All Forum Posts by: Sandy Sawyer

Ha ha ha! Hi Bhanu, I just learned to not only read a few posts before replying! I'm so happy to see that your story ended well. I'm so new to the investing arena and BP. 

Hi Bhanu, I'm new to BP and a new real estate agent in Houston... I'm so sorry to hear this story! But I think you would be wasting your time to try to hit up the title company, as the deed they issued doesn't go back far enough to cover what the HOA and the bank did. I would first check to see exactly whose name is on the title and then just call the HOA and let them know what happened. I was on my HOA board of directors and I know they don't like foreclosing on people any more than the next guy. Get their input and suggestions, which will probably lead to talking to the management company and then be to get an attorney. If you want to send me an email at my cccisit.com address or IM me, I'll be happy to look up the info for you on the MLS. Btw, how did you find out about all this?

My idea is to avoid capital gains tax by flipping within the ROTH IRA while avoiding the transaction fees by managing the LLC myself. My questions are 1) What is Unrelated Business Income Tax as it relates to this? 2) Can I hire all the work to be done by contractors without going through a GC?

Thanks a lot @Brian Eastman and @George Blower, this gives me something to chew on...I need to go learn about what is UBIT. I find all this so fascinating! Really appreciate your insights.

@Brian Eastman I really appreciate the thorough explanation. From the studying I've done, I have the idea that I can take funds from mine and hubby's ROTHs and transfer into new ROTH accounts that support the whole LLC thing. Then set up a bank account in the name of that LLC and manage the funds from there. In this way I can flip houses as long as I don't do the actual work, then the income is tax free. And I can act as the general contractor but can't pay myself or receive any commission on the sale. Am I correct so far?

Is there any reason I couldn't help out-of-state investors acquire property at auction by being the local eyes and ears for them? I'm a new real estate agent looking for ways to get into the investing arena. 

So far I have to agree, I've learned soooo much by listening to the podcasts and I've read the Book on Flipping Houses, and just now getting acquainted with how to use these forums. Thanks! @Jason Hirko

Oh, very helpful suggestion @Tom Cooper, I'll certainly do that, thank you!

I've heard you can label it a "prehab", if you've done all the preliminary work and all someone has to do is come finish it. 

Please forgive me it this ground has already been covered, but I've read that I can use the money in my (and husband's) ROTH IRA to fund investments, but better to put them in an LLC that I can manage the checkbook. Is this still a viable option? I was at the Houston REIA last night talking with a girl from Quest and she told me that's a prohibited transaction, for me to personally manage the LLC, that the custodian would have to do that. Any suggestions? I also don't want to bleed out in fees.