All Forum Posts by: Inderpal Chadha

Thanks everyone for the insights.

Inder

Hello Fellow Investors

I am fairly new to this game of real estate investing and am in an aggressive growth phase. It is about 2 years since I have been investing, and will be concluding 8 deals by the end of this year.

I have listened to all the podcasts and read forums actively. Though I was not an investor during the down turn of 2009 but have seen the tumultuous time. What I am interested to know is what are the lead indicators that would warn an investor to turn from aggressive mode to defensive or conservative mode. How do seasoned investors get foresight , are there any publications, statistics  one should always be watching locally and nationally in order to notice the winds of change.

I am very excited and enthusisatic about the real estate investment game but at the same time would like to learn the lead indicators.

Appreciate your insight and foresight.

Thanks

Inder 

Hello Fellow Investors

I am considering investing in a buy and hold with a friend. The details are below, please let me know if there are any legal or financial issues that I am missing.

1. My friend is buying a SFH with 15% down payment.

2. After closing, he will transfer the SFH to an LLC where he will hold 51% stake and I will hold 49% stake.

3. I will take this 49% stake by investing from my IRA (my IRA will be the member).

4.I will be managing the rental and all the fun that goes along with it. 

5. The income and expenses will be split as per stake in the IRA.

Do you see this as a workable deal from legal point of view. The IRA custodian I am planning to use is Real Trust IRA out of Washington state.

Thanks for your insight.

Inder

Thanks for the responses, I will get in touch with personal messages.

Inder

Hello BPians

I am closing on a house in a week and plan to use my IRA funds for down payment.

I am considering using Mountain West IRA out of Idaho and I am based in Seattle area. Has anyone used this company before? Please let me know your experience. Also how can one be sure that the custodian will take care of money and the money will be available when needed to invest, if the custodian goes out of business, are the funds lost or still can be accessed.?

Thanks

Inder

Hello

I got answers on 1031, but was wondering if the experts can look at the deal and purely based on numbers, is it worth it.

Thanks

Inder

Thanks Bill.

Got it, ok, will hold it unless there is a need to sell.

Thanks Wayne. Yes, you are right, it is subject to bank accepting.

How does one prove intent for long term investment?

Thanks

Hello

I am considering a short sale property (SFH) in the Magnolia area of Seattle (very desired location). The property is valued at $800,000 and is available at $680,000. It does not require more than $5000 in fixes to rent it out. It will rent for $4200. I am considering this as a one year flip. If I put in $30,000 in upgrades, I am sure I will be able to sell it for $825K right away. And if I keep it for a year, considering the location and rising King County market, I should be able to sell it for $900K. I know it does not fall in the traditional rules of renting, but my monthly payment with 20% down will be about $3300 (including taxes and insurance), so I will net about $1000 a month on a cash outlay of $150K and a net about $150K when I sell it after a year. Reason for a year is I can take advantage of 1031 exchange, which I understand is available only if property is held for at least one year and one day. Looking for insight in to this from the pros on BP.

Thanks

Inderpal

Thanks for the suggestions.