All Forum Posts by: Nick Scalero

I was just thinking... I have a rental property in an area I don't want to live. What's to keep me from getting a different property in an area I do want to live with a 1031 exchange then moving into the property myself? Are there tax consequences?

Why do you think there will be a lot more inventory this winter?

Great answers, one and all. I'll need to line up the ability to offer cash then convince my wife that we need to make more offers.

Thanks,

Nick

I placed 3 offers in the last month in California, one of them over asking price. Lost all 3 to cash buyers. I'm offering 20-25% down and have an excellent crredit rating. What's a body to do?

It's RISK. Some people can handle it and some can't. As I get older it's more difficult. just like jumping a ditch with a bicycle. When we're young, we don't give it much thought but as we age we remember that it hurt when we fell and we don't heal as quickly as we used to.

I'm looking for the correct verbage to add to a contract where I am making offers on multiple properties but once one of the offers has been accepted all the other offers are no longer in effect. Something like, "The buyer may submit purchase offers on multiple properties. This offer to purchase becomes invalid if one of the buyers other offers is accepted. Any deposits submitted with this offer will be returned to the buyer at this time."

Is this legal? Anyone else do this?

Sounds like you're self-employed Ingrid. From what I've read the Solo 401K is for people like you. Again, It's a 401K RETIREMENT fund. You won't be able to pull money out for living expenses until you're 59 1/2.

So that means that there is no depreciation consideration for the asset?

I'm considering a self-directed IRA but have a few questions.

First, If I purchase a house outright how do I calculate ROI? Is it simply (Monthly Income - Expenses) * 12 / Purchase Price?

Second, since I pay Taxes, Mgmt fees, Insurance, etc out of the IRA how do I (or do I ever) recover these costs from a tax standpoint?

Third, when I sell a house do the full net proceeds go into the IRA with taxes defered until I start to draw from the IRA?

Any recommendations for a reputable company with good fee structure and solid managment for the IRA?

I may have other questions as I think of them. For example, I'm thinking I don't want to leverage a house in the IRA since I get taxed on a portion of the monthly income based on the percent leverage. Any thoughts on that?

Thanks in advance.

Maybe I'm naive but here's how I think we should have spent the first bundle of bailout money.

1) Take a look at each loan in Foreclosure and see what could be done to get them out of that state. (buy down interest rates, make back payments).

2) For every loan that goes into NOD - see if the interest rate can be bought down so that the owner could keep their payment affordable. Maybe they're still under water but at least they can afford to live in their home.

This way the banks get their money and gets to stay in business and people get to keep their homes.

Let's hear some feedback. I know I'm missing soemthing (possibly magnitude of the debt?? but $800 billion seems like a big number)