All Forum Posts by: Jeremy Karja

Thank you @brian 

@Brian Eastman and @Dan Vleck

for your ideas and help on this one! 

My other question is could I use a friend or families IRA to invest in something like this?

Also, when and if I use a friend and families money or IRA how do I structure it? Meaning if they come in with 60% of the money and I come in with 40% and their money is backed by the property, I assume I structure it so they get first rights to the property?

@Sean Blomquist I did email last night and but I will email again in case it went to spam.  Could you please check?

I am using a HELOC and possibly my IRA to fund my first FLIP. My question is would I have to pro rate the amount I used in my IRA out of the profits and stick it back in my IRA or how does that work with flips and splitting the money. I work with IRAs everyday but not when it comes to real estate. If the IRA is going to limit the income I can take from the gains then I would rather use hard money for the remaining balance.

Also, any recommendations for the state of Minnesota for Insurance reps and appraisers?

Thanks BP.

Jeremy

I am putting in a PA for my first flip and using personal finacing and hard money to get it done.  My question is with  hard money being so expensive should I be looking for a bank for a construction loan for the 50k rehab?  If I have really good credit and pretty good available credit to used credit, will I qualify?

@Justin Windham and @Dmitriy Fomichenko - Thank you so much.  Honored by your answers and time.

Great tips @Brent Coombs and makes perfect sense, thank you again!

@Phil G. and @Justin Windham - Thank you very much for your thorough answers. I am in the financial industry but not in REI side of it so that all makes sense.

I guess my other question is: Is there a way or circumstances I can uses my Solo K or Self-directed for some sort personal income whether flipping or rental units today and not at 59 1/2?  Also, if I use cash for half and the Solo K for half and get X return whether rental or flip is it simply percentage based?  Meaning the 50% goes back to the Solo K and 50% back to cash, NQ?  The same for expenses, keep it at 50% of each for all costs/expenses or re-adjust the percentage?

I hope that makes sense.  Basically, looking for a way to take the cash now rather than later but still have my Q money working for me rather than me playing in the stock market and losing. 

Thanks again!

Hi BP,

I want to roll my ira to SOLO 401k because it sounds better in most ways to compared to self directed IRA. Mainly for the control and sounds like less expensive. This IRA is about 65k

My 2 questions are:

1. Who should I use for a SOLO 401k and why? IE: Fees, ease of use, etc. Should I use the same credit union that holds my HELOC?

2. If I use part or all of my SOLO 401k to buy a rental property, can I take a profit from it or is it considered qualified money?  What about to do a flip?  Can I only use a loan and take income from it or is it truly in my control?

Thanks all!

@Brent Coombs and @Jason D. or any others.  What is a good profit margin I should be aiming for on a 200k property?  I know there are many variables in my question like the size the home other risks, locations, etc.  This one in particular is a rural area.  Meaning the major city is 20 miles from here in the city I live in which is around a 40k population but even this is in rural neighborhood with very spread out lots and 2-3 acre pieces of land.

Hope that helps answer my question.  

Thanks again for the help!

Hi everyone,

I have been more focused on rental properties vs. flipping but my wife would like to flip and I have a construction background so it make sense for extra money to put into rentals.

The question I have is when do my calculation I am finding the flip calculator gives me one number and the 70% rule a very different number.  I know the 70% rule is a "rule of thumb" but I want to make sure I am not missing anything.

For example:

ARV: 255k

Repairs: 20k

So MOA = 255k x .7 - 20k = MOA of 158,500

However the BP calculator says 195k is the MOA whichlooks like this:

Financial Summary for Flipper

Financial Breakdown

Purchase Costs

Rehab Costs

Holding Costs

Sales Costs

Flip Hypothetical Profit If Held For...

What am I missing?  Why are they different?

Thank you!

Had a weak moment, I checked like 5 sites but they did not list them as listing agent but found it easily now, thanks.