All Forum Posts by: John Myers

@Louis Martinez

I had a 30 year career in the utility industry and contributed to my 401k for many years. I rolled the proceeds into an IRA when I left my job. I then had a Self Directed IRA created and rolled over some of my IRA into the self directed IRA. I used those proceeds to purchase the home. At this time, I just leave the rental income in the self directed IRA and there are no tax consequences at this time. Obviously there will be taxes when I make withdrawals from my IRA. So I don't use that income to live on.

I have several other rental properties that I own and use that income to live. My real estate brokerage is an S corp and I earn money from the S corp. There are definitely pros and cons of the S corp. I will be meeting with my accountant to determine if the S corp is still in my best interest at this time. One of the big pros of the S corp is that I have created a defined benefits retiremant plan. The defined benefits retirement fund owns rental houses also. Lots of complexities here also but it has been very successful. The real estate investments are performing fantastic.

There are so many ways to make money in real estate. You need to surround yourself with a good team and a great accountant is an important player for your team.

I don't pretend to understand all of the behind the scenes details, but I pay professionals to guide me through the legalities and IRS issues.  I make the money and the professionals give me options and handle the details.

Thanks @James Dainard

Turned out to be a great deal.  However it was scary at the time we bought the home.  The real estate market was a mess and everyone was running from real estate!  

Hello @InYoung Choung

We bought this home several years ago. The home was listed in the MLS and we were able to view the home before we purchased the house. I have purchased several bank owned homes and short sales. However, I have never purchased on without the ability to view the house and do my own "inspection". When I say inspection, it means I am viewing the home and doing my own inspection. I am not a home inspector but have seen enough homes to get a good handle on the homes. This house was only 5 years old when I purchased it, so I was fairly confident the major components were good. I did spend about $20,000 in cosmetic repairs, flooring, paint, dry wall, doors, blinds, appliances, etc..

Run as fast as you can.  This tenant will be nothing but problems and make you life miserable.  I would give her the damage deposit back and get out of the lease any way you can.  Even if it means hiring an attorney.  Pay her to cancel the lease if you don't have any other legal options.  Good Tenants = Good Life, Bad Tenants = Life Sucks.

It is worth getting out of the lease even if you lose a months rent.  You will spend more time and money "chasing the cat smell"

@Brian Eastman

Thanks for your feedback.  Sounds like you understand this way better than I do.  I discuss everyting with my accountant and follow his directions.

@Louis Martinez

My Accountant set up the LLC which manages the self directed IRA. I am not sure why the LLC was the better than an S Corp. But I do follow his expertise. You must be very careful with self directed IRAs as there are several IRS rules you must follow. I recommend you talk to an accountant or experts familiar with self directed IRAs if you are interested. There are many benefits of a self directed IRA as long as it is done right and you follow the many IRS rules.

Owning Long term rentals is acceptable as a self directd IRA.

@Jack Malpass

When I say we, I mean I.  I did not do do any of the work myself.  I hire out all repairs or work to be done.  I am way too old to do any type of landscaping work.  LOL

Hello all, I am a real estate investor and real estate agent here in Albuquerque NM.  My investments are single family residential.  The market has been on fire since June of 2020.  It was hot before the corona hit and cooled down for a few months.  Then it went verticle.  Prices have been increasing about 20% per year.  That is insane for our market.  I know other markets have been higher.

Rents have increased dramatically also.

Multi family and sfhs on the MLS has been almost impossible to purchase. Most of them don't make sense from an investment perspective in the past two years.

However, things are shifting in our market like many others.  Just helped some investors purchase a 4 plex in the Nob Hill area which is a desirable area of town.

You do need to be carefull where you buy as there are some bad places here in Albuquerque.

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $173,500
Cash invested: $173,500
Sale price: $215,000

I bought this new construction home from a builder that was finished in this subdivision. The home was under contract with a retail buyer and the deal fell through. One of the builder's sales reps called me and asked me to make an offer on the house. I made a crazy low offer and they accetpted the offer. I paid cash and had to pay cash for the house.
I closed on the house, placed a sign in the yard and closed on the sale a few months later. Made a great profit for doing almost nothing.

What made you interested in investing in this type of deal?

It was easy money, kind of like legalized stealing!!

How did you find this deal and how did you negotiate it?

The builder's sales rep called me and asked me to make an offer. I made a low offer but agreed to pay cash and close in one week!

How did you finance this deal?

Paid cash

How did you add value to the deal?

I literally did nothing to the house except place a for sale sign in the front yard. Oh and I had to enter it into the MLS

What was the outcome?

Made a very nice profit.

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $173,500
Cash invested: $173,500
Sale price: $215,000

I bought this new construction home from a builder that was finished in this subdivision. The home was under contract with a retail buyer and the deal fell through. One of the builder's sales reps called me and asked me to make an offer on the house. I made a crazy low offer and they accetpted the offer. I paid cash and had to pay cash for the house.

I closed on the house, placed a sign in the yard and closed on the sale a few months later. Made a great profit for doing almost nothing. I did several deals like this with the builder. Unfortunatley for me, they are not doing deals like this anymore.

What made you interested in investing in this type of deal?

It was easy money, kind of like legalized stealing!!

How did you find this deal and how did you negotiate it?

The builder's sales rep called me and asked me to make an offer. I made a low offer but agreed to pay cash and close in one week!

How did you finance this deal?

Paid cash

How did you add value to the deal?

I literally did nothing to the house except place a for sale sign in the front yard. Oh and I had to enter it into the MLS

What was the outcome?

Made a very nice profit.