All Forum Posts by: Paul B.

I know of a sponsor here in Dallas who said he keeps it simple because many of his investors are not in real estate or finance (e.g. doctors) and he doesn't want to have to walk everyone through a complicated scenario. He follows the same structure: 20% of cash flow, and 20% of appreciation. An asset management fee of around 1.5% of revenue is also pretty common. It's the only payment that a sponsor is guaranteed to get, but it is often not significant compared to the other payouts, so his interests are still aligned with that of his investors.

It's such a thankless job, are they simply underpaid? Do the good ones charge more? Or do they not need to, because they collect higher rents and end up with more money already?

@Frank Chin

Is the guy who refused your business 20 years ago still around? 

Can you identify some REIA groups in your area, and if you are not in a condition to attend meetings, get on their mailing lists or call/email the organizers and ask for recommendations? You'll still want to interview the PM before making a decision. You've done it before, but this site can provide you with some good questions to ask if you need a refresher.

 I do have a 401k at work, but my understanding is that my income needs to be below $61,000 as a single filer in order to fully deduct the contribution, but I can still make a contribution. 

I am starting to think a Roth IRA makes more sense to me, as long as my income is below $117,000.

I know that I am limited to placing $5,500 per year into an IRA. But it appears that I can still put money in and have it count for 2016 if I do it before the tax filing deadline, right? So can I open an IRA, max it out before April 15, say that was for 2016, then put in another $5,500 later this year and say that's my 2017 contribution?

The reason I ask is that I've been considering an SD IRA for a few years now, but I know there isn't much I can do with only $5,500 (I know, I should have started a few years ago). But if I can have $16,500 a year from now (but contributing twice this year and then again in 2018) maybe I can buy a small note or something.

 Well, here is a title company that was real, but the owner was a crook. So walking into a title company isn't a sure thing either. 

http://www.nbcdfw.com/news/local/Southlake-Title-C...

You say you're new. I'd recommend using cash first. When you get more experience, and can take the risk, then go the HELOC route. You don't want to risk your home until you are sure you know what you are doing - or you have a large cash reserve or high income and can still pay back the loan if the deal fails.

I've looked into borrowing against the 401k too. It seems like a good idea if your 401k provider will allow you to do it - they might only allow it for a hardship like unemployment or medical bills. But the interest gets paid back to you if you can do it, which is nice. 

 As a landlord, I like the idea. Then when I look at it as a tenant (which I also am), I'd probably not give that "missing signature" and keep looking. If I haven't finished signing the documents, then I'm not legally bound to move in, am I? If I realize it was just a ruse, then we're not off to a good start. But, I may not be in your tenant demographic. And I live in a professionally managed building - the idea of a landlord dropping by my home or workplace is unfathomable, so maybe it's not a good comparison. 

You also just missed Brad Sumrok's weekend event. There will be another one in July in Dallas. I strongly recommend it. You can meet some of his students below who can give you ideas on how to get started.

https://www.meetup.com/Apartment-Investor-Mastery-...

Aside from this group, and Lifestyles, there may be other multi-family groups in your area. Search Meetup.com.

As suggested already, apartments don't work well for no-money down/wholesaling. But you could also look into Lance Edwards....I can't vouch for him myself but he seems to teach how to invest in small apartments without a lot of money.