All Forum Posts by: Juan Monge

Sofi is recently pushing their unsecured personal loans up to 100K. They target very specific profile individuals, but if you are a good match they will do them.

Steven Thoma I am in the middle of trying to make the same decision. One of the things I continue to circle back around on is, do I have an immediate need for the cash? The market where I am looking is tight, and it may be weeks or even months before the next deal comes along. Additionally, if a deal comes along, how likely is it that I will need the entire amount? If you go the fixed mortgage route, you could be taking a hit on your CF for ‘no reason’. One other thing, I haven’t put the pen to paper and confined, but intuitively it seems it would be more logical and cost effective to go from LoC to mortgage, if needed, versus the other way around.

Thanks for the follow-up @Vijaianand Thirunageswaram. I completely agree with you that 'gambling', or what I prefer to see as calculated risk taking, is certainly part of the game. Especially when deals appear to be harder and harder to find. Very glad this one worked out for you.

You numbers also help me verify something I have been tossing around in my head, you being a broker/agent certainly sweetened this deal up for you - if you would have had to give up 3% on the acquisition and sale side, the margins would have been much tighter, and perhaps you may not have even pursued?  

I am going to try and make it out to one of your meet ups soon, all the best!

@Vijaianand Thirunageswaram, congrats, that's some great stuff!

Do you mind sharing how you were able to find these three deals?

Hi @Jason Moran,

@Dmitriy Fomichenko may be able to help.

A couple other items to keep in mind: these conversions typically take weeks and you should factor that into your contract and, if you haven't already done so, familiarize your self with the rules and impacts of using leverage in combination with your IRA.

@Karen Margrave

That sounds very interesting, I am going to look further into this. 

@Linda Hastings

I agree, there is certainly a lot of speculation, but potential returns, over time even with holdings costs, can beat the stock market and perhaps even private lending. Btw, I am also looking to do private lending. 

@Edward B., understood and agreed.

As mentioned, I may be a few years too late in this area - I was giving the numbers just as an example, but am mostly interested in past experience with a similar strategy. I fully understand that there is risk here in that the area doesn't appreciate as rapidly and holding costs over the years eat into the profit. I would certainly be more cautious doing something like this with working capital, but since this is a 'longer' term investment via a SDIRA that eases some of my concerns.

Thanks @Brian Eastman, @George Blower and @Dale T.,

I had wondered about the need to carry insurance on a vacant lot, but suppose its certainly best to side with caution  - I'll be sure to add this to list of reserves.

In the particular area that I am looking at I may be a couple years too late, but still want to understand the feasibility and pros/cons of this strategy.

Here are some numbers I have come up:

Lot purchase price: 10K (what 5,000 sq. ft. lots in the area were selling for a few years ago).

Annual property taxes: ~ 1K.

Maintenance: 0.5K ($125 per quarter).

Insurance: 1K (approximate).

Today's lot selling price: 30K.

So if held for say 3 years, potential profit could have looked like: 30K - 10K - 7.5K (3 X 2.5K) = 12.5K.

Hi BP community, I am hoping to get some insight and past experiences from other investors who have used their SDIRAs to purchase raw land in developing areas. My thought is to purchase small residential lots cash in an area which is going through substantial gentrification, hold for a period of time (likely years vs. months) and eventually sell to a builder. I know I will need to pay for periodic clearing and property taxes with the SDIRA, but what else should I take into consideration for reserves. Also, on the sell side, any chance I am exposing myself to UBIT? Any other pros and cons are greatly appreciated. Thanks, Juan Monge

Hi @Eli Saldana, welcome to BP! I am sure you will find the site to be very informative - I certainly have.

I suggest that you start a new post in the most appropriate forum so that you get the greatest visibility and most beneficial feedback, your question may get lost here.

Let's connect and perhaps we can get together and discuss - I am interested in seeing some of your past projects.

All the best!

Juan Monge