All Forum Posts by: Ethan Bruland

Analyzing my first development opportunity. Property is in a very competitive market. Current has 3 sfh on it that are rented. They're on a main at so could be retail in front and then plenty of room in back for a small multi family complex or 2 4plexs. Multiple options in back. Seeking advice on how to start. Also looking for creative ways to fund it. I've got the connections to investors. Just not sure how to approach them. Very green in this situation. Appreciate all of the input! Thanks

Analyzing my first development opportunity. Property is in a very competitive market. Current has 3 sfh on it that are rented. They're on a main at so could be retail in front and then plenty of room in back for a small multi family complex or 2 4plexs. Multiple options in back. Seeking advice on how to start. Very green in this situation. Appreciate all of the input! Thanks

Welcome to the site! It's time for a connection!

Update on the 42k property.  I reached out to the owner just to see how the closing process was going.  The buyer backed out.  We're signing the purchase agreement today!

There are so many multipliers and formulas used to evaluate a deal. All of those are helpful, but sometimes I need some insight. I've submitted an offer and a duplex at 67,500. Sounds like it's going to be accepted. The PITI is about $650, so leaves 35 % for v&m. Unit will need a new roof within the next 5 years. Both leases are month to month and will need new paint and carpet when they leave. As of now, they do want to stay. This is our first multi family unit. Any insight would be helpful! Thanks,

Ethan

I've had decent luck in my first year of real estate investing. In what would have been me 2nd deal, was a beautiful SFH with some minor foundation issues. Comps were 130s +. I was the first the look at the house and was able to get an estimate to repair the foundation at $11,000. I submitted my bid at $60,000 and it was verbally accepted. This was on a friday and was hesitant that it was too good to be true. I proceeded not to call the bank thinking I'd think more on it over the weekend. Realtor called me Monday morning, and the owners accepted a cash offer for 83,000.....Shame on me, right.

Well, it doesn't end there. My 7th deal, or so I thought, was again on a friday. Another SFH bid at 42,000. It was accepted but, again I was hesitent. I told the owner I wanted the weekend to walk through the house one more time. Called her Monday to see when we could schedule a time to sign papers, and she sold it Saturday for 55,000. What the heck am I doing? I analyze multiple deals per day and have a pretty good idea what's a deal and what's not. Why am I doubting myself?

Moral of the story is, don't hesitate.  Real estate isn't a waiting game.  Believe in yourself and be prepared to haul *** over to the owners place and sign a purchase agreement on the spot! Verbal agreements mean nothing! Good luck to everyone! This stuff is an addiction!

Originally posted by @Brian Eastman:

@Ethan Bruland

As you describe your situation, a Solo 401k is probably not something you currently qualify for.  You have to have self-employment - which means earned income, not passive investment earnings.

You could establish a self-directed IRA and put the IRA funds you have into such a program and be able to invest in real estate. Your current employer 401k is probably locked up in that plan until you change jobs, at which point you could then roll that over to an IRA (including a self-directed IRA).

If your personal real estate investing takes on an "active" component such as flipping, wholesaling or new-home construction, then that would be a business, and that business could sponsor a Solo 401k.  The benefit of the 401k in that situation is that you would be able to take some of the income you are generating in your personal real estate business and set that aside tax-deferred into the plan - both shielding it from taxes and building your 401k investment capital amount.

Brian, Thanks for the input. I've got an LLC/partnership and we are currently flipping a house. Can we do an IRA through the partnership? If so, does it need to be open at a certain time, such as before closing on resale?

I use post tax.  My rentals are all lower rent, under $1,000, so this may need adjusted for higher rents.  

Is this offered outside of the Ebook?  I like to have my books on a bookshelf, and not on a computer.  Thanks

I've read through some posts, but I can't seem to find the answer to my question. I am a real estate investor concentrating on buy and hold properties. I am intrigued by the self directed 401k. I currently max out my individual IRA and contribute 9% to my employer 401k. I now would like to get a 401k going that I can use as an investment tool with real estate.

Looks like I can't use passive rental income as the original contribution for the IRA. With that being said, what are my options to get this thing opened? Use personal cash and then use that to buy a property and continue to churn and reinvest? Pay myself a salary(doesn't seem like I'd be able to pay myself enough)? What else? I'm a long term investment guy and want to make sure that I've got multiple accounts to pull from in retirement.

Appreciate the help!