All Forum Posts by: Steve C.

Thank you Brian and Bernard for the feedback. 

Brain, can you explain above comment? So UBTI can theoretically reach 30%, but it is very unlikely in most cases?

Below was quick summary from Damion Lupo

An eQRP lets you: invest your retirement funds in nearly anything, $58,000 annual contribution limit, no custodian, and avoid a 37% UBIT tax hit (like you have with SD-IRAs).

Thank you for everyone contributing to this thread. It is very helpful. 

I didn't fully understand the conversation though, so let me ask specific question. 

I am thinking to invest in real estate syndication deals or turn key properties. 

My understanding is that it is still better to do it with solo 401k (or eQRP) compared to SD IRA.

Pros

- full freedom and doesn't require custodian 

- not subject to UBIT tax (which can be 37~50%)

- better protection with LLC especially with investing in turn key properties

Cons 

- high setup fee (eQRP can cost $5000)

- might require self employment income (not including passive rental income), but there is workaround with eQRP

I think high setup fee can be justified even for real estate syndication deals because it allows to avoid high UBIT tax. 

Is this correct understanding?

Any insight is appreciated. Thank you in advance. 

I used apartments.com to get credit report for screening tenants. 

I am trying to understand credit report for the purpose. 

Overall score was around 530. 

1. This report I see "verified" date (say recently like 1 week ago) on a collection account. What does this mean? Does this mean that it is legally "verified" that the person is required to pay the amount? This is what I find online. Or does it mean that is already paid? If not, how I do know whether this amount is paid or not?

2. For a collection account, I noticed that it is from T Mobile for amount $3200. I am trying to understand how someone can get a debt of this amount from mobile service provider. Even if stop paying the bill and not paying for a new phone, this amount is something to hard to reach.

3. I see 8 credit accounts which have "negative" line of credits. When I searched, this means that the owner over paid these accounts. Is this correct understanding? Few accounts can have "negative" say when you returned something. But it's strange to me that 8 accounts are like this.

I had great experience with him.

Will at least check with my lender and get back to you.

Just letting everyone know that it is a great time to get refinance.

I locked the rate at 2.875% (from 3.5%) this morning for 30 years fixed for primary residence. Also, locked the rate at 3.625% (from 5.5%, paid around $1000 for loan cost, 4.125% was no loan cost) for 30 years fixed for investment property.

http://www.mortgagenewsdaily.c...

I would recommend checking with your mortgage officer about refinance.

Does anyone have experience with Abode service?

https://www.abodeservices.org

It is non profit based on Hayward, CA in bay area. Purpose is similar to section 8. They claim that they are in partnership with big companies like Google, Amazon.

https://sanfrancisco.cbslocal....

SAN FRANCISCO (KPIX 5) — The decrease in Bay Area rental prices has been significant this year, especially in the most expensive cities. Some median prices have even dropped by double-digit percentages.

San Francisco is still the most expensive city in the country to rent an apartment. But new numbers show there’s been an exodus of residents who have better options. Renters are simply walking away from their leases.

“People are leaving and ditching their apartments, or leaving roommates hanging, or trying best to find a sublease or just leaving San Francisco and moving back home,” said tech salesman Anthony Natoli, who decided to move back to New Jersey with his parents after paying more than $4,000 a month for his apartment in Cow Hollow.

“All of the normal things that we see as driving demand for rental housing in San Francisco have pretty much dried up,” said J.J. Panzer, President of Real Management Company.

In June, rent prices year-over-year dropped more than 9% in San Francisco, Mountain View more than 15%, and Cupertino down 14% according to Zumper, which provides listings of available rental properties and services.

“A lot of people are moving out to Southern California, moving out to Central Valley, moving up to the Sacramento area, Tahoe, and Sonoma County,” said Bobby Fallon of Shamrock Moving & Storage. “It’s definitely been a trend that’s going on. ”

A new survey from the San Francisco Apartment Association shows more than 7% of renters simply broke their leases over the last three months.

Some 2.7 million adults in the country moved in with their parents in March and April. That’s a trend that could lead to more than $700 million in lost rent for landlords this year according to Zillow, an online real estate database company.

“Landlords want a commitment that they’re not going to have a vacancy at this time when we’re looking at with such incredible supply and lots of units opening up and no demand to fill it,” said Panzer.

There may be a way for renters to take advantage of the trend if they approach it correctly.

“You’ll get farther by recognizing landlords want that base rent to be kept basically where it’s at,” said Panzer. “Ask for a free month’s rent. Sign a new one-year lease and the effective rate goes down for 13 months essentially.”

According to Zillow the most affordable cities in the Bay Area now are Vallejo and Concord with the median rent for a one-bedroom going from $1450-$1750.

Thanks Kathy for advice. I kind of finish renovation already. I thought that this will easily go away. That's what my contractor was telling me. My mistake. Yes, I did move in report.