All Forum Posts by: David R.

If buying an investment property that is FSBO, is it worth the extra 3% to have a realtor involved as opposed to simply a lawyer ? Likely this depends on the complexity of the property, but this one is a 2 unit 130k not too fancy property is in small town.

I just watched an hour 20 minute YouTube video on BRRRR. The Buy is the most important part, but there was little to no practical information on where to find these properties that are below market value. I just searched "How to Find good buys" on the forums

The first hits were in order

New Investor in FL

Changing a Homes color

Truck Driver ready to transition to real estate

Self Directed IRA custodians

Am I using incorrect terminology? I understand a search engine displaying these topics with the search I did. Is there a special section of Bigger Pockets that I would need to access to find info on this ?

I know likely people will say it all depends on what you are looking for etc.. so to shed some light

100k+ cash investor, anywhere in the US, would need property manager

But I’m not really looking for someone to say I have this place that’s a good buy, more looking for the algorithm of how to find them in general or on BP. Of course I know networking is one way, are Zillow and Realtor.com mostly too late to find things ? Craig’s list I have seen mentioned, is that a decent way ? All opinions welcome, thanks in advance.

Thanks, I didn’t read a 50k limit.  That makes it fairly useless.  

I worked at a company that had a good match for 20 years or so and built up a sizable 401k. When it was sold I converted the 401 k to an IRA. This allowed me to have better investment choices and lower fees, and also create a self directed IRA that I could invest in real estate.

However, I have now recently discovered that one can loan themselves money through the 401k at interest (so your 401k gets larger with interest and you get the liquidity). You are your own bank. The advantage of buying this way versus a self directed IRA is that you can avoid all the self directed IRA shortcomings such as

You cant directly fix up the place or do any improvements yourself

You or any relative can’t stay in the place (if it’s a vacation rental, it’s nice to stay there plus it lets you know the quirks/updates that could use your attention that you’d never have realized unless you spent the time there)

Also if it appreciates say 300k to 600k, to extract the property out of the IRA you must pay tax on the new appreciated price.

Am I missing anything here? I think as far as retirement accounts, most use self directed IRAs for investing, but likely not for places they’d ever want to stay or live in.

I believe my place has metal studs, so I guess I need to look into heavy drywall anchors.  

This is fairly complicated, but Advanta will do this. It's a self directed IRA. Crowdfunding is another way to get into real estate a bit more safely then going on a single property. Crowdstreet etc.

Most towel racks seem barely made for residential use, let alone commercial rental purposes. Does anyone have any nice looking towel rack suggestions that would work in rental properties that don’t have the inherent problem of always getting loose and falling down whenever someone tugs on them too hard or bumps them the wrong way ?

Yes I know they own some cabins as well. As a guy who lives out of state and works 60+ hrs a week and can’t take calls much, I think self management would be difficult.  We have never called a company and said fix us up with a six bedroom cabin. We always go to website and  after careful scrutiny and deliberation say we want a specific cabin. I thought most people did it that way. So company biases would have less affect. 

I've set up a self directed checkbook LLC IRA. So I am now able to invest my IRA retirement monies into real estate. There certainly are many stringent specific rules that are applicable. Such as you cannot stay in the property itself, or have any family members benefit from it. My question is once you hit retirement age, how is the property extracted from the IRA ? If you buy a $500,000 property that appreciates to 1 million, you would be paying income tax on the $1 million I presume. How would the fair market value of the real estate be assessed? Would you be able to buy it out of the IRA before retirement ? Does anyone else do this ?

@Henry Wolfe how much % do you pay to have a manager ? Do you do much out of your own time ?

Regarding the St. Louis multifamily place.