All Forum Posts by: Paul Winka

I have a self-directed IRA. I collect interest on loans made out of that account. Does the custodian or I have the requirement to send a 1098 to the borrower?

I should at least keep track of that and let the borrower know, yes? 

@Naftali Tolibas

If I am consuming caffeine like I normally do, 5 to 6 hours is all I can manage. Without caffeine, it's at least 7, maybe up to 9. 

I am curious to know if all those that are sleeping less than 8 hours are also caffeine junkies, have kids, or both?? 

I joke that those "5-hour energy" bottles mean just 5 hours of sleep!

OP, you didn't mention what rate your mortgages are at. I suspect they are probably < 5% with 30-year amortizations. Let's say they are for deciding what to do.

When looking at today's mortgage market, those mortgages are a valuable asset because they can't be replaced (refi'd) today at such low rates. Want a 3.75% 30-year fixed in September 2018? They don't make them anymore! 

Having paid off properties does feel good though. It's a nice psychological edge and brings great peace of mind. But would you still want to pay them off if their interest rate were 0%? 

Ended up going to guaranteeedrate.com. 30 year fixed! 

Refinancing a Texas multifamily (even owner occupied), thanks to Texas 50a6 rules, is not possible with a conforming loan. More than one loan officer told me that Texas is the only state that is like that. My luck! 

Before finding guaranteedrate, the best I could come up with was a hard money loan for 2 years, 8.75% interest only with balloon from patchofland.com. 

Persistence paid off. I am quite happy with 5.75% at 30 years now. 

@Jason Pavloff

It's been a while, but did you pull it off and get your loans? I have a TX duplex too and want to follow in your footsteps. :)

@Harry Campbell

What conclusion did you come to, Harry? 

I called 4 banks this morning. None of them will finance a property that is not owner occupied and did not offer anything in the way of referrals to a bank that would. The house is in San Antonio. No other liens. So I turn here for a quick recommendations. Anybody get a home equity line of credit on an investment property in Texas that had a good experience with their lender?

@Account Closed

You're absolutely right, there is more than one way to do it as your Money Magazine example indicates. When learning accounting in an academic setting years ago, I remember the term GAAP. If you know that term, you'll know that this accounting stuff is subject to interpretation and there is more than one way to analyze a tax situation. Being consistent with you apply your own methodology in filing your taxes probably needs to stay constant though. Overall, it seems to be a good thing.  

@Tom Gimer

Thx for clarification of HUDs vs CDs. I'll use the correct terminology. 

If I have it my signed loan agreement that I get to see all CDs from buying or selling, would this be unconscionable or unethical? I can leave it at that if it is indeed unethical. 

Here's what is driving all of this...I've asked it up above, but I never got a clear answer it: When I get my payoff from a sale of a property, what is my "receipt" of that transaction? The CD seems to be that to me. Is there something else I could use as a proxy to from the title company? Best I have now is just the email chain from the title company asking for the payoff, which seems kind of a rough and unofficial.

Yes, by seeing the CDs after the sale, I will know how much the house sold for. But I would find that out from public record later on anyway. Personally, if I was the seller and my private lender wanted to see all the CDs, I would be ok with it...if I am being an honest broker, why should I care? 

@Ned Carey, I'd be curious on your opinion on this. 

@Account Closed What would be the "receipt" of the transaction be if it was just an ordinary interest payoff? The only thing I really have is the email chain from the title company and the money that was deposited in my account. Is that enough for bookkeeping?