All Forum Posts by: Mike Faulkenberry

@Lee Ripma thank you. That is great advice. I think that is the direction for me. Thanks again.

@Josh C. I appreciate the reply. I have been looking locally in Reno, NV and in California since that’s where I’m from. The issue is that I can’t find anything for the $100k I have, so that’s why I am asking about other areas. I was reading an article of how Kansas City Mo was a great area to invest. Indianpolis also. Cheers!

Hi BP! I am looking to invest $100,000 of a self-directed IRA in a income/investment property. My questions are:

1) what is the best strategy? I would like to buy and hold and have the rent income obviously go back into my IRA account.

2) What type of building is best? Industrial/warehouse, commercial, retail, or residential?

3) Where is the best place to purchase right now (depending on the type of property)?

I really want to start having this money work for me and I’ve been a little lost/scared to invest it. Any advise would be greatly appreciated.

@Aaron Montague thanks for taking a look.  I did run the numbers at $150k, and I ran the numbers to see what was the highest I could go to be profitable and it was $158k, but this deal was brought to me by a wholesaler and they weren’t budging unfortunately. 

Unfortunately I don’t have any family with that kind of money. I am still looking for the deal that will work for me. 

Thanks @Joe Villeneuve for looking it over. I wanted to make sure I didn’t miss something before I passed on it. 

Hi BP! I have a deal that I am looking at for a fix and flip, and every time I put in my numbers I am loosing money. I am being very conservative and have to use hard (expensive) money to do the rehab. Could someone take a look and give me a second opinion letting me know if I am missing something or if I am being too conservative with my numbers please? Thank you. 

Section One: Property Information
Property Address
City
Bedrooms	3
Bathrooms	2
Heat Source	Natural Gas
Purchase Price	$190,000.00
Estimated Repair Cost	$40,000.00
Estimated After Repair Value	$270,000.00
Garage	None
Laundry Room	None
Year Built	1930
Wiring Condition	Average
Plumbing Condition	Average
Square Footage	1250
County Appraised Value	$240,000.00
Section 2: Hard Money/Fix N' Flip Calculator
Purchase Price (B19)	$190,000.00
Purchase Closing Costs	$1,500.00
Repairs (B20)	$40,000.00
Holding Costs (W/S/G/PUD/etc)	$3,000.00
Down Payment (Skin in the game)	$90,000.00
Total Invested	$234,500.00
Total Cash Needed From Lender	$144,500.00
Points charged by lender	11.5
Points added to loan	$16,617.50
Total Loan Owed Lender	$161,117.50
After Repair Value (from B25)	$270,000.00
County Excise Tax Rate	1.53%
Excise (sale) tax amount	$4,131.00
Realtor Fees 6%	$16,200.00
Our Closing Costs	$1,500.00
Their closing costs (they'll ask)	$2,000.00
Total debits at closing	$23,831.00
Total cash received if sold now	$246,169.00
Total Money in The Deal	$251,117.50
Total Profit (pre-income tax):	-$4,948.50
ROI based on 6 month flip	-11.00%

@Cary Crites if you have some properties in mind that are local to Reno/Sparks I would be interested. I am looking for a fixer upper to put in some sweat equity if you know of any properties. let me know. Thanks

@Jerome Depner curious which one worked out best for you?

Can I ask what filters you are using for finding empty nesters?

April Crossley thanks. I am really interested in this property, I just hope since it has so many owners it won't be a pain if they do want to sell. Even if it is I'm still going after it. Thanks again.