All Forum Posts by: JC Conchas

Thank you to everyone for the input.

I've started the process with NASB, so far so good. 

JC

@Daniel Dietz that was one company I did not contact. I sent them an email to look into it further. Thanks for your help JC

@Jim Murray I don't believe taxes the loan portion is an issue with solo 401k, I think that applies to SDIRA's. I'll check with CPA. @Brian Eastman the purchase price would be under $250k. plus if all cash maybe get a better deal if all cash. I have just over $400 to invest and am doubtful I could get two loans at 60% LTV. so was trying to figure out use $250k pay cash, then NOI goes into solo account, before too long I could repeat with property to purchase. @Tom Keating the purchase price would be well under $300k. @Daniel Dietz the area would probably be a 1% appreciation, but cash flow really well. I'm most concerned about qualifying for the loans, and the loans themselves. I have other units that are 4-plexs, with regular 30 year loans, so commercial loans, kind of worry me. The idea of having to refinance every 5 to 7 years, would drive me nuts.

BP, I'm in the process of setting up a solo 401k. Does it make sense to pay cash for small 6 unit MF rental, or should I get a commercial loan? After speaking with some lenders, most commercial loosens are max of 60% LTV, because they must be non-recourse loans. Since the property will be in a solo 401k, I don't have any benefit of using mortgage interest or depreciation for that matter, on my taxes. Should I pay cash for a property, thus maximising the account growth, because most of the rental income will grow the account faster? no loan to pay back. if I finance the purchase I could buy two or three properties, but lower cash flow, since I'll have loans to pay... I'm stuck. can't decide one way or the other. I feel the analysis paralysis closing in on me... JC

Mitchell, How did she do the normal questions. and did the answers all check you boxes. why are you moving? how many people will live here? do you smoke? do you have pets? I do credit and background check? can you afford the rent? need references: personal and business. and call them, have a general conversation with them? call current AND past landlords? get two months paycheck stubs? if she passes, based on your requirements, then decide from there. one last thing, did you have any other inquiries? better prospective tenants? I've learned, the hard ways, don't do tenants a favor. They will not appreciate it. good luck JC

Hi,

I'd like more info if

JC

[email protected]

On the 1st of the month I send tenants a text reminding them rent is due. Most reply and pay within a day or two. They have three day grace period. I encourage tenants to deposit rent directly into rental account at Chase bank. I only keep enough cash in this account to pay monthly bills. They can use Chase Quick pay by Zelle, or BofA bill pay by Zelle, all they need is my email address to send me rent payment. Once that's set up, and they are comfortable, it's becomes a routine for them. JC

Thanks for all the advice. I'm in, going with Solo 401k. 

JC

Hi everyone,

I'm leaning towards opening a solo 401k vs a SDIRA, for buying and holding multifamily properties. But I have a question that I would like answered before I can make a final decision.

My question is, I understand all expenses and rental income go into and out of the account. But, after I buy and hold, which is what I intend to do, how long must I have an account thru the company that sets it up for me. I know the solo 401k account at the bank will be open, because of the income and expenses of the properties. But if I use "xxx401k" company to set it up and all necessary paperwork, will I have to pay the yearly maintenace fee for ever? Even after I buy 5 properties, and am just sitting back collecting rental income.

I didn't find anyone mention this. This would be the final determing factor of a solo 401k vs SDIRA. Paying a few hundred dollars a year for 20 or 30 years? And I assUme the yearly maintenance fees would increase at some point. 

JC

In California you either have to be a licensed real estate agent or work under someone that is licensed, such as a real estate broker, to be a property manager. There is an exception. The owner of the property does not have to be licensed to manage his/her own property. Going back to my original post, has anyone done or currently doing this? Start a property management business, to manage your own property? pros and cons, suggestions? JC