All Forum Posts by: Chris Seveney

Good read. Book is an easy read and also you do not need to be a CPA to understand it. Gives you high level understanding of some basics and gives you insight on who to reach out to for more complex scenarios

Tips would be to go to local REIA meetings, see if any wholesalers will let you shadow them. There is an abundance of wholesalers in this market so the more people you know and how they operate will give you insight and strategies for which type of properties to attempt to get under an agreement

@Brian Eastman 

Thanks

I would like to pick your brain sometime about setting up my SDIRA and best way to go about it

I am fully aware that you cannot sell a property you own to your SDIRA, but on the flip side can you buy from your SDIRA. Below is an example: Let's say I acquire a property for $100k using my SDIRA funds and spend $25k renovating it (thus all in $125k). The ARV is $175k. Could I legally sell it to my self for $175k (with the $50k minus closing costs going into the SDIRA) I would then finance it at 80% (put 35k down) and use it as a rental property Reason why I thought of this is I have purchased properties, fixed them up and had to wait six months for seasoning (since I do not have 10 properties I am still using conventional financing through my credit union) In this instance I do not have to wait the six months I can refinance immediately. Downside is I am putting $ into the deals when a typical BRRR you are not at the end of the day (if done correctly) but this also allows the SDIRA to ramp up quickly

Justin Prevatte - makes absolute sense

Justin

The values I placed were very conservative. The condo I have is a 1BR / 1 bath with a unit next door in far worse condition (unit I acquired did a complete rehab - new kitchen, baths, plumbing, heating, electrical and windows) is under agreement for asking price of $129k. ARV conservatively is $130-140k. No loans on it.

Question for the BP community. I am currently completing a BRRRR which we paid with cash (acquisition and renovation). This has depleted our cash at this time for any new projects. I did find a bank owned property that would make a great BRRRR but all my cash is tied up in my other property. Any creative ideas / ways to go after this bank owned property? The property is also a condo and would not qualify for Fannie Mae type loan because it is a rehab. Acquisition price is around $200k, 60k renovation and ARV of $325k. Washington DC - Maryland - northern Virginia area is where property is located Curious if a private lender would lend and use my other property as leverage ? Thanks

If you are going to be building in the area you are noting you will need to build a minimum of 3,000sf and that might be too small. Reason being the land prices are so expensive you cannot build a starter home without having huge negative equity in it. You would need to go out to front royal area or further west where land is less expensive to be able to build something that would be considered a starter home.

Greer Hunter - welcome to DC. I grew up in western mass then lived in Wayland for several years before moving to DC. This is an excellent site to get a free education and recommend you use it to take full advantage of it

When they say it's a gut or tear down then it is typically a tear down. In that instance you are paying for the land minus the cost to demo the structure. If it is a tear down make sure to do plenty of due diligence regarding easements, utilities, set backs etc as I have seen people byuy a tear down and not realize there was an RPA which ended up costing them big time because they were locked into a footprint and location on site where they could build