All Forum Posts by: Ned Carey

@Benny Johnson welcome back. Mmybe you weren't ready last time. Hopefully you are ready now. Were here to help. Good Luck.

@Jagjit Singh Welcome to BP

First you might mention what size multi family you are talking about. The process to buy a 100 unit building is very diferent than say a 3 unit building. Esentially a small mutil family is not much different that buying a single family. 

If you are stugling at that level my advice is go out and leran the market. It is great to know the strategies and the ways to evaluate a deal but if you do not Know the Market fully and deeply you don't know what numbers to plug in the formulas to evaluate a deal. You don't really know what a good deal looks like (or bad deal)

If you are buying large multi family prperties we have a multi family forum here you can check out. However if you are buing 1-4 unit buildings go out and look at lots of deals. What kind? Look at Listed properties, open houses, for sale by owner (FSBO), wholesalers deals, any on site auctions you can find, and look at as many deals other investors own that they are willing to show you.

Ask the investor what are his numbers, what does he intend to do with the property, how much is it worth when done, how much does it need in repairs and what repairs will he or she be doing.

When you know your market inside out you will feel more confident on moving forward. You won't learn this sitting behind a computer screen. You leran it by going out and looking at real properties. Good Luck

@Luis Maza I'm glad you have found these things and are seeing new opportunities. I would caution you to scrutinze wholesaers deals very carefully. Many Whoeslalers and not much more than scamers. DO NOT accept their numbers and do your own due dillegence. Some greatly exagerate the after repair value and way underestimate the repairs.

Hopefully your previous experience will help you pick out the best deals. Good Luck.

@Danielle McKahn this can be done, there are people who do it. However it is not typical or common. 

I don't know who to look for but I would ask, "Why?"  I am not afraid of non recourse loans because I know the deals I do are solid and I am not concerned about failing. If you feel the need for non-recourse, could it be the deals you are doing are not as safe as they should be?

My onlyl tip is check out self directed IRA discusions here. (SDIRA) An IRA cannot must use a non-recouse loan so they are often talked about in self directed IRAs IRA forums.

@Luis Maza welcome to BP. 

What do you mean by    "Difference this time for me is hard money and wholesalers"

Wholesalers and hard m oney were around in 2005 and 2006. What do you find different?

@Quentin Ambrose welcome to BP. We look forward to your contributions here.

@Dmitriy Fomichenko Wow a solo 401k is not subject to UBIT. That is a game changer. 

Is an IRA subject to capital gains tax? How about depreciation recapture? Is this a loophole; use depreciation to offset UBIT but when selling there is no tax on the gain because it is an IRA?

@Jerry Chilimidos

@Dmitriy Fomichenko Is an expert in this field. He called it UBIT. Which is a tax when you do an active business in your IRA but it is essentially the same thing.

@Jerry Chilimidos I am not a CPA owever my understanding is any loans to your IRA can not be personally guaranteed. Also there is an additional tax on the returns due to the financing.

From an internet search
"Unrelated Debt-Financed Income (UDFI) is a tax that applies to an IRA when it uses debt"

@Paul Tee I can’t answer your question but welcome to BP