All Forum Posts by: Martha Chavarria

Hi BP family! 

As I'm transitioning into setting up a self-directed solo 401 k, I've made the decision that I will invest my retirement funds starting with tax liens and private lending. In terms if the liens, I've got a pretty good grip on where to start off with. However, with private lending, I would much rather work with a company that work with investors. Since I run my business full time and my time is extremely limited, it makes things difficult to come up with contractual terms, conditions and rates. Are there private lending companies that I should be looking into to partner up with? If so, I would really appreciate any feedback. Many thanks and happy Friday!

Thanks guys for your input...this makes my decision so much easier. @Jeff S.

Thanks Brian...and thank you for pointing out having a custodian. That would help greatly!

Hi BP family!

I've spent months in researching my next move with my 401 (k). I've made the decision that I will rollover my 401 (k) to a self-directed plan which would allow me to start investing in Tax Liens and perhaps consider Private Lending. A major factor is that being self employed gives me the flexibility of making substantial yearly contributions. I'm wondering if anyone has considered or is currently under such a plan and how has it been working for you? I'm still researching companies that would offer major support along the way including having extensive knowledge in real estate and taxes. I welcome your thoughts and perhaps advise me on reputable companies I should be considering. Many thanks! 

Whether it's rough or sugar-coated, that's not the issue. The point and bottom line are the challenges and how its measured the same way for contractors. There are some areas in the home that if the property owner wants to handle, they are within their right to do so. But, as a precaution, I would advise them of the potential hazards of certain tasks and the time it takes should be considered greatly. I'm not oppose to giving estimates, and I see producing a range can be a benefit. I've also approached it as "what's their budget" first and then advising what can be done with that figure. Now, its understood that this doesn't always apply to all aspects of a renovation. But if a client is looking at redoing their kitchen for example, this works quite well. I always give the client to choose the budget range they're most comfortable in. For the most part, they tend to work with a mid-range. So, I help lead them to options that would fall within that category and they are pretty content with the selections and at same time there's no second guessing what's going into their kitchen. From cabinets, flooring, countertops, you name it, down to the knob. Its all about finding a middle ground, while at the same time not compromising your system and procedures you've worked so hard to put in place.

Well, as rough as that sounded, I have to agree with Derreck. I had a situation recently where I was quoting a job that quite honestly, was a true waste of my time. Yet, I was pressured to do all of their homework in giving out numbers. I won't go into great detail about that particular scenario. Lets just say when I came back with an initial figure, he came back with an unrealistic number. So much so, it was offensive. Which is why, I have reevaluated my business and making a shift that would benefit me and keep me competitive in the marketplace. Rehabs and flips are on the horizon. I thought to be my own client.

Wow :-)

I'm speechless and quite frankly...in awe! Its not everyday you come across a story like this and not feel it. Thank you so much for this amazing story! You are a fine example. By the way, I definitely agree that systems is the way to go!

Hi Trayon, I highly recommend you work with a national title company with local representation. Do a google search for "National Fidelity". Very trusted source among investors. Good luck!

You know what...you are right. With the purchase price, rehab and total holding and closing costs, the total project cost is at $317,064, down to 66% of the ARV. The projected results for resale for $480k. The projected cost for that sale at $33k, so yes, the flip profit would then be $129k, with an ROI of 41%. the annualized ROI at 163%.

Thanks for pointing that out.