All Forum Posts by: Dan Velasquez

Antoine makes a very good point. You should always know your exit strategy before walking in the front door-pun intended! At this point I may start looking at other realtors. Your realtor should know how to do this. Basically, you know what you've invested into the home as I assume it is complete? Average out the price per sq ft of comps sold and then do a plus and minus game to get to a number that makes you whole. I am thinking if you didn't know this ARV number BEFORE JUMPING in you may be tight. But hope not. It's worth what someone is willing to pay. I find that if your sq ft is comparable to others that have sold. Start there obviously and then increase price according to what you NEED to make. Then hopefully you can still add in a profit. Depending on your finishes and quality of work. I would increase 15-20% above the apples to apples benchmark. See if you get interest. Remember you can always come down on price. It's pretty hard to increase your price. At the same time, your customer may be in your first wave of buyers so don't be greedy. Better prepare next time. Good luck!!

a little late to the party but I'd have just shrunk it. Keep it high like in a 2x2 or 4 x2 slider. Since replacing windows anyhow. Perfect time. Then it is functional and out of way. Too low to keep it and tile it. Some tenant will inevitably let the grout crack and water will destroy your investment. Water will be in that sill at every showertime. Good luck

Chris, great question. Thanks for the assumption but although I may may appear successful, I am not a large guru who is anywhere near where I ultimately see my company being. I found myself content over the past few years working mainly with one private investor and a few others that would dip a toe in for 1 here and there. 2-3 deals per year has made a comfortable routine for me and enabled me to work for myself on my terms. I am trying to scale my business though and to do this I need to secure additional reliable funding. As to your question regarding conventional financing options. Conventional financing isn't an option for active investors as far as I know. Not really in place to assist investors on short term lending solutions. The big banks make their money the longer you hold their product so when using it how I would, the pre payment penalties, fees etc, don't make financial sense. There are different products like bridge loans etc. basically hard money and I am exploring these options as well. It is really expensive to use and the interest rates can really make for a bad day if you end up having any delays. The more creative People can be with their SDIRA funds opens up big opportunities for not just me but for their retirement accounts also. The hard money lenders are doing what I talked about above. Basically securing these investors capital through their SDIRA money, offering them a fair but not GREAT ROI, then turning to investors like me, offering that same money short term between a 8-15% depending. I am exploring how I can work with a handful of intelligent people with capital and offer them an even higher ROI than the stock market or these hard money folks offer. Ultimately this will cost me less to borrow these funds. Creating a win for both sides and obviously helping me to scale to production levels I want to achieve. This may be a discussion for a different forum topic but, are there specific funding alternatives you were referring to besides the referenced conventional options? Appreciate the feedback.

Thanks Dmitriy! That is a great idea. Who better to fully explain than an expert. I have to be able to at least get past the initial conversation,speaking intelligently on the subject. I have found the answers to most of my questions on forums here and also from your all replies so thank all of you for taking the time. Daniel, I have an investment company which is an LLC and I offer my capital investors a percentage of my profits, per deal. I think this is more appealing to capital investors and better for me also as you never know what exact numbers are, although I do my homework and forecast the numbers pretty close. Tell me what you think about an acceptable percentage return to capital investors is. Research I have done says 10-12% ROI is very attractive to folks. Reason this becomes an important number is that some people see me successfull in my deals and want to invest but most don't have 300-400k to invest all at once. They want to put I. 10k or 50k. Or similar. I don't like to turn them away but if I can't put it to work it makes no sense sitting in my acct. obviously others are doing this. I believe it is called hard money lenders ha!! I'd like to raise the capital myself to save myself at the same time offer my capital investors greater returns. Thank Brian for your input as well. That was what I was looking for. It appears as though as long as it is treated correctly and rules not deviated from at all it is a very sound way of doing business for people who have SDIRA money. They can continue to grow their retirement with all of the same tax benefits a normal 401 or Ira offer.

Thanks very much for the replies. I found the SDIRA topic on forums and found a lot of interesting and helpful information. I am still a bit confused of a couple things and maybe some of you could set me straight. A little bit about what I'm doing and what I would like to do. I am a realestate investor and have been so for about 7 years. I mainly work with a private investor who is limited on funds. Enough to fund comfortable 3 deals per year. I buy renovate and sell properties. Usually 3-4 month total turnaround, returning money to the investor after each deal. I make the private lender a very good ROI, over $100k per yr. My background is production building, new construction of SFR 10 years in Oregon for a local builder. We built over 100 new homes per year easily in multiple subdivisions so you can see how I am anxiously ready to scale my business up to at least 10-12 of my own deals per year. I feel I can comfortably achieve these production numbers. I obviously require additional funds to do so though and is the reason for my inquiry. I am familiar with hard money and am not seeking assistance with that service here at this time. I want to learn to use SDIRA funds from other investors retirement accounts as I can confidently offer ROI's to investors greater than the stock markets ROI's. I need to be able to explain the process thouroughly to potential capital investors and show them how this is being done by others now and it can be done by us as well. If transactions are performed while staying within the rules, the risk to their IRA funds in regards to early taxes, penalties etc..is the same as if their money sits with traditional custodians. These concerns seem to be at the top of the conversation when discussing investment opportunities with them currently. I read up on a technique some offer to folks called "checkbook" SDIRA accounts. An LLC is set up through a traditional SDIRA custodian, in essence making the investors own LLC checking acct their SDIRA platform. Giving them more fluid access to their own funds to invest how they choose. Obviously all of the same rules and conditions apply to this platform as would be with a traditional SDIRA custodian. It appears to be a very efficient way for folks to invest their SDIRA as they see fit. As long as there are no prohibited transactions or dealings with disqualified parties going on then this should be treated just as a standard SDIRA held at a traditional custodian correct? I don't know if I am missing something so is why I'm brain storming with you all. A question I have is in a specific scenario where I am an investor/borrower seeking a lender to finance my projects.. Is the investor who owns the SDIRA account able to lend to me to fund my deals with no negative recourse regarding tax and penalty? I was understanding the information I read to be that the owner of the SDIRA account could buy real estate or other Investments through their own SDIRA acct, for their own investing activities. Not using any funds for personal use whatsoever, and having all of the funds land back into the SDIRA act. After the investment sold. Profits and all and would be safe from any prohibited transactions. Can the owner of the SDIRA acct. lend this capital out to me on realestate and still receive the same IRA retirement tax and penalty protections as a normal IRA account? All of my investment endeavors are done through a title company where an investor normally wires funds directly there for my transactions. I record said investor as my lender on title. When I complete a deal and sell it, the transaction is done at the same title company where funds are wired directly back to my lenders acct. principal and profits together. I basically need to show these investors that are interested in making money with me that this can be done with their SDIRA money safely while they continue to enjoy all of the tax benefits as they continue to grow their retirement funds as they would letting their money sit in a normal IRA. Do any of you see any prohibited transactions in this process that would present an issue in the SDIRA holders compliance? I really appreciate any and all feedback. Thanks again.

Hi fellow investors. I haven't been on here in a while. I am trying to research different ways to use investor money. I have heard of folks using other investors selfie directed IRA money to invest in realestate and am looking for information on this strategy. Is anyone doing this right now? What are the rules and regs of this technique? Any info is appreciated.

Thx so much. 

At this point you need to throw yourself at their mercy. Accept responsibility. Beg their forgiveness. Pay any fines and purchase your permits. I never understood why people wouldn't just buy them. Unless you plan on doing things shotty and not to code you have nothing to worry about. They are not expensive and I have found most buyers want to make sure they were pulled if there was extensive renovations. Anyhow. Always best to do it before rather than opening up walls later. Which you may need to do to let them inspect. Whatever. Just get it done. Finish the job and make your money. Unless you estimated wrong and it's loosing venture. Then take your loss now rather than prolonging it. Sorry. You only asked for2. That was 3 cents. Keep the change!

Thx guys. I think that was more of a rant than anything. Just gets a little frustrating out here right. I mean, I have always considered in me against the world but it really is nice to just chat with other investors. Bounce ideas and processes around. Breaks up the noise a bit yea. Thx again.

How are all of my fellow investors doing out there? I don't get on here quite as much as I should probably. I am an active, full time real estate investor who made to leap from my full time job working for the man about a year and a half ago. I've been flipping houses for a lot of years. Followed the market up and down and getting frustrated each time I have to figure out what I need to adapt to. I know it's the job. I also know that it's a very crucial part of the job. It only takes one mistake to lose your butt. Anyhow. Obviously right now is a terrible time for an investor to be buying off the rmls or buying REO. These avenues work in certain markets but in the current market there's no money to be made there. When ever anything with a little meat hits the open market its like tossing a piece of meat into a pool of piranhas. I know where investors need to be looking in times like these but it's still obviously a very sensitive market. I am really curious what other investors think of our current market and see what some of the things you all are doing to adapt. How long do you all think our market will be like this before it peaks and curves back to reality. Or do you think this is our reality? Obviously nothing in this business stays the same for long and inventory available is what drives situations. I just am curious to hear what y'all think. Happy investing!

Great replies guys. I do have to agree, a proven track record is huge and likely a must see for private lenders. Unless they happen to be family or friends that trust and believe in your business plan. It's kind of a catch 22 as lenders want to see successful deals but we can't get these deals done without the working capital. It's a tough road to navigate but one we all must figure out. This is obviously only a piece of the puzzle. My advise is keep being persistent. Keep knocking on that door. Eventually it will open. May need a kick but if you want it bad enough. I'm telling you, it will open.