All Forum Posts by: Fred Weiller

@Account Closed You may want to check NASB for non-recourse loans for self directed IRAs/LLCs

https://www.nasb.com/home-loans/ira-lending/

Hope this helps,

Fred

Well at $1100/month of rent it would comply with the 2% rule (monthly rent being at least 2% of purchase price)

Looking at a gross annual income of $12,144 ($1100X12X0.92 [8% vacancy factor]), applying the rule of 50 (50% expenses) for an expense amount of $6,072, that gives a NOI of $6,072 (or $506/month)

Accounting for a monthly mortgage payment of $264 (80% LTV, fixed 6% rate over 30 years) it gives you a nice monthly cash flow of $242

Now all of that is based on annual expense of $6,072 (50% rule) and it seems that your expenses won't reach that point.

Numbers look good, now other factors have to be taken into consideration (age of property, deferred maintenance, location,...)

Hope this helps,

Fred

Can someone ( @Matt Huber ?) elaborate on the ""friendly loan" (which may have even been your own money)"? I am unfamiliar with this approach and its benefits/drawbacks.

Thanks very much

@Justin Louie I reside in the Bay Area (Pleasanton) but all similarly to @Michael Delpier my RE investments have been in Houston. I found that unless you want to try your luck at the appreciation roulette, the Bay Area does not provide the same positive cash flow numbers as Houston can. It is a great place to live (and work if like me you are in High-Tech) and enjoy the possible appreciation for your primary home. Now a possible strategy in the Bay Area could be looking for a triplex or quad using low down payment (FHA loan) and live in one of the units.

Hope this helps,

Fred

@Shanequa J. the rent range stated between 1 and 1100K is puzzling. If you could provide a more precise figure then I am sure the BP community would have an opinion to share.

Hope this helps,

Fred

@Will Porter I have seen portfolio financing lenders mentioned in a couple of blogs online.

http://www.jordancapitalfinance.com/rental-propert...

https://limaonecapital.com/rental30/

Note that I have not used any of them and there might be others who are better or more appropriate to your needs. Those are only examples of what you might be looking for.

Hope this helps

Fred

Hi @Rashad Alexander. I live in California but have invested in Houston in 2008 and 2009 (still holding my properties there). I have started looking into expanding my real estate activities and this recurring theme of "mailing absentee [out of state] owners" has always seemed strange to me. Maybe because I am one, I have received many postcards and letters over the years and they did nothing to prompt me to consider selling my properties. By the way I don't consider being absentee just because I am out of state.

I am interested in hearing what kind of return you and others get on such mailing to absentee [out of state] owners.

My properties are in zip code 77084 (2 duplexes), 77038 (1 duplex), and 77033 (1 duplex). All with nice cash flow (bought low in 2008 and 2009) but best performing are in the 77084 zip code. Hope this helps...