All Forum Posts by: Dan D.

The SDIRA is a wonderful thing.  We use it in reverse though.  Instead of us using it to buy/loan properties, we are the beneficiary of the loans...and we buy the properties from using those loans.  The lender (SDIRA) reaps all the benefits of a lender, while holding that loan in the SDIRA.  There are a number of different ways to do this as well.

This is a great way for those "wannabe", with small amounts of cash, to become REI. If more REI knew the many REI options afforded them from using their SDIRA, there would be many more happy IRA owners.

@Jami Morton

@Matt Motil

I have enjoyed the discussion on this thread. I invest in real estate for the big three and nothing less : appreciation, equity, and cash flow. If you take one of these off of the table then you are short changing yourself. You must calculate into you equation appreciation. 

Its like playing football but saying touch downs don't count. If you go for field goals and safety's all day you are not going to score as many points. You might still win the game with field goals but it is much easier if you use all aspects of scoring.

Jami I only buy properties that have equity built into them. If something goes sideways in my life I want to be able to sell for a profit the same day I bought the property.

I just listened to podcast #153 Linda Mckissack. She is a very successful long term real estate investor who co-wrote the book, HOLD. Her formula requires that any property she buys is 70% LTV or less and at least 10% under market when bought. That way she doesn't become overleveraged and thus struggle when the next housing crisis hits.

That is actually less conservative than I am in the houses I'm currently buying.  I'm typically buying properties for $80k including repairs with values of about $100k or more.  They are out there but you have to find them.  I'm usually getting a 75% LTC loan on these properties so about 60K.   

If you can find a turnkey provider who can find you properties with 10% instant equity THAT YOU INDEPENDENTLY VERIFY, then and only then would I recommend considering it.