All Forum Posts by: Tyler Mullen

Does anyone happen to know if someone on a H1B visa or a green card can be a member in an LLC?

Thanks,

Tyler

@Michael S.

Check if this holds in your area as available option, but in my area, as long as the tank has not leaked you can have it decommissioned and left in place.  I've sold many properties with UST, both resi and comm.  Resi UST testing and decommissioning usually costs $800-$1,200 depending on property access and tank size.  They just drain the tank and fill it with a type of cement slurry.

If oil is the current energy source though you'll also have to factor in a new energy system, furnace, etc...  But if it's in use and not leaking, you're not REQUIRED to decommission or remove it.

Also, as far as I know, contamination from UST is the liability of the person that owned the property at the time the contamination existed.  If contamination existed for 20 years and you owned it for the most recent year, the other party is liable for their 19 years worth.  Now how that all actually plays out with insurance, attorneys and courts in individual cases, and at what costs in money and time, that's the rub.

There is usually an insurance policy on the tank, to cover leaks, as part of the price of the fuel, so check with the seller on that.

I would certainly recommend making your deal contingent on a clean leak test (and decommissioning if that's what you choose) and have your deal effectively read such that if the test comes back with water in the tank, ie the tank has leaked, then you can walk from the deal and get your EM back.

The existence of a UST, especially if in use and not leaking, in no way needs to be a required deal killer though.  If it's in place, not in use and not leaking, then you test and decommission in the ground.

As far as a loan, if it's in use it's fine, that's the energy source.  If it is not in use and not decommissioned they will probably require that, as that process ensures to them that it didn't leak, because the contractor wont decommission a leaking tank.  If it leaked you just walk away anyway unless the cleanup cost is worth it to you.

Tyler Mullen, CFE

@Braden Downs

If you're this interested in making money, debating investing via ROTH or REI,... and expect to remain diligent in your savings, I judge it very likely that you will soon have an income high enough to phase out or eliminate your ability to contribute to a ROTH. My advice would be to contribute while you can, just do not make that your only savings bucket as it's locked up until age 59.5.

@Corey G.

In my opinion the method that gives you maximum choice in the future, when you're unsure what to do now, is to save the cash into an earmarked account.  After X months you can decide to pay down a mortgage or add this fund (or part of it) to your down payment on a new property, then repeat.  This choice costs you the minimal amount of interest you'd save had you used the funds to pay towards mortgage instead.  Cash might be king but choice is heir to the thrown.

Anytime one has multiple debts and they really want to pay them off, I recommend paying off the smallest balance first.  Each time you pay a debt move to the next lowest balance but put all your newly freed up CF towards that debt.  This method goes by multiple names including "the debt snowball", it works better than the highest interest rate first strategy because it changes your thinking and keeps you motivated as it's happening.  You see the debts going away and it's exciting.  Yes, you pay more interest this way, but the amount is negligible if you Excel it out, or slightly more interest is acceptable I guess considering it succeeds more often with more people becoming debt free.

Tyler Mullen, CFE

@Brian Eastman

Client retired at unknown date, no ability to contribute more funds for some time.  Years later becomes my guardianship client.  As typical there are no documents at his home, our only choice is to get a court order appointing us trustee/plan administrator and then we will sell the properties in plan then draw funds as needed.  It's been an interesting journey as when appointed no one knew this plan existed.  Imagine my surprise when our title reports came in...

Lesson for everyone is plan ahead, right?

Thanks, Tyler

@Brian Eastman

So it's not even allowed, interesting.  I've run into a similar situation with a retiree and the 401k has no reserves just properties with negative cash flow net.  It's a problem also because now there is no plan administrator (the retiree is under guardianship) so we can't sell the houses yet, no legal signer.

So I imagine people just do it anyway right, and don't report it?  I mean, if a roof is leaking right, it's not like you're going to wait to make contributions to replace the roof...

thanks, Tyler 

@Justin Windham 

When one purchases property within a 401k and a major repair is needed but no cash is left, if one pays for a roof from non-401k funds does that count as a contribution?  I've always wondered about this, thanks in advance for any background you can give!

Tyler

You're on the right track, yes.  Bankruptcy for instance, retirement accounts are (usually) shielded through that process but when you take the funds out of that account then they become regular capital available to you for any purpose, which makes them subject to the same risks as regular capital.

I'm not necessarily against your idea, just wanted to make sure you have all the risks in mind so you have the chance to develop a robust fallback plan.  What is your strategy timeline for paying the funds back, can you still pay the funds back even if this deal doesn't go as well as planned?

You want to make sure you have a fallback plan for the worst case scenario then arrange so if that happens you're not out of the game.  

Hi Rich,

If you're just looking to diversify away from RE and into securities and want to get started without worrying about fees or stock picking, IMO the easiest place to go is Wealthfront.  That gets you involved, then later on worry about an account where you pick the stocks once you have a solid base of lower vol ETFs.

Tyler Mullen, CFE

The Millionaire  Next Door and The Millionaire Mind, because building wealth requires diligence in a whole range of areas.

Basic Economics by Thomas Sowell

How an Economy Grows and Why it Crashes, because it's straight forward and humorous.

Originals by Adam Grant I think?  It's about non-conformists and leadership.  

Also look up Simon Sinek and his TED talk on "Start with Why"