All Forum Posts by: Paul Jamgotch

Hi, as a former MH appraiser I can suggest that NADA is not a good tool for placing real value on a MH, especially one on land. It might be a good tool for establishing replacement value for a home only.

Example, it was not uncommon to appraise a double-wide home in a park that sold for $25K and the NADA 'booked' out at $45K. This was common in mid-west. Now, in Malibu, CA, I appraised a home in a park for $1mm when the NADA 'booked' it out at about $40K. This was 13+ years ago so please understand that my figures may not be spot on but you get the idea.

Thank you @Steven Hamilton II . I'll definitely take you up on your offer if a decide to go down this road any further.

Hi. I'm hoping that @Steven Hamilton II or someone can walk me through the financial implications of doing a ROBS? I know that IRS scrutiny is well documented.

Consider the following:

1. An individual has $150K in savings account and invests in flips or new home construction making $50K in 2014. I would assume he pays income tax on that $50K assuming one declares real estate as her profession (otherwise it would be short0term capital gain)?

2. An individual pays $3k-5k (plus $500/year) to a financial company to set up a ROBS utilizing her $150K IRA funds. The C-corp is established. The C-corp pays her a salary of $50K which she declares on her individual taxes.

Is there additional taxation for the C-corp?

Is it ok to pay out the $50k as salary?

Is there a requirement that the IRA gets refunded by a certain time or any specific intervals?

Thx for the help.

Looking for a investor-friendly GC in Grand Rapids, MI area for flips. We have two investment properties and are now starting to finance flips. Recommendations are appreciated. Thank you.

Is it possible for Plus or Pro accounts to configure "Recent Forum Posts" to include only those forums they wish to see when reaching BP.com/forums? If not, can I make this suggestion for future development? Perhaps a checkbox system? TIA

You're obviously in a great position. You don't want to give the buyers a license to run the properties down but don't want to set them up for failure. I would think you need to figure out what you would sell these for cash and your desired roi. Until you know these numbers, I'm not sure how you can determine what you would do for price and terms.

For example, if I were willing to take $550K cash and needed about 12% roi over three years ($773K total), perhaps I would sell for $630K (15% over cash price), $95K down (15%), 10% interest-only (+53,500/year), with three-year balloon of $535,000 due ($790k total received minus expenses, of course)..

Hopefully someone more experienced than me will chime in here. The numbers can be played with to fit your price and desired returns.

I have a series 3 but could add a 7 for the right opportunity. Right or wrong, I feel my age (mid 40s) is working against me in the financial field. Easier to get a guy out of school and train him the way you want for $30-40k/year. I ask myself if I want to try to get back into the tub of heating water with the other frogs again.

I've been looking at property. Have one with @Brandon Krieg I am eyeing... meeting with a GC tonight.

Thanks for all the advice, all... plz keep it coming.

@Pat L. Thanks Pat. There has been a lot of stress over the years... lol Agreed, NY, NY area would be prime spot for what I did. Our kids are doing quite well in high-school so we're trying to keep from moving them.

Great advice, Bill. I appreciate that you put this together as its very sobering and valuable advice. I'll refer to it often over the next 12 months, I'm sure.Thanks so much.

I come from a unique area in finance...a Trading Desk. I've spent the last 13 years of my life in a 3' x 4' area staring at six monitors and executing trades over online platforms and other trading Desks in NY, Chi, London, and Australia (I am in MI). I was not prop trading so its not like I am a market guru or anything; I was simply following rules set in place to execute trades when certain events transpired. Coming up with a list of 100 people would be nearly impossible for me which is why my RE career would require unique marketing and supplemented by flip projects... at least that is the idea at this point and the one I am working on heavily while I fulfill my obligations with current firm.

@Roger Dickson might know? Good luck.