All Forum Posts by: Anthony Smoke

@Account Closed I didn't want to post anything until I actually have the deals done. When that happens I will post the ROI and cash flow. I am trying to get a ROI of 9% or greater.

@Todd Goedeke Beckstone Partners is not the company that setup my Solo 401K plan, nor do they control the funds. It is not a prohibitive transaction. I am aware that they are own properties across the US. They buy in bulk and then sell to investors. I am not sure if the loan company is affiliated with Beckstone, but I am basing my decision on the numbers. I know my costs and the income, and I think it is a good deal. I was concerned about the loan terms and I did make a post on the loan a while back. I anticipate selling the property in 5 years. The property management fee is better than I can get anywhere else. It is 8%, but for the first year it is 4%. The loan is 60% LTV and with an interest rate of 5% for the first 5 years, 6% for the sixth year, and 7% the seventh year, and a balloon payment for the rest of the loan in the eight. The balloon payment concerns me the most about this deal. I did not claim anything about "good luck and prosperity". In fact, I mentioned my reservations about the deal. Thank you for your response. It is easy to get caught up in the real estate hype, so it is good to have someone question your decisions. If the real estate investments I have done turn out to be bad deals I will learn from them.

@Justin Windham - Hello Justin, thank you for the reply. I will be sure to let you know how it goes with Beckstone Partners. 

I haven't posted in a couple of days, but I have been busy. I did a deal with Beckstone Partners to purchase a Duplex in Mechanicsburg, Pa. Beckstone is a turnkey provider that specializes in Solo 401K and checkbook IRA investors. They provide everything from buying the properties, rehabbing it, setting up the non-recourse loan, and performing the property management. I was reluctant to do this deal at first, but after speaking with them and making several request from them on the deal, I felt it was a safe purchase. We will see how it turns out.

Last weekend, I went to Wilmington to see some properties from the MLS as well as see the property I already purchased. We meet the tenants and had an inspection done on my first property. I met with another investor that gave me a reference to a contractor, and we had a great time. I met the contractor and I really felt he knew his business. I plan on getting quotes from him to fix up my first purchase (based on the inspection).

I met with my wholesaler, and we negotiated another deal that I am waiting on the contract to sign. So I now have three real estate deals in progress (one purchased, one in contract, and one about to be in contract). Assuming everything goes well, I will have three properties with two of them needing to be rehabbed. I need to get my two new properties rehabbed before I am prepared to purchase anymore properties, but that doesn't mean I am not doing anything. I am looking at some "out of the box" real estate deals. I will provide more details if these opportunities pan out. :-)

@Tim 

@Tim Spollen Hello Tim, I agree with your assessment. I am using my Solo 401K to buy properties with cash. I then plan to use the money to rehab the properties and then rent them for rental income. The last piece is the refinancing. With the requirement of the non-recourse loans, the BRRRR is not as good as it is for someone doing it with after tax money. My research into non-recourse loans are leaving 40 - 50% equity in the property with 8% or higher interests rates. So the Solo 401K works well with the Buy and Rehab portions of the BRRRR strategy, but not as well with the Refinance portion. It still allows you to continue purchasing properties, but you will not be able to continue the process indefinitely because at some point, all of your cash will be tied up in your properties. I haven't done any rehabs yet since I just purchased my first property, but once I do, then I can find out how much money I can pull out. That will be the deciding factor on my refinancing. I am performing my calculations so that I am getting a good enough ROI even if I leave all the cash in the property. I still have time before I need to refinance.

@Matt Skog - I have considered that, but currently I am trying to see what the storm does. 

@Crystal Mcdaniel - He found me on BiggerPockets. I gave him a referral if you are interested. 

@Tim Johnson - Hey thank you Tim for your input. :-)

@Ola Dantis - Thank you Ola. I guess I like to jump in the deep end. :-)

I am looking at a turnkey deal that has a refinance with a non-recourse loan. The loan details are: 40% LTV, 1-5 years 5%, 6 year - 6%, 7th year 7%, and 8th year is a balloon payment and remaining interest. This is an interest only loan. The thought is that the property would be refinanced in the 5th year or sold. This scares me a little with the balloon payment if we cannot refinance (i.e. the market crashes) or sell the property, however, I wonder what others think?