All Forum Posts by: Troy Christnacht

Thanks Russell, I appreciate the feedback and good luck to your mother.  I'm actually "interviewing" a new accountant on Monday.  I've had the same accountant for the past 15 years but I've grown beyond her comfort level.  As you said, its a good time to regroup with the new tax reform.  

Thanks for the input everyone. Yes, this is legit and my friend builder is looking at this as a cheaper way to operate than an equity partner but still values my input and the speed of the process to justify the #s. My pushback from my accountant is that this may convolute my current pass thru tax return. I currently have 20 rentals in various LLC's that pass thru my personal return. She says if I now add private lending as described, that would classify me as "in the business" of lending money (brokering) and thus create another tax return or schedule and an added 15% self employment tax. Now she has me second guessing things....any input is much appreciated.

My cost (Heloc ) is 4.5%, the builder will pay me 20....thus, I'd be netting 15 on 6 months secured note.  My accountant is trying to talk me out of it...she says too complicated????

Can I use my HELOC for private lending to another investor? I've used it to build my rental portfolio and now I'm done with that. Now I'd like to use the HELOC to private lend to a local friend builder for spec house flips. I'd net about 20% if so.....thanks.