All Forum Posts by: Pedro Martins

@Chayson Descisciolo, This deal ended up falling through before I had an actual solution, but not before my real estate attorney told me that he could easily figure out a structure for that - so next time I run across this I will just go straight to the professional!

@Zachary Sexton; @Ali Boone; @Russell Brazil; @Jordan Moorhead; @Matt Shields 

I don't necessarily agree with the idea that there is a specific "advice" from BP and that it is risky... like others have posted before, everyone has their level of comfort with risk and that's what they should go with.

But I do have an issue with BP Podcasts - both the original one and the new Money one - are we ever going to see a guest that doesn't have their own website, their own blog, is trying to sell/promote something for his/her own gain and that hasn't in fact already interviewed the BP people in their own podcast? It's like a revolving door - A interviews B, B interviews C, C interviews A and B...   

I want to see interviews with the guy that has a few rental properties and doesn't even know what a blog is. I want to see interviews with the guy who lost a bunch of money because of a bad contractor and what he learned, the guy who didn't find out about real estate until he was 40 because, unlike many of the current guests, his mom wasn't a real estate agent, his grandad didn't have 7 rentals and he doesn't work in the construction industry since he was 15!

That said, I am still here, reading, writing and listening. Hoping it becomes better, hoping I can repay some of the knowledge I obtained (and I did obtain a lot from here), hoping to learn more, just enough to make a living off of this without needing to become a real estate tycoon and have my own Monopoly piece...

As for MMM - I started with his blog figuring out this whole idea of early retirement and real estate and passive income and such - but I also drive 60 miles everytime I want to go around town to check on some rehabs, meet a fellow investor for lunch or do a showing - and you want me to get rid of my car???  To them I say, everything in moderation...

@Account Closed, I would focus less on narrowing down the type of property and location and focus more on finding good deals. There are buyers for all kinds of properties, good areas, bad areas, for flips, for rentals, singles, multis. The only common theme is it being a good deal - the buyers will come (in droves)

Sajan Jiva with Multis in Shelby Park beware of foundation and settlement issues

@Natalie Allen, before worrying too much about detailed costs for the kitchens, you might want to think something else over.

Think of your local investor buyer. First of all there are not a lot in Louisville that venture out of the single family space. Second, even less are interested in the West End. After narrowing that down, I doubt there are more than 2-3 folks that would really be interested, knowing that they still have to put in more money and time. And the price would have to be an absolute bargain...

@Constantia Petrou, if the house next door is in disrepair it might not be following building codes so maybe a call to the county/city codes and regulations department might get a fire up the owners you know what...

I have a similar 6-plex in a different neighborhood in Louisville. Budget about $130-150/month for water/sewer. My trash costs are included in the property taxes but that might not be he case for the South End.

Thank you @George Blower @Michael Plaks @Dmitriy Fomichenko @Daniel Dietz

I will definitely NOT go ahead.

I have read that you can partner with your IRA if this is done right from the start, so the original contract and original deposit follow the appropriate splits. The link below describes this. Would you agree?

https://www.theentrustgroup.com/blog/5-ways-to-partner-your-self-directed-ira

Question to the folks very knowledgeable about self-directed IRAs:

I recently won the bidding for a property at a courthouse foreclosure auction - my "registration" at the auction was under the normal LLC I do business with (buy and hold) so that's where the deposit for this property (10%) was paid from.

I have not closed on the property yet. I have a checkbook self directed Roth IRA. Would it be a prohibited transaction if at closing I "partnered" with my IRA LLC for a 50-50% split of the property. I would obviously take care in the future of making sure all income and expenses were clearly split and there was no commingling of funds, but my biggest question is whether I can do that "assignment" of the contract from my normal LLC as the purchaser to the 50-50% with the IRA?

I have not found a clear answer anywhere... appreciate any feedback.

@Melissa Horwath, in Louisville you can find multi-family in B-C areas between 5-9% cap rates. Rents vary significantly in different areas and also within areas depending on amenities/finishings. Small (residential) multi-families are reasonably easy to come by, medium (commercial) of 6-50 units are more difficult to find. There has been a recent surge in new apartment buildings being built, specially close to the downtown area and the impact of those is still unknown as they are large and expensive for what has been the standard (they are also more focused on the luxury level with lots of amenities).

DO NOT - I repeat, DO NOT try to buy something just based on the numbers. Make sure you talk to someone that can give you a good idea of what the local neighborhoods are like.

My 2-cents, narrow your search to just a couple of markets, connect to folks that could become your team on the ground first and then start looking for properties.