All Forum Posts by: Arron Paulino

Thank you for the reply! So essentially, if I needed let's say $20k (for a down payment/to purchase a property) from my Roth IRA, I'd have to sell off the investment first and then withdraw those funds (the principal amount, not the gains over the years) once sold from my account. I will then have 60 days to return those withdrawn funds ($20k) back into my Roth IRA (I'm sure there is a way to do so instead of counting it as a contribution for the year somewhere in the portal). I'm trying to time this with another investment that I have made (refinance/note maturing) so I can reroute those received funds back into my Roth IRA. Am I understanding this correctly?

I only plan on doing this strategy once/when needed (Is there a limit to how many times this can be done? Like 12 months at a time?). I ran into a situation where I'm in a pinch and this would help me out as I am working on scaling my portfolio.

Hi Mathew. I'm in the same boat at the moment. Were you able to withdraw funds from your Roth IRA from Fidelity at the time you posted this? I've read in the forums and Googling that the principal invested can be withdrawn without penalty if it is returned within 60 days from withdrawal. Not sure how accurate this is or not. I need additional funds for a deal I'm about to do and would greatly benefit from pulling out of the Roth IRA and then replacing it down the road before the deadline. Look forward to your response!

Hello All,

How do I acquire business credit to purchase buy and hold rental properties? How does the whole process work? This has me curious since this appeared on my YouTube feed and I'm currently delving into this and/or dipping into hard/private money for purchasing properties. Is business credit more advantageous than hard/private money or vice-versa?

Also, can anyone recommend who I should think about opening a business checking and/or savings account with? I was rereading Brandon Turner's book on How to Invest in Rental Properties and stumbled upon this concept.I currently just use a personal account for my funds, but realize it could be beneficial to have a business account to separate my personal and business funds. Look forward to responses!

Thanks for the reply! This example is helpful and breaks in down in my head. Essentially from what I'm reading, you gain 66k in equity for owning the home and 10k for the down payment plus 4k for approximate closing costs to repeat. Is this correct? Also, ideally an investor would plan to have enough in reserves beforehand for interest-only payments during the term of the hard money loan right (in this case, approximately 5k on top of the 14k for purchase ≈ 20k)?

Thanks for the reply! I have heard of a HELOC as an option, but I currently do not own my own primary residence. Do you have experience with a personal line of credit?

I vaguely understand hard money. I'm guessing I'll have to come up with monthly payments to issue back to the lender on top of their profit/money back at the end of term. Do you mean private lending when you mention non-conventional? 

I have recently invested in 2 BRRRR deals where I used my personal saved capital on. My question is: How can I keep the ball rolling for more properties in terms of financing for them? I do have reserves saved for the 2 BRRRR deals. I do have enough money in my personal Roth IRA to purchase a property, but do not understand how I could potentially use those funds for another BRRRR (I think I read somewhere that I am able to pull out $10,000 max without penalty so long as the funds are paid within 2 months. Seems like enough for a rehab, but not a property. Could someone verify?).

Should I just wait to the cash out refinance later on and then go for another 2 then while continuing to save from my day job? I do not want to miss out on deals where the numbers work out and want to add them to my portfolio. I know of hard money lending, but am not very familiar with this route followed by refinancing. I look forward to hearing from the community!

Thanks! I'm currently rehabbing it. My budget was $30k and my contractor is saying it'll be around $27.5k to renovate. The ARV I came up with is $65k. So I've decided to go with the buy and hold strategy rather than flip.

 As much as I like the numbers on this one, I'll take your advice and follow my agent's lead. Thanks!

 Thanks for the reply! Would the worst case scenario be that I would be responsible for the unpaid taxes essentially? Maybe asking for a price reduction due to this would make it worth it. I looked into the county tax records and see that taxes on this property go up to 2012 with interest and principal on taxes totaling about $6k. What do you think?

Thanks for the reply! I have a title company I trust on the ground and would rather not stray from them if they can't get it done. Looks like I'll be passing on this deal.