All Forum Posts by: Loren Whitney

Check out this BiggerPockets blog on UBIT that I posted last week. 

https://www.biggerpockets.com/blogs/5105-self-dire...

UBIT does not always take a significant bite of your profits. You can't say that until you've crunched your numbers.

Pm'd you.

@Daniel DeckerSorry for your loss Daniel. 

It sounds like you're on your way!

Be sure to understand all of your options when it comes to Beneficiary IRAs. You can self-direct them without a problem but it's good to know about all of your distribution options and think about how RMDs will play a role in your investment strategies. 

1. You can not contribute to a Beneficiary IRA.

2. You'll need an exit strategy. You're required to distribute the funds one was or another because of RMDs. How will you plan for that in advance?

You can always refi and cash out to purchase a second property later. Be sure to study up on the pros/cons of UBIT. 

Outside of creating self-employment income, I would look at your eligibility to move existing 401(k) assets. If your 401(k) is with your current employer and you're under 59.5, you probably won't be able to move those assets into a SDIRA or Individual 401(k). Just something to think about as you put the pieces together.

Nice work Matt. Glad this came together like it did.

Most non-recourse lenders will require a minimum of 35% down. If you have access to private capital that will take a lower down payment, try that route. Just make sure that the financing is considered non-recourse. 

I've seen clients purchase their first property for cash then cash out refi into their second property. The choice is yours. 

All great thoughts, thank you.

Not under contract yet. I tried explaining that a title company could help facilitate the process.

I'm in the process of working on a FSBO deal locally and the seller needs LOTS of hand holding. I've already made an offer but continue to receive hesitation in all communications from the seller.

The seller is in way over their head from a mechanics and number crunching standpoint and want desperately to walk away with every possible penny. My offer is very fair and just barely below market value. The seller sees my offer figure but has no idea how to calculate the other closing costs or even compare other offers.

Aside from telling the seller to find someone who can represent them in the process, what have others done? 

Can I help explain the associated closing costs to give the seller a better idea of what they'll expect to net? It wouldn't be hard to mock-up a sample settlement statement with rough figures. I've already spoken with the title/closing agent I use locally and know what most of the costs are in advance.

Thanks for sharing your experiences.