California Private Investor strategies

[Angel Morales]

Hello everyone,

So for the past few months we've (business partner and me) been busy setting up everything to start flipping in the next few months. We already have a real estate agent, general contractor, project manager and our first private cash investor. My question is related to private investors, we have friends interested in investing that fall in one of the three scenarios:

- some of them have cash 

- some have equity in their homes 

- some have money in their retirement accounts (401k, IRA, etc)

We want to take advantage of all 3 scenarios, with the cash one is easy since we can just offer a fix percentage per year, payable once the property is sold, for the months we used the money. But what about the other 2? This is what I'm thinking:

- some have equity in their homes: get a HELOC, which apparently has an interest in the high 3%, so they could keep the rest of the interest we pay them as profit

- some have money in their retirement accounts (401k, IRA, etc): transfer the money to a self-directed IRA or a solo 401k, and then invest with us

Any comments about this? Any companies that you would recommend? We are based in San Diego, CA, but plan to do the flips in southern Los Angeles county.

thanks!

[Lee Ripma]

In terms of a self directed IRA there are a lot of options. I just did a bunch of research on this, do I want checkbook control or do I want self directed with a company. I decided to go with Equity Trust Company because my CPA said that she other clients who are happy with them and the fees are very reasonable. Seems like it is an easy way to do private lending. The fees depend on your balance but they are pretty low. Feel free to PM me if you want my contact's name over there. I have no affiliation, I just did this for myself so am happy to share what I chose.