All Forum Posts by: Gail Greenberg

But before I go, yes, retirement accounts (especially Roths) are a great place to build wealth and that's where most people have the bulk of their savings anyway. Back when I did JVs with people, they were overwhelmingly using their IRAs, but ya gotsta know the rules. Or prepare to suffer. The issue in what you suggest is that you're not allowed to live in - or benefit in any way from - a house bought by your IRA.

Your up-and-down relatives (parents, grandparents, kids or grandkids, etc.) can't live in it either but weirdly your side-to-side relatives can and that includes your siblings. If you have a self-directed IRA custodian, they will keep you from breaking the rules. If you're going to use a checkbook IRA, you have to know the rules yourself.

Interestingly, my friend with the $100K has been living in the squalor of a duplex (shotgun double) he's renovating into a short term rental so not sure how much zeal he has to do it again, but it's definitely a thought. I will share it with him as something he could do with non-IRA funds. He's also getting historic tax credits on that project so it's turning out to be a profit monster, assuming Airbnb comes back reasonably soon, which we all think it will, right? OK over to direct messaging.

 Thanks to everyone who has offered a sincere response here.  

@Kelsey Folger  congratulations on your success and bold initiative! I love Michigan – I invest in rental properties in Indiana which has similar great returns. 

@Christopher Davis, I’m both laughing and sad about your characterization that I’m waltzing in here to steal everyone’s secrets. The very idea that any of this is secret is hilarious but I’m sad for you because a scarcity mentality gets you nowhere and is certainly not in the spirit of the BiggerPockets forum.  I’ve shared my knowledge as a note investor freely in here and my podcast with @Christopher Seveney is nothing but us telling EVERYTHING that happens and what we learn from it. 

 Oh, and just wanted to also say that I’m surprised how many of you don’t think they should be fixated on a number. I find goalsetting with SPECIFIC NUMBERS very helpful and motivational. You set the goal and then map the intermediate steps to get there. 

Hi @Elcarlos Morse, I wish more people were giving specific strategies rather than just saying real estate is not a get rich quick business. I have achieved what my friends are going for, but it wouldn't be easy for them to replicate what I did. I was hoping people would say: OK, with $100K it would be pretty easy in a place like Toledo, OH to buy two rentals that would generate $850 gross rent apiece. So you start with those, then try to contribute X to retirement fund so that in 3 years, you could buy the next one, etc. Or, do either of them have equity in their current houses - get a HELOC and buy first rental. C'mon people!

Hahaaaaa - thanks, @Stephen E., I too was a writer and that is a hilarious anecdote. Are you doing BRRR?

Thank you for the thoughtful response @Randall Alan. Just want to point out to any other new people reading it that $10,000/month gross rent from a rental does not equal $10,000/month income for you, which is what my friends are looking for. More like $6500-7000. To net $10,000, you've got to gross $14,000-15,000.

Have 2 friends - one starting with $100K in retirement funds and the other with $25K in savings - both looking to get to $10K/month in income as fast as they can. Both have jobs, consistent income and good credit scores, but not a lot of time and no knowledge of real estate investing.  I'm a real estate investor but I'm interested in hearing all your creative ideas. What would YOU tell them to do?

Be aware when looking up public records that some counties are VERY slow to update their online records, particularly the tax records. I've bought CFDs, recorded my deed, held them for a year and sold them and the tax records have never been updated to show my ownership. I also get mail to my address but with the people I bought from still listed as owner. Go to the recorder's website if you can access it and search there. 

Funny you're talking about this Chris. We have talked a few times on our podcast about doing due diligence before JVing and I said when thinking of giving money to someone to JV on a deal, you should ask to see sample reports they give to JVs. There was an audible gasp from our live audience. It's such a simple idea but I'm guessing many people who take investor money for deals cannot produce a single report. Someone told me after a year in a note deal with one famous guru she finally got them to supply a "report." It was an excel doc with 4 cells filled in. No detail on where the money went. Can you imagine doing business that way?

@Tyler S. posted this in the Facebook group I run with @Chris Seveney

Tyler Sheff All, I am interviewing those who have fallen victim to this situation for my podcast in order to share this story with the public so that others can learn from it.

If you are willing to be interviewed via phone for my podcast please use the following link: http://meetme.so/cfgpodcast

Also, Scott has also agreed to be interviewed in order to tell his side of the story. If you want to be heard, here is your opportunity.