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All Forum Posts by: Kevin Moen

Kevin Moen has started 9 posts and replied 199 times.

Post: Passive Income Opportunity Through Shared Ownership

Kevin MoenPosted
  • Rental Property Investor
  • Seattle, WA
  • Posts 215
  • Votes 77

Do you respond to any inquiries, or just put up deals shooting in the dark? Do you even own the assets you are marketing, or are you assigning contracts?

Post: Should I buy my second house w 30k in bank?

Kevin MoenPosted
  • Rental Property Investor
  • Seattle, WA
  • Posts 215
  • Votes 77

Buying a property with cash is the worst advice you could receive. That is not how you build wealth. What loan did you use to buy your first property? FHA? Conventional? If you move out of your current place and rent it, what is the net cash flow?

Why not buy another owner occupied property with an FHA or Conventional loan, and continue to refi and repeat? Im making over $2500/mo NET on three properties by doing that model. Its a real wealth builder for us young investors who can afford to hold long term, and use smart leverage. Be sure you net at least $300 - $500 per month after PITI, market vacancy, and repair allowance if you are using leverage aggressively.

Post: Land Trusts

Kevin MoenPosted
  • Rental Property Investor
  • Seattle, WA
  • Posts 215
  • Votes 77

I utilize a trust with an LLC as the trustee and myself as the beneficiary for asset protection. Worked with a very saavy attorney who is an active RE and note investor himself to design an asset protection heireachy that makes sense for me. Like Matthew pointed out you would likely want to consult a local attorney, but in my area there is little to no downside and increased anonymity and firewall effect by utilizing that strategy. I also carry an umbrella policy, which I think if one of the best possible ways to spend $200/yr....

Post: Whats the best way to start investing if you already have capital

Kevin MoenPosted
  • Rental Property Investor
  • Seattle, WA
  • Posts 215
  • Votes 77

@Zach Crawford If you are simply looking for a good cash on cash return and passive income why not just invest in notes, or a fund that invests in notes? You can make double digits as the bank with no liability for repairs, maintenance, or headaches of being a landlord. . .

Post: Self-directed IRA

Kevin MoenPosted
  • Rental Property Investor
  • Seattle, WA
  • Posts 215
  • Votes 77
Originally posted by :

, people are attracted to self directed IRAs (and solo 401(K)s because they often represent a large pile of cash that they own that they want to put to work in real estate. They might not want their $500,000 in the volatile stock market. That is my case, where I have an old 401(K) and would rather use that money for real estate.

@Brian Eastman

Eric, I think you missed my point. Why invest in real property, when you cannot realize the tax advantages associated, when you can invest in performing notes secured by real estate? Similar returns, far less headache, and you are not giving up a tax advantage you would otherwise earn by investing in rentals with taxable income which you can write off interest against. 

Post: Member Owned Supportive Housing Facility Investment Opportunity

Kevin MoenPosted
  • Rental Property Investor
  • Seattle, WA
  • Posts 215
  • Votes 77

I am a bit confused here. Are you saying an investor can invest $17,128 in a security secured through this non profit, which will then finance the sale of a property to these seniors, and can expect $10k in income off that investment?

Post: Self Directed IRA

Kevin MoenPosted
  • Rental Property Investor
  • Seattle, WA
  • Posts 215
  • Votes 77

Why invest in real estate with your IRA? You lose the tax benefits of paying a mortgage, you pay unintended taxes by using leverage in your deal with your IRA, and you have to find a lender willing to write a non recourse loan. Not many around that will do so with only 20% down. Why not invest in real property with after tax dollars and tax the tax benefits, and invest in notes with your tax shelter. This enjoy the double digit returns notes can offer without leverage, and keep your tax benefits associated with real estate.

Post: Seller Financing a Spec Home

Kevin MoenPosted
  • Rental Property Investor
  • Seattle, WA
  • Posts 215
  • Votes 77

Why not just sell them for cash and invest that cash in passive income opportunities? You could even invest in a fund buying notes secured by real estate. Seller financing thrives when either 

1) Interest rates are high

2) Banks won't lend

Rates are low, so that one is out. Banks tend not to lend on properties in the $50k - $75k range. This creates opportunity for seller financiers. If your property is $100k+, you are leaving money on the table by seller financing in todays market. You are either selling to a sub prime borrower, or letting inflation eat away at your note earnings over time.

Post: Deal Analysis and Advice on NPN. Grateful for all feedback!

Kevin MoenPosted
  • Rental Property Investor
  • Seattle, WA
  • Posts 215
  • Votes 77

Have you run a title search for the one you are considering taking deed in lieu? Very important. You also have zero rehab cost for that one to become a rental, do you think that is realistic? 

Have you had boots on the ground for the first note? Not paying for 7 years, if its vacant is it stripped? Have the taxes been sold to an investor for prior years? 

If you decide to go forward with these deals and want advice on seller carry back vs wholesale vs selling a turn key rental, feel free to inbox me.

Post: Self-directed IRA

Kevin MoenPosted
  • Rental Property Investor
  • Seattle, WA
  • Posts 215
  • Votes 77

Why would you want to hold a rental in an IRA? You lose the tax benefits of a rental, you increase headaches by requiring all cash to flow through your IRA (including for repairs, improvements, etc), and when you leverage a property that your IRA invests the down payment for, you get hit with additional taxes. Not to mention if you ever want to refi, you have to find a lender willing to do a non recourse loan.

I would highly recommend using your personal cash to invest in rentals, and to hold notes in a self directed retirement account.