All Forum Posts by: Monti Harris

Illinois is so screwed up.  Until they lop off the city of chicago from the rest of the state, it will never change.  It is a Democrat controlled state, PERIOD, due to Chicago.  The state needs to move ALL government activity back to Springfield.  But we are just wishful.  Someday it will change...not.

John,

My son is in IT and they are a young growing company.  IF you want to stay in Cali, they have their engineering out there.  IF you want to move to Indy, they have their support personnel here.  Let me know and I will get you contact information.  

Just FYI, I would not recommend the SOLO 401k.  I was in your same situation, rolled it over to Solo 401k but have since closed it.  The restrictions and fees were too cumbersome.  Pay the government and do what you need to with the money.

Just my 2 cents.

Monti

@Mindy Jensen, is there any update on the deletion of OLD posts?  I see that @Paige Clarke noted that with filters applied, there are 300 pages.  Can you at least add a time filter to the original post date?  That way I can look only at posts that are less than 30 days old on the marketplace.

@John Dombrowski, in no way am I trying to direct your decisions, but just offering experiences.  I am not saying that my decisions are the right ones, but they are the ones i made.  I own them and will have to suffer the consequences of making them, if any.  Listen to all the comments, they all seem to be good.  But in the end, make a decision based on your gut and your belief in your goal.

If I had listened to my accountant, I would not be in RE. She had a bad experience in the REI market and advised against it. She suggested that I be more conservative and invest in the Stock Market...I KNOW, your laughing. So I asked her, what stock? Of course she said I should seek the advice of a professional in the investment world. That's why I exited the stock market.

The establishment of an LLC offered me no advantage on the first couple purchases. I bought them conventionally, in my name, to get the lowest interest rate. Banks don't loan to LLC's if they are not going to service the loan to maturity. You can't borrow from "Quicken Loans" and then quit claim to your LLC, that creates a DUE UPON SALE clause to activate, so I have been advised.

Since you are having to purchase these as investments, you might as well go to your LOCAL bank, a state bank or credit union, and see about a loan to your LLC, then you do get that protection.

Lastly, Indianapolis is setting themselves up to be the next Silicon Valley, so I am told.  Lightbound is building another large facility, Interactive Intelligence is big employer, and Salesforce is moving here too.  There is an investment group renovating a large building downtown for start-up IT firms.  It is an exciting time, if you are in that field, to be in Indianapolis.  

Maybe you can seek employ here, invest here, and then retire to CO.  I think no matter which way you go, investing in RE is not as easy as the gurus make it sound.  I love being in the space as a way of creating passive income, but I don't think it is easy, when you are a newbie.  Money is tight and decisions have a dramatic affect, both in the good and bad way, depending on how the decision turns out.

We are the same age and have the same goal in mind. I am 56 and want to retire by investing in RE...but I believe it will be a 6 more year process, now in my 3rd year, to get there. I work full time so I am not as savvy at the REI as most of the people commenting on here that are doing REI full-time.

Again...Good Luck.

@John Dombrowski,

I started in the REI world by attending a 'free seminar' and was taught that rolling your 401k money into a self-directed 401k is the answer. I was able to use it for the first one, but that was it..."rules". I found out that you can only use 50% of your money, that you can only have 1 withdrawal at a time, and more...

Long story short, I closed the account, paid the government the money due them and used the balance of the money to purchase two more rentals.  The cash flow is better than the 401k and I get it TODAY, to REINVEST.  My net worth has gone up by more than what I had in my 401k.  

The self-directed 401k ers are SELLING you a program, remember that.  

Good luck on your Investing...from someone in Indianapolis who is baffled by all the interest on here in investors from OUTSIDE Indiana.  

Suggestion...IF you are looking to move to CO, why not invest your money in CO?  Then when you retire, you will be able to be close to them.  Just a THOUGHT.

I have 'commercial' insurance with Berkshire Hathaway.  The first policy was pricey, but the additional houses are just 5-600 per year.  I would steer clear of State Farm and Allstate, both were not good fits for me as an investor.  I have Allstate for my personal residence, but not my investments.

Suzi, 

It will depend on how you are purchasing the property. IF you are borrowing money from a traditional bank or mortgage company, you will not be able to borrow as an LLC. They will not lend to an LLC because that is a 'commercial entity'. In order for the banks to bundle and sell the loans, it has to be to a person.

If you get a loan through a 'commercial' lender, then you can bowrrow as the LLC, provided the bank will service the loan to maturity.

You will not be able to borrow as an individual and 'quit claim' the property to the LLC, that may cause the lender to call the note due.

This is what I have learned from doing it both ways now.

Monti

Logic says that if they are on a month to month that you would need to give them one month notice...eh?

@adrienne Jordan , I am not interested in the Section 8 housing, will you separate?

If you have an insurable interest in a family member or business partner, you could invest in an over-funded whole life insurance policy with a solid mutual life insurance company and make 8-12% per year, with no risk.  Once the policy grows large enough, you borrow from the policy and pay it back with interest tax free.  You will eventually eliminate the need for a bank. That would allow you to grow your money safely until it is sufficient to invest in properties in your home town.  

Just a suggestion.

Here is my Agent-

Jake Chesney
www.OwnYourLifeWithUs.com