All Forum Posts by: Jeshua Patrick

@Kevin Miller how is Columbus compared to Dayton? I was looking at population trends and it looks like Dayton had been in steep decline but was starting to level off and possibly grow again (maybe due to revitalization attempts) while Columbus looks to have a steady 1-1.5% growth rate.

@Caleb Heimsoth just to clarify, I am not fond of the self-directed IRA for the reasons you mentioned. I am much more interested in a self-directed SoloK which is much less burdensome than a self-directed IRA with one catch. You have to have a pre-existing business entity that intends to make money prior to starting a self-directed SoloK. The non-recourse loan requirements still hold; however, tax avoidance/deferment is much easier. As for the Charlotte area, one of the reasons I am considering going out of state to some place like OH is that many of the "wholesalers" in the Charlotte area (1 hour radius) are getting greedy and trying to pawn off near retail priced properties (90% of claimed ARV) as deals while demanding cash buyers. In addition, Charlotte has very few small multi's available making compounding doors with fewer transactions more difficult. I will definitely take my time and focus on getting good boots on the ground before I pull the trigger OOS though.

@Colleen McCann really? Don’t tell me it was on the Fantasy. That would be crazy! I believe there are deals in the Charlotte area but using my retirement funds does come with some limitations. I can own rentals in my portfolio but have to use property management and can’t flip out of it. I can also loan money out of it but need to get a little more education on how to structure loans properly.

So my wife and I went on a Disney Cruise last week. While on our trip we met a family from the Dayton OH area who, in addition to owning an HVAC business, owns 20 doors in that area. We are in the Charlotte NC area and this market is extremely tough right now for finding and acquiring cash flowing properties. I grew up in the midwest and have heard that there is a lot of opportunity for cash flow in the midwest, with OH having several hot spots. A quick scan of the MLS made it apparent that there are lots of small multis both residential and commercial that should meet the 1% rule and quite possibly as much as a 2% rule. I am looking for recommendations on tools that are beneficial for market research or reputable people in that area that can help me verify market rents, locate value add properties, and provide reliable property management. I would also appreciate recommendations on non-recourse lenders as we will be starting with retirement assets that are being transferred into a self-directed account soon.

@Tyler D'Alessandro it shouldn’t matter if you like the property personally. What matters is if there is a large enough group of potential tenants willing to rent it at a price that makes sense for you financially. If you have people lining up to rent it at the price you marketed it for keep it. If not, find out why and if it makes sense to fix it or rent it at actual market rate. If, and only if, the answer to the first two questions is no then sell it but not before.

@Christopher Brainard this is my first rental so I’m literally learning something with every new potential applicant. Thanks for the input.

One of my requirements on a rental I have listed is 1 year of employment in current job. I have a couple potential applicants who are moving to the area and reached out about my property. My question for those with similar requirements is how do you treat a change in job that occurs during or will occur as a direct result of a tenant signing a lease for your property? I feel like this would be a disqualifier since they would effectively have 0 months in their current job at time of taking possession of my property. Am I wrong in how I am looking at it? What are the risks of taking on a transitioning tenant in your opinion?

Sorry to revive this post but my question falls in the same vein. If I am requiring a year of continuous employment and my applicants have that currently but are moving from out of town and thus are terminating that employment to relocate am I required to credit them for that previous employment or are they legally resetting the clock and therefore no longer qualify?

@Joshua D. what’s the worst that can happen you ask? That’s really up to your state. Based on some of the other replies there may be a decent amount of gray area to play in as long as you know what you can and can’t do.

I personally think that you should ask yourself if you would want to partner with someone who focuses more on trying to skirt the law rather than follow it. If you wouldn’t then don’t be THAT guy in the relationship with your FIL.

@Joshua D. another thing to remember is that this is not simply a deal between you and your father-in-law. There are at least 15 tenants involved and any complaint to the state could trigger an investigation that would expose the fact that you were acting as a broker without a license.