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1
Investors - LC / Tax forms from transfer to Alto?
« Latest by BruiserB on March 24, 2022, 01:43:09 PM »
I've never had tax forms to deal with on an IRA transfer in the past.   Seems like this is one thing the IRS has made totally automatic.  :-)

I do the backdoor Roth IRA and there are some forms that show the withdrawal from the regular IRA and conversion to the Roth (form 5498, I think?).  I thought maybe there would be something similar here and that somehow that transfer would have to be documented.  But, yes, looks like there's nothing that has to be done!
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Investors - LC / Tax forms from transfer to Alto?
« Latest by Fred93 on March 02, 2022, 01:12:49 PM »
I've never had tax forms to deal with on an IRA transfer in the past.   Seems like this is one thing the IRS has made totally automatic.  :-)
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Investors - LC / Re: Tax forms from transfer to Alto?
« Latest by BruiserB on March 02, 2022, 11:04:12 AM »
Found an IRS Interactive Tax Assistant....seems the answer is nothing to report!

Answers to Your Questions About Income
Do I need to report the transfer or rollover of an IRA or retirement plan on my tax return?
You do not need to include your tax-free transfer on your tax return.
Your General Information
What tax year are you asking about? 2021
Your Income
Was the distribution from an inherited retirement account? No
Distributing Account Information
What type of retirement account did the distribution come from?

Roth IRA
Was the transfer made or distribution received from the retirement account on or before December 31, 2021? Yes
A distribution may be made from all of an individual’s eligible retirement plans for the birth or adoption of their child. These distributions are limited to a total of $5,000 for each birth or adoption.

Are you asking about the repayment of a distribution taken within one year of the date on which your child was born or the adoption of your child became final? No
Are you asking about the repayment of a qualified coronavirus-related distribution? No
Was the distribution moved in a direct transfer from one account to the other? Yes
Time Limit and Waiting Period Information
Was the amount rolled over the result of an improper Internal Revenue Service levy? No
Receiving Account Information
What type of retirement account was the distribution moved to? Roth IRA
Disaster Distributions
Repayments of a distribution may be allowed when your main home was in certain Presidentially declared disaster areas or if you received a distribution to purchase or construct a main home that was not purchased or constructed because of the disaster.

Are you asking about the repayment of a disaster distribution? No
4
Investors - LC / Tax forms from transfer to Alto?
« Latest by BruiserB on March 02, 2022, 10:43:32 AM »
OK, I transferred everything from Strata to Alto last year.  Are there any tax forms that will come out from that?  I thought there would be something showing a "withdrawl" form Strata and then an accompanying form showing everything was rolled into Alto.  I just logged into my old Strata account and there are no documents available there.

Is anyone still around these forums?  Hopefully someone can advise.
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General P2P Lending Discussion / sharestates? (real estate p2p)
« Latest by flyp52 on December 20, 2021, 12:26:15 PM »
Thanks for the detailed summary! I decided to try groundfloor out, invest in some loans that mature in the next few months..
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General P2P Lending Discussion / sharestates? (real estate p2p)
« Latest by Fred93 on December 17, 2021, 08:21:10 AM »
Sorry I can't offer any experience with Sharestates. But can you offer your experiences with Groundfloor? Have you experienced any defaults or delayed payments?

Sure.  Lots.  A significant fraction of the loans default.  (I don't have stats in front of me at the moment.)  However, these are secured real estate loans, so after a considerable delay where they dive in and work with the borrower, then they move thru a complex set of legal steps to foreclose, and then eventually you get your money back.  Unless they have mis-appraised the property, you get your money back.   There's just a delay.  Requires a bit of patience.  This is VERY different from the situation at LendingClub or Prosper, where defaults almost always result in total loss of investment.

One aspect of this situation is that it takes a long time to understand how well you're doin'.  You have to allow time for defaults to work out.  My spreadsheet shows I'm makin'  6.88% IRR after everything, even including my estimate of what fraction of the currently defaulted loans will pay off.  My return has been remarkably consistent over time. 

You used the words "delayed payment", but this is essentially the same as default.  Most of the Groundfloor loans have only one single payment, at the end of the loan, usually 1 year from start.  That's another reason it takes a while to understand how well you're doin'.  You don't get that monthly feedback like you do at LC and Prosper.  If you want to calculate your return in a meaningful way as you roll along, you have to include a term for accrued loan payments discounted by some guessed loss fraction.

I might mention that my 6.88% is lower than Groundfloor's return estimates.  This is exactly the same as the situation at LC and Prosper.  In the case of Groundfloor, one of the substantial reasons their estimate and mine differ is that my money sits allocated to loans that are not yet funded for a considerable time.  I commit the money, and then it can take a couple of weeks for the loan to close.  They compute return based on invested money, and I compute return based on my whole account.  There may be other reasons, but I compute IRR based on my account value, and I'm happy with the result.

I invest, as I did at LC and Prosper, in mostly the higher quality loans, and avoid a few states I consider sketchy.

I started investing at groundfloor in 9/2015, so that's a 6 year track record.
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General P2P Lending Discussion / sharestates? (real estate p2p)
« Latest by flyp52 on December 16, 2021, 02:54:49 PM »
I also invested on LendingHome (now Kiava). I used their auto-invest feature, but experienced too many defaults. Foreclosures took a long time, and I often did not get all the principal back.
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General P2P Lending Discussion / sharestates? (real estate p2p)
« Latest by flyp52 on December 16, 2021, 02:50:59 PM »
Sorry I can't offer any experience with Sharestates. But can you offer your experiences with Groundfloor? Have you experienced any defaults or delayed payments?
9
General P2P Lending Discussion / sharestates? (real estate p2p)
« Latest by Fred93 on December 16, 2021, 04:18:26 AM »
I am in groundfloor.us  .  I'm always surprised when they don't often get mentioned in a list such as they one you gave.

They have a large # deals open at any one time, so I have no trouble investing a bunch of cash when I dump it in.

I'm looking to maybe diversify, as these are all small companies, and that led me to look into Sharestates, which led me to the question above.

10
General P2P Lending Discussion / sharestates? (real estate p2p)
« Latest by flyp52 on December 16, 2021, 02:14:30 AM »
I've been tracking Sharestates, Peerstreet, and Yieldstreet. Yet to pull the trigger on any of them. Peerstreet seems to have some volume. Yieldstreet has some interesting alternative investments, I'm close to trying them out. I like Fundrise, Realty Mogul, and Crowdstreet, have had good experiences on all those platforms.