All Forum Posts by: Amy Greger

Will you be working for Amazon in Seattle?  Living in Tacoma and commuting to Seattle is not easy.  You'll be spending lots of time on the commute instead of home with the family. 

Just like the analysis comparing mutual fund fees... the long term growth for a small percentage difference has significant long term impact.

What I am trying to compare is 100% vs. 50% tax-deferred NOI, and how that impacts the plan value growth over time.

Haha... thanks @Brent Coombs - want to see the numbers.  The difference on the return with non-recourse loans vs. option 1.  Should always do the analysis first, right? 

NASB lends up to 60% LTV in Washington State - but the first property eligibility response showed only 50% LTV even though DSCR was over 2.0. I'm following up on that.

This is my first purchase with a non-recourse loan. I want to make sure the numbers make sense after paying taxes on 50% of the NOI by using a non-recourse loan, mortgage fees and interests...etc.

What's the best way to compare the two purchase options?

1. 100% cash (by the self-directed plan)

2. 50% cash (by the self-directed plan)+ 50% non-recourse loan

Thanks for the feedback in advance!

Thanks @Tek Chai!  Just joined Real-Estate-Wholesale-Flip-IRA-Workshops.  

I am looking to finance a property with a Profit Sharing Plan. This is my first non-recourse loan. I contacted North American Savings Bank, and I'm hoping to find other lenders to compare the rates. The NASB rates were a bit higher than expected:

The loan amount is determined by the property condition, cash flow, retirement reserves, and recent property history. We have a minimum $50,000 loan amount and require some reserves to be shown in any retirement account bearing your name. The bank fees for a purchase transaction are 1% of the loan amount (1.5% if it is a cash out that is owned greater than 6 months) plus $695 in processing/underwriting fees.

The interest rates for a non-recourse loan are as follows:

-4.875% for a 5/1 ARM amortized over 20-25 years

-5.375% for a 10/1 ARM amortized over 20-25 years

-5.0% for a 10 year fixed loan that is amortized over a 10 year period

-5.375% for a 15 year fixed loan that is amortized over a 15 year period

-5.75% for a 20 year fixed loan that is amortized over a 20 year period

-Special quotes may be given for multi-family property 3+ units, rural property, and high rise condominium units

@Dmitriy Fomichenko - thanks for the tips!  

@Immanuel Price - I went to ND and lived in South Bend!  Will ping you to chat some more about the NW Indiana market.  I was really excited to see the numbers after looking in the Seattle area.  

Recently discovered the amazing BP site - wish I had found it years ago!  My husband and I have several properties in the Seattle area, one of them is owned by our Profit Sharing Plan. They are all buy-and-hold with good rental income. 

I recently started to get more serious about REI and exploring non-recourse loans and buying multifamily properties in Tacoma, WA and NW Indiana. We are looking in Tacoma because the Seattle market is getting too expensive. It's great for our existing properties though. NW Indiana (just outside Chicago) is affordable and easily find properties with 10-15% CAP. Appreciation will be flat compare to Seattle, but the solid income stream will be nice.

I am following the forum, watching podcasts and reading what I can get my hands on - so much to learn.  

Cheers!
Amy

@Schoneck Shoaf are you already investing in Indiana?  I just started looking in the NW Indiana area (close to Chicago).

@Ryland Taniguchi - Is the Tacoma area a good option?  Keep hearing it's the up and coming market with Seattle getting too expensive for most.