All Forum Posts by: Tanner Gish

*accountant

Hey Friends,

  There is probably some seminole BP thread that asnwers this already, but I haven't found it yet.

My account just put a damper on my plans to fund a Self Directed IRA this month with a 2015 max contribution, and a 2016 max contribution in early Jan, and to take those $13,000 to invest in a flip project I'm working on. I was told my plan has two shortcomings:

1) You cannot use proceeds from a self directed IRA to finance (purchase or rehab) any part of a deal you manage (even it the property is owned by an LLC, I still own the LLC)- this is "Self-dealing." True?

2) You cannot do this, and let's say, this $13k was all that was needed for rehab (let's say property was purchased with another loan) as equity ownership in the property, and after the flip, the profit share for that borrowed $13k was, say, $20 k (a 153% return), that this also not allowed- the rate of return cannot exceed what typical equity market return would be. I find this "counsel" I received pretty unbelievable, as I'm pretty sure Uncle Sam won't stop you from making this kind of return had you bought Netflix stock with your IRA years ago and made that kind of return.

  Humbly looking for your wisdom and advice. Thanks!

-Tanner

Hey Friends,

  There is probably some seminole BP thread that asnwers this already, but I haven't found it yet.

My account just put a damper on my plans to fund a Self Directed IRA this month with a 2015 max contribution, and a 2016 max contribution in early Jan, and to take those $13,000 to invest in a flip project I'm working on. I was told my plan has two shortcomings:

1) You cannot use proceeds from a self directed IRA to finance (purchase or rehab) any part of a deal you manage (even it the property is owned by an LLC, I still own the LLC)- this is "Self-dealing." True?

2) You cannot do this, and let's say, this $13k was all that was needed for rehab (let's say property was purchased with another loan) as equity ownership in the property, and after the flip, the profit share for that borrowed $13k was, say, $20 k (a 153% return), that this also not allowed- the rate of return cannot exceed what typical equity market return would be. I find this "counsel" I received pretty unbelievable, as I'm pretty sure Uncle Sam won't stop you from making this kind of return had you bought Netflix stock with your IRA years ago and made that kind of return.

  Humbly looking for your wisdom and advice. Thanks!

-Tanner

1. Hey Everyone!
2. Happy Holidays.

Question: a partner and I purchased a property cash last month (vested in an LLC where we are 50/50 members). We have now started collecting rent, and what to set up the capital contribution we both put into the LLC to purchase the property as a personal loan to this business, with the net rents paying this loan back to us.

 1) Does anyone have such a promissory note they have used that they could share?

2) Since there will be at least one person trying to get that easy post to rack up their post tally by briefly and ambiguously  says "go see a state specific RE attorney," one tip that I would appreciate that comment at least say which state's laws I should be concerned about, and thus, know which state to find and attorney in?

3) Is there a cap to what we can set this interest rate to be (I've heard that you can't exceed whatever cap users laws would allow). If anyone has heard of this, I'd appreciate direction to resource it (because somehow, hard money lenders seem to be able to go around this, as well as sub-prime car lenders).

  Thank you so much! Burned a lot of time on the web trying to figure this one out on my own!

-Tanner

@joe fairless

   Great, thank you Joe – I appreciate it!  This helps me feel more confident in my valuations for a potential property package. 

Hello Friends, especially those investing in metro Cincinnati,

  I hope you're all doing well, and looking forward to Thanksgiving!

  Now, here is a question that might draw a facepalm (esp those who know how street-to-street Cincy can be), but here's a question: Around Norwood, what would you say the typical 1) cap rates, and 2) gross rent multipliers, are you seeing for properties in that market (let's assume C class properties, or well cared for/ rehabed Turn of the 20th century houses in that area)?

My general gloss is showing that it's possible to likely get around a 7-9 % Cap rate, and likely an 8-9 GRM.

  Would you guys agree with this as a generic starting point?

  Thanks!

-Tanner

Yes, thank you Richard! I appreciate the data resources.  I was just running some numbers for a potential package of student rental properties this week. I got some numbers from the City Hall, and from the school, but I would want to run those numbers again something else to confirm their legitimacy. Your links definitely help. Thank you so much!

Hello Slilmen,

I'm glad to see your enthusiasm. However, I think everyone would agree- 1) it's impossible to evaluate l, with you in detail, or at all, describing what your ideas is, and 2) raising money is never guaranteed, and it has part to do with your deal, and everything to do with you, and your determination to raise it.

So far... @bryanc- it doesn't look like it.

What are the normally BP tips and tricks for getting your post noticed? Otherwise... looks like there could be a great business opportunity there in west Cincinnati...

Hey BP Friends,

Question: I just closed on a 3-unit property in western Cincinnati (Westwood area- a better part of it).

Who would you recommend as a property manager for that end of town? Ideally, someone experienced with that kind of tenant base (likely, someone who is a pro at section 8), who isn't located too far from there, and ideally, someone who is a NARPM member.

Look forward to any recommendations!

-TannerHey BP Friends,

Question: I just closed on a 3-unit property in western Cincinnati (Westwood area- a better part of it).

Who would you recommend as a property manager for that end of town? Ideally, someone experienced with that kind of tenant base (likely, someone who is a pro at section 8), who isn't located too far from there, and ideally, someone who is a NARPM member.

Look forward to any recommendations!

-Tanner