All Forum Posts by: Tim W.

I plan on using the funds to help with the rehab in stabilizing an apartment building. My company allows for a $50k max loan to use the funds for whatever need be but the repayment schedule is 5 years. I wouldn't be cashing out the 401k. My understanding was a loan against a 401k isn't a taxable event as opposed to cashing the 401k out. The idea was to get a larger loan with a potential longer repayment schedule from a local bank but it seems more complicated than I thought.

Brian Adams By the way, these aren't large syndication deals. The two apartments in question are 10 and 14 units. Nothing substantial and not a syndication. I don't know if that clarifies or helps in anyway.

I'm looking for additional funds to finish repairs/rehab costs. I've opened a HELOC, done a cashout refinance, and opened a business credit line for the LLC already. I'm trying to be creative and find extra funds if we potentially need them. I'm a Southern California resident. I've heard of loans that use retirement accounts as collateral. I have a 401k, does anyone know of a lender who does this? Does it pose an issue that the funds borrowed are against a retirement account (are there any extra penalties or fees associated with this type of loan)? Any help/advice would appreciated. Thanks, Tim

Brian Adams I'm planning on holding for 2-5 years. None of the funds invested were retirement dollars.

Recently, I purchased two multifamily apartment buildings. They are value add opportunities and require rehab/renovations. The idea of cost segregation came up regarding accelerating the depreciation costs. At what point would one consider performing a cost seg? Any help/advice would appreciated. Thanks, Tim

@Robert Afra I would definitely be interested. 

Chris Strasser Hi Chris, best of luck to you. I recently closed on my first multifamily deal as well. I closed on another one before the first was stabilized enough. In hind sight, I would have took a slower route and wait for the first to full stabilize before moving onto the next one. Just wanted to share with you my experience.

Joe Kim I've leased and purchased each of our last 2 cars. I leased our SUV when our kids were young (surprisingly, strollers take up a large amount of cargo space). We didn't know how long we would need the large car. As for the purchase, my wife loved the higher sight line compared to our sedan, so we decided to purchase another SUV. We basically experimented with the lease and then purchased what we wanted after the results of the experiment. If you're looking for a new car every 3 to 4 years, I'd recommend the lease as long as you stay under the mileage requirements. You can always purchase the residual after 3 years in the event your wife loves it. The difference between purchase and lease is probably a couple thousand dollars difference and that doesn't seem like it'll affect your quality of life.

Purchase home in appreciating market. Purchase $750k primary residence with $150k down (20%), such as sunny San Diego, CA. Either wait or force appreciation up to $1 million. Cash out refi to take your down payment + extra back, then buy investment properties to produce the $2700/month cash flow you mentioned previously. Drive whatever car you want (lease or purchase) while living in the house you want.

@luis moreno I had the same question a couple of days/weeks ago. From what I've gathered, opening an LLC with an attorney (not legalzoom) was the most heeded advice. Since then, I've started my LLC with my attorney to form an OH LLC. Because I'm not a resident of OH, I will be going with a company to represent me as my statutory agent which is a requirement. Also, from what others have presented, I'm also expecting to pay the $800 annual California fee even though it's an OH LLC.