All Forum Posts by: Bruce M.

Chris, I use foreclosure radar to buy at the trustee sales. It is just one of many tools that I use. They have good info for certain things but they are not the end all.....just another tool I use.

What are you wanting to use a site for? I have tried a few of them and I am an active subscriber to Foreclosure Radar. I think they are the best in my opinion. They only cover CA, NV, OR, WA and AZ though. Their info. is accurate and they are the only one I use now.

Thanks for all the replies and info. The solo 401K loan would be a max of 50K though. That is just the same rule that employees have at any company.

I was trying to find a way to loan myself from my SD IRA or a solo 401K a lot more than 50K. I wanted to be able to fiance some of my rentals by paying interest back to my self directed retirement plan. Except for the max of 50K, I see no other options for doing this? If anyone knows different, please let me know. Obviously doing it with my SD IRA (to myself or my LLC) is a violation of IRS rules.

In my case I am and always have been the employer so all my SEP/IRA money is mine from contributions for the last 15 years. I thought I read somewhere that the solo 401K may have had higher limits than the 401K (currently 17K you are right, if under 50 without catch up provsion). I hope others chime in on this as this is a hot spot for me. Thanks!

Will, Do you or does anyone else know if a self directed SEP/IRA can be rolled over or converted to a solo 401K? I have funds in a self directed SEP that I have been trying to figure out how I could loan my LLC money for properties I am buying or already own, since I am tapped out on getting any more financing. I did not realize that the solo 401K had different rules on lending to yourself versus the self directed SEP/IRA. I guess I did the SEP becuase they are simple to do, but now I am regretting it hearing all this. What are the annual contribution limits on a solo 401K and is it maxed out at 25% of total income (wages) like the SEP? Any response would really be appreciated.

I thought loaning yourself or your LLC money from your self directed IRA was a disqualified transaction and you could not do it? Am I wrong? Can you loan yourself money form Self DIrected IRA for rental property in your name/LLC name?

I like the badge type of idea Will has described above. It would be nice to know who is a good resource in specific areas.

In Phoenix where I bought last year, prices are going up. Something that was 75K is now 90K. Everything under 100 seems to now have multiple offers from what I am seeing. Lots of money flowing into the Phoenix market in the last 12 months. I am also buying in the Las Vegas market now. Prices there still hovering around the bottom, but lots of money coming in from all over (China, Canada, Large Investors, rumors of hedge funds) and for good deals, there are multiple offers. I tend to like areas that I feel have over corrected and are poised for a rebound and offer cash flow as well. The data I watch show inventory levels way down. Look forward to hear whats happening in other areas.

Hi Matt,

I am guessing at that price, the 4plex is in the Bay Area? Got to love the Bay Area prices! Many in here won't believe the prices but I live in Northern CA so I understand. How much rent are you getting for the 3 units that will be rentals? It sounds like you may be getting into a very tight situation. I am assuming the fourplex is rented? How do you know the tenants will pay rent the first month you buy it, or if one may leave? I can tell you all kinds of stories of things that have happened to me. If you don't have any staying power with funds, what are you going to do? What if something major breaks right after you buy it? Your funds sound very tight. 13K is what you are guessing you will be getting if all three tenants stay and actually pay rent for first 3 month, is that correct? I can tell you that a lot can go wrong here unless I am missing something that you have outlined. I don't mean to be negative, but from what you have written here, it sounds like you could get yourself into some trouble. If you are that tight on funds, please consider the deal carefully. Do you own other rental property or would this be your first? If the agent has given you some type of pro forma or cash flow/cap rate anaylsis, I would be interested in hearing what they are telling you.

To answer you question about the 13K, it would be tough to answer until knowing more about the deal per above. Do you have any other funds besides the down payment?

This was a great thread to read.

My give mistakes were (not in any particular order)
- Not allowing enough money for repair expenses when analyzing annual cash flow. Rental properties need repairs but it always amazes me how a pro form never has real, if any, repair expenses.
- Being nice and extending time to tenants when they are late on rent and keep giving them more time and chances. The cell company shuts off their phone, the car lender reposseses their car. Who do you think they will pay last if they can? Us!
- Take the first tenant who comes by to get it rented instead of waiting for a tenant that will be better.
- Keeping bad property managment companies. Cut them loose at the first sign of trouble.
- Installing new carpet over and over again. Tile, laminate or vinyl planking are so much better.