All Forum Posts by: Don Hines

Don

My research into NPN's had sparked an interest in being a hard money lender using SDIRA. I know the mechanics. But, I really don't know what I don't know. Thought I would start a conversation and see how bad @Bill Gulley will beat me up in this forum.

Don

That is true if the property is already under contract. But, they will mess with your head during negotiations.

Don

I respectively dis agree with @Jennifer Ryan statement that they will not entertain other offers during negotiations. I have negotiated on at least 20 FNMA properties in the past couple of years. Just when I think we are coming to terms, I get the "highest and best offer" request because of other offers. I haven't been successful in buying one.

Don

@Dion DePaoli . Thanks for starting this thread!!

 When I first started flipping, projects were easy to come by. I have dabbled in rehabbing and flipping for over 5 years now. Currently, there are plenty of projects in my home town. I just don't think there are any profitable exit strategies; or any that suit me. When I first ventured into flipping, anyone could be qualified. Now, all of those projects are in an area of town that it is difficult to get financing with the current demographics. Little Rock has about 5 flipping seminars that come to town annually. They produce a group of "Newbies" that keep the purchase prices in an unprofitable range for more desirable projects. I believe I have enough capitol to start with that competition from "newbies" will not be of great concern in the note business.

So, I first heard about note investing a couple of years ago. I was completely uninterested until recently. I started hearing about successes here and there. I started watching this forum on BP. But, I was like a goat looking at a wrist watch. None of the info clicked with me until our local REI club was visited by a rep from the Noteschool. I really liked the way he explained doing this business at arms length was the way to go with NPN. So much of it reminds me of doing my due diligence on a flip. Servicers, property managers, ETC, ETC all is right down the ally I am thinking now. NOTE: I am severily handicapped with rehabs because I love to DYI. I know I should be hiring contractors. So, having all of these services to use in the note business really attracts me.

I have always looked at REI as a way to supplement my retirement (5 to 7 years away). I am too old to be DYI rehabs. My IRA's have really been doing good the last 5 years. But, I am fearful they could take a correction at any moment. So, notes and loans secured by real estate interest me now using SDIRA's. At the same time I am learning about notes, I am also learning and trying to decide what my best options will be as far a check book or conventional SDIRA will be. Through these studies, I am growing an interest in hard money lending as well.

I don't know what my "target capitol" as you called it is. I know what I have to work with. Retirement will be solely from my IRA's and what little the Gubmint will allow in SS. So, I want my exit to be more passive for the next 30 years with enough annually to continue my current spending habits; hopefully less a mortgage in the next 5 years. I don't have a problem with foreclosing, DIL, or any of the other exits that may not be so pleasant so long as notes were bought/formed right in the first place.

Don

Beware of the sloping driveway. Turns off many buyers. Most split levels will have them.

Don

I have sold two FSBO. I still offered 3% to the buyer's agent. So, the savings versus the many open houses I did personally, many contracts falling through, ETC,ETC. Just didn't justify. I also attempted a third. I got too busy trying to sell it than to tending to my business. It was under contract in 3 days of listing with an agent.

I will say I learned a lot from the couple of FSBO's I did. And, am able to speak more intelligently with agents now.

Don

@Bill Gulley 

Actually, NPN interest me because I can see similarities between rehabbing a note and rehabbing a house; just lots more sanitary. I am also interested in generating some passive income. Performing Notes might be a better choice using SDIRA funds.

Thanks to all

Don

@Eduardo Cardena

I have bit the hook as well. Since I have already paid my money, I am going to attend a weekend class in November. I don't have any intention of signing on for the $16k mentorship. What sold me into going to the seminar in the first place was the lack of pressure during our local REI club's seminar. I didn't know that was just the bait. But, in the meantime, I am studying and researching right here on BP; and, await @Bob E. 's every post on his thread.

Don

Thanks @Loren Whitney

I have been checking out your sight and company. It answers a lot of my questions. Please answer this scenario.....

1. Say I foreclosed on a property out of state. I want to go look at it to make an informed decision what I will do next. Will the IRA pay for the plane ticket; or me?

2. Do the transaction fees come out of the IRA funds; or, do I pay for those?

Many thanks again

Don