All Forum Posts by: Mark OGara

Hi

Has anyone paid Home Depot directly from a self directed IRA? Doing a buy, renovate and hold on a property in Pittsburgh and it would be nice to be able to buy materials directly from HD rather than have the builder buy them.

Have a Happy New Year!

@Frankie Felix

Good idea on the letter to the tenants - was thinking of doing a trash etiquette news letter like break down your box, put your trash in a bag and put the bag in the container.

@Deanna McCormick

You are spot on about being a major expense and move out furniture - that drives me crazy!

@Matt Clark

Thank for the post. I will have to check to see if a recycle container is less expensive than a trash container.  I am sure we could fill up a recycle container ever week.

@Thomas S.

Thanks for the reality check and input.

I was hoping there was an economically feasible "green" solution like a recycling center in a box!

I am looking for ideas on how to handle refuse at a small, commercial complex.  Right now we pay a monthly fee to have the garbage picked up on a weekly basis.  We use a local disposal service for a 20 unit apartment complex.  Often we will be charged additional fees when the refuse exceeds the capacity of the containers.  A lot of the refuse is cardboard, bottles, cans and plastics.  Adding recycling bins is an additional monthly cost for the disposal service.  Does anyone have any suggestions for a recycling solution for a 20 unit apartment building in Pittsburgh PA?  

@Benjamin Blackburn

Hi Ben

To fund our deals we use three sources:  local bank in Pittsburgh, self directed IRAs and self fund.

@William Baptist

One last bit - I would never pay a property unless I see the property multiple times - usually 3 or 4 including walk about the property, drive by the neighborhood and look inside the property at least twice.  There is no way to tell the condition of the property unless you look, too late to wait until after the seller accepts your offer.

@William Baptist

Is this your first property or do you have others in the same location?

In calculating cash on cash return I usually am very conservative in my numbers.  I use 10% for maintenance, 10% for vacancy (unless I have rent roll data for the area) and I think your capex is too low.  Did you do a walk through of the home and get a could feel for the age of the major infrastructure components like AC, furnace, roof, hot water heater and kitchen appliances?

Best of luck

Mark

@Myrna Santos

We have a four step process for buying a property:  

1.  Run the numbers and make sure you have good cash on cash return.

2.  Do a drive by of the property and a walk about the house.  Look at the condition of the roof, gutters, downspouts, exterior of the house, walls and walk ways.  Best time to do a walk about is in the rain!

3.  See the property with an agent.  There are lots of good checklists out there on evaluating the interior of a house - use one!

4.  If you are going to renovate, get your contractor/builder to walk through with you.

We did an "Old House" tour with our local real estate investment club here in Pittsburgh where we learned how to evaluate the condition of a house.  Joining a real estate investment club is always a good idea.

Best of luck
Mark

@Benjamin Blackburn

Hi Ben

I would find a local real estate investment club and plan to attend regularly - especially if you find one that has an educational component.  Next, build your network in a given market. 

One of our strategies is to buy distressed properties, renovate and rent.  

Best of luck

Mark

@Steve Vaughan Have to love Rich Dad, Poor Day advice - buy those assets!

@Eric Moreno

Congrats on looking to buy assets, not liabilities, at this point in your career.

If you plan to make the military a career, as many of my classmates have done, one strategy is to buy a property where you are stationed and rent it out when you PCS.

If you want to get started in Hawaii, find a local investor group and learn that market and what strategies work there in the local market.

Thank you for your service and Merry Christmas.

Mark