All Forum Posts by: Joshua Durrin

Understood. For clarity, I self-manage my 401k, not the property in it. The property is managed by a PM. :)  Appreciate the looking-out though. 

These options worked great! Thank you so much!

My current loan is with NASB and I'm getting told that they no longer do those loans. Do you have a contact by chance for any of these? Much appreciated!

Hi all, 

Need some help. I have a property that is owned within my 401k that I self manage. As such, I understand that I cannot be made liable for the payback of the loan, rather my 401k needs to stand as credit worthy on it's own for any loan product. The property is currently financed for $85k and worth about $315k. It's fully rented with a renewed 2-yr lease pulling in $1700 gross per month. So, while my COC is about 15%, my ROE less than 5% as it currently stands. I'd like to refi this property to reinvest the equity (still within my 401k) into more cash flowing assets. But I'm having a hard time finding a lender given the constraint of the 401k ownership and/or that the loan amount is too small for any commercial loan product that I've found. Any ideas?

The current loan I have is a commercial, non-recourse loan. My current bank discontinued these loans shortly after I closed on this purchase. 

Many thanks in advance for the help!

Josh

I’ve seen a few article like this one over the last couple of months implying that St Louis could be the next emerging market. There appears to be a tech boom gaining momentum. Curious of the thoughts of others. Thoughts?

https://www.linkedin.com/posts/stlpartnership_st-louis-boosted-by-low-cost-of-living-activity-6784846902321139713-qmQT

@Efren Corona

I had a house built out there a couple of years ago. It was a terrible investment in real estate. It cost me $700 a month even when fully rented. It was intended, though, for a different business idea that my business partner at the time failed to pull his weight on. That said, St Louis has been getting some favorable press lately with its business growth. There could be some good opportunity if you play your cards right on a good buy and hold.

https://www.linkedin.com/posts/stlpartnership_st-louis-boosted-by-low-cost-of-living-activity-6784846902321139713-qmQT

@Ben Crego

It’s funny to see the commentary in other markets. I’ve always said that the Bay Area market here in CA is one of the most unique and challenging markets to master. Buyers are bidding hundreds of thousands of dollars over asking in cases out here. They are also doing so and waiving all contingencies. A buyer, that is, is waiving their rights to forego the purchase of the home doesn’t appraise or they can’t get a loan or they discover something during inspections. With an average price of about $1.2M out here, that’s upwards of $30k that buyers are gambling. Astute sellers and agents, however, are verifying proof of funds to close and make up a the difference where things don’t appraise before accepting any offers. Additionally, sellers are “enabling” buyers to do this by getting the home inspections done ahead of time... essentially disabling the buyers from having grounds to renegotiate though. So it’s really to the sellers advantage to do this.

I just had a client compete against 32 other offers on house listed for $699k. 10 offers were over $700k (including my client’s, non-contingent with 20% down and fully underwritten loan approval), 10 of which were over $800k and 10 of which were over $900k... that’s more than $200k over asking... non-contingent. And this for an average home, 3/2 with 1200 sq ft.

Buyers have been starving for inventory out here in CA, especially since the SIP. This market is just phenomenal to be part of. It’s requires incredible creativity to succeed in and lots of client education.

@Latta Kadir

Let’s talk. I am an active investor/realtor in the area and just generally like to help out in all things RE. Let’s discuss the idea you have in mind. Sent you a PM.

@Nick Barreto

Welcome Nick. If you’re not already involved with local networking, check out a few of the Meetup groups available in our area. My personal favorite so far is J Martin’s group, SF & Oakland Real Estate Networking. Another is Vanessa’s group, Real Estate Investing Meet and Learn. Come on out some time and join in on a Cashflow Game Night. Looking forward to crossing paths and sharing success stories soon.

@Harsha G.

$4k for the whole house inside and out.