All Forum Posts by: Jim Goebel

I just came across this video on WSJ.

What stopped me was seeing that a PRE PAYMENT on a mortgage actually reduces the value of a note/mortgage to the investor on the secondary market.

If this is the case, wouldn't it follow that we need to pay higher rates to compensate an investor for that lower value?

Our rates aren't terrible but they've crept up compared to what we used to get, and we've been paying down notes pretty aggressively at times.  

Any note investors out there care to weigh in?

Here's the WSJ article in question ---- it's a video and the content is around 2:10 and on.

https://www.wsj.com/video/how-...

What are my options to get out from under an asset that had a major fire, where we had no insurance?

This asset (now a liability) is owned under a self directed ROTH IRA.

I know there may be follow on negative consequences to just walking away from something like this (for instance does Des Moines drop the hammer on us in other ways, for instance scrutiny with our other rental properties) ----

I'm exploring giving this property and lot away but I'm guessing Habitat for Humanity only wants it if it can be built on and if the burned house is already cleared.

Another contact said something about QUIT CLAIMING the house to an out of state LLC.

Anyone have any thoughts? 

Thanks!!!!

Hello Bigger Pockets!  

Here's our interesting situation:  we have grown to roughly 13-15 rental units depending on how you count, but we're also starting to integrate more flip projects with the main intention of supplementing our income picture, and ensuring access to capital.  The spouse stepped away from her full time job this past March so we have now a full real estate outlook.  We're diversifying a bit with more flips, but also been dabbling in producing our own mill work (flooring, stairs, counters, etc) that we think will be another way to bring value to the table over time (and perhaps income as well).

We have a great relationship with a local bank where we have I think 5 mortgages, a commercial line of credit - etc: and they've been transparent in letting us know debt to income level threshholds to continue lending.  Because much of what we have going is rentals, that's a long term play and producing income, but not enough on its own to continue growing our capital access.

For clarification, we don't have any near term capital crunch going on, as we have 2 lines of credit (one commercial and one HELOC) that are getting us where we want to be - however looking ahead, we want to make sure we are easily above the minimum income levels to ensure we can grow our access to capital----------

So my question, is basically, when we have more of these flips happening, and we have very 'lumpy' income where we might have 25k or 80k profit on a per project basis, but we only have maybe 1-3 of these going per year, is there any way that we can kind of control how that income is split up year over year, to kind of 'smooth' it out?  We think if possible a low 100k income level will allow our taxes to be minimized but not sacrifice capital availability.  

Just wondering if there's any financial vehicle available to accomplish something like this?

Thanks in advance!!!

We recently had a fire at one of our properties, that was a big hit.  We're looking comprehensively at our risk management, and more specifically about job site security.  At our house, we've had pretty good luck with the Blink Cameras, which is an Amazon product.

We also found a device that installs over an existing deadbolt, and provides automated access once someone gets the app.

We also have a motion detector that we think will work.

BUT!  Most of this stuff relies on a good internet connection - it seems that the technology has come a long way, and the options are improving.

My main question is if anyone has any specific input on this broadly, but then more specifically, getting internet set up on a job site may be a challenge - I'm looking into different Mobile Hotspot type options.  I don't know how onerous it'll be from a data perspective to have a bunch of video footage uploaded to the cloud, over a mobile network.

At first glance, it looks like mobile hotspots are in the $100-150 range but it's unclear to me how reliable they area, and also interoperability issues (ie: we are using a Google Fi cell network for our cell phones currently but like the Amazon suite of smart devices, cameras, etc)

Input highly appreciated.  We need to get this sorted and have a robust solution to step up job site security.

Thanks all.  Yes I think it'll be an expensive lesson but I'll look into that as we have two other ongoing projects that I need to get something initiated on.

Jim

Hi everyone.  It's been awhile since I was on here.  I'd value any input.

We had a house where we were ALMOST ready to start painting, and I hadn't quite made the call to get an insurance policy going yet, and it had a major fire that doesn't look salvageable (total loss). It's a very heavy hit financially for us, and this asset was owned under a self directed IRA.

The investigation is still ongoing but so far the fire and police sides have informed me based on a couple items so far, that they suspect Arson.

I can be a little aggressive in how I handle certain contractor items, and I have maybe 3-5 relationships just in the last year where I can imagine, perhaps, that someone might have felt aggrieved.  Anyways, now I'm really trying to think in terms of controlling this risk in the future.  

We are going to have to demolish the house which is of course more salt in the wound.  I had actually thought in terms of getting insurance set up at least a couple times just in the last couple weeks (we were right at that point) ---- 

Here are my thoughts/questions for everyone:

Are there insurance policies that we can take on - for the really aggressive 'down to the studs' kinds of projects that we are taking on, in the future - and then perhaps transition the policy into a more traditional homeowners' policy once it's a bit more finished (I've been told in the past those are available when you have all the drywall work done often)?

I'm trying to search for ways to help handle this kind of risk but borderline blaming myself.  I think I'm having trouble separating the two.

Generally if anyone has any thoughts that might help me to psychologically move on, I'd appreciate it.  This just happened two days ago but I can already tell that although financially we can absorb this, psychologically it is impacting my desire to get involved / continue down this road.  It's just such a bad feeling to have that much time and effort and money into something and to know someone made the choice to burn it all down

Protecting our other assets and other two ongoing projects now is top of mind.  I'm thinking, cameras, adjusting our contractor onboarding, adjusting site security protocols, etc.

I'd appreciate thoughts on ways people have handled this stuff in the past.

Do you mind passing this along Carl? I’d at least like to take a look. 

@Carl Saxon

That may or may not be true Darson, I’ve seen lists of deficiencies from neighborhood inspections that have easily 15 to 20 things on them. 

@Darson Grantham

@Carliss Robinson

@Dmitriy Fomichenko

Carliss you're in good hands with this group on SD IRA stuff, however one thing to add, and you'll find this out as you explore financing within the IRA world:

Terms are not very favorable compared to outside of the IRA world - higher downpayments needed, and higher rates.

Good luck!

@Daijamonet Cook

Aaron gave you great advice.

Volunteering for Habitat for Humanity builds can expose you to some great stuff, too.