All Forum Posts by: Stacey Adams

@Mark Nolan  Thanks for the advise.  

@GregoryTibok

Thanks for the information but I think my startup is small potatoes for that process.  But I am glad to know I can go down that road in the future.

@BrianEastman Thanks for the information. I am starting a small online business and I have chosen to register it as an LLC. If I were to pursue your suggestion I would need to change the entity and it looks like a lot of additional paper work. Since I need much less then $50, as you stated, this probably is not a great option for me.

I am debating if I should take the penalty hit on cashing out my retirement fund and be free to invest the money however I want.  I know everyone says its better to roll it over to self-directed but I need the money for a small business as well and rather not deal with the paper work if I don't have to.

I guess what I am asking is in what situation would it make more sense to just cash out?

Thanks!

I was thinking of doing the same thing but wanted the one for more then just Real Estate investing. I was actually thinking of cashing out one of my retirement plans and taking the hit since my income this year will probably be low. The goal is to invest in my small business (which I heard is a no no with a self-directed IRA) as well as in Notes and Real Estate.

What do you guys think about me splitting the money and rolling over half of it in a self directed account for real estate investing and the other half cashing out and taking the hit so I can invest in my new startup.

What do you think?

Hello All,

Wondering if someone has advice for me. I am on the board of my building which is a condo and one for the owners has walked away from her apartment and owes the building and the bank 6 years of mortgage and maintenance.

Anyway, the building put a lien on the unit for the unpaid maintenance and was in discussions with the bank about a joint auction. Out of the blue, the bank Chase  sold her loan to another bank and they decided to forclose on the unit and name my building as a defendant instead of a Plaintiff with them. I guess its every man for himself!!

That said, the new bank is trying to recoup what they are owed in the auction which is scheduled in two weeks.

Here are our options as I see it but I am hoping some other savvy investor see's an option I am not thinking about:

1) Building's Attorney is currently contacting new bank's Attorney to try to work out a deal (This may not ever happen because they are not responding)

There was a summons severed to my building incorrectly so our Attorney is hoping to stop the auction on a technicality but this will probably be expensive.

2) Building can go to the auction and bid on the property but we will need to pay cash (over half a million dollars) no financing allowed. If we do this we short ourselves on our lien but could make it up on the sale of the unit if we win the bid.

(BIG ISSUE, SQUATTERS ARE IN THE UNIT! A RESULT OF A DIVORCE AND THE UNIT OWNER LEAVING 6 YEARS AGO)

Since the building is in NYC it could take months to get the squatters out which means loss revenue for the building that may eat into all of the assumed profit.

3) The building could allow someone else to win the auction but if the bid doesn't amount to more then what the bank wants there will be no surplus for the buildings lien. That means six years worth of back money (over $100k) not collected by the building. The new owner would have the same Squatter issues BUT, the building, would expect them to start paying maintenance from the start of ownership. This may not be worth it if the new owner intended to live in the unit.  If an investor purchased the property they would need to pay all fees + a 3% flip tax when they sell the place. This may not be worth the investment depending on how long it would take to get the Squatters out. Could be six months or more, these squatters are savvy!

What would you do?

Also, I am trying to think of creative ways to finance the purchase if the building decided to bid at the auction.

Here are the estimated numbers:

Bank owed - 530

City owed- 60

Building owed- 130

Estimated total: $720k (with legal fees & apt repairs lets add another $40k)

Estimated market sale: $860k

That said, approx. $100k can be made on this deal for the building 

Any Suggestions?

I thought their was a webinar today at 8pm.  I am pretty sure I signed up for one because I have it listed in my google calendar.  Was it canceled?

Yes, Yes, I'd love to attend the Aug. 19th meeting in NYC