All Forum Posts by: Zehua Zhou

Let's say I have 500k down payment and borrow 500k, and the monthly mortgage payment is 5800, and out of that, 4800 is mortgage interest, and I pay 2500 annually for insurance and 10000 for property tax, could anyone please let me know how much UBIT I would be subject to?

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I understand that IRA loans need to be non-recourse. I talked to a commerical RE lender who does the Freddie Mac Commercial loans and his sample loan doc has the following language:

Non-recourse to Borrower and Guarantor(s), except for standard Freddie Mac recourse carve-outs.

The borrower is the LLC, and the Guarantor would be me. It explicitly stated that the guarantor would be non-recourse to the loan, "except for standard Freddie Mac recourse carve-outs." The lender explained that the standard carve-outs include committing criminal activities on the property, failing to pay property tax and failing to purchase insurance for the property. In those conditions, it will become recourse to the guarantor.

Can anyone please let me know in this case, will this loan still qualify for a IRA loan?

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Seattle, Washington

Quote from @Brian Eastman:

@Michael Moikeha

There are three banks that can consistently lend in all 50 states. The key is that they are lending their own money, not just originating loans for Fannie and Hedge Funds like the big banks do.

First Western Federal Savings in SD

North American Savings Bank in MO

Titan Bank in TX

Do you know if any Freddie Mac commercial RE lender can do this? I know a lender who does non recourse Freddie Mac commercial RE loans. He puts the LLC's name as the borrower and the person owning the LLC as the non recourse guarantor. The loan term explicitly lists the person as the non recourse guarantor. I asked that lender and he said he has never done such a loan to an LLC owned by an IRA so he wasn't sure.

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Originally posted by @Marcia Maynard:

I live in Washington State and invest here. I consider it one of the top four most landlord friendly states (with the exception of the city of Seattle which has a strong tenant union and some laws that put landlords at a disadvantage).

Here are my top four: Louisiana, Texas, Utah and Washington. Not necessarily in that order.

Other states that have been known as landlord friendly: Indiana, Wisconsin, Colorado, Arizona, Florida, Kentucky, Georgia, Mississippi, Virginia, Arkansas, Nevada.

From what people have posted on BP, I'm guessing some of the least friendly are California, Massachusetts, New Jersey, New York and large metropolitan areas such as the Chicago area of Illinois.

One of our most useful tools in Washington is the 20-day Notice to Terminate (no-cause) that can be used with month-to-month rental agreements. Also evictions can take as little as 30 days from start to finish. (Note: Seattle has "Just Cause Eviction Protection" and is not landlord friendly.) Also, we do not have rent control.

Hi Marcia,

Do you still think WA is landlord friendly as of 2020?

Thanks!

Zehua

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All Forum Posts by: Zehua Zhou

Zehua Zhou has started 7 posts and replied 34 times.

Post: How is UBIT tax calculated when the IRA real estate takes on a loan

Post: Does standard non-recourse Freddie Mac Commercial loan work for IRA accounts?

Post: Banks That Will Loan to a Self Directed IRA Non Recourse Loan

Post: Landlord Friendly Locations