All Forum Posts by: YiBing T.

Hello BP Community, 

I am preparing to do a flip project in Baltimore MD, in the 21209 zip code. Anyone knows a general contractor who can handle kitchen remodel, 3 bathrooms and whole house painting etc? Please contact me directly so we can schedule a time to visit the job site. Thank you 

Yibing

Hello I am looking for a General contractor (licensed and insured) to help us with a flip for a single family in 21209 zip code. This is a 3 bed, 3 bath, 2200 square feet house, no basement, two levels. The rehab includes 3 baths, kitchen, flooring and indoor and outdoor painting, landscaping, all appliances. Please pm me your phone number if you are interested for a walk through. I will be at the property next Tuesday afternoon and Wednesday morning 8/7/18 and 8/8/18. Thank you Yibing

Hello BP,

I recently came across a deal. The property is in the suburb area of Baltimore County, Maryland. The deal requires all cash and since we don't have that much cash on hand, I am thinking of partnering my LLC, and self-directed IRA accounts from my mother, wife and my old 401k. I heard there are a lot of restrictions but I am interested in trying it out for the first time. Here is the breakdown of the deal, would you provide your opinion on this?

• Partner 1: my own Self Direct IRA LLC (out of state LLC, somewhere low cost)
• Partner 2: my wife's Self Direct IRA LLC (out of state LLC, somewhere low cost)
• Partner 3: my mother's Self Direct IRA LLC (out of state LLC, somewhere low cost)
• Partner 4: an LLC that is owned by both my wife and me.

Partner 1-4 contribute funds to a Maryland LLC to title the property.

Has anyone done deals like this before? Would you mind sharing how you construct a real estate deal? Would my planning violate any IRS rules for self-directed IRA? The only thing I am not sure about is my LLC is owned by me and my wife.

Thank you very much. 

Yibing

@Wayne Brooks I scratched out/rewrote the correct spelling using DocuSign right on the signed form and initialled right next to the new spelling.

Do you suspect this could be an issue? I have seen those type of minor changes before in my friend's contracts and they were not being challenged.

Great feedbacks. Thank you all.

I apologize for not making it clear in the original post. The correction that I made on the signed contract were mis-spell of my name. Nothing relates to the price or contingencies involved here. 

@Account Closed

Hello BP Community, 

I'd like to get your opinion on a situation. I found a property that was marketed for sale while I was on a home inspection of another property just a few doors down the street. I contacted the selling agent personally and started working on the contract. Long story short, after a few backs and forth, and a long delay from the seller's agent (due to health issues), we finally got the contract signed. Just about 30 minutes after I send back the ratified contract to the seller agent, the seller agent emailed me back and said they are receiving multiple offers and ask me to send in the best. 

My question is since I already have a ratified contract, could I still be outbid?

What are my options with the situation like this? 

If I decide to settle with the seller to void the contract we are in now, what would be a fair dollar value to settle (we prefer to settle without any legal actions)?

Are there anything else I should be aware of? Thank you. 

Hello

I have been listening to a lot of podcasts that talks about doing a Quitclaim Deed to transfer a property from personal name to an LLC for asset protection purposes. I am interested in doing it, however, I am concerned about depreciation.

My CPA said that I can depreciate a rental property in 27.5 years. This depreciation helps me lowering my taxable income from W2. A lot of savvy investors seems to be able to write off all of the property depreciation against their taxable income. So at the end of the day, they would pay $0 for income tax. However, one question that has been going through my mind which I couldn't find an answer for is this: if I deed the property to an LLC, would the property then be on the LLC tax return? If so, how can I still depreciate the value of the property after I Quitclaim the property to an LLC? The purpose is to use depreciation to lower my taxable income.

Sorry for the noob question, thank you all in advance. 

Yibing

Originally posted by @Steve Vaughan:

Darn. Thought this was a creative question ;)

If residential like a house, my and I think most conventional residential lenders loan up to 75% LTV on rentals/non-owner occ. 70 is conservative. Just check with any local bank or mortgage broker. They should be able to use your same appraisal within 60 days or so.

Commercial will pretty much have a cap at 70% LTV. What are you financing @YiBing T.?

Hello Steve, thanks for your input. I am new to this. The property is a townhouse that was converted into a duplex. Lender offered me 75% LTV, but the points and the APR are a lot higher than the 70% LTV. In general, it seems a high LTV = high loan cost. If you were given a choice of high LTV with high cost VS low LTV with low cost, your goal is to keep the property long term, Which one would you go with?

Hello all,

I am fairly new to the BRRRR strategy, currently, I am trying to do a cash out refinance on a property so I can put down for another property. The lender I am working with can only lend 70% LTV, the appraisal just came back 10k less than our anticipated value. I would like to check in with our BP community, what would be the best course of action at this point? Accept the 70% or walk away to a 75% LTV lender that potentially cost higher?

Yibing