let's keep the conversation going!

Best of luck with your upcoming property purchases and portfolio building. Looking forward to connecting further.

Warm regards,

Limor

Warm greetings from Israel! I'm on the lookout for individuals who, like me, don't hold US residency but have gained valuable experience in property acquisition. Could you kindly share your insights on potential financing options? I'm currently making significant strides toward securing my inaugural property in Texas. Given my planned six-month investment, I'm delving into the realm of partial financing possibilities, seeking around 20% of the total transaction.

I'm also contemplating the prospect of seeking financing from the property's owner. However, I'm proceeding cautiously to avoid staking the entirety of the property's value. Additionally, the property owner might not be inclined to entertain the notion of offering financing terms.

I would greatly appreciate your input regarding private financing companies that you have personally encountered. To me, it's imperative to gather not only numerical information but also stories and experiences that speak to factors like trustworthiness, speed, and reliability.

If you've had the chance to interact with challenges along the way, I'd be grateful if you could share those experiences as well. Insights into difficulties you encountered, such as missed deadlines or specific requirements for foreign investors, would provide me with valuable context.

To all those who come across this message and might not be able to provide direct assistance, please accept my gratitude for your willingness to lend a hand, even in thought. Your efforts are sincerely appreciated.

Quote from @Bruce Lynn:
Quote from @Limor Hanannia:
Quote from @Bruce Lynn:

The good news is, for the most part most title companies do a great job in Dallas.  I've probably closed at 100 different ones and maybe had 2 or 3 bad experiences.  They usually have the least issues of anyone involved in the transaction in my experience.  Much better chances of getting bad buyers, sellers, lenders, construction, surveyors, insurance companies, realtors.

With all that being said, my favorite is Fair Texas Title, with offices all over the city.   Sherry-Connor Neuman out of the Cypress Waters office is my favorite closer.  I've been working with her for almost 25 years.  Republic Title also has done a great job over the same amount of time.  I normally use the Irving/Las Colinas office, but they have offices all over the city.

Hi Bruce Lynn,

 Very helpful information. Thanks for the quick response! I will definitely call. The truth is that I just don't live in the United States. Therefore, I need to understand through the company the requirements for a foreign investor, preferably not through a brokerage firm. Thank you

Interesting, because here is a broker answering all your questions???....Probably 90-95% or maybe more of the sales are through a brokerage....why would you not want to capitalize on that?
#1 thing you need to understand is FIRTA.  Easy in some ways to buy, but not as easy to sell.
#2 If you use a loan, which is not always easy to do, you also need to figure out how to sign documents when you close....so that either means a trip to the US or a trip to the embassy....every now and then you might be able to sign online, but this is not common.
#3 For the most part we do not have restrictions for non-residents to buy property unless you are from China, Iran, North Korea and places like that...maybe 6 countries restricted now.
#4 Plenty of challenges though...probably need a bank account which you will probably need to open in person.  Also you will need a US address to do that probably.  Cash transfers need to happen pretty fast, so you may need to park some of your money in that account up front.
#5 You will also need to file US taxes on any income you generate...so you'll probably want to find an accountant.

Who helps you with most of these processes and questions...a great brokerage...title companies are nice and friendly, but typically don't handle these kinds of requests.

 Hey, I appreciate the detailed response. I want to clarify that I do collaborate with realtors. My intention is to streamline the process and gather the necessary documentation in advance when considering properties. I understand that not all brokers are experienced in dealing with foreign investors. This is why I would greatly appreciate receiving this information directly from your company. 

Quote from @Bruce Lynn:

The good news is, for the most part most title companies do a great job in Dallas.  I've probably closed at 100 different ones and maybe had 2 or 3 bad experiences.  They usually have the least issues of anyone involved in the transaction in my experience.  Much better chances of getting bad buyers, sellers, lenders, construction, surveyors, insurance companies, realtors.

With all that being said, my favorite is Fair Texas Title, with offices all over the city.   Sherry-Connor Neuman out of the Cypress Waters office is my favorite closer.  I've been working with her for almost 25 years.  Republic Title also has done a great job over the same amount of time.  I normally use the Irving/Las Colinas office, but they have offices all over the city.

Hi Bruce Lynn,

 Very helpful information. Thanks for the quick response! I will definitely call. The truth is that I just don't live in the United States. Therefore, I need to understand through the company the requirements for a foreign investor, preferably not through a brokerage firm. Thank you

Hello,

I hope this message finds you all well. I'm reaching out to my fellow investors for some advice. I'm currently in search of a reputable title company that operates in Dallas, Texas. If any of you have had positive experiences or can provide recommendations, I would greatly appreciate your insights.

Thank you kindly, and wishing everyone a productive day ahead!

Best regards,

Limor