All Forum Posts by: Andrew M.

@Dmitriy Fomichenko Is there such a thing as a Self Directed 415(c) to your knowledge?

To all of the retirement fund contributors and 401(k) experts- has anyone used 415(c) contributions to fund your real estate deals, provide short term 'lending', etc? I'd like to borrow from mine, but there isn't much information regarding this section of the tax code. It has similar rules as a 401(k), but with higher yearly limits. It's quite common in the airline industry. What successes have YOU had?

Michael, at 19 years old, just keep in mind that the decisions you make now will be the foundation of your future. Small decisions now will make huge directional changes over the course of the coming years. Think with the end goal in mind! 

I am still driving the used pickup I bought when I was making $20K/yr. Now it has hail damage and looks like a real gem :)  At the time, buying a used car for cash was necessity. Now that I save in a month what I used to make in a year, it's become more apparent that capital is the tide that will raise your business. Nickel and diming you every month is still less than $450 a month in payments. Credit will come without it. That represents a huge percentage of your income and saving ability. I say skip the car, you don't need it. Reach out if you need any input!

These two aren't your ONLY options, they are just your only current options. My vote is to save the cash for a down payment. The added stress from owning rentals when you are severely undercapitalized is far, far from worth it. Keep working hard, keep the long term goal in mind. Save up.

Also, when a different entity or different person from you has a first lien on the property, you can refinance without seasoning.

@Kenneth Williams nice job on all of the research with your first property. You can only do so much due diligence before jumping into action! The metrics sound great. I just went through feasibility on a property similar to this and ended up backing out because of the scope of work and sellers bottom price. Red flags I see: -'Friendly' landlords, cash payments -Not having seen leases (although it sounds like that's soon to come' -Wholesaler brokering a deal for such a low price tag, worth 'at least' $190K with only $12K in rehab? Best of luck!

Adam Crocker As a forum of real estate investors, it is only inherent that we want to find a way for anyone interested to get into investing as quickly as possible. As someone who has been in a similar situation as you, I can say that sometimes it just doesn't work out they way you want as quickly as you want. Go out and get another job. Three YEARS and they can't give you full time at retail? Three months and I'd have been elsewhere. Buy a place making $17,000 a year? I bought my first rental in debt and making very little money. Borrowed some from my dad in fact. Worst investing experience I have to date. I'd recommend not doing something similar. You're obviously ambitious. Educate yourself, network like crazy, get your W-2 income much higher, build a good foundation in life, then, and only then, buy your first place. Best of luck my man.

That scenario sounds like putting your relationship with your parents on the same playing field as a bunch of hidden land mines. Too many ways that can play out negatively. Save $30K with the same level of determination that you used to buy the other units and proceed forward with your own resources.

When you're large enough to have the Fed print you out of your misery, what is there to learn?

I was awarded judgement in my favor on a remodel gone wrong by small claims court in Central Texas. It has gone uncollected since there is nothing for me to go after without pursuing legal help. I received a letter today from 'Best Collection Services, LLC' Professional Debt Collectors. It was a professional letter stating a presence in all 50 states, veteran owned, etc. After a quick Google search I cannot find anything on this company. It seem too good, unless someone has used them and can attest to their legitimacy?