Anderson Business Advisors Podcast

https://andersonadvisors.com/entity_formation/

Old-Age Survivors and Disability Insurance (OASDI) Tax

https://www.irs.gov/businesses/small-businesses-self-employed/self-employment-tax-social-security-and-medicare-taxes

https://www.ssa.gov/policy/docs/progdesc/sspus/oasdi.pdf

https://www.irs.gov/pub/irs-utl/33-Real Estate Professionals.pdf

https://www.investopedia.com/terms/s/stepupinbasis.asp#:~:text=A%20step%2Dup%20in%20basis%20is%20the%20readjustment%20of%20the,for%20tax%20purposes%20upon%20inheritance.&text=The%20asset%20receives%20a%20step,of%20property%20transferred%20at%20death.

https://www.irs.gov/newsroom/new-rules-and-limitations-for-depreciation-and-expensing-under-the-tax-cuts-and-jobs-act

https://www.investopedia.com/terms/d/depreciationrecapture.asp

Schedule K-1 (Form 1065)

https://www.irs.gov/forms-pubs/about-schedule-k-1-form-1065

https://www.irs.gov/newsroom/capital-gains-and-losses-10-helpful-facts-to-know-0

https://www.irs.gov/taxtopics/tc701

https://www.irs.gov/pub/irs-news/fs-08-18.pdf

Schedule C

https://www.irs.gov/forms-pubs/about-schedule-c-form-1040

Schedule D

https://www.irs.gov/forms-pubs/about-schedule-d-form-1040

Schedule E

https://www.irs.gov/forms-pubs/about-schedule-e-form-1040

Airbnb

https://www.airbnb.com/

https://andersonadvisors.com/retirement_plan/

https://andersonadvisors.com/living_trusts/

Section 1244 Stock

https://www.investopedia.com/terms/s/section-1244-stock.asp

Cryptocurrency

https://www.investopedia.com/terms/c/cryptocurrency.asp

Qualified Opportunity Fund/Zone

https://costsegauthority.com/

https://www.irs.gov/credits-deductions/businesses/invest-in-a-qualified-opportunity-fund

Charitable Organizations

https://www.irs.gov/charities-non-profits/charitable-organizations

Paycheck Protection Program (PPP)

https://www.sba.gov/funding-programs/loans/covid-19-relief-options/paycheck-protection-program

http://tobymathis.com/about-toby-mathis/

https://andersonadvisors.com/

https://andersonadvisors.com/all-events/

Anderson Advisors Tax and Asset Protection Workshop

https://andersonadvisors.com/asset-protection/

https://andersonadvisors.com/tax-wise-workshop-for-businesses-investors/

https://andersonadvisors.com/investing-workshop-passive-income-generating-machine/

https://www.youtube.com/channel/UCX5nh607M8hSBLiMB9MgbIQ

https://www.facebook.com/AndersonBusinessAdvisors/

Monrovia Mortgage Broker - NestMade Mortgage

https://andersonadvisors.com/podcast/

Tuesday Jun 22, 2021

Mortgage Options During the Housing Boom

Tuesday Jun 22, 2021

Are you thinking of investing in or buying real estate during the housing boom? What lending options and products are available for investors and other homebuyers?

In this episode, Toby Mathis of Anderson Advisors talks to Benson Pang from NestMade Mortgage in Monrovia, Calif.

Benson started his career as a civil engineer. Then, he pivoted to mortgage lending and obtained his broker’s license. Benson decided to start his own company, which has helped more than 1,000 individuals and families with their home purchase journey.

Highlights/Topics:

Housing Boom: People want to own a piece of the real estate market.
Why? Rent and home prices are on the rise, and interest rates remain low.
Money Options: Trillions of dollars are being pumped into the economy.
Who’s looking to buy? Healthcare workers, families, and homebuyers wanting another home or to upgrade with new money.
Home Prices: Depending on the location, buyers are offering thousands to millions above the asking price.
Appraisals: Buyers need to work with their lenders to close escrow quickly and require financing contingencies to compete with cash offers.
Delay Financing, Refinance, or Lien.Ways to get a home and then get your money back.
Deed of Trust. After escrow closes, get a rate-and-term refinance loan from the lender.
Worst Case Scenario: Understand risk of removing any of the financing contingencies.
Cash Flow Crunch: Your tax scenario may not be your cash scenario.
Inflation: With more money being printed, comes inflation and raising interest rates.
Reality Check: What are you paying in rent? What can you afford to not be house poor? Make an educated choice and lifestyle change before buying a home.
Forgotten Upgrade Costs: Once you own a house, you want to do things to it.
Should you pay off your home mortgage loan? It depends.

Resources:

https://nestmade.com/

Fannie Mae

https://www.fanniemae.com/

Freddie Mac

http://www.freddiemac.com/

Form W-2: Wage and Tax Statement

https://www.irs.gov/forms-pubs/about-form-w-2

Debt Service Coverage Ratio (DSCR)

https://www.multifamily.loans/apartment-finance-blog/what-is-dscr

Principal, Interest, Taxes, and Insurance (PITI)

https://www.investopedia.com/terms/p/piti.asp

http://tobymathis.com/

Tax and Asset Protection Event

https://andersonadvisors.com/

http://andersonap.com/

Tuesday Jun 15, 2021

Tax Tuesday with Toby Mathis 06-08-2021

Tuesday Jun 15, 2021

What’s the best way to handle the ups and downs of investing and tax consequences? Sit on your hands long enough until everything is okay, again. The hardest thing sometimes is waiting. In the meantime, Toby Mathis and Jeff Webb of Anderson Advisors answer your tax questions. Submit your tax question to taxtuesday@andersonadvisors.

Highlights/Topics:

Does day trading cause a higher tax consequence than long-term investing? Typically, if you have gains, it’s going to have a higher tax consequence, primarily because the day trading is all going to be short-term trades; however, long-term capital gains is subject to that long-term capital gain treatment - usually a much lower tax percentage
If I own a property and I owe back taxes, can the government take it? If you owe back taxes, the government can certainly take your property and put a tax lien on it; then if it’s not paid, the government can sell it to make up for the taxes
Can I rent a house owned by one of my LLCs? You can’t rent to yourself your own house
How does rental income get taxed? Rental income is taxed at ordinary rates, it’s ordinary income; however, it is passive income and passive losses are limited

For all questions/answers discussed, sign up to be a Platinum member to view the replay!

Go to iTunes to leave a review of the Tax Tuesday podcast.

Resources:

Infinity Investing: How The Rich Get Richer And How You Can Do The Same by Toby Mathis

http://aba.link/infinitybook

https://www.irs.gov/newsroom/capital-gains-and-losses-10-helpful-facts-to-know-0

https://www.irs.gov/taxtopics/tc701

https://andersonadvisors.com/entity_formation/

https://www.irs.gov/businesses/small-businesses-self-employed/self-employment-tax-social-security-and-medicare-taxes

https://www.irs.gov/newsroom/new-rules-and-limitations-for-depreciation-and-expensing-under-the-tax-cuts-and-jobs-act

https://www.investopedia.com/terms/d/depreciationrecapture.asp

https://www.irs.gov/pub/irs-news/fs-08-18.pdf

Cryptocurrency

https://www.investopedia.com/terms/c/cryptocurrency.asp

Nexo - Banking on Crypto

https://nexo.io/

Renewable Energy Tax Credits

https://www.irs.gov/pub/irs-utl/33-Real Estate Professionals.pdf

https://www.energystar.gov/about/federal_tax_credits/renewable_energy_tax_credits

Federal Solar Tax Credit

https://www.energystar.gov/about/federal_tax_credits/renewable_energy_tax_credits

https://andersonadvisors.com/retirement_plan/

The Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019

https://andersonadvisors.com/living_trusts/

https://www.congress.gov/bill/116th-congress/house-bill/1994

Old-Age Survivors and Disability Insurance (OASDI) Tax

Section 26 U.S. Code 469

https://www.law.cornell.edu/uscode/text/26/469

https://www.ssa.gov/policy/docs/progdesc/sspus/oasdi.pdf

26 U.S. Code Section 1256

https://costsegauthority.com/

https://www.law.cornell.edu/uscode/text/26/1256

Form 8283

https://www.irs.gov/forms-pubs/about-form-8283

Form 3115

https://www.irs.gov/forms-pubs/about-form-3115

http://tobymathis.com/about-toby-mathis/

https://andersonadvisors.com/

https://andersonadvisors.com/all-events/

Anderson Advisors Tax and Asset Protection Workshop

https://andersonadvisors.com/asset-protection/

https://andersonadvisors.com/tax-wise-workshop-for-businesses-investors/

https://andersonadvisors.com/investing-workshop-passive-income-generating-machine/

https://www.youtube.com/channel/UCX5nh607M8hSBLiMB9MgbIQ

https://www.facebook.com/AndersonBusinessAdvisors/

Internal Revenue Service (IRS) - Dirty Dozen List

https://andersonadvisors.com/podcast/

Tuesday Jun 08, 2021

Conservation Easements Benefits for Investors

Tuesday Jun 08, 2021

If you Google conservation easements, you get the IRS’s Dirty Dozen list of those that have abused them. Make no mistake, laws are written to allow certain situations to benefit the taxpayer. There's a difference between doing it right and wrong.

In this episode, Toby Mathis of Anderson Advisors welcomes back Tyler Surat to talk about the right way that conservation easements can benefit investors. Tyler works in the alternative energy sources industry and helps farmers and others with the conservation and preservation of their land by creating easements.

Savvy tax investors or business people and individuals use conservation easements to do two things—help society and the environment, and get a tax benefit as a result. If you are not interested in helping the environment, then it's probably not something for you to do. The purpose is conservation.

Highlights/Topics:

What is a conservation easement? The U.S. government quit using funds to purchase land to conserve and expected constituents or the public to do so.
How did the government incentivize them? Through taxes, which is its greatest asset to offer. It’s a trade. You take a viable development or property that could be developed in some form that has a large market value. It must be developed; hold conservation piece.
Does it actually hold that conservation effort? The government will offer a tax deduction for the market-developed value of that property.
What's the good, bad, and ugly of conservation? Somebody with land or something may use conservation easements to benefit themselves. The investor can be involved, too.
What if ranchers have land that can be developed? If they do, can they continue to farm and ranch that land? If they can, then they typically take beautiful portions of the ranch or what they own, something that somebody would desire. They have true conservation.
Is it at the same multiple in private and group investments? Probably not, but their purpose is true conservation. Benefit from it.
What is given up or away with conservation easements? You're basically giving up the developed rights. Once you conserve and place that easement on that land, that land's not worth $2,000 an acre anymore. It's worth less because a land developer can't buy it. The only person that would want to buy it - somebody that wants green space.
Are green spaces in highly developed areas? They can have townhomes.
What are good investors doing now? Reaching out to local appraisers and getting that local feel. A good provider provides ample documents for investors to be well informed.
When you become a partner, you're investing in real estate development. What are the three options? Do nothing, develop, or conserve.
Do all states follow conservation easements or allow the deductibility? Most states go off adjusted gross or taxable income. They never get to see the conservation portion.
Do most people know about the statute of limitations for conservation? Three years from the time you exhaust the deduction.

Resources:

Tyler Surat on LinkedIn

https://www.linkedin.com/in/tyler-surat-1a17881b

Tyler Surat’s Email

mailto:tsurat@onetreeadvisors.com

Tyler Surat’s Phone Number: 719-580-3051

Steel City Solar

https://steelcitysolar.us/

Conservation Easements

https://andersonadvisors.podbean.com/e/conservation-easements/

https://www.irs.gov/newsroom/dirty-dozen

Mar-a-Lago

https://www.maralagoclub.com/

Residential Energy Credit: Instructions for Form 5695 (2020)

https://www.irs.gov/instructions/i5695

Ducks Unlimited

http://www.ducks.org/

Operation Surf

https://operationsurf.org/

http://tobymathis.com/

Tax and Asset Protection Event

https://andersonadvisors.com/

http://andersonap.com/

Tuesday Jun 01, 2021

Tax Tuesday with Toby Mathis 05-25-2021

Tuesday Jun 01, 2021

Did you miss the April 15 tax deadline? Are you safe from significant penalties? What’s the best way to legally, morally, and ethically not pay taxes? It depends. Jeff Webb, Tax Director, and Eliot Thomas, Senior Tax Advisor, of Anderson Advisors answer your tax questions. Submit your tax question to taxtuesday@andersonadvisors.

Highlights/Topics:

If you experience a one-time large capital gain from exercising stock options, is it absolutely imperative that you figure out quarterly payments to avoid penalty, and if so, what if you missed April? There’s a safe harbor for calculating tax estimates and it requires paying in 90% of the current year tax or 110% of the prior year tax; and estimated tax penalties are typical not significant, but handle missed payment soon
What is the best way to take advantage of Section 179 for new vehicles over 6,000 pounds? Typically, most people do not use Section 179 because of bonus depreciation, restrictions, and limitations
How are crypto currencies taxed, and what’s the best way to legally, morally, and ethically not pay taxes? Depends on how you are getting the crypto currency; if you are buying and selling, it is treated as a security and other rules apply; if you are mining crypto currency, find out the value of that crypto bitcoin the day it is created
What will happen if you open an LLC with Corp status but you missed the deadline? What should you do? If you missed the tax deadline and have a loss on your Corp, it typically doesn’t affect you; if you have a lot of startup costs, you need to file your initial tax return on time
Does tax on depreciation recapture, like capital gains, go away when property is inherited? When you inherit property, everything resets and goes away, like capital gains
Do I have to report a home I lived in and sold even though I purchased a new home? Previous Section 121 states as long as you buy a more expensive home than the one you sold, you can defer any gain until the age of 55; Section 121 now states if you lived in the home for two of last five years, you can defer a large part or all the gain

For all questions/answers discussed, sign up to be a Platinum member to view the replay!

Go to iTunes to leave a review of the Tax Tuesday podcast.

Resources:

Infinity Investing Workshop on June 5

http://aba.link/iiw

Infinity Investing: How The Rich Get Richer And How You Can Do The Same by Toby Mathis

http://aba.link/infinitybook

Section 179 Tax Deduction

https://www.irs.gov/newsroom/capital-gains-and-losses-10-helpful-facts-to-know-0

https://www.section179.org/section_179_deduction/

Bitcoin

https://bitcoin.org/

Nexo - Banking on Crypto

https://nexo.io/

https://andersonadvisors.com/entity_formation/

https://andersonadvisors.com/retirement_plan/

https://www.irs.gov/pub/irs-utl/33-Real Estate Professionals.pdf

https://andersonadvisors.com/living_trusts/

https://www.irs.gov/taxtopics/tc701

https://www.irs.gov/newsroom/new-rules-and-limitations-for-depreciation-and-expensing-under-the-tax-cuts-and-jobs-act

https://www.investopedia.com/terms/d/depreciationrecapture.asp

Schedule C

https://www.irs.gov/forms-pubs/about-schedule-c-form-1040

Form 1040

https://www.irs.gov/forms-pubs/about-form-1040

Zcash

https://z.cash/

Employee Retirement Income Security Act (ERISA)

https://www.irs.gov/businesses/small-businesses-self-employed/self-employment-tax-social-security-and-medicare-taxes

https://www.dol.gov/general/topic/retirement/erisa

U.S. Department of Labor (DOL)

https://www.dol.gov/

Schedule K-1, Form 1065

https://www.irs.gov/forms-pubs/about-schedule-k-1-form-1065

https://costsegauthority.com/

https://www.irs.gov/pub/irs-news/fs-08-18.pdf

https://tobymathis.com/

Abatement Letter

https://www.irs.gov/businesses/small-businesses-self-employed/penalty-relief-due-to-first-time-penalty-abatement-or-other-administrative-waiver

https://andersonadvisors.com/

https://andersonadvisors.com/all-events/

Anderson Advisors Tax and Asset Protection Workshop

https://andersonadvisors.com/asset-protection/

https://andersonadvisors.com/tax-wise-workshop-for-businesses-investors/

https://andersonadvisors.com/investing-workshop-passive-income-generating-machine/

https://www.youtube.com/channel/UCX5nh607M8hSBLiMB9MgbIQ

https://www.facebook.com/AndersonBusinessAdvisors/

Raising Private Capital: Building Your Real Estate Empire Using Other People's Money

https://andersonadvisors.com/podcast/

Tuesday May 25, 2021

How to Get Started in Multifamily Investing

Tuesday May 25, 2021

If you are a real estate investor, you’ve probably been thinking about multifamily investing because there’s going to be scale in that space. Start house hacking and raise capital!

Today, Clint Coons of Anderson Business Advisors talks to Matt Faircloth from the DeRosa Group about how to get started in multifamily investing. Matt is a full-time investor and has successfully completed projects involving fix and flips, single family homes, apartment complexes, and office buildings.

Also, Matt is a regular contributor and podcast guest on BiggerPockets and has an active YouTube Channel dedicated to educating investors. He is the author of Raising Private Capital - How to Build Your Real Estate Empire with Other People's Money.

Highlights/Topics:

Getting Started: Matt read Rich Dad Poor Dad and discovered the power of passive investing, creating assets, and not trading hours for dollars.
Bigger and Better Deals: Matt and his wife didn’t get into real estate to start investing in multifamily, but worked their way up into larger deals with apartment complexes.
Self-managed Properties: Matt learned about tenant relations, how to select tenants, and what it takes to manage and scale single-family properties for a small portfolio of rentals.
Best Bang for Your Buck: Start with a small multifamily deal because it’s cheap debt and very little money down.
Real Estate Syndication: Scale into larger multifamily assets faster by selling equity and raising capital.
Words of Wisdom: Observe the masses and do the opposite to be competitive.
Affordability Analysis: What’s the median income in the city and surrounding area of multifamily space?
Can tenants afford a rent increase to justify improvements? Property management companies tend to approve tenants that make more than 3x the rent as their earned income before taxes.
50/50 Mix: Matt recommends seeking multifamily properties with a mix of one- and two-bedroom units, then add amenities, such as family oriented and pet parks.
Self-manage vs. Property Management Companies: Depends on if you want to stay small and retain control or reduce vacancy rates and execute business plan to scale.
Affordable/Low-Income Housing: Owners should perform due diligence because despite the stigma, tenants don’t want to lose their Section 8 status. They must follow rules or face penalties and be evicted. Low-income housing tax credits can be lucrative.

Resources:

DeRosa Group

https://www.derosagroup.com/

DeRosa Group on YouTube

https://www.youtube.com/user/derosagroup

BiggerPockets

https://www.biggerpockets.com/

https://www.amazon.com/Raising-Private-Capital-Building-Peoples/dp/1947200984

Rich Dad Poor Dad by Robert T. Kiyosaki

https://www.richdad.com/

Federal Housing Administration (FHA)

https://www.hud.gov/program_offices/housing/fhahistory

U.S. Securities and Exchange Commission (SEC)

https://www.sec.gov/

Fannie Mae

https://www.fanniemae.com/

Freddie Mac

http://www.freddiemac.com/

Section 8 Housing

https://www.hud.gov/topics/housing_choice_voucher_program_section_8

LoopNet

https://www.loopnet.com/

Clint Coons

https://andersonadvisors.com/clint-coons/

Anderson Advisors Tax and Asset Protection Event

https://andersonadvisors.com/

https://andersonadvisors.com/asset-protection/

AstroFlipping - Real Estate Education

https://www.youtube.com/channel/UCX5nh607M8hSBLiMB9MgbIQ

Thursday May 20, 2021

Wholesaling Fix & Flip Formula with Jamil Damji

Thursday May 20, 2021

What is wholesaling and how do you make seven figures doing it? If you are interested in becoming a wholesaler and finding fix-and-flip real estate deals, learn from a problem solver extraordinaire who is part of a supergroup.

In this episode, Toby Mathis of Anderson Advisors talks to Jamil Damji about the art of wholesaling. Jamil has been in the real estate business since 2002 and successfully built KeyGlee, which is a national franchise with 100+ employees, spanning 180 U.S. markets.

Also, Jamil runs a mentorship called, AstroFlipping, where he mentors and educates hundreds of entrepreneurs on how to be successful in their own wholesaling real estate business. He is the co-host of the fastest growing podcast on wholesale real estate called, Wholesale Hotline, and he started his own podcast called, To the Moon, where he highlights student success.

Jamil’s mission in life is to impact as many lives as possible and share knowledge he has gained with those that have a desire to learn.

Highlights/Topics:

Who invented wholesaling? As far as Jamil knows, he did in Canada, not Ron LeGrand
How to wholesale? Find condos, apartments, and single-family homes to buy then sell
Developers: Working and looking for raw materials for property conversions
Skip Transfer: Get two contracts, one to buy, one to sell property to make a profit
Business Model: Search classifieds for rentals to amass a small fortune, only to lose it all
Financial Crisis: Parents cosigned construction loans and all residences were foreclosed
Standup Comedy: Plan, prepare, strategize to take care of family cause it’s your fault
Potential Properties: Wholesalers look at as-is value and after-repair or after-risk value
Potential Property Sellers: Cash transaction is solution or only option to situation
KeyGlee’s Core Competency: Building cash buyers, flippers, and buy-and-hold renters
Keys to Success: No cash or credit necessary, it takes consistency and hustle
Indicators: Lending criteria is significantly harder and inflation is a true fear

Resources:

Jamil Damji on Instagram

https://www.instagram.com/jdamji/?hl=en

Jamil Damji on YouTube

https://www.youtube.com/channel/UCDqJP0mZNOSR9JiIRE02NxQ

KeyGlee

https://www.keyglee.com/

https://www.astroflipping.com/

Wholesale Hotline Podcast

https://www.youtube.com/watch?v=RYxRy710erI

To the Moon Podcast

https://www.youtube.com/watch?v=lQTvL0755MU

Ron LeGrand

https://www.ronlegrand.com/

HomeVestors

https://www.homevestors.com/

We Buy Ugly Houses

https://www.webuyuglyhouses.com/

Blackhawk

https://www.dnb.com/business-directory/company-profiles.blackhawk_parent_llc.77000ae18ddcfae81d823a112bd88e4b.html

https://andersonadvisors.com/tobymathis-2/

Anderson Advisors Tax and Asset Protection Event

https://andersonadvisors.com/

https://andersonadvisors.com/asset-protection/

Infinity Investing: How The Rich Get Richer And How You Can Do The Same by Toby Mathis

https://www.youtube.com/channel/UCX5nh607M8hSBLiMB9MgbIQ

Tuesday May 18, 2021

Tax Tuesday with Toby Mathis 05-11-2021

Tuesday May 18, 2021

Did you happen to watch Saturday Night Live with Elon Musk? Was it a waste of time and money? Maybe you should ask Toby Mathis and Jeff Webb of Anderson Advisors to answer your questions about buying a Tesla, investing in bitcoins, and other cryptocurrencies. Submit your tax question to taxtuesday@andersonadvisors.

Highlights/Topics:

I would like to make my investment condo my primary residence for tax benefits upon its sale - without sleeping there 731 days over five years. Is that only a safe harbor measurement or a hard-and-fast rule? Refer to Section 121 - Capital Gains Exclusion because your primary residence is where you spend the most nights
How can I take profits out of an S Corp without paying a lot in taxes? If you are the 100% shareholder of the S Corp, whatever profit that S Corp has, that’s your income and you pay tax on that income, regardless of whether you take money out of that S Corp or not
How do you account for remodeling expenses versus maintenance expenses for a rental property? Maintenance expenses or repairs are expenses for keeping the asset at its current value; remodeling expenses are improvements such as renovations or a betterment to increase the value of the asset
Can an employer contribute to a profit-sharing retirement plan if there was no profit for the year? It has nothing to do with profit, but it does help to have profit to pay the contributions or create a loss
If my business and house are in my revocable living trust when I die, what kind of tax will my kids (the beneficiaries) have to pay on getting the business or the house? When you die, a portion of the assets in the revocable living trust go into an irrevocable trust, so your estate may pay tax, but beneficiaries will never pay tax on inheritance or gifts

For all questions/answers discussed, sign up to be a Platinum member to view the replay!

Go to iTunes to leave a review of the Tax Tuesday podcast.

Resources:

http://aba.link/infinitybook

Opportunity Zones FAQ

https://www.irs.gov/credits-deductions/opportunity-zones-frequently-asked-questions

https://andersonadvisors.com/entity_formation/

https://andersonadvisors.com/retirement_plan/

Bitcoin

https://bitcoin.org/

https://andersonadvisors.com/living_trusts/

https://www.irs.gov/pub/irs-utl/33-Real Estate Professionals.pdf

Tax Cuts and Jobs Act (TCJA)

https://www.irs.gov/newsroom/capital-gains-and-losses-10-helpful-facts-to-know-0

https://www.irs.gov/tax-reform

Section 26 U.S. Code 1400Z

https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1400Z-2&num=0&edition=prelim

https://www.irs.gov/taxtopics/tc701

https://www.irs.gov/newsroom/new-rules-and-limitations-for-depreciation-and-expensing-under-the-tax-cuts-and-jobs-act

https://www.investopedia.com/terms/d/depreciationrecapture.asp

Unrelated Business Income Tax (UBIT)

https://www.irs.gov/pub/irs-news/fs-08-18.pdf

https://www.irs.gov/charities-non-profits/unrelated-business-income-tax

Unrelated Debt-Financed Income (UDFI)

https://www.irs.gov/pub/irs-tege/eotopicn86.pdf

Section 168(k) Tax Deduction

https://costsegauthority.com/

Nexo - Banking on Crypto

https://nexo.io/

https://www.irs.gov/newsroom/additional-first-year-depreciation-deduction-bonus-faq

Section 179 Tax Deduction

https://www.section179.org/section_179_deduction/

Form 1040

https://www.irs.gov/forms-pubs/about-form-1040

Form 3115

https://www.irs.gov/forms-pubs/about-form-3115

Form 1065

https://www.irs.gov/forms-pubs/about-form-1065

Form 1041

https://www.irs.gov/forms-pubs/about-form-1041

Renewable Energy Tax Credits

https://www.irs.gov/businesses/small-businesses-self-employed/self-employment-tax-social-security-and-medicare-taxes

https://www.energystar.gov/about/federal_tax_credits/renewable_energy_tax_credits

American Family Act

https://www.bennet.senate.gov/public/index.cfm/american-family-act

CARES Act

https://www.congress.gov/116/bills/hr748/BILLS-116hr748enr.pdf

Section 26 U.S. Code 469

https://www.law.cornell.edu/uscode/text/26/469

http://tobymathis.com/about-toby-mathis/

https://andersonadvisors.com/

https://andersonadvisors.com/all-events/

Anderson Advisors Tax and Asset Protection Workshop

https://andersonadvisors.com/asset-protection/

https://andersonadvisors.com/tax-wise-workshop-for-businesses-investors/

https://andersonadvisors.com/investing-workshop-passive-income-generating-machine/

https://www.youtube.com/channel/UCX5nh607M8hSBLiMB9MgbIQ

https://www.facebook.com/AndersonBusinessAdvisors/

International Due Diligence Organization

https://andersonadvisors.com/podcast/

Tuesday May 11, 2021

How Underwriters Evaluate Loans to LLCs or Land Trusts

Tuesday May 11, 2021

How do underwriters evaluate loans to LLCs or land trusts? By effectively guiding a loan from application through underwriting to a successful closing and helping mortgage lenders comply with regulations.

Today, Clint Coons of Anderson Business Advisors talks to Andrew Duane, Associate Attorney at Polunsky Beitel Green, LLP. Andrew’s focus on lender support includes file underwriting, complex loan products, and post-closing matters.

Andrew is Due Diligence Certified (DDC) by the International Due Diligence Organization and a professional member of the State Bar of Texas. Previously, he worked with the firm’s document review and preparation team while attending law school.

Highlights/Topics:

What if a client or investor wants to refinance a transaction and pull property out of a land trust? Find a lender willing to refinance the property in the name of the trust.
Why create a living trust? You don't want to tell the lender to move it out of the trust and have another effect on their asset protection portfolio or other kinds of disastrous effects.
What was the solution? Convert the land trust into a living trust because all trusts can be amended and restated.
What is Andrew’s role? He is an attorney that represents lenders. He doesn’t represent individual borrowers, but banks and lenders closing home loans in the State of Texas.
Why does Andrew perform underwriting and review guidelines? What are lenders like Fannie Mae and Freddie Mac experiencing on origination? Andrew backs up, not just the closing process, but that underwriting process.
Why is Andrew’s firm the backstop for lenders? There are other attorneys that do this. When the underwriter gets a document such as a land trust or limited liability company (LLC), they don't understand it and want to make sure it is legitimate and can be used.
When the loan originator/lender can't sell it, they don't want to hold it. They don’t deal with that land trust? When investors/clients talk to their loan officers, Fannie Mae requires direct negotiation for the land trust. Freddie Mac doesn't. Freddie buys the land trust where they are statutorily authorized and the individual beneficiary is the borrower.
If the property was in an LLC and it's a residential loan, would it get across the goal line? It’s doubtful. Fannie and Freddie do not allow for LLCs. In their general borrower eligibility section, they like a natural person.Then, they make exceptions. An LLC for people selling to Fannie and Freddie isn’t possible because it’s a residential mortgage.
If you put it into a land trust and the land trust is owned by the LLC, you can convert the land trust to a living trust, get the loan, and it doesn’t state your name? If you're thinking about your structures and you plan to refinance the property, if you don't want it in your name, consider using a land trust held by an LLC for your asset protection.
If you buy or close on new investment property, are there any traps to be aware of before going to the lender? Get your documentation ready to go. If it's closing in a trust, check with the attorney that did it. If it's been a few years, it might be time to restate and update it. It makes the process smoother all around for borrowers and lenders.
What’s FHA’s anti-flipping provision? It’s in the HUD handbook. FHA is concerned that houses are going to get flipped for an artificial value and FHA will have to insure all of them. Guidelines and recommendations include waiting 180 days from the time that the deed is delivered, when they acquire legal ownership, to go under contract.
If you transfer property to yourself, deeded in the corporation, when you list it for sale, and a first-time homebuyer will not qualify because of that transfer? FHA wants the seller on record to be the person making the sale.
When it comes to putting deals together if you're a real estate investor, do you need an authorized signer? When selling a property that might be held in an LLC, or you're with a private bank or wealth company that could close in an LLC, get an authorized signer.

Resources:

Andrew Duane’s Email

mailto:andrew.duane@mortgagelaw.com

Polunsky Beitel Green

https://www.mortgagelaw.com/

https://www.international-due-diligence.org/

Texas Government Code A3.001

https://statutes.capitol.texas.gov/Docs/GV/htm/GV.2001.htm

Fannie Mae

https://www.fanniemae.com/

Freddie Mac

http://www.freddiemac.com/

Land Trusts

https://andersonadvisors.com/land_trusts/

Living Trusts

https://andersonadvisors.com/living_trusts/

Federal Housing Administration's HUD Program

https://andersonadvisors.com/entity_formation/

https://www.hud.gov/program_offices/housing/fhahistory

Clint Coons

https://andersonadvisors.com/clint-coons/

Anderson Advisors Tax and Asset Protection Event

https://andersonadvisors.com/

https://andersonadvisors.com/asset-protection/