All Forum Posts by: Mike Terry

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $50,000
Cash invested: $50,000
Sale price: $85,000

My first Solo deal. Financed with a loan from my Solo 401k, You can do this with low money down. My second most profitable deal. Condos are fun rehabs...only have to deal with the interior. Uncer contract in a week.

What made you interested in investing in this type of deal?

Scope of work was very manageable and the money was made on the buy.

How did you find this deal and how did you negotiate it?

Networking with a realtor...pocket listing. No negotiation.

How did you finance this deal?

solo 401K loan

How did you add value to the deal?

full rehab

What was the outcome?

undercontract at estimated ARV.

Lessons learned? Challenges?

Check and double check cabinet layout, oven door didn't clear handles on cabinets, problem solved but not easy. Keep plugging away despite Covid 19 deals are closing and prices in my markets are rising as supply is extremely constrained.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Jennifer LaFlame

@Mitchell Richard

I’ve used them, they booked my place at a higher rate and for longer periods mostly a month or 6 weeks. They are hard to get on phone, long wait times, but will work with you and individualize your posting and agreement to your needs.

Stephen,

Welcome to Southwest Florida and Bigger Pockets. This is a valuable resource. There is an active REIA here

http://swflreia.com/

The Multi family opportunites are hard to come by.  Prices are very high compared to rents and cash flow therefore is pretty marginal if you are using leverage (300k for a duplex).  If you are a cash buyer it is a better market.  If you plan to owner occupy it can make sense here, but from a pure investment point of view you should compare possible duplex cash flows to other markets, before you invest too much time in this market.  Most of my market knowledge is based on the Cape Coral and Port Charlotte Markets.  You may find better numbers in Lehigh Acres.  Best of luck

Equity Trust for SDIRA and Midland for solo 401k

Investment Info:

Single-family residence fix & flip investment in Port Charlotte.

Purchase price: $123,000
Cash invested: $40,000

Contributors:
Cliff Terry

My partner @cliffterry and I found this property through a wholesaler. We evaluated and quickly jumped on it. put it on the market right at the begininng of the COVID 19 crisis. It went under contract after the first weekend at asking price, that contract was cancelled 24hrs later. Showings slowed down, due to pandemic, we lowered the asking price and 3 weeks later we had multiple offers and it is back under contract. Our most profitable deal so far. Looking for the next

What made you interested in investing in this type of deal?

Profit potential and chance to grow retirement funds.

How did you find this deal and how did you negotiate it?

Wholesaler

How did you finance this deal?

Funded through my Self-directed IRA

How did you add value to the deal?

Total interior rehab,

What was the outcome?

Best deal and most profitable to date.

Lessons learned? Challenges?

had to learn about septic tanks, needed replacement. Be patient and have confidence in your numbers and even in a crisis quality product moves.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Shannon Cohan @Shannon Cohan
SCOTT SILVER CONCIERGE REALTY

Investment Info:

Single-family residence fix & flip investment in Port Charlotte.

Purchase price: $123,000
Cash invested: $40,000

Contributors:
Cliff Terry

My partner @cliffterry and I found this property through a wholesaler. We evaluated and quickly jumped on it. It needed complete interior rehab, septic system replacement and pool resurfacing. We put it on the market right at the begininng of the COVID 19 crisis. It went under contract after the first weekend at asking price, that contract was cancelled 24hrs later. Showings slowed down, due to pandemic, we lowered the asking price and 3 weeks later we had multiple offers and it is back under contract. Cliff and his crew do great work and I financed the deal through my SDIRA. Our most profitable deal so far. Looking for the next

What made you interested in investing in this type of deal?

Profit potential and chance to grow retirement funds.

How did you find this deal and how did you negotiate it?

Wholesaler

How did you finance this deal?

Funded through my Self-directed IRA

How did you add value to the deal?

Total interior rehab,

What was the outcome?

Best deal and most profitable to date.

Lessons learned? Challenges?

had to learn about septic tanks, needed replacement. Be patient and have confidence in your numbers and even in a crisis quality product moves.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Shannon Cohan @Shannon Cohan
SCOTT SILVER CONCIERGE REALTY

@Gregory Schwartz You have the right attitude and right approach.  I am sure you and your wife will be successful.  You have thoroughly planned your future.  No one could have predicted our current situation and the future holds a lot of uncertainty, but you now hold a cash flowing asset.  It may be a struggle for a period of time, but it sounds like you are prepared to survive it.  My belief you will look back at this time a more confident investor and you will have paved the way for more certain success.

@Avi Garg @Sienna Parker be careful with employer sponsered retirement plan loans.  If you loose your job or changed jobs it has to be repaid immediately or it will be treated as a withdrawl and subject to federal and state taxes and a 10% penatly.  Disclaimer:  I am not an accountant and this is just what I have learned over the past three years and how it applies to my situation.

@Sienna Parker two separate strategies. 2 years ago I moved a portion of my employer sponsored 401k to a self directed IRA and invested the funds in several flips with my business partner @Cliff Terry.  Then I moved this year another potion to a Solo401k which allows a loan up to 50% of the value or a max  50k.  I then bought a condo with the funds to flip or rent.  Bottom line: if someone (your employer) wants to give you free money... Take it.  There are creative ways to safely access retirment funds at a later date.

Times like these are great reminders of the importance of diversification. 401k contributions to the match are always wise. I have been able to access those funds in a self directed IRA and a Solo 401k loan in the past to take advantage of good REI opportunites. These are all short term investments, but right now it has saved me from the serious stock market decline. Good luck with your investing.