All Forum Posts by: Kyle Koppenheffer

Hey BP!

I've recently switched jobs which has given my previous IRA account the ability to transfer banks. While researching REI, I've come across the idea of using a self-directed IRA account to invest in real estate. Now that I have an easy opportunity to open one, I've been liking the idea more and more. This would be my first investment.

Does anyone have any experience investing in real estate with this type of funding?  Any tips in general with this method?

Thanks,

Kyle

I'd say Redfin is comparable site to Trulia/Zillow/Realtor.com. Not the most accurate data but can get the job done if you have nothing else. Getting in touch with an agent who has access to the MLS would seem like a better option in my opinion.

Is sending a mailer out to all of them not an option?  From what I've heard (haven't done wholesaling), you usually want to send as many mailers as possible, on some consistent basis (depending on who you're marketing to).  For the 1400 leads, you'll get something like 140 responses, which will give you 14 offers, and then close on 1 deal.

Welcome to the forums!  I'm pretty new to the game as well, but I might be able to give some leads on what you're looking for.

With you being a Real Estate Investor, that puts you into a different category than a normal everyday home buyer that Realtors are used to dealing with.  This means that you'll need to find a Realtor who's used to working with investors and understands what you, as an investor, needs from them.  And the best way to find a Realtor like that is through networking and recommendations.  Reaching out is as simple as finding people on BP close to your area and sending a quick connection request with a message.  My current Realtor was found via someone I met on BP.

As for gatherings, Google "REIA Northwest Indiana" or something related to that area and you should find a local Real Estate association. They usually charge a monthly/annual fee, but it's usually easily worth the price.

Thanks @Brian Garrett, @Richard Jahnle, @Amina Sanders, @Chris Mason, @Grant Rothenburger, @Steve Vaughan, @Scott Morris, @James Ma, and @Ryan Harsche for the info and tips!

I talked with my broker and they told me the down payment was included in the $20k which then left ~7% in closing costs (I rounded the 200k and 20k numbers).  And yes the transfer tax was the majority of it!  I still think this is rather high and hope I can find a better deal.  Thanks everyone again for your inputs!

Hey BP!

New investor here and I'm currently looking to buy my first rental property in the Philadelphia area. I've been shopping around for properties and I've been working with a broker to determine my financial options. I'll most likely be house hacking a multi-family and using an FHA loan.

I've had this broker estimate my closing costs on two different properties, with both having a purchase price of $200k.  I'm being told that closing costs will be close to $20k on each property.

Out of all the videos, books, articles, forums, and literature I've combed through over the past couple of months, everything is telling me that closing costs should be 3-5% of the purchase price, not 10%.

Am I missing something here?  Are these prices normal for a first time investor?  Is this due to working with a broker instead of a lender?  I'm currently in the process of finding another lender/broker, because this $20k figure doesn't seem right to me.

Hey J,

All of the podcasts you've done have been great!  Thanks for the consistently useful info.  I believe in your most recent podcast, you were talking about economic cycles.  You mentioned that, historically, we are overdue for some kind of downturn looking at a 7-8 year cycle.  You also mentioned a 70 year cycle and how we are overdue for a downturn by that metric as well.  These two cycles falling close to each other being really bad.

Are you able to elaborate more on this?  This is the Great Depression and the Recession downturn cycles coming to meet?

Hey Angie,

I think this is the perfect time to run your numbers.... and then run them a couple more times.  Does the value of a third bedroom outweigh the cost of adding that bedroom?  Does a third bedroom out-value a garage?  Do people want garages in this area?  Get a contractor out there to get the most accurate costing down for each scenario and choose based off that.  Make it a numbers game!  Instead of hypothesizing what's valued, put the value on paper.

Hey Dana,

I wish you the best in getting through this tough time, coming out of the shutdown.

I think the best and easiest thing you can do right now is start listening to the BiggerPockets podcasts.  They're free to listen to on this site and also have free video versions on YouTube.  I listen to one every day on my commute to work.  This will help you start to learn the lingo and how to get started.  In every podcast, they ask the guest what their favorite real estate and business books are.  This is a great second step after the podcasts.  I went to the same Rich Dad seminar in my area too (and almost bought the 3-day seminar!).  Even though those seminars are a bit fishy, the Rich Dad Poor Dad book has been praised time and time again.

Like James said, you're already here, which is a step in the right direction!  I'm new to real estate as well, so feel free to reach out at any point!

Good luck and remember to keep going!

Just from living in this area and commuting between Philly and Wilmington for the past 3 years, I'd agree with Joe.  Wilmington, Philly, and and the Philly suburbs seem like a sure fire area.  But hey, maybe if everyone else is passing it up, that means it's the place to be.