All Forum Posts by: Jimmy Wilson

Thanks for the responses.  @Matt Devincenzo I understand the point about the hard money not lending due to the primary residence.    @Albert Bui - Since this would be a primary residence, wouldn't getting a conventional loan as a primary residence be much easier - that is, since it would be a primary residence? This would make the expenses of the HML go away, and still allow him to buy a distressed property using a conventional loan, using money out of pocket to rehab it, then refi it over to the VA loan. Would this work?

A friend of mine asked me a question regarding buying a distressed property, using hard money to pick up the house and rehab it, and then if it was possible to use his VA loan for this property as it would be his primary residence and he could finance at 3.5% down - primary residence. He is a Veteran of the Gulf War and and is moving to the DFW area.

Does anyone have any experience with this and if this would be possible to do with first using hard money to purchase and rehab the property, and then using the VA loan for a primary residence? Or, what restrictions the VA might have with allowing someone to do this.

Thanks for viewing my post, and thanks in advance for any and all responses. 

I have a question that I am hopeful someone here will know.  For tax purposes, the real estate professional designation is something that is very helpful if you are an investor.  Would a home inspector be able to claim this designation for tax purposes?  I know that property managers such as people running apartment complexes can claim this. However, if an investor was also a home inspector for his primary income, would this qualify him as a real estate professional for tax purposes, thus removing the $25,000 cap for depreciation loses?

I saw @john Jackson in San Antonio REI Expo a couple of weeks ago. He is in Ft. Worth but was considered the go to guy for the event organizers of that event in regards to sub2. He is on the forums, look him up.

DFW Wholesalers -

    What is the current situation in DFW right now with inventory?  Are most of your buyers cash buyers from out of town?  Do you guys have a networking event in the DFW area monthly? 

Thanks in advance for the replies.

@ Doug Spartz

Thanks for the response, Doug. The market has changed quite a bit here in the DFW area over the past year. I am sure it is like Houston, and San Antonio where there are quite a few big hedge funds that have came in here and targeted the same type of SFH target that LU members typically target. Combined with the influx of the ~500 new people moving here to DFW per day along with the builders just getting the bulldozers cranked up again, and it seems the prices are already starting the rocket ride.

Not sure if starting the LU Challenge program is worth it, given the current market conditions.  I am not looking for anyone to sell me on the program, as I understand the program quite well.  However, as stated in the previous posts on the topic, the question for me still comes down to this - does the model still work in the current market that we are in?  Or, when the piece of raw meat (the email blasts) gets tossed to the masses, are the masses chewing each other's arms off in order to get the deal? Or, is there still enough to go around for everyone?

Wanted to check in with the DFW Lifestyles Unlimited members to see if you guys are seeing many opportunities in the SFH Challenge program? If one would be in acquisition mode, are you guys getting many deals with less than 30k down on the all-in for the typical LU SFH target home in the DFW market at this snapshot in time? If so, how fierce is the competition for acquiring them - amongst other Challenge program members?

I am in no way trying to conjure up any love or hate towards Lifestyles Unlimited.  I am simply wanting to hear from the general public, which happen to also be members.  I am about to be given a glass of the koolaid and I want to have a reality snapshot from other current members in the DFW area/market vs. the numbers and statistics that they will be using as the bait.  

Thanks in advance, and I am sure many of you have keywords setup that will catch this post.  Let's keep it classy!

I looked into a very similar situation here in the Dallas metroplex. I was looking at a new construction duplex built in a city that is currently cow pastures but will be the very next area to where the builders will be gobbling up land and extending the metroplex out even further. I was looking into a new construction duplex at a purchase price of around $250K, which rents for $1,200 per month/each. The numbers make sense somewhat now, but the big gamble is that this location will be a great target for appreciation. Not sure about this one.

I am curious about a brand new duplex being built in either Collin or Denton Counties. Do the brand new ones being built do well as investments in the northern suburbs?

Hello everyone, I have been busy learning from these forums and decided that it was time to create my first post. I have questions regarding the Solo 401K and starting a small business. Here goes:

Where I am currently at:

1. I am a W2 with traditional 401K that is pretty close to maxing out the 15K per year contribution (in my 40's). Not looking to touch this setup.

2. Have around 75K in a traditional IRA that was rolled over from previous employer traditional 401K plans. Generally used to invest in mutual funds, currently. Looking to play with this.

Where I want to go:

1. I want to rollover that traditional IRA into a Solo 401K, but I do not have a current business that would qualify me for the Solo 401K, currently.

2. I would like to first setup a small business that manages the passive income from the rent payments of an initial SFH purchased, and any subsequent SFHs to follow after being acquired. After small business is setup, then rollover the traditional IRA into this new Solo 401K account.

What the the best way to go here? Sole proprietor LLC?

3. After small business is established, and the Solo 401K account is established and funded with rollover traditional IRA, I am curious if it is possible to use a 5 year loan to myself from the Solo 401K plan to fund the 20% on purchasing the first SFH in order to rent? It would be with a 5 year repayment at prime plus 1%.

4. My goal is to start with (1) SFH to buy and hold so that I can rent it out. After loan is repaid then buy house number 2 using the same strategy.

5. My goal is to keep the rental property outside of the Solo 401K, while using the self loan to put a down payment on the house to purchase. After 4 years of ownership of the rental property, then sell it for appreciation and roll those profits back through the management company and into the Solo 401K.

Questions:

Is this possible to do?