All Forum Posts by: Jared Friedman

I've got several turnkey properties with Spartan invest. I'm actually in the process of doing a 1031 and getting a few more properties from them plus some DST's. They are a solid choice in my opinion!

I’m selling my California rental property and need some ideas on where to deploy my money. My place is worth $425k and I have a $72k mortgage. After realtor fees etc I should probably wind up with about $310-$320k cash in hand and I will need to purchase at least $425k worth of properties so I’ll need to use some leverage.

Other than turnkey rentals what are the best options for passive investments? Are there any reputable crowdfunding sites that allow 1031 exchange funds? What have others done that want the least amount of hassle in the real estate investments?

I use CrowdStreet. You need to be an accredited investor to use them.  I believe fundrise, realtymogul and some of the others you don’t but they all work with sdira funds. 

@Paul Winka

I own several crowdfunding assets in my SDIRA along with some turnkey rentals. You don't need the LLC w/ checkbook control. Crowdfunding deals like the ones on fundrise, etc are all completely passive. Your custodian cuts one check and then your done. There's no ongoing expenditures.

If you own real estate with a good property management company you can leave them with a reserve of money to cover any maintainence, etc so you don’t need to consistently write checks. They can pay bills on your behalf with reserves, rent payments, etc.

@Blair Treu

I own several turnkey rentals in my sdira for the Cashflow. Find a good true turkey provider. They do all the rehab and property management. Most of them deal with many folks who use Ira funds. It’s completely passive and the closest you’ll get to little to no compliance issues on your end in buying real estate.

Sorry your still going through this.  The two properties of mine that went through the eviction process have since been rented.  You may want to ask spartan about their section 8 program.  Both of mine got rented quickly under section 8.  Good thing is they only work with tenants that have a voucher that covers 100% of the rent so there’s pretty much guaranteed income each month.  If the tenant thrashes the place they get kicked out of the voucher program so hopefully they will take good care of the place as I know that’s a concern for section 8 tenants. All of my other properties with spartan have had little to no issues so I think it’s isolated to specific properties/ area, etc.  

@Brent T Galbreath

Just get an umbrella policy for a few million in coverage. It costs a few hundred a year. Everyone should have umbrella coverage. It's simple and easy to get. LLCs are far overrated in my opinion. If your gonna get sued insurance is your first line of defense. I've never heard of anyone saying an LLC protected them from a lawsuit if they had decent insurance. A lawyer is going to go after the low hanging fruit which is always insurance. An LLC only makes sense if you are buying properties with a group of people or some other special scenario. You get the same tax benefits with or without an LLC. You get a bunch of complications with an LLC when it comes to financing. If you want a bunch of headaches and additional costs then go for the LLC as well.

Hang in there. If you closed mid October and mid November that’s probably the crappiest time someone will look to rent a place. Nobody moves at thanksgiving and Christmas time. Your properties haven’t been on the market that long in the grand scheme of things.  I just closed on my 6th spartan property. Some of mine got rented in a matter of days and other took a few months. Ive already been through an eviction as well.  At the end of the day this is a long term investment and you should always expect that things won’t be perfect. Just like putting money in the stock market when things spiral downhill you need to expect that and enjoy the ride. I think spartan has been good in their communication and they are pretty transparent. 

Good luck. 

@Rob Hakes. I had great news this week when spartan called and the sheriff came and evicted my tenants. Looks like the place was left in decent shape and everything went smoothly. Spartan was great throughout the process but unfortunately these things happen in real estate. There is light at the end if the tunnel.

I’m in the exact same boat with one of my spartan properties.  My tenant stopped paying since May and we’re going through the eviction process. It’s been 3.5 months since the court date for the eviction  and I’m just waiting for the sheriff to kick them out of the property.  I’m getting the same feedback that the sheriffs office is backlogged with evictions. It’s just a waiting game right now which is super frustrating.  Spartan did a walk through of the property a few weeks ago and everything looks fine for now but who knows what happens when the time comes to vacate.  All my other properties are doing fine but this definitely hurts. It’s frustrating that’s there’s nothing else that can be done. So far the costs of the eviction has been around $600 bucks for legal fees but that’s the least of my worries. I don’t know what else to do other than wait and hope for that these people are decent enough to not trash the place.  One thing I found out is that spartan will rent to people with a 550 credit score which is a little bit of a concern and lower than most other property managers. At the end of the day these things are bound to happen at some point so hopefully it’s just a bump in the road.