All Forum Posts by: Roger Hall

I  moved from California to be more involved with our invention business in Indy. I built a digital marketing system and source off market properties for myself and other investors. I also fix / flip properties and I am starting to collect buy and holds agin. Indy is a great market for multiple reasons mentioned. There are others in the Midwest that I feel are just as good also. 

Investment Info:

Single-family residence fix & flip investment in Easley.

Purchase price: $130,000
Cash invested: $55,000
Sale price: $245,500

Updated an 1991 home to modern finishes and layout. Added 1.5 bathrooms, some landscaping and added an outdoor deck for outdoor living, pressure washed the home and painted the front door to provide a pop of color.

What made you interested in investing in this type of deal?

Great neighborhood with land

How did you find this deal and how did you negotiate it?

My business partner sourced this deal from the MLS

How did you finance this deal?

This was an all cash deal

How did you add value to the deal?

Updated entire home, added bathrooms, landscaping and outdoor entertainment area.

What was the outcome?

Project turned out great!

Lessons learned? Challenges?

This rehab took place during covid and we ran into some material shortages that caused the project to have a much longer timeline then projected.

Investment Info:

Single-family residence fix & flip investment in Indianapolis.

Purchase price: $125,000
Cash invested: $120,000
Sale price: $320,999

We took an outdated old 1900 home in the Bates Hendricks neighborhod and reconfigured the layout and made a nice large 3 bedrooms, 2 large bathrooms including 1 ensuite and opened up the living room/kitchen for a nice open concept. We added a large platform deck off the back of the home, light landscaping for curb appeael and fenced in back yard for privacy. Home has many high end touches throughout with complete design by us.

How did you find this deal and how did you negotiate it?

This deal was on the MLS but we usually source our own deals off market

How did you finance this deal?

We used a mix of hard money and cash on this one

How did you add value to the deal?

Converting the home and making it more open of an open floor plan keeping in mind what my buyers are looking for with the finishes and outdoor spaces.

What was the outcome?

Beautiful project!

Investment Info:

Single-family residence fix & flip investment in Indianapolis.

Purchase price: $100,000
Cash invested: $350,000

We scrapped a 1895 single family home in a downtown neighborhood of Indianapolis, IN and built a brand new home. Home was purchased for 100K with a rehab of 250K. Home will list for 530K. 4 Bedrooms, 4.5 Bathrooms. 2 Master Bedrooms / one on each floor and each of the bedrooms has its own bathroom. High-end finishes throughout, 2 car garage on a huge lot/backyard, large 2nd story loft area, 1st level front porch, 2nd level deck off master and a large deck off the back of the house. I will add images soon

What made you interested in investing in this type of deal?

Great neighborhood and our team is amazing at rehabbing properties and building new homes

How did you find this deal and how did you negotiate it?

This was an off market deal that was brought to us from a wholesaler

How did you finance this deal?

We used hard money to finance the deal but we have our own money tied up also

How did you add value to the deal?

Value was aded buy scrapping the home of the foundation and making everything all new

What was the outcome?

We are almost done with the project and should hit the market shortly for a new home owner

Thank you both for your replies/guidance as it is greatly appreciated!

Hello!

Looking for guidance on appropriately partnering my SDIRA LLC with my business LLC for a real estate purchase on a fix-n-flip. My understanding is that this partnership can take place, despite being a disallowed person, as long as the partnering takes place at the time of purchase. I would be using the SDIRA LLC as essentially gap funds for the difference that my business LLC falls short despite a hard money loan being utilized for securing the property.

1) Is this transaction permitted, and would the SDIRA LLC be subject to UBIT since a hard money loan would be utilized on the property even if flowing through the business LLC? Or does that not matter for a hard money loan since it's secured by the property of which both LLCs are partnering on when it comes to UBIT?

2) Let's say the split was 20/80 or 10/90 (SDIRA LLC/Business LLC) does it matter who pays which expenses (for instance EMD, closing costs, rehab costs, mortgage payments, utilities/insurance, etc.) as long as the equitable split remains the same for the transaction expenses and the profits upon resell?

3) Is a separate agreement between the SDIRA LLC and business LLC required for the equitable split or does the title company handle that process during closing?

Thanks!