All Forum Posts by: Matt Mathews

Would you rather manage and take care of 5 single family homes-each with their own mortgage and debt service and headaches OR? Manage one property! Don't forget! Commercial property begins with 5units. A well located, "A" type Multi-family property is much easier to purchase and far more profitable than Residential. If you must go the Residential route-then at least look at 2-4units. Live in one while you landlord the rest. A duplex is a great way to get started Investing. One more big advantage with multi-family is the fact that Sellers are Investors and/or absentee landlords who are flexible and much more open to Seller financing or accepting a Master Lease Option (5 units or more).

It's always great to have a lively discussion about Agents. I know where Will stands of course. We have disagreed on this subject a few times. First to address the original question. If the agent actually told you that they would not submit your offer it's because they work exclusively for the Seller-Not you the buyer. Being an Exclusive Buyer Agent, I could submit offers all day long for my Investor Clients, however, unless that property your looking at is a total mess, fixer upper, I would be remiss if I didn't advise you first, of the fact, that even though some bargains might be found in today's market, The majority of REO properties are still not being sold far below market value. There is a misconception by many buyers/Investors that banks want to dump their REO's. My data shows me that virtually all the REO properties sold in 09 were at market value. The other few sold came in at less than 5% under market. The bottom line is; That agent should have given this information first-then if you still wanted to proceed, they should have followed your request. Me personally, I would have told you that your wasting your time and you would be better off looking for motivated sellers, not Banks. Just my two cents!!

Yes! An Exclusive Buyer Agent who's also a member of the National Association of Exclusive Buyer Agents. They are obligated under contract to provide 100% representation to Buyers Only-Never Sellers. Any Broker who takes listings cannot be a member. To note: The new president of the NAEBA is located in your area.

I agree with Curt. Knowledge is Key. The paperwork involved with short sales alone, should be enough to make you choose another target market. In my opinion, Short Sales, unless your dealing with a local community Bank, one on one, are a big waste of time. Choose a niche' where the Herd of other Investors are not!! In spite of all the Short Sale and REO properties on the market, they represent less than 2% of all housing. Over 30% of all home owners today-don't even have a mortgage. 68% are paying their mortgages on time but may want to sell.

Alfred,
Your correct about NOT being able to rollover your inherited IRA into a solo K plan. However, a few year back several rule changes were made with regards to Inherited Retirement Accts. Seeking the advice of a Estate Planning/Tax attorney who;s well versed in these matters would serve you well. You may be able to take a distribution-pay uncle sam. then rollover the net into your own Roth IRA or Solo K plan. You also may be able to extend the life expectancy of the existing plan by averaging your age with the decedents. .

In response to my Bias to the Solo K plan. Yes, I do make $ setting up these types of plans for my clients. However, my recommendations about the Solo K. Plan are justified whether I get paid or not..
Why a Solo K over IRA/LLC.
1. Contribution Limits are nearly 10x Higher than IRA
2. EXEMPTION from UDFI/UBTI tax.
(IRC 514(c)(9)(C)()ii). the code excludes: Acquisition indebtedness, Real property acquired by a qualified organization-mean; any trust which constitutes a qualified trust under section 401K
3. Participant Loan Feature-Borrow up to $50K or 50% of account value for any purpose.
4. No Income Restrictions for Roth Participation.
5. The BIG one-NO CUSTODIAN REQUIRED. Self Directed, Self Managed-no need to set up LLC and pay custodial fees.
There are no threshholds for how much profit must be generated, how much money must be contributed to the plan, or how soon profits and contributions must happen. Your self employment activity can be part time, and it can be ancillary to full time employment elsewhere. A person can even participate in an employer's 401K in tandem with their own Solo 401K. The only reporting requirement for the "K" plan is filling form 5500-EZ. Only required to be filed once the plan assets exceed $250K in value. I can share many more benefits with you as to why I say: The Solo K is far superior to and Individual IRA/LLC plan. The Solo 401K plan, allows you to serve as employee, employer, participant, administrator and trustee. The result is that it is the most flexible, capable, simple, inexpensive and powerful Investment vehicle allowed by law in the United States. NO CHARGE!!

Excellent advice here! If you haven't already done so, please do yourself a favor and acquire the knowledge. Self Directed Retirement Acct. funds are an excellent way to purchase real estate as long as you abide by the rules. A Solo K, self directed, self managed plan for Self Employed is another option many RE. Investors are setting up, once the $ start coming in. Your situation as stated here would fall under the 'Prohibited Transaction rule. Knowledge is Power!!

The Inland Empire-SanBernardino-Riverside Countys. have the most potential right now. Although it should be noted that the middle priced market is where all the inventory is available $250K and up. Most of the Sub-prime has either been sold off or is in Foreclosure Limbo due to Loan Mods. The middle market (Alt-A paper) mortgages, will soon be flooding the market. If your in a good cash position, 30-40% discounts under market value shouldn't be a problem.

Not sure what you mean by Partnering with? Do you mean with you in the deal or finding you shortsales deals. Either way, Unless you find a Realtor who works with Investors (hard to find good one), most agents will tell you that they-like me- only work with Cash only Investors who are experienced. I gave up on Short Sales and most REO's here in Ca. simply because they aren't really good deals. Cash is King but a reasonable offer is also expected by the Bank. Unless you have a new short sale strategy to present, all I can advise is to just make some calls to a few well known Agents in your area who specialize in Short Sales.

Quick Note!
Military personal have special incentives and benefits available to meet your needs. Check with your local VA. or go online VA.Gov. Recently there were a few programs put into place for Vets with Short Sale Property they need to sell.

Matt Mathews
Mathews Realty Associates