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#71
Managing And Investing In Physical Real Estate / Re: Refinancing Investment Pro...
Last post by PandaAtlanta - December 18, 2020, 08:07:39 PMCouchfi,
Thanks for sharing your numbers. i refinanced two of my rentals on Dec 11th and will be refinancing two more on Dec 22nd. I am also getting 3% 30 year fixed but will pay it down like a 20 year by paying the same principal and interest before the re-fi. My average rate on my entire mortgage portfolio is right at 2.82%. I think that 2010 was one the best times to buy physical real estate and 2020 is one of the best times to refinance.
11/04/2020: $284k at 3.0% with $3500 closing costs. 4.0% to 3.0% break even is about 16 months
12/11/2020: $128k & $129k at 3.0% with $1950 closing costs. 4.2% and 4.0% to 3.0% break even is about 10 months
12/22/2020: $123k and $121k at 3.0% with $1250 closing costs. 4.625% and 4.5% to 3.0% break even is about 7 months
Waived escrows at no extra charge.
Thanks for sharing your numbers. i refinanced two of my rentals on Dec 11th and will be refinancing two more on Dec 22nd. I am also getting 3% 30 year fixed but will pay it down like a 20 year by paying the same principal and interest before the re-fi. My average rate on my entire mortgage portfolio is right at 2.82%. I think that 2010 was one the best times to buy physical real estate and 2020 is one of the best times to refinance.
11/04/2020: $284k at 3.0% with $3500 closing costs. 4.0% to 3.0% break even is about 16 months
12/11/2020: $128k & $129k at 3.0% with $1950 closing costs. 4.2% and 4.0% to 3.0% break even is about 10 months
12/22/2020: $123k and $121k at 3.0% with $1250 closing costs. 4.625% and 4.5% to 3.0% break even is about 7 months
Waived escrows at no extra charge.
Quote from: couchfi on November 23, 2020, 11:34:34 PM
3% after paying 4.5k on a 250k loan. Haven't seen investment property rates below 4% before, so pulled the trigger and did it.
#72
Entrepreneurship / Side Hustles / A $100 Digital Product Idea : ...
Last post by PandaAtlanta - December 17, 2020, 06:25:01 PMIs it possible to sell a $100 digital products like an eBook, Digital Artwork, Digital Music etc in your opinion? Do any of you know of someone doing this? I would think that the content would have to be so unique for a $100 digital product to move.
Curious to hear from other bloggers who have successfully sold $100 digital products from their blog/website. Would you care to share your story when you remember getting an order on your first digital product?
Curious to hear from other bloggers who have successfully sold $100 digital products from their blog/website. Would you care to share your story when you remember getting an order on your first digital product?
#73
Real Estate Crowdfunding / Re: Thoughts On RealtyShares C...
Last post by mspringer - December 17, 2020, 06:25:18 AMQuote from: stingray on December 17, 2020, 05:47:54 AM
@mpspringer:
You do not need to wait to declare your investment(s) worthless. In some cases (see below), you may even lose your ability to claim a loss if you wait. The answers to your questions are contained in IRS instructions. The short answer is, be reasonable and document the reason for your decision. The even shorter answer is, and I say this as a friend: if you invest in vehicles like RS you should have an accountant who can handle questions like this and defend you in case of an IRS audit.
For tax purposes, for an untraded private asset, you can use your own reasonable method to determine when your investment becomes worthless. You certainly do not have to defer to RS. In my view, the factual circumstances make it reasonable to declare some of these RS investments worthless, even if RS has not yet admitted it.
If your investment is a partnership (LLC) interest, you can declare it worthless and take a (long-term) capital loss.
If you have not had partnership liabilities allocated to you (check your last Form K-1), in many cases you can affirmatively abandon your partnership interest and take a loss against ordinary income. This approach would be better for you, if you determine that you are allowed to take it. Here you must notify the LLC and document very carefully.
https://www.cpajournal.com/2016/10/01/partnership-abandonment/
If your investment is in the form a promissory note, the tax treatment is different. A failed investment is treated as a bad debt. If it is a personal investment, it must become 100% worthless, at which point you can deduct it as a long-term capital loss. It is up to you to determine when it becomes worthless. Note: the IRS states that you MUST claim the loss in the year the debt becomes worthless. If you wait until a subsequent year, the IRS could deny the loss.
Finally, a philosophical word about income tax: when you invest in complicated private deals, the application of tax law and regulation to real-world situations is never 100% clear. You have to do your best to comply, but there will often be gray areas that require judgment. Consult an accountant. Bear in mind, that if you act in good faith and document your reasons, the worst that will happen is that the IRS audits you and disagrees. There is really no shame in that. It happens all the time to sophisticated investors. You will debate your position with them. If you don't prevail, you will pay the difference in tax and some interest. There may be some penalties, but you can avoid or minimize these by acting in good faith and documenting your decisions.
GOOD LUCK MY FRIEND.
Great info and links Stingray.
Thank you
#74
Real Estate Crowdfunding / Re: Thoughts On RealtyShares C...
Last post by stingray - December 17, 2020, 05:47:54 AM@mpspringer:
You do not need to wait to declare your investment(s) worthless. In some cases (see below), you may even lose your ability to claim a loss if you wait. The answers to your questions are contained in IRS instructions. The short answer is, be reasonable and document the reason for your decision. The even shorter answer is, and I say this as a friend: if you invest in vehicles like RS you should have an accountant who can handle questions like this and defend you in case of an IRS audit.
For tax purposes, for an untraded private asset, you can use your own reasonable method to determine when your investment becomes worthless. You certainly do not have to defer to RS. In my view, the factual circumstances make it reasonable to declare some of these RS investments worthless, even if RS has not yet admitted it.
If your investment is a partnership (LLC) interest, you can declare it worthless and take a (long-term) capital loss.
If you have not had partnership liabilities allocated to you (check your last Form K-1), in many cases you can affirmatively abandon your partnership interest and take a loss against ordinary income. This approach would be better for you, if you determine that you are allowed to take it. Here you must notify the LLC and document very carefully.
https://www.cpajournal.com/2016/10/01/partnership-abandonment/
If your investment is in the form a promissory note, the tax treatment is different. A failed investment is treated as a bad debt. If it is a personal investment, it must become 100% worthless, at which point you can deduct it as a long-term capital loss. It is up to you to determine when it becomes worthless. Note: the IRS states that you MUST claim the loss in the year the debt becomes worthless. If you wait until a subsequent year, the IRS could deny the loss.
Finally, a philosophical word about income tax: when you invest in complicated private deals, the application of tax law and regulation to real-world situations is never 100% clear. You have to do your best to comply, but there will often be gray areas that require judgment. Consult an accountant. Bear in mind, that if you act in good faith and document your reasons, the worst that will happen is that the IRS audits you and disagrees. There is really no shame in that. It happens all the time to sophisticated investors. You will debate your position with them. If you don't prevail, you will pay the difference in tax and some interest. There may be some penalties, but you can avoid or minimize these by acting in good faith and documenting your decisions.
GOOD LUCK MY FRIEND.
You do not need to wait to declare your investment(s) worthless. In some cases (see below), you may even lose your ability to claim a loss if you wait. The answers to your questions are contained in IRS instructions. The short answer is, be reasonable and document the reason for your decision. The even shorter answer is, and I say this as a friend: if you invest in vehicles like RS you should have an accountant who can handle questions like this and defend you in case of an IRS audit.
For tax purposes, for an untraded private asset, you can use your own reasonable method to determine when your investment becomes worthless. You certainly do not have to defer to RS. In my view, the factual circumstances make it reasonable to declare some of these RS investments worthless, even if RS has not yet admitted it.
If your investment is a partnership (LLC) interest, you can declare it worthless and take a (long-term) capital loss.
If you have not had partnership liabilities allocated to you (check your last Form K-1), in many cases you can affirmatively abandon your partnership interest and take a loss against ordinary income. This approach would be better for you, if you determine that you are allowed to take it. Here you must notify the LLC and document very carefully.
https://www.cpajournal.com/2016/10/01/partnership-abandonment/
If your investment is in the form a promissory note, the tax treatment is different. A failed investment is treated as a bad debt. If it is a personal investment, it must become 100% worthless, at which point you can deduct it as a long-term capital loss. It is up to you to determine when it becomes worthless. Note: the IRS states that you MUST claim the loss in the year the debt becomes worthless. If you wait until a subsequent year, the IRS could deny the loss.
Finally, a philosophical word about income tax: when you invest in complicated private deals, the application of tax law and regulation to real-world situations is never 100% clear. You have to do your best to comply, but there will often be gray areas that require judgment. Consult an accountant. Bear in mind, that if you act in good faith and document your reasons, the worst that will happen is that the IRS audits you and disagrees. There is really no shame in that. It happens all the time to sophisticated investors. You will debate your position with them. If you don't prevail, you will pay the difference in tax and some interest. There may be some penalties, but you can avoid or minimize these by acting in good faith and documenting your decisions.
GOOD LUCK MY FRIEND.
#75
Real Estate Crowdfunding / Re: Thoughts On RealtyShares C...
Last post by mspringer - December 15, 2020, 02:48:16 AMQuote from: Allover on December 14, 2020, 12:06:53 PM
Hello Everyone
Some updates :
FG : Like most of you I too am wandering in the wilderness on FG. Not a lot of response from RS. Ian from the Law Firm has been responsive but that does not put any coin in my pocket. My FG investment was / is Church's Chicken in Orlando FL. How you could screw up a fast food place in the heart of one of the biggest tourist places on the planet ( pre Covid) is beyond me. It IS in a good location, there should be at least some return of principal. Maybe 50% or slightly more.
Duval Way: As I mentioned prior I spoke to one lawyer who is currently suing the developer of Duval . He was not optimistic. I tried reaching another lawyer who is ALSO currently suing the developer of Duval Way. He did not even bother to return my calls or emails. The fact that 2 different attorneys in the Bay Area where / are suing the developer of that property proves beyond any doubt that RS was writing loans with their eyes closed.
According to RS Duval Way was sold last month for well below asking price. Further more the are Millions $ in liens. The thief that these idiots gave our money to has pledged that he will pay up $300,000 in one years time. Good luck with that. I have better chance of being elected Governor of CA. IF ( unlikely) that happens I MIGHT get some pennies on my dollar. After the RS people have wet their beaks of course.
As I saw someone prior comment ; I got into this because it was supposed to be " safe" as opposed to snake oil like TESLA.
So much for that.
Make sure you tell your tax preparer about this fiasco. Get what you can against other income.
Also make sure that you tell any elected official that you know and or more importantly any law enforcement persons that you know. Regardless of jurisdiction. Its quite probably the case that only when a US Attorney or District Attorney with a guy with a gun in tow shows us up will we get any answers.
Allover,
I am also in that Church's Chicken and the last significant update we had on it before falling through was about 2 years ago and it was down to just adding the tables and chairs. I called the place a few times and it was eventually opened. I am not sure now though but I would assume it is at least in renting condition.
Since this is still "open", do you know if we can use it as a lost on our 2020 taxes (filed in 2021) or do we have to wait until an actual final final outcome? I don't have a ton of money tied up in FG, but I do have some in Tesla (ironic) and it would be nice to have to have an offset.
#76
Getting Started / How to report spam or inapprop...
Last post by Sydney - December 14, 2020, 11:17:17 PMHi everyone. Thanks for being a member of the Financial Samurai forum! Let's all work together to keep spammers out and maintain a positive community.
If you ever see a thread or a post that is flat out spam, looks suspicious in any way, or is just completely inappropriate, please click on the "Report to Moderator" link at the bottom of that specific post.
We'll look into it promptly and remove it if necessary.
Thanks!
If you ever see a thread or a post that is flat out spam, looks suspicious in any way, or is just completely inappropriate, please click on the "Report to Moderator" link at the bottom of that specific post.
We'll look into it promptly and remove it if necessary.
Thanks!
#77
Real Estate Crowdfunding / Re: Thoughts On RealtyShares C...
Last post by Allover - December 14, 2020, 12:06:53 PMHello Everyone
Some updates :
FG : Like most of you I too am wandering in the wilderness on FG. Not a lot of response from RS. Ian from the Law Firm has been responsive but that does not put any coin in my pocket. My FG investment was / is Church's Chicken in Orlando FL. How you could screw up a fast food place in the heart of one of the biggest tourist places on the planet ( pre Covid) is beyond me. It IS in a good location, there should be at least some return of principal. Maybe 50% or slightly more.
Duval Way: As I mentioned prior I spoke to one lawyer who is currently suing the developer of Duval . He was not optimistic. I tried reaching another lawyer who is ALSO currently suing the developer of Duval Way. He did not even bother to return my calls or emails. The fact that 2 different attorneys in the Bay Area where / are suing the developer of that property proves beyond any doubt that RS was writing loans with their eyes closed.
According to RS Duval Way was sold last month for well below asking price. Further more the are Millions $ in liens. The thief that these idiots gave our money to has pledged that he will pay up $300,000 in one years time. Good luck with that. I have better chance of being elected Governor of CA. IF ( unlikely) that happens I MIGHT get some pennies on my dollar. After the RS people have wet their beaks of course.
As I saw someone prior comment ; I got into this because it was supposed to be " safe" as opposed to snake oil like TESLA.
So much for that.
Make sure you tell your tax preparer about this fiasco. Get what you can against other income.
Also make sure that you tell any elected official that you know and or more importantly any law enforcement persons that you know. Regardless of jurisdiction. Its quite probably the case that only when a US Attorney or District Attorney with a guy with a gun in tow shows us up will we get any answers.
Some updates :
FG : Like most of you I too am wandering in the wilderness on FG. Not a lot of response from RS. Ian from the Law Firm has been responsive but that does not put any coin in my pocket. My FG investment was / is Church's Chicken in Orlando FL. How you could screw up a fast food place in the heart of one of the biggest tourist places on the planet ( pre Covid) is beyond me. It IS in a good location, there should be at least some return of principal. Maybe 50% or slightly more.
Duval Way: As I mentioned prior I spoke to one lawyer who is currently suing the developer of Duval . He was not optimistic. I tried reaching another lawyer who is ALSO currently suing the developer of Duval Way. He did not even bother to return my calls or emails. The fact that 2 different attorneys in the Bay Area where / are suing the developer of that property proves beyond any doubt that RS was writing loans with their eyes closed.
According to RS Duval Way was sold last month for well below asking price. Further more the are Millions $ in liens. The thief that these idiots gave our money to has pledged that he will pay up $300,000 in one years time. Good luck with that. I have better chance of being elected Governor of CA. IF ( unlikely) that happens I MIGHT get some pennies on my dollar. After the RS people have wet their beaks of course.
As I saw someone prior comment ; I got into this because it was supposed to be " safe" as opposed to snake oil like TESLA.
So much for that.
Make sure you tell your tax preparer about this fiasco. Get what you can against other income.
Also make sure that you tell any elected official that you know and or more importantly any law enforcement persons that you know. Regardless of jurisdiction. Its quite probably the case that only when a US Attorney or District Attorney with a guy with a gun in tow shows us up will we get any answers.
#78
Current Events / The Great Barrinton Declaratio...
Last post by lgdelvalle - December 06, 2020, 11:19:30 AMHi,
I just read this speech given by a Stanford MD today when I received FS's latest newsletter.
https://imprimis.hillsdale.edu/sensible-compassionate-anti-covid-strategy/
Let's hope this is the beginning of the end of all things COVID. If so, 2021 can be a banner year.
Semper FI,
Luis
I just read this speech given by a Stanford MD today when I received FS's latest newsletter.
https://imprimis.hillsdale.edu/sensible-compassionate-anti-covid-strategy/
Let's hope this is the beginning of the end of all things COVID. If so, 2021 can be a banner year.
Semper FI,
Luis
#79
Financial Advice From The Community / Reader Profiles / How much to spend on our first...
Last post by Jpfire1 - December 02, 2020, 03:46:06 PMI hope all is well. I have posted a number of times in the past about our financial situation, but would be sincerely appreciate of of any feedback or guidance regarding our first home purchase.
My wife and I have two young kids and live in an extremely high cost of living area. Our combined income is about $460K, which does not include annual bonuses. There is a reasonable likelihood it will not go down at all and a decent likelihood it will go up over time as we are both relatively youngish for our career.
Additionally, we have just over 2.9Mish in savings, of which only about $600K is in retirement accounts. The bulk (80%) is invested in equities.
We pay NY state income taxes and our annual expenses outside of real estate will be about 120Kish (aggressive estimate and likely closer to $100K) for next few years and go down to 85Kish (more like $70akish) annually outside of housing once the kids are out of daycare. However, I imagine other expenses will inevitably come up.
Any feedback would be great in terms of how much we can allocate to housing. We are thinking of spending around $2M-2.3M with just 20Kish of annual property taxes.
I just don't want to stretch too much as $2M seems like a lot relative to just sub $500K of gross income. However, having nearly $3M in savings gives me some peace of mind. Any feedback would be greatly appreciated! 🙏
My wife and I have two young kids and live in an extremely high cost of living area. Our combined income is about $460K, which does not include annual bonuses. There is a reasonable likelihood it will not go down at all and a decent likelihood it will go up over time as we are both relatively youngish for our career.
Additionally, we have just over 2.9Mish in savings, of which only about $600K is in retirement accounts. The bulk (80%) is invested in equities.
We pay NY state income taxes and our annual expenses outside of real estate will be about 120Kish (aggressive estimate and likely closer to $100K) for next few years and go down to 85Kish (more like $70akish) annually outside of housing once the kids are out of daycare. However, I imagine other expenses will inevitably come up.
Any feedback would be great in terms of how much we can allocate to housing. We are thinking of spending around $2M-2.3M with just 20Kish of annual property taxes.
I just don't want to stretch too much as $2M seems like a lot relative to just sub $500K of gross income. However, having nearly $3M in savings gives me some peace of mind. Any feedback would be greatly appreciated! 🙏
#80
Real Estate Crowdfunding / Re: Thoughts On RealtyShares C...
Last post by princyraj - December 02, 2020, 08:50:15 AMQuote from: Allover on October 24, 2020, 06:54:05 AM
Hello,
An update since my last post.
I found an attorney who is currently suing the developer of the Duval Way project. He is suing him for something else. That by itself speaks volumes to the lack of due diligence shown by RS. Stated another way, they blindly invested our money with crooks.
The first lawyer sent me to another lawyer. The second attorney told me that : 1) He was not really interested in contingency.
2) That I needed to think long and hard about spending $5,000 to sue over a $10,000 loss. Further because I would so far down the food chain, behind mechanics liens etc, that I would get pennies. If that.
As such I am in a holding pattern.
If anyone has any additional comments or thoughts please share.
Thanks!!
I invested in DuVal Way and extremely frustrated with the outcome. Didn't get much from the new management when I asked what are they going to do about this disastrous scam.