All Forum Posts by: Michael Bickel

What is the size and type of work this project entails?

So I own a house solely in my name, and my fiance lives in it with me (still another 1.5 years until we're married, for the purposes of this discussion). If I were to say she was renting from me (creating the actual lease and all other formalities so that it is done correctly, and she would still transfer money to me in the form of a rent payment), can I then depreciate my house, or a part/percentage of it? Also, can certain repairs then be deducted as they occur, as opposed to them being added to the basis when then house is sold? Basically, effectively lowering my personal taxable income from the deductions, as well as her being able to get a tax break on her income from a rental deduction in our state. I'm not trying to be sneaky or unethical, I'm just trying to discover the creative ways that people use to legally lower their taxable income. Otherwise, I would have just done it without asking about it LOL You're insight is much appreciated!

Sheila,

I appreciate your advice. No, you can't predict the next crash, but that crash affects the stock market as well. Also, with real estate, these market fluctuations aren't nearly as volatile as the stock market. So yes I do agree that it is good to diversify, and I have a separate investment fund for stocks; but with real estate, the market has much more stability than the stock market and so things don't just turn over night. So all you can do is pay attention, look for the signs, an evaluate the situation, just like with any investment. Also, from my understanding, a SD-IRA can be used for much more than just real estate, it just provides its owner with more control over exactly where the funds are allocated. Definitely though, ultimately I will reap the benefits or suffer the consequences, so I just have to do my due diligence! Thank you again for your insight!

Tom, thanks for the reference, I will have to check it out and see what I can find!

I currently have just under $10k in 401k funds available. I've heard of self-directed IRA's being used for real estate, and I'd like to potentially look into utilizing one now or in the future, or some other type of vehicle that allows me to use my funds in a similar fashion. Is there a limit to how much is required to rollover, or can I just rollover whatever I have? Are there other vehicles that are similar or more suitable for the smaller amount? I know there are self-dealing rules and guidelines that need to be adhered to; what are some of the other big considerations that I should be looking into? Do I need to be a certain age to do a rollover from a 401k (still employed by the company who this 401k is held with) to a SD-IRA?

I currently contribute 6% of my salary with a 3% match. I feel that the 6% I am contributing can be better leveraged through REI right now to build up my RE portfolio. Thoughts?

Thank you Matthew and Greg, I appreciate your advice! I will have to look further into the matter, specifically the complications of transferring my property to the LLC.

Hello,

I am new to REI, just purchased my first house last year (Owner-occupant). Originally, the goal was to rehab, then sell after 2 years with no capital gains tax. However, after diving in and gaining more knowledge of RE and developing my future goals pertaining to REI, I believe I will be renting it out or doing a lease option instead. This is just background info on where I am at.

My goal is to continue accumulating multi-family rental properties, and eventually get into apartment complexes, and down the line potentially commercial RE. Currently, I only own my house, no other properties. I know that I want to form an LLC for when I start purchasing, which I'd like to do this year if I gain enough understanding of creative financing options, since I have low money down. This is my question: I may buy a property this year, I may not. Either way, I am wondering, should I form my LLC right now, and can I even form it right now with no properties (not including my current home)? Furthermore, I am in Indiana, & I know Delaware is the best state to incorporate in from a general business standpoint. Is it recommended to incorporate a real estate LLC in Delaware as well, or incorporate in another state that is good for real estate LLC's, or incorporate in the state where the business is taking place (Indiana in this case)?

I am greatly appreciative of any advice or insight! Thank you!

Michael