All Forum Posts by: Kreighton Reed

Another way to look at the fee:

In a traditional 401K with the company that you work for the plan owners pay a yearly fee (be it an outright fee or a % of earnings) That fee pays the plan administrators and covers the cost of keeping the plan compliant.  In a Self Directed 401K the plan administrators also collect a fee to keep your plan compliant.  In my opinion the SD 401K fee is a lot lower than what you are playing in your companies 401K plan its just not as visible because they(your companies 401K provider) take it off the top.

Jamyka Pahl you've come to the right place to find what your answers. Lots of experts. Colorado is growing rapidly because it's a great place to live. The winters here are very mild (compared to the mid-west). Are you looking to live in a metro area or rural? I would search @Bill S. posts he is very knowledgable and has posted a lot about Denver and Colorado

If you have not rolled over your old 401(k) yet. You can roll it all into a solo 401(k) and use all the funds for your real estate investing. There are experts on BP that can help you with this.

What's the total debt and total equity?

Welcome Rajeev!  You'll love BP!

@John Wanberg Self Directed IRA's and Solo 401Ks allow you to roll over your 401k/IRA into a trust account or LLC and use the funds to invest in real estate (or gold bars for that matter). There are some really good resources on BP and some PRO members that are literally EXPERTS. 10 years ago it was unheard of, its been my observation that this sort of financing is becoming more mainstream as of late.

@Kyle Scofield I'm a banker. I would call ahead and ask for a commercial lender. If you walk in don't waste your time with the new accounts rep, get right to the commercial lender. I think the most important thing to bring is a list of questions. Your credentials are important but every banker has a box that they are allowed to work in. Before getting into your proposal I would ask questions to find out what the parameters of the bankers box are: 

• Do you do investment property loans?
• how much do you require down?
• Do you have a min/max loan amount?
• What are your income requirements for these types of loans?
• Is there a part of town you need to be lending more in (Banks are required to lend in low income areas and might be willing to work with you if you can help them fill their quota)

Are you wanting a commercial loan?  A lot of first time investor go through the mortgage route first, and after a few properties switch and more capital switch to commercial loans.

@Colin Carr I'm a lender in Denver, we don't do HELOCs so this is where I refer people: You can get 100% LTV HELOC on your primary residence through Credit Union of Denver, their rate is about 6% so your payments come out to $100 a month for every $10k borrowed. I think Key bank will go to 100% as well but their underwriting is a bit more strict.

@John Wanberg Is right. 75% is probably the max LTV you will get for an investment property. I've seen 80-85% but its been for customers that have done multiple loans through a small bank and they are comfortable with them.

Colin If you need extra $ for the downpayment on a 4plex have you considered a SDIRA or Solo 401k?  Good look in your investing!

Peter S. my bank doesn't do Helocs but I did a ton of research and found the best deals in Denver. PM me and I can get you some contacts.

@Gavin E. my bank did a portfolio loan for a customer that didn't have W-2 recently. Unfortunately @Bill S. is right. We were able to do the loan because the borrow put 50% down and they were buying a multi unit where the rents more than covered the payments. At 20% down and it being a SFH I think you'll be hard pressed to find a conventional lender.