All Forum Posts by: Mike Warder

I'm looking for advice on how best to utilize my inherited mineral interest in a 2,000 acre tract of land in WV. The land was once oil-producing and I believe it has shale deposits now. My question is, how can I put this interest to use for me? Shop it around as collateral for real estate investments? Try to sell my interest? Pay a lawyer to unify the family's now-divided interest and sell it as one unit? Is any of this realistic? I'm not well-versed in mineral rights. The ownership of the mineral interest is now divided among 23 people in my extended family and a nearby university. Our family has 7/40 ownership and the university was gifted the other 33/40. Recently, the university put their interest up as collateral for a $35m bank line of credit to expand the campus. So, it's gotta be worth something, right? I'm kicking myself for not paying more attention in my oil and gas law class! Any ideas on what I should do would be greatly appreciated. Thanks!

The interest rate on your school loans doesn't really matter if they will be forgiven. Any interest that accrues will be paid off by the government. So, don't compare returns on investments against loan rates. Do what is in your financial best interest. I think you are making the prudent decision to save money and invest it while working toward loan forgiveness. I am in the same boat and I'm nearing forgiveness. I will have paid about $150k over the course of tens years before forgiveness kicks in. 

If I 1031 exchanged into a condo on a land-leased property, once the property reverts to the land owner would I have to pay any deferred taxes on the relinquished property sale? Since there would be no sale of the replacement property and no appreciation, i'm curious if I'd still have to pay those deferred taxes from the sale of the relinquished property. Is this another option, besides death, to avoid those taxes? 

Cash flow on the replacement property would be great. I would have to weigh the benefits of great cash flow over the years versus zero appreciation (in fact, 100% depreciation!). But, the condo is in a great location, rental inflation could increase cash flow over years, the condo is much cheaper than other nearby condos because of the land-lease. Given that in 5 years nobody could secure a 30 year mortgage on the place I'll also be out of exit strategies. I'm not sure I'd be comfortable doing it, but I'm just trying to think through different options with my 1031 exchange. 

Thanks in advance for any insights! 

What if, instead of buying your new home, you rent for a year, and use that money to put toward your new projects? If your plans work out, you'll need more capital, at least in the short term. I'd hate for you to have that money tied up in your residence. Just a thought.

Regarding PSLF, the math once suggested if you owe less than $60k in student loans PSLF was not really worth it. If you owe more than $60k, then you should do it. You and your wife would need to file taxes separately if you do PSLF, otherwise your wife's income will also be included in your monthly payment calculation. I've been making payments in PSLF for almost six years now and once its done it will be a huge relief (for both my wife and me). Money I would have used toward paying off student loans earlier went toward real estate investing and in the long-run those buy and hold investments should pay off well. Good luck! 

Brandon Hall wrote an article that has been very helpful for me. I no longer buy out-of-state without reading a city's Comprehensive Annual Financial Report first. https://www.biggerpockets.com/renewsblog/2015/05/10/invest-out-of-state-how-to-analyze-a-city/

Thank you @Bruce Lynn and @Brian Ross for your inputs. I share both of your concerns. On a macro level, no one can say for certain where Myanmar is going. On a more micro level, barriers to entry such as foreigner limitations on land ownership and what appears to be some overbuilding of luxury condos give me major pause. I just figured while I'm here I might as well see what opportunities there are. I'll keep you posted if anything significant occurs that changes my thinking. 

Anybody here have experience investing in Myanmar real estate? Seems like construction and condo building is going on everywhere. I'm here for a couple years and want to see what opportunities exist. I know that foreigners have some restrictions on what they can purchase, but I'd like to learn more. 

Anybody have a property manager they recommend in Arlington, Virginia 22205? My wife and I have a SFR and we are looking to have someone manage it as a rental while we are out of town for a few years.

Thanks in advance!

The lease agreement should state what the proper notice is for discontinuing the lease. That said, it is generally minimum one month notice. Looks like your $23k profit is less than 3% return on the value of the home, so pretty low by most people's standards. But, I would say do not rush into selling the home without a solid plan. 3% return is much better than losing it on your first deal. You may consider going month to month with your tenant starting in March as you figure out next steps. Or, you can cash out refinance so that you have some cash to invest with, while keeping the house and tenant in place.