All Forum Posts by: Mike Williams

no, there are loan servicing companies.  if you were to purchase a 'note' from another investors, oftentimes it can be processed by a 3rd parties.  I am familiar with FCI but they are a forum to buy, sell and have notes serviced.  I would imagine I could go through them but I wanted to understand what others have done prior to moving forward.

I have several properties that are debt free with tenants that are interested in buying.  I am looking to write a land contract and have it handled and processed by a loan servicing firm.  Has anyone done this and what has been your experience?  What are the costs?  What do they provide?  Any lessons learned you would suggest?  Thank you in advance for your thoughts.

Mike

Thanks Dan.  Great Insight.  I did follow some of the threads and definitely found all of these guys to be very knowledgeable.  

Dan, thank you!  This is exactly the information I was looking for.  I spoke w/ a company from Arizona and also saw a company in CA that does them as well.  I live in Michigan.  Im not concerned that they are not local.  Just want to find a few credible sources that I can interview to see what fits my needs best.  Can you provide the company that you chose and maybe others that you considered before landing on your current provider?  I too have a SDIRA and would like to roll those assets along with some old 401ks that are just dangling at my former employers.  Thanks in advance for your help! - Mike

I am looking at starting a self directed solo 401k for the side hustle. if nothing else, I want to be able to roll over my previous 401ks from different employers and consolidate that down. I currently invest in real estate so I am thinking of using more of that money to fund the purchases. Does anyone have any experience with starting up a Self Directed Solo 401k for their small business? If so, could you please share any advice or companies that you have worked with or chose not to work with on this project? Thanks in advance for your assistance.

Looks great. Is the flooring wood or is it tile that looks like wood? Any concerns about putting wood in a bathroom?

Originally posted by @Chris Kennedy:

@Mike Williams 

That's a good question you've posted. And a tough one to answer I think. I guess it depends on your attitude toward risk, and what a safe investment means for you.

Here are a few options I would consider:

1. Boring as it is, a CD is probably the most conservative way if you don't want much risk at all.

2. Put the money in a conservative mutual fund, shoot for 5% return.

3. Become a private lender to established rehabbers in your area. They should be able to cycle the money a few times in 2 years and you'll likely make a much better return. Of course you need to do your due diligence here. If you invest with a team with a solid track record you'll significantly reduce your risk.

4. Personally I like your own idea of buying more rentals and doing a cash out refi when you need the money. You said you already have 10 rentals. Perhaps those are all already financed and you're concerned about not being able to get loan number 11 with a conventional bank. You could look at refinancing some of your current rentals with a portfolio loan first.

5. Pay off one or more mortgages (if any) on your current rentals - this will increase the annual cash flow and generate a decent return on your money, and it should be easy enough to get the cash back out throughout a refi down the road. The risk here would be that interest rates rise significantly in the next two years and you're left with less appealing terms on the refi than any loan you have right now.

Would like to hear what you decide on this, keep us posted - I'm sure this is a fairly common problem people have.

 Chris:

Thanks of the insight.  Most of my rentals are paid off (3 w/ loans).  I agree that the best idea seems to buy more rentals and cash out when needed.  My concern is that the banks may change their rules on me and I am holding the bag.  Personally, I can see the cash flow and am willing to take the chance.  The wife - on the other hand - doesn't like this scenario where all of our money is tied up - even if it is in a cash producing asset.  

I like the idea of hard money lending as I did it once before.  But, when it comes to purchasing my next primary residence, I don't want to be worrying about the actions of others.

I think I what I need to do is to sit down my wife and go over the projections and what that will mean to us in two years - even if I can't pull money out for some reason.  I should have the 20% to purchase/build my home.

I think I will park it somewhere safe until I am ready to make some offers.  Thanks again!

MW

Originally posted by @David Roberts:

Maybe they are happy with 100k properties. Mike seems to be happy with 10% COC return. That's not too hard to achieve really. I prefer 100% lol.

There was one in Flat rock for 55k I think, 3/2 900 sqft or so, but it was not on the market long.  By the time I inquired it was already gone.

 Well, I buy mine w/ cash so we probably aren't talking the same language.  

I own props downriver. The return on cash is still at or above 10%. That said, I think a lot of houses will go on the market in the spring because a lot of people feel the market is heating up therefore supply will increase and prices will drop. My property manager says that all of the deals are down in flat rock. That is unless you want hood rat properties in ecorse and rouge. Be patient my friend. Rent rates are great even w higher prices.

Just moved out of state and have 10 rental properties back in MI. Sold my primary residence and sitting on a large amount of cash. I am renting right now and won't be purchasing a primary residence for 2 years. What are your thoughts on places to make a good return on this money. Considering buying more rentals w cash and just cash out when I need the money. Concerned I may run into some unforeseen problem( banks are funny). Also thought about selling some puts on some somewhat conservative stocks. Looking for some good safe ideas. Please let me know your thoughts.