All Forum Posts by: Kevin Powell

Thanks for the comments . . . 

@christopher phillips My realtor sold an identical house on next street over 8 weeks ago for 131,000 but it needed updates a roof and Windows.  I am pretty confident in that AVR.  This house has all of that already done.  Other comps we in low 140s

It is a bank property and I think it was just listed way too low. 

@Will Bernard deals this easy are not common.  Typical is buy for 80k put in 25-30k and sell for 150k.

Final call for offers is tomorrow at noon. 

Tks,

So my wife and  I are looking at our first deal and could use some input.  List price is 76,400; AVR is $140,000.  House is clean and in need of very little repairs.  Max $5,000.  Small kitchen needs caninets and countertops and then a few cosmetic things.  

We offered $82,600 and the next day we were told to give our highest and best by tomorrow at noon.  Feel like I am competing against myself.  We could have it on the market within 2 weeks of closing.  

70% rule would be $93,000.  (140,000 * .7 = $98,000 - $5,000 = $93,000). Max offer of 93,000. Financing and soft cost are approx. $10,000 so our profit would be approx. $32,000 (140,000 - 98,000 - 10,000).  

We may be bidding against someone who will live there and I fear a 93,000 bid will not get it done.  Because there is so little work should work to do should I consider breaking the "rule and going higher?

Bottom line.  If we bid $106,000 We make 20,000 which we would be happy with for 2 weeks work.  Are we out of our minds to overbid the asking by $30,000?

Looking forward to a few comments.

I am in the same situation as @David Christie. Was advised by my accountant to set up a multi member LLC with my self directed Roth as part owner, my wife's self directed ROTH as part owner and then me personally as part owner. If each IRA put in 25% of the assets into the LLC and then I put in 50% of the assets there would be enough to do the project. He seemed very sure this was fine but I keep hearing this is a prohibited transaction. I feel strongly taking the time to structure this properly is as important as finding deals and doing them but am getting much conflicting info.

@Brian Eastman seems to indicate it might be possible but the definition of direct / indirect benefit seems hard to avoid. The IRA get the benefit of my cash and I get the advantage of the IRA's cash. Seems like a benefit to me. I have the ability to access cash in lieu of the IRA's cash so maybe that would not be seen as a "benefit" from the IRA.

Any additional input would be much appreciated.  

Thanks,

Kevin

My wife and I are new to real estate and BP and are going to try to be there.