All things STOCKS

Go aeiou

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All good reasons. When I developed residential real estate (1990-2014) I saw people having problems with Rocket, and going to local lenders. There was still something about a personal relationship, and help from someone who knew the local market, laws and customs. Real estate transaction are different from from one area to the next. "Usual and customary" is what's often used, but not necessarily.
Buying a home is still a big deal for most people, especially the first time.

That still does not mean RKT is a bad investment.
 

DancingOutlaw

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I guess I don't like it because I'm a millennial, their target audience, and there is no way I would get a mortgage/refinance with a company over the phone and not in person. That's just me.
You need to join the future buddy. We refied with a lender I found online, never met them and don’t need to. The loan we refied was through First TN and I never met them either. The online lender model works because you’re not paying fees to cover their brick and mortar branches scattered coast to coast and all the related overhead. You give me a better rate and less fees and I’m your customer. I don’t need hand holding with a mortgage.
 

mrorange211

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You need to join the future buddy. We refied with a lender I found online, never met them and don’t need to. The loan we refied was through First TN and I never met them either. The online lender model works because you’re not paying fees to cover their brick and mortar branches scattered coast to coast and all the related overhead. You give me a better rate and less fees and I’m your customer. I don’t need hand holding with a mortgage.
We have different preferences.
 
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I guess I don't like it because I'm a millennial, their target audience, and there is no way I would get a mortgage/refinance with a company over the phone and not in person. That's just me.
Their target “audience” isn’t limited to Millennials. They target everybody wanting a mortgage in the US and now they are looking to expand into Canada. Most Millennials are comfortable striking a lending deal without having to walk into a local bricks and mortar office. Millennials are the current/upcoming wave of home buyers so the demographics are favorable for on-line lenders. Same deal with Ally Bank.
 
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mrorange211

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Their target “audience” isn’t limited to Millennials. They target everybody wanting a mortgage in the US and now they are looking to expand into Canada. Most Millennials are comfortable striking a lending deal without having to walk into a local bricks and mortar office. Millennials are the current/upcoming wave of home buyers so the demographics are favorable for on-line lenders. Same deal with Ally Bank.
I get it. I don’t invest in companies that I don’t like and/or don’t have good stock movement for a margin. RKT qualifies in both regards for me. If I were investing in a mortgage company, I’d prefer UWMC.
 

Firebirdparts

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I was wondering about this very thing. It one thing to object to (or defend) a company based on fundamentals, but I didn’t think these short term trades had anything really to do with that. What do you look for in a stock that is “chartable” let’s say. A stock for which you think you can predict a short move but everybody else can’t?
 

InVOLuntary

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Question for those with experience. My family owns a small apartment building, 4 one bedroom apartments. We are thinking of selling but want to avoid/minimize capital gains taxes. We have another property that we would like to take the funds from the sale of the apartments and develop self storage units. Can we reinvest those funds into a property we already own and offset the capital gains taxes?
 
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Question for those with experience. My family owns a small apartment building, 4 one bedroom apartments. We are thinking of selling but want to avoid/minimize capital gains taxes. We have another property that we would like to take the funds from the sale of the apartments and develop self storage units. Can we reinvest those funds into a property we already own and offset the capital gains taxes?
1031 exchange

Avoid Capital Gains Tax on Your Investment Property Sale
 
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InVOLuntary

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I was wondering about this very thing. It one thing to object to (or defend) a company based on fundamentals, but I didn’t think these short term trades had anything really to do with that. What do you look for in a stock that is “chartable” let’s say. A stock for which you think you can predict a short move but everybody else can’t?
In MY case when I opened my position in RKT I was willing to either take a quick short term trading profit or hold on to it for much longer. I nearly sold it when it went from $18 where I bought it and then dropped to $16 but then quickly jumped to $22. It has since settling back to around $19 and seems to have taken a little pause there. After watching it hold above my purchase price through the broad market pullback I’m inclined to purchase additional shares. It doesn’t frighten me like many securities that are popular trades usually are. I’d never have the same strategy if I was trading the stock of a garbage company like 99% of the penny stocks. I might try doing a similar trade/hold with F. I’m not in love with their products, but I think that the stock can transition to EVs and do well for a while.

I pay a lot of attention to fundamentals but other than recent trading ranges and volume not much to technicals. Even with trading volume I’m approaching that more from fundamentals rather than day-to-day or week-to-week changes.

I have some stocks that I’ll maybe never sell. Home Depot, LMT, and BlackRock. I’m looking for a few more to put in that category. Probably another financial (MS, SCHW, CME, MA, V, Berkshire or an alternate insurer) and/or healthcare (CVS, XLV, IBB, JNJ, MDT), or even VZ, COST, or WM. My advisor wants me out of IBM, but I’m not sold on the idea just yet. The IBM dividend is enough to cover most of my expenses. RKT isn’t a hold forever name for me as it’s not been a stand alone for very long. It might eventually be similar to my view of FND (Floor and Decor) which I’ve held for just a few years. I’m not ready to forget about it but I’m not likely to create a taxable event right now by selling.
 
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Thanks, I read that one. Doesn't really address my situation. I'm not selling one property for another, I'm selling one property and using those funds to improve another property, building self storage units, that we already own. I've Googled and not found an answer.
Then you’ll probably need to pay the taxes. You could leverage property number one to pull out cash and/or wait for each owner to pass away and take advantage of the stepped up basis rule.

Real Estate almost has its own subset of the tax code (not quite to the extent of farming). Hiring a CPA that specializes in real estate wouldn’t be a bad idea. Or ask a successful Realtor.
 
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InVOLuntary

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Then you’ll probably need to pay the taxes. You could leverage property number one to pull out cash and/or wait for each owner to pass away and take advantage of the stepped up basis rule.

Real Estate almost has its own subset of the tax code (not quite to the extent of farming). Hiring a CPA that specializes in real estate wouldn’t be a bad idea. Or ask a successful Realtor.
That's the next step for sure. A little back story. My dad currently is sole owner of the property. He and his brother just split up their jointly owned commercial real estate. Dad got those apartments. Dad's health is declining rapidly. He has a progressive lung disease. The Dr has given him 6-12 months. He doesn't want to burden us kids with the upkeep and crap that goes on with those apartments (I deal with most of it now anyway because he simply cant). He wants to sell those apartments and do the self storage asap. I'm trying to get them ready by evicting a dead beat that hasn't paid rent in over 2 years and doing some cosmetic stuff to the exterior, painting, windows and such. We definitely need to contact an expert be that a lawyer or cpa.
 
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I get it. I don’t invest in companies that I don’t like and/or don’t have good stock movement for a margin. RKT qualifies in both regards for me. If I were investing in a mortgage company, I’d prefer UWMC.
I’m not sure what good stock movement for a margin means, but you asked why posters are having a woody for RKT so I explained my interest.

I wonder why so many get a h*** *n over penny stocks and crypto trading, but I just accept it and think about going long with gambling securities (DKNG, Vegas hotels, IGT, GLPI, CHDN).
 
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That's the next step for sure. A little back story. My dad currently is sole owner of the property. He and his brother just split up their jointly owned commercial real estate. Dad got those apartments. Dad's health is declining rapidly. He has a progressive lung disease. The Dr has given him 6-12 months. He doesn't want to burden us kids with the upkeep and crap that goes on with those apartments (I deal with most of it now anyway because he simply cant). He wants to sell those apartments and do the self storage asap. I'm trying to get them ready by evicting a dead beat that hasn't paid rent in over 2 years and doing some cosmetic stuff to the exterior, painting, windows and such. We definitely need to contact an expert be that a lawyer or cpa.
Sorry about your Dad, I can relate. But I’m pretty sure that the stepped up basis is a huge consideration. I think that it applies to investment RE properties.
 
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I will definitely check that out. Thank you on both accounts.
Stepped up basis and Roth retirement accounts are 2 of the best tax shelters that peasants like me are still allowed to take advantage of. Putting family on payrolls or renting real property back to closely held corporations are other strategies for business owners. Life insurance and donating appreciated assets to charity work for some people.
 
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Rasputin

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I think you’d be crazy to ask that question on a sports forum, but I have to admit that is possible in an “opportunity zone”.
Opportunity zones do offer an interesting alternative, if you can adhere to the timeframe they require. Unfortunately, all the Opportunity Zone Funds I have looked at seem to be structured for the benefit of the operator, not the investor. Has anyone seen one that was structured "fairly"?
 

DancingOutlaw

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Sorry about your Dad, I can relate. But I’m pretty sure that the stepped up basis is a huge consideration. I think that it applies to investment RE properties.
Something else to consider is his equity portfolio. If he’s got big losers you could sell those before he passes and lock in the carryovers or net gains against it to free up cash. Step up works both ways, if you’re underwater on a stock the new basis is the fmv. So those losses vanish and you’ll owe tax if the value goes up.

Another strategy to consider would be using bonus depreciation on whatever qualified improvements you make to the new property to help offset gains from the sale. As it’s already mid July this would be time sensitive and given current construction issues it might not even be feasible to do both this year.
 
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Fullfillmer

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Thanks, I read that one. Doesn't really address my situation. I'm not selling one property for another, I'm selling one property and using those funds to improve another property, building self storage units, that we already own. I've Googled and not found an answer.
You need you CPA to advise you each step of the way - assuming it is possible. Cpa or tax attorney- imho. I am neither, but that’s who you should be asking - you can mess the process up - if it turns out it can be done.
 
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walkenvol

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In MY case when I opened my position in RKT I was willing to either take a quick short term trading profit or hold on to it for much longer. I nearly sold it when it went from $18 where I bought it and then dropped to $16 but then quickly jumped to $22. It has since settling back to around $19 and seems to have taken a little pause there. After watching it hold above my purchase price through the broad market pullback I’m inclined to purchase additional shares. It doesn’t frighten me like many securities that are popular trades usually are. I’d never have the same strategy if I was trading the stock of a garbage company like 99% of the penny stocks. I might try doing a similar trade/hold with F. I’m not in love with their products, but I think that the stock can transition to EVs and do well for a while.

I pay a lot of attention to fundamentals but other than recent trading ranges and volume not much to technicals. Even with trading volume I’m approaching that more from fundamentals rather than day-to-day or week-to-week changes.

I have some stocks that I’ll maybe never sell. Home Depot, LMT, and BlackRock. I’m looking for a few more to put in that category. Probably another financial (MS, SCHW, CME, MA, V, Berkshire or an alternate insurer) and/or healthcare (CVS, XLV, IBB, JNJ, MDT), or even VZ, COST, or WM. My advisor wants me out of IBM, but I’m not sold on the idea just yet. The IBM dividend is enough to cover most of my expenses. RKT isn’t a hold forever name for me as it’s not been a stand alone for very long. It might eventually be similar to my view of FND (Floor and Decor) which I’ve held for just a few years. I’m not ready to forget about it but I’m not likely to create a taxable event right now by selling.
Our FA also recently recommended selling IBM back at $125. I asked why and all I really got was their analysts said there were better opportunities in the sector. Already have too much money in the tech sector on companies with outrageous fundamentals. Like you I decided to hold it. Why sell a dividend aristocrat unless there are clearly problems with their business model? Guess time will tell unless someone can explain why IBM is going down hill quickly.
 

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