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All Forum Posts by: Daniel Dietz

Daniel Dietz has started 149 posts and replied 1396 times.

Post: Book Recomendations about SDIRAs?

Daniel Dietz
Pro Member
Posted
  • Rental Property Investor
  • Reedsburg, WI
  • Posts 1,409
  • Votes 856

Hello,
I have been reading online, hear and other sites to, to learn about SDIRAs. Lots of great info. I would also like to find a book or two that covers this topic. I often have time to read when I have no access to the internet, therefore the desire for the books.

I am fairly new to RE Investing, but have a couple great mentors, access to a fairly sizable nest egg, and most likely could have others interested in using their SDIRAs (once they set them up) to invest with me.

My biggest goal would be to take a relatively cautious, conservative approach and learn as I go. I am also mostly looking for longer range growth of money - say a 15 year plus time line.

Looking forward to any thoughts,

Thanks, Dan

Post: Selling property OUT of a SDIRA to prohibited party?

Daniel Dietz
Pro Member
Posted
  • Rental Property Investor
  • Reedsburg, WI
  • Posts 1,409
  • Votes 856

What I am trying to ask is just that - what time frame would NOT make it fraud. The scenario that is in my mind is similar to this. Parent owns property in SDIRA. They sell it to an outside party that might hold for a period of time - maybe 1 year, maybe a decade - most likely NOT in an IRA account. After that year or more, would it THEN be OK to have a family member buy it, since there had been a legitimate 'neutral party' holding ownership?

Partially I am wondering this because of the age spread and investment goals of both my own family and other friends that invest in real estate. Example would be a desirable steady but conservative rental property that an 'older' investor might want for a 'safe and steady' return in latter life - as compared to a more aggressive strategy. That philosophy might fit 'generationally' so to speak.

Hope that makes more sense. It might still NOT be acceptable - that is what I am wondering - can a 'prohibited party' EVER own it again.

Thanks, Dan

Post: Selling property OUT of a SDIRA to prohibited party?

Daniel Dietz
Pro Member
Posted
  • Rental Property Investor
  • Reedsburg, WI
  • Posts 1,409
  • Votes 856

Hello,
I have been doing a lot of reading here and otherwise of SDIRA's. I understand that a person cannot buy from, or sell to, a prohibited party, such as a parent or child.

My questions is this; if one party who owns a property in a SDIRA wants to sell it, and a prohibited party wants to buy it, either within a SDIRA or otherwise, are there certain rules that apply to the timeline of how long it would have to be owned by another outside party that is NOT a prohibited party - such as a 'fellow friendly investor'?

Thanks, Dan

Post: Limit to 4 mortgagess

Daniel Dietz
Pro Member
Posted
  • Rental Property Investor
  • Reedsburg, WI
  • Posts 1,409
  • Votes 856

Hi,
I was recently at a business networking event where I got to briefly talk to 2 Mortgage Brokers. Previously I have only sat down with conventional lenders (banks). Both mentioned when I ask about financing for rentals that there are now limits that only allow for a 'person' to have 4 mortgages. This was new to me.

Even though I am planning on only starting with 1 property, I can easily see acquiring more if things go as planned.

What do all of you know about this, and if there is a limit, how would that affect a 3 person LLC, which is how we are planning on most likely doing things. Would that mean the LLC could own 12? (3 people * 4 mortgages) or would there maybe be an advantage to doing things separately as we grow, so we could each own 4 if desired?

Thanks,

Dan Dietz

Post: Good First Property?

Daniel Dietz
Pro Member
Posted
  • Rental Property Investor
  • Reedsburg, WI
  • Posts 1,409
  • Votes 856

Thanks for all the responses. We did go view the property and of course as luck would have it, it needs more work than we were led to believe from the listing agent. :roll: I am trying to decide wether to pursue this one at a lower offer price of to look elsewhere for a better deal.

If we move any further on this one I am going to get some of my subs in to get some acurate cost on things and lower the offer accordingly. The agent said most of the investors in town who do the 'quick flips' are passing it by, and the rehabers are mildly interested but feel the price will go down yet.

As far as the values I did some more checking and it would likely be in the 90K range. The majority of the others in the area (a few square blocks) are in the 120K - 160K range. The agent said the only 2 that have sold that were NOT foreclosures went for around the assessed value. Even though it is a 4 bedroom and has lots of curb appeal from the outside, most of the others are larger, fancier, BIG years, bigger garages, etc....

I also need to do more education on the whole flipping side of things. Since I am mostly looking at this from a long term asset builder for retirement, it seemed at first glance that renting and having them paid for about retirement time would make sense.

My 'mentor', who went and looked with me, thought that our rental income estimates were very conservative and it would be a quick rental in that particular neighborhood.

I will up date when I have some more accurate rehab figures.

Thanks for the advice,

Dan Dietz

Post: Good First Property?

Daniel Dietz
Pro Member
Posted
  • Rental Property Investor
  • Reedsburg, WI
  • Posts 1,409
  • Votes 856

Hello,
We are on the verge of buying our first Investment Property, but have been thinking about it for quite a while. I do have a mentor in my uncle that has been a Landlord for about 5 years with 10 units. My day job is in construction design/sales specializing in kitchens and baths, so I could get that at cost and have a good list of subs to use too.

We are in a town of about 10K people with a good employment situation compared to the national picture. The property we are looking at is a foreclosure and listed right now at 49K. It is assessed at 92K and was first list at 79K about 2 months ago. The last drop took it from 59K down to 49K. it seems this is about the discount that things seem to get snatched up at around here.

It is a 4 bedroom 1 1/2 bath bungalow in a great older neighborhood that is mostly filled with excellently maintained houses in the 130K - 170K price range. It is considered a very desirable area of town to live in let alone rent in.

I know it needs some minor interior stuff; carpet, paint, maybe cabinets, and 1 bath needs some drywall and mechanicals. The outside is mostly maintenance free. Nice sized lot too for a family.

I am going to look at it this afternoon with our towns 'foreclosure specialist' Realtor.

How I see the finances is this; buy at 47K, but in up to 18K in improvements for a total of 60K invested. Payments look to be around $378 @ 20 years @ 5.5% (our local banks going rate on SF rentals), taxes and insurance of about $216 for a total fixed cost of $594. I am fairly confident that we could rent this house for at least $850 per month. Figuring 1 month empty per year, that would be a total income of $9350 - fixed cost of $7128 = $2222 cash flow.

I am looking at this as a wealth builder for retirement not as a current profit maker.

What do you all think of it in general?

Thanks, Dan Dietz