All Forum Posts by: Charlie Shew

Hello Everyone,

Next spring I plan to move to Southwest Virginia. They are developing opportunities there for cabin rentals. The area has been building ATV trails and it seems to be catching on. What I would like to do is build cabins for nightly/weekly rentals. What forum would be best for me to learn about this process. I need to learn about septic systems/options, cabin layouts/building, Airbnb rentals to tourists.

I was searching the forums and was not sure which would be the best for me to start asking questions.

Thanks,

Charlie Shew

I'm 56 years old and feel like I am starting to invest too late. I will be moving $150,000 into a self-directed or a solo401K. My goal would be to grow my income as quickly as I can. I would be investing in the Nashville area, the homes here are on the high side for the Nashville area. This means I can not really count on appreciation.

I understand there a million ways to invest and I need to choose the one that works best for me, but I'd like to here a few suggestions to what might work best. Just about the only thing, I do not really want to invest in is section 8 property. If it is a SFH I'd self manage. I love the thought of apartment complexes but I think I'd not want to be part of a pool of investors but would rather be an active investor with equal partners.

One of my concerns would be tying my money up in one deal when I could have BRRRR and streached it out to 5 or 6 deals. My goal is to create retirement income.

Thanks,

Charlie 

@Travis Watts I have tought about that, well I have been trying to study every angle of every opportunity. I personally would like to invest in multi-family or apartments. My concern in syndication is this. Once I invest, I can not BRRRR, therefore, I only get one investment. Second, I have been listening to every biggerpockets podcast (up to podcast 225) I started thinking the person who does the syndication takes an acquisition fee and management fees plus there are property management fees. Not trying to sound greedy (having a deal is better than no deal) but I'd like to figure out if I'd be better in an SFH if I do not mind being a little hands-on.

I have contacted a few self-directed IRAs, it's my understanding I can open an LLC and invest into that LLC. But like you said you can not self manage. At least one says its perfectly fine.

Charlie

@Kyle Tipton There are some great BP podcasts that talk about this with some very good tips.

@Erin Barker I'm pretty sure it's a self-directed IRA. I'm trying to learn about them now.

Hello Everyone,

So let me try to explain this. Is there a logical way to determine what would be the best amount to spend on an SFH based on the amount of rent, risk and return on investment? For instance, if I said I was going to purchase a 5 million dollar home for my first rental property and all the numbers worked, most, well, everyone would say don't do it! There is not a market for that. On the other hand, if I was going to purchase a $30,000 home and the numbers worked most would say it's not worth the type of tenants you would attract.

 So how do you determine the sweet spot in a market? 

Charlie

I have been trying to learn more about the self-directed IRA because my potential investment money is currently setting in a traditional IRA. I find the BRRRR method most appealing. Would I be able to purchase a home, rehab it and refinance all inside of a self-directed IRA?

I have read a few free books on kindle about the IRA, most are sales pitches for the IRA company. One sounded very appealing but wondering if it sounds too good to be true. They said you can set up an LLC and invest in the LLC, not the rental. This would allow me to remove a lump sum from the IRA (one transaction fee) and transfer into my LLC to spend without needing the IRA company to write the checks.

My disclaimer! I am not looking for a loophole to spend my IRA on other things, I do not want to get into a gray area that could cause me more grief than it's work.

Thanks for any advice,

Charlie

Been listening to the BP Podcast started at Number 1 currently at show 170! Great information!

Can I BRRRR with a Self-Directed IRA? I know many will say ask an accountant and I plan to I have a CPA I plan to contact and a Self-Directed IRA company (The Entrust Group). Based on what I am learning this would be the best approach for me. Setting up LLC or C corp will not be a problem. I have read a past post about taking a loan from an IRA. I understand while working for a company I can do this but I have much more money in my IRA from past 401k's.

Has anyone used a Self-Directed IRA company they would recommend?

Thanks for any help or input,

Charlie

Thank You @Dan Beaulieu, I will contact Clint. I talked to my loan officer who advised me to talk to someone else besides him about self-directed IRA's. He referred me to The Entrust Group here in Nashville to talk to. My biggest self-directed question is, can I burrrr with one? I might post this question on bigger pockets.

Thanks for your reply,

Charlie

My question is who in Nashville should I talk to first about my investment options and tax consequences. Do I talk to a tax advisor, Financial Planner or CPA? Does anyone have a person who they would recommend in Nashville / Wilson County with experience in rentals?

My immediate goal is to buy a second home to move into and keep my current home to rent. I current home is valued at about $270,000 and I owe $98,000. I would like to purchase something in the $300,000 to $350,000 range. I have no cash for a down payment on a new home, but I have the equity and $170,000 in an IRA and $45,000 in a 401k.

I am meeting with a trusted loan officer next week but that's only about what his bank can do for me. 

Thanks,

Charlie