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About dvought

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    Making Calls

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    Commack, NY
  1. I have an updated and renovated rental house in Kansas City, MO that I would like to get a lease option tenant for. (I am the owner.) House is on Michigan Avenue in zip code 64130. 3 BD 1.5 BTH 2-Story With Full Basement 1,575 sq. ft. on 5,168 sq. ft. lot with fenced back yard New Central A/C and Heat to be installed prior to move in Hardwood floors, fireplace downstairs Upstairs carpeted All new thermopane windows All appliances included Wireless alarm system installed Walking distance to church Looking to rent to own (or just rent) for only $675/month with $1,000 Option Fee, which you can keep if you bring the tenant-buyer. (Previously rented to Section 8 tenant for $800/month.) Selling price is $69K (advertised out elsewhere on-line for $75K). Willing to give $200/month rent credits (30%) for a 36-month option! Also open to do a land contract, SWO, CA or any other creative way to get this done! Photos/info at http://www.postlets.com/res/4899065 Email me at hopefulhomesolutions at hotmail dot com or call 631-219-2295 to discuss options. Thanks! Dawn
  2. I am direct to a seller who has acquired the following condos and is looking for a RWA buyer: 420 condos in three different upscale condo locations in Florida Naples, FL - 144 Units Fort Myers, FL - 131 Units Coral Springs, FL - 145 Units About 86% of the units are leased. $84,700,000 BPO. Seller looking to sell this for 50% of BPO ($42,350,000) I have the Offering Memorandums from the seller that have all of the details for each property. Please PM me or email me so we can get an NCND in place, and I can send those out to you and go from there. Thanks. Dawn
  3. I am the Seller's Representative for a bulk REO seller that currently only deals in Nationwide packages anywhere up to $350M. I currently have a NW tape with 387 properties on it from 27 different states. BPO is priced very conservatively at $19.35M, and the purchase price is about $7.6M (39% of the conservative BPO, plus 3% commission). I also have a 10% BPO Spot Check file to give a buyer to help show that the BPOs are way underestimated. Please email me for more information and to get a copy of the tape and spot check file. If you were interested this could potentially close on Monday or Tuesday. Thanks. Dawn HopefulHomeSolutions@hotmail.com
  4. According to all of the self-directed IRA folks I spoke to, they all said the IRA would be subject to UBIT if they leveraged a flip or a buy and hold rental purchase. Both the self-directed IRA and Solo 401k are only allowed to get non-recourse loans. Or I guess I should say more accurately, getting a recourse loan where I personally guarantee the note instead of just having it guaranteed by the property is a prohibited transaction for both the IRA and 401k, and would/could trigger the distribution of funds and associated disqualification and penalties just like any prohibited transaction in those entities.
  5. Thanks so much to both of you for going through and clarifying things! I am moving forward with this (not just because of the UBIT exemption). I'll let everyone know if I run into any challenges! Dawn
  6. Thank you Dave. If I am reading this correctly (as if it was in English), I believe it does say that the Solo 401K would be exempt from UBIT tax. (The solo 401K is set up as a trust.) Please let me know if you don't think I am interpreting it correctly. Thanks. Dawn
  7. I asked the company who I may have set this up for me. This is what they said: "Please see IRC 514©(9)©(ii) for Solo 401(k) UDFI exemption." (The first c should be a small c and the second c should be a big C, but it keeps posting as copywrite symbols even when I try to fix it. ) Now of course that's Greek to me, but I'm hoping someone can confirm if that says a solo 401k is exempt from UBIT tax. They also said they have a determination letter from the IRS that states it is exempt, which they will give to me with the rest of the paperwork when they set everything up. Is there a website to go to to see what this citation actually says?
  8. Thanks! I couldn't get the link to work, but I'll give my CPA the IRS reference and he should be good. Thanks. Dawn
  9. I've been looking at setting up a self-directed IRA and came across another option that may work for me even better - a solo 401K with checkbook control. For the solo 401K, I don't need to set up a separate LLC, and therefore don't need to register in every state I will do business in (because it's set up as a trust), I can contribute higher amounts, you don't file a tax return (except for a 5500 form or something like that if your account goes over $250K), and if I obtain (non-recourse) financing on a property, I have been told that no UBIT tax would be due, which is not the case for a self-directed IRA. Can any tax experts confirm if UBIT tax would be due if the solo 401k trust obtained a loan on a property? Not a lot of people seem to be familiar with the solo 401K. My CPA didn't even know what it was, and he works with a lot of real estate investors. Thanks. Dawn
  10. I am converting my IRA into a self-directed IRA with check book control to have more funds available to invest in real estate. I've narrowed it down to two companies - CheckbookIRA.com and Guidant Financial. They will both basically do the same thing in terms of setting up everything for me, and then a custodian will handle the yearly filings/requirements. Does anyone have any feedback on either of these companies? From speaking to the representatives, my gut opinion is that Guidant has more experience and knows what they are doing more than CheckbookIRA.com. (Not to say either would do anything incorrectly, but for example, Checkbook is telling me I can pay for things like training and travel to go to tax lien auctions out of the IRA LLC that is set up, but the Guidant rep is telling me I shouldn't.) CheckbookIRA is $500 cheaper than Guidant for the initial set-up fee, and the yearly custodian fees are about $40 cheaper per year, but I don't want to run afoul of the IRS/DOL regulations and do something to jeapordize the IRA tax status. If I can get Guidant to match their competitors price I will definitely go with them, but that remains to be seen. I've seen some good feedback from a couple of investors related to Guidant, and a local investor I know used CheckbookIRA and hasn't had any problems. Anyone have any feedback, good or bad, about either? Thanks. Dawn
  11. I'm sure everyone here sees through the above post, but I actually got a spam email titled "Your Naked-Investor Loan Request"! Beware!
  12. Looking for a buyer for a $1M tape with 13 SFRs in the state of FL-1, MA-3, RI-6, VA-1, CA-3. BPO value of properties is $3.58M. Purchase price is $1M (28% of BPO) plus 3 points in commissions. Buyer proofs up by wiring his 10% earnest money ($100K) to a national escrow company. This tape will be spoken for on Wednesday, 10/22/08. Tape is available and comes from a banking institution directly to my contact. Send me an email if you are interested. Hopefulhomesolutions@hotmail.com Thanks. Dawn
  13. Hi Ernie, Please email me your list for AL, MO, and NY. Thanks. Dawn
  14. Thanks Dave. I always take what people say with a grain of salt if it's main purpose is to sell you their "system". They have listed in their system all IRS and case law citations that supposedly back up their position, with other techniques to help avoid an audit altogether as well. Some of the ideas were pretty radical - not illegal, but definitely out of the box, although as real estate investors, that's not necessarily a bad thing. Thanks for the insight! Dawn
  15. This gentleman was saying not to use an S-Corp to flip properties, and not to segregate your flipping and long-term rentals into different companies, but to use an LLC (or actually 2 LLCs) for both at the same time. The reasoning was so you wouldn't be considered a dealer if you mixed the two techniques, because your overall goal would be to hold properties long term, and the flipping was just to fulfill a need for cash to carry the rental properties. I'm simplifying greatly, but that was the gist of it. He said the only reason people use S-Corps was to save on social security taxes, but if you are classified a dealer you will be paying a lot greater taxes than that. He basically said don't use an S-Corp for real estate investment, and to only use multi-member LLCs. He was suggesting having you personally as a 95% member, and either another LLC or even a C-Corp as the minority member. (C-Corp if you wanted to deduct a lot of the fringe benefit type of things that you can only write off with a C-Corp.) I have an S-Corp and two LLCs. The S-Corp is currently the sole member of the LLCs, but my tax accountant said this year we will add my other LLC as a minority member in each so that I'm not a disregarded entity for tax purposes. Anyone have any insight or advice related to this?
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