All Forum Posts by: Chris Haas

@Deborah Burian
Cash flowed with what % down?
You can get nearly anything to cash flow if you put enough down right?

Thank you for taking time to reply. As great of a site as this is, I think there are some things others already know that I'm still trying to get my head around.

I find a lot of info on flipping but I'm really not that interested in it. I can barely change a lightbulb without the wifes help.

That said, I would like to create a passive income stream and I do have some funds available and also don't plan to leave my day job, to contribute towards that goal.

Private lending may be an option but I don't exactly have 200K laying around either. Not sure what minimums are there realistically.

What if I find an already rehabbed house, or even something that seems frowned upon......a house on the MLS (eek)?

What are some targets to help evaluate the deal. I'm not a big fan of cap rate since that ratio can vary a lot. If I have 100% financing then it may not cash flow at all....if I drop down 50% of course it better flow but then I need to calc a break even point.

I'm reading, reading, reading, and still not sure how to evaluate deals for my situation.

@Dan N.

@Dan N.

@Dan N.

@Matt Spitsbergen

When you say "not able to pursue" do you mean the numbers weren't attractive enough? Just curious the types of calls people are getting and what in your script made you discard the lead. Thanks for sharing.

@Jeff S. I may have over simplified my example. If I find a trustworthy rehabber and agree to invest from my SDIRA as private money and I make a decent return 8-10% etc and at some future date that same person loans me a different amount depending on the deal I am doing you still think it violates the rule?

Many of us need short time financing at different points in time depending when our deals happen. I can see 100K from each at the sime time being a bit fishy, which was my oversimplified first example.

Thats my fear with SDIRA. Some point they will declare it invalid. Most of my net worth is in a traditional IRA so having some access to it for legit investing outside of stock market is at least an interesting concept.

Thanks for your time

Bare with me, I'm about 1 week into reading about SDIRA.
Seems to me it's not a great way to buy real estate for buy/hold, however it does appear to be a nice way to be a private money lender.

I can see a mutually benefit scenario where two friends / investors allocate say 100K each in a self directed IRA and lend to one another to purchase REI property. I realize this can't be family, but a close friend / investment partner. I can see doing up to 100% financing for someone knowing that if they don't pay me, I simply won't pay them. Also assuming they have some equity in the ARV value of the deal itself.

Am I missing something? Is this a decent strategy?

I also think existing houses are more attractive than new homes because of real estate taxes. You are also from PA. A new home's real estate taxes are in many cases double an existing homes of similar square feet. Yes you can fight the property taxes, still an uphill battle since your comps will be other new homes. We have seen no real new home construction in nearly 5 years now.

If Pennsylvania ever actually does eliminate property taxes my guess is, it will only be for owner occupied homes. Even that is a long shot from where I am sitting however.

Is there a way to find out a specific house without subscribing to service?

http://www.trulia.com/foreclosure/3084568710--Flint-Ridge-Dr-Reading-PA-19607

Just wondering which house it is. Not really interested in marketing to all pre-foreclosure houses.

@David Beard

My questions more of a general one. Generally when you see LTV 65% etc, that would normally mean you Mr. Investor need to bring 35% of your own skin in the game?

The reason I ask, is I had someone tell me recently that they had several (not a single) private money lenders not HML that would lend 100% of the purchase price because they use a formula of offer 70% of ARV - rehab costs. So their theory was the lender was protected since they have 30%+ equity based on the deal and 1st lien position. I'm still new but I found this a bit hard to believe.

Again, thanks for your time

-Chris