All Forum Posts by: Page Huyette

I started a post about this topic earlier this year that has some additional info you might find helpful about self-directed IRA's:

http://www.biggerpockets.com/forums/48/topics/82882-how-did-you-first-start-using-your-self-directed-ira?page=3

I recently began communicating with hiremyvirtualassistant.com to hire someone for a specific time sensitive project as well as ongoing task. While I haven't pulled the trigger yet, I will say they were fast and very responsive in communicating with me. They are offshore (India) but called and have made multiple attempts to clarify the scope of work to provide a very competitive quote. I've also used elance but have found the talent to be less specialized.

On a related note, I recently found a site called fiverr.com where you can click to purchase one-off items such as "move my website to a new host", etc. for $5. Interesting concept and I may give it a try. It also offers $5 gifts which could be great quick thank you's for referrals.

I second @Steve Babiak and @Jacob Allen's comments. The Wells Fargo program will allow you to do it, but it is very, very cumbersome.

I would suggest trying to get a construction loan, where you'd be paying int only for the first six months, then the bank rolls it into a conventional investor loan. Rent it out for a year, then sell it. Just make sure the plan b (keeping it rented) cash flows in case you can't sell.

I agree with @Steven Stokes & @David T. 's advice. My experience with dealing with a slumlord also backs up the notion that that don't give a hoot about code violations. If they did, they would fix them.

There are a lot of examples in the forums on contacting owners about purchasing their property. Format a nice letter, leave the code violations and communications out of it, and maybe something will come of it. But,expecting to buy it for $20k--unless he's not been following real estate prices for many decades, that would seem to be unlikely.

Use this letter as a jumping off point for a larger letter writing campaign and you might snag a deal through the quantity approach. This could be a great jumping off point for this type of deal, whether its this one or another down the road. Here's a forum thread I started earlier this year that has some basic ideas to ponder:

What to say when contacting an absentee landlord

@Brian Gibbons, yes I saw it that way as well. Potential for profit, but still time and money invested for too slim a return.

This was a Freddie property that permitted owner occupant or second home purchases within the 15-day period.

No specific reason regarding this property. Am focusing on private funding partnerships so that I am not required to pony up all the cash from my own pocket. Private loans with attractive rates and/or profit sharing are some of the options I've discussed with others. Turns out there are plenty of people too frightened to take on real estate investing on their own, but are very interested in getting a piece of the action if the deal is right. My job is to make sure the deal is actually a good one, and that I can keep up my end of the deal with timeframes and projected profits.

Having said that, I'm not adverse to putting my own cash into the deal--maybe that came out slightly wrong. What I meant was, I'm looking into other ways to finance a property besides being a slave to the required 20-25% down that banks require. I'm not willing to sit around and wait for years until I have a big pile of cash to make them feel safe. There are other ways to take smaller amounts of money and make it grow.

Correct. Six months for the rehab, six months as a second home used periodically, not owner occupied.