All Forum Posts by: Matt Devincenzo

Dustin a tenant cannot "refuse" you entry to your property. This is key you MUST give 24 hour notice but that does not mean that you need their permission to enter as long as you have given proper notice, this is especially true for emergency situations, like if electrical is the issue.

If the "tenant" (he) is not on the lease give them a cure or quit to leave. I'm sure that somewhere in that lease it says that all adult parties must be on the lease, so use that to get him/them out now. It sounds like he may be have some experience with doing this before and is somewhat of a professional tenant in which case the sooner he is out the better.

This is one reason why there is no single metric to qualify a good investment. Cash flow is also very dependent on your down payment, 20% might CF $200/mo but 80% might CF $600/mo. That doesn't mean it would be a good/bad idea to put 80% down.

I like to use Cash on Cash as PART of my analysis, if I see something that CF $500/mo but only gives a 6% COC return then it really isn't a good deal.

So in reality there is no apples to apples comparison, there are a lot of variable on every side of the equation, and you need to know how to run your numbers to achieve your investment goal.

Dan if the TYVEK is a big reason for the vinyl have you considered 2 things. First I personally have seen that often it is improperly installed minimizing any benefit you would receive from it.

Second you have 7-10K spread here that you are trying to determine how to spend, what about taking what you're planning on spending for insulation and getting sprayed in closed cell foam. You have now sealed out any air or water, kept the wood siding, and probably still saved money compared to vinyl.

P.S. I am slightly biased because I absolutely hate the look of most vinyl, it just seems cheap to me.

One thing that may make a difference is when you (may be) getting out. If you have some time still use it to your advantage.

Look at where you want to go and start doing it while you still have that DFAS direct deposit coming in. If you're planning on buy and holds, this also will start you 2 year LL clock to be able to count rental income for qualification.

The other thing is for the 0 down or non conventional sources you probably can find plenty of people that tell you it can be done, the caveat is alot of times they already had a positive track record which is why they were able to get it, so if you can start building your track record now so later when you need it, you can call upon it to prove your viability of being able to perform for your lender.

Bill Gulley good to know, thanks for that pearl of wisdom.

That would definitely be huge no-go for me, like someone else said you'll be the next "creditor" not getting your payment.

And don't put a lot of confidence in a money management course to teach grown or nearly grown people to do better with their money. I was in the Navy, we had a 1 week money management class right after boot camp and another 1-2 hour training every year and it didn't make any difference. people's money habits are either ingrained while growing up as a child from their parents or relearned as an adult due to making bad decisions for several years.

No problem, I'm constantly in the same boat, trying to figure out how to keep all of my IRA cash actively invested to maximize it's return.

a. Yes, and expenses go 50/50 as well so Joe IRA needs to have reserves if something comes up.

b. No, this is where you get into the prohibited transaction. The only way out is to sell the property outright.

c. Same as above, except if you hit retirement age you can take the property as a qualified distribution essentially just like if it was cash you would receive the value of the property for your distribution.

I haven't dealt with the non-recourse loan portion, but I have partnered with myself and my parents and it is legal. You are just 2 separate "entities" Andy wolfe and Andy IRA that own a property. It isn't a prohibited transaction unless you are benefitting your IRA by loaning money or paying for something your IRA was supposed to, if it is just a partnership then you are ok. Below is something from the IRS website where they describe what constitutes a prohibited transaction.

The only thing to be careful of is the prohibited transactions of you materially benefiting your IRA, and realize that you won't be able to separate yourself from the property later by selling your 1/3 to your IRA.

But otherwise it's been fairly easy for me, my PM maintains a reserve and pays bills so my custodian doesn't have to deal with the bill split and she fwd's the additional rent over the reserve my portion to me and the other to my IRA.

http://www.irs.gov/publications/p590/ch01.html#en_US_2012_publink1000230855

The following are examples of prohibited transactions with a traditional IRA.

Borrowing money from it.

Selling property to it.

Receiving unreasonable compensation for managing it.

Using it as security for a loan.

Buying property for personal use (present or future) with IRA funds.

I'm going to assume that the fact that you're involved means this is a little shadier (on the current owners part) than just selling a few mobile homes a month on owner financing and not using a licensed originator for the note.

How do you deal with the current non compliant notes on the homes? Once you buy would you now be on the hook for those notes and have to refi them, or record a new note and forgive the balance on the old?

From what I understood a note that was non compliant with SAFE act when created would essentially keep that issue even when sold meaning you would be on the hook for what the original property seller did.

Yes, BUT you would need to set up some sort of condo agreement and have all the paperwork done to that effect. That I'm assuming would be more money than it is really worth, but you'd need to investigate yourself to find out what exactly it would cost.