All Forum Posts by: Charles May

Tom,

Thanks for the comment! I think I have what I need now! Better to make the mistakes in here...lol

Andy,

Thanks for the reply! Let me ask you this, would we be better off just having him cut us a personal check and depositing that into our personal checking account (tax issues??) We in turn do what we need to do to the house and then try to secure refinancing afterwards. 

This scenario would only be the case for properties we would like to keep as rentals. 

Again, thanks for your time!

I have a private lender who is willing to "lend" me X amount of money to build my real estate portfolio, at a cost to me of 20% of course. He would deposit a check for the purchase price AND the rehab costs up front into our LLC. We were throwing some ideas around and came up with this scenario:

Purchase price: $50,000 + $20,000 in rehab costs = $70,000 Total Investment

$70,000 Investment + 20% Interest = $84,000 Owed back to private lender

Now, would we be able to pull out a traditional home loan for this property, use that money to re-imburse the private lender and then make regular payments to the bank?

The reason we are even considering this is that my investor wants little/nothing to do with the real estate side of this and does not want his capital tied up long term in rental properties. So using the above scenario we could pay him back within a few months and still keep/add an updated income property to our inventory.

I'm open to questions/comments/ideas/dumbest thing I've ever heard......etc

My wife and I are looking at buying a new home in the next 6 months to a year. My question is, am I able to rent out our current home under the original mortgage, but still obtain a new mortgage for the new home?

I've read that some banks won't allow you to do this (I am reading through our bank paperwork this weekend), but I've also heard that banks don't care as long as the checks clear every month.

Has anyone done this sort of thing, or have any knowledge of someone doing this. I don't think I would have any problems renting out my current home as I have already asked around about renting it and had several people ask me if it was for rent.

Bottom line: What are my options, if any?!?! Thanks in advance.

Charlie

@Samantha M. - I would strongly consider installing central heat/air especially if your able to get the house at a decent price. You will undoubtetly get your money back if/when you sell. Being you are from Dallas obviously it gets quite warm there. It will help your property "stand out" amongst the others that may not have central air, if nothing else you can charge a little extra rent for having it.

There may be issues with installing the unit without seeing the property but I install furnace/A.C. units daily here in Ohio and it can become quite costly ($3K-$8K depending on the size of the house). Another issue is a house this old most likely does not have insulation in the exterior walls, something else to consider as you don't want your "conditioned air" getting absorbed by outside air.

What was the source of heating? I saw some posted electric baseboard, is this correct?
If there is no ductwork in the home a great option is a ductless split system.

In order to keep this post somewhat short if your looking for options either reply or contact me directly.

Good Luck!

@Pete Tam: I am just starting out and the book that I found quite helpful is;
"Don't Call Me A Guru!! (A Different Look At Real Estate Investing And The People Promoting It). Written by: Sam Tunnell. I bought it off iBooks for like $6.

It details why he got started and more importantly HOW he got started. His book mainly focuses on rentals, but he does dive into several other areas or REI.

Good luck, hope this helps!

Thanks Guys,

I was able to access my account online and it did indeed state that I would NOT be able to do what I would like with the money in the account.

That being said I was able to find an invester last night that said he would finance the mortgage and we are working on the terms of re-payment.

Any tips for this that would be beneficial to the both of us??

Erik,

Thanks for the info. What I was hoping to do (again, if possible) was use the money from the SDIRA as money for a down payment (which would be 25%) on a traditional mortgage to purchase the home, then rent it out.

PITI as well as utilities, would be $450/$475, Based on people I have talked to I can get at least $700 in rent a month possibly upwards of $800.

Monday a.m. I plan on contacting the holder of my 401(k) to see what options I have.

Hello,

Sort of new to BP. I am looking to purchase a rental home in my area, current listing is for $49K. My question is this. I have around $20K in my current 401(k) at work that I would like to roll into a SD IRA. 1. Is this even possible? 2. If so, what steps do I take to get it facilitated?

Any information would be great, I think this home would make a perfect "starter rental" for me and I want to act on this soon.

Thanks again,
Charlie

If you turned the water on and it didn't leak you have your answer. No need to "vibration test"