All Forum Posts by: Jeremy England

 I dont recall being prohibited.  But at any rate, once you have the money you can put it in whatever acct you want.  My money, there money. Whats the diff if its unsecured.  Ive been a good customer.  

Thanks. Im not negative on the issue. Just didnt exactly come out with no money in it. 

Im good with the cashflows and how much i have invested

I have an IRA with about 27k in it. Its not my primary retirement investment vehicle. I am currently working with a friend who is planning on opening an sdira with one of the custodians listed on bp. His has about 150k in it and I'll be borrowing from him to fund deals.

I was thinking of converting my small ira to an sdira and doing some lending.  I was thinking of funding rehab costs or transactional lending.  

anyone doing that here? What's been your experiences like

I don't find them competitive for investment properties in terms of fees.  I have excellent credit and cash and they just quoted me at 2.5 points, plus underwriting fees plus other fees. The rates were lower however.  

For a 75k loan my lender costs were at 3700.  I got half that with a local credit union.

I have my personal residence with quicken also and have taken 3 loans with them over the years for other houses i lived in.  So Im not a new customer.  

I got a loan for 100k amortized over 7 years, bought the house at 62, rehabbed for 16, paid about 3300 in holding costs, and 950 in buying costs.  

I owe 78k because after what was left of the loan after paying all of the above, we paid back in a lump sum.  which was about 19k. 3 k has been paid back in interest via monthly payments.

So ive used roughly 2000 of my own money up til now.  

I anticipate having to pay 2500 or so in closing costs, then repay the balance of 3000 to the personal loan.  

making out of pocket about 7500

Rents are 1000, new payment on the new loan will be 450 or so.  Itll cashflow fine.  

I'm not worried about the house losing 25% of its value.  But should that happen, I'd still be cashflowing.  

I'm not emotional about it at all.  I just thin I can make more than 10k over time

You can refi with a commercial loan with no seasoning, usually for shorter term (20 year) or balloon notes.  Probably a lower ltv as well.  70% in most cases.  

But its available in most local banks

If you want to offer, take the deal to the HML and get some type of commitment. Shoulnd't take long

Or consider a high earnest money offer with financing contigency

I think you may have messed up lowering the rent.  Was that written on the lease?  I' d say just abide by what was agreed to in writing.  

Raise the rent back to the written agreed to amount.  Pay someone else

i do think there is a place for the large personal loan going forward.  But you need high credit and high income to get them.  Its a double edged sword.  YOu use it, and your credit will take a hit due to high unsecured debt.  Then you can't get approved for another for a while til you get that loan paid off.  

but, in this market, the auction properties are the best easy to find deals.  And there are 2 or 3 companies that are buying all of them.  Then reselling them to other investors or rehabbing themselves.  

to have a chance at them you gotta show up with cash.  Still a long shot but you can't win if you don't play.  

 I thought about paying cash for this property, and I may do that at some point.  But I was trying to do this deal with zero dollars of my own money being used..  Its not working out that way, so i'll have to game it to see where I would have come out better off, paying cash, paying SOME cash, etc

I'm in talks now with a private lender who intendes on using a sdira, so I may get far better terms going forward.

Yea that is a good point. The market will change eventually.  Its been a sellers market here for a while. I dont know anyone who is buying all in (purchase, rehab, refi) for 75pct of arv without direct mail marketing

Ive thought of that but it seems its costly and you need time to answer those calls. I work fulltime.  Ive thought of marketing only to the neighborhood where i bought my rental property as thwre are numerous homes in there that need rehab and the rents are relatively high

I think i could have got another 100/mo given the response i had. I could be selective on the tenant.