All Forum Posts by: Tom Makinen

The venture funds still live here.....

That's assume you have a Fannie backed product

Unemployment rate is 15%+, bankruptcies are going up, business not making as much money.  Stock is only down 8% YTD and home prices are flat.  Yup, we are not in a bubble.  

you can take care of some losses but not 800k worth without a mortgage.  You need to start a company and likely rehab a house, not buying a rental.  

You might qualify as an accredited investor, you can look into some oz deals.  Unfortunately most oz deals don’t flow cash for 2-3 years.  Perhaps stick 25-50k in it, just to balance everything out

@Julie Edwards. There are bunch of 1000 so ft home off 880 that you can buy for 250-350.  They were going for as high as 500 but I think the market got saturated with them and now they are about 400.  It is a pretty odd sigh to see a beautiful home in some of those neighborhoods

Even if you depreciate your own building, it’s highly doubtful you can get 800k worth of it.  Oz is nice to defer it, but you need to buy something that makes sense instead of just buying.  

Is 800k your gain or your balance?  If it is 800k gains, you are looking at 300k plus in tax bill.  You really need to defer some of that gain if you can. Putting your egg in a multi family isn’t a smart idea to me either, you need to diversify and have some backup cash.  

You can do Oakland for less than 400k...

If you want to use your 401K to buy properties, you should get a loan out and use the 50K as downpayment.  To buy a property under the 401k's name, you better be sure to keep a good distance at it as you are not supposed to touch it.  I understand this forum has real estate bias, but it doesn't seem like a good idea to put all your eggs in one basket.

Unless you are buying a commercial property, it seems difficult to get a mortgage without a personal guarantee.  When you guarantee the mortgage, the property is disqualified as 401k assets.  

Huh Roth is post tax.  Isn’t self directed ira and 401k pre tax?  Why do you want to pay tax twice?