All Forum Posts by: Ryan Scritchlow

I am purchasing a property that has 3 units that will bring in 1800 per month total. It is a forclosure and needs a little work but after I do the repairs I will have 45 k invested. Im paying cash I used the caculator that is provided and it came up with a 37% cap rate and when I run the 50% rule as I under stand it from reading it comes to 24% is there really this much varence between useing the 50% rule and actualy running the numbers?
Thanks

What happens if your ira runs out of money? I know you can only add X per year. If the EPA comes and says I owe a million and the ira only has 750k is the ira shut down as I cant make a 250k contrbtion?

As for why any one would want to buy bad ground when there is so much good ground the anwser is simple the bad ground in this case is made up of 2 parcels consisting of 14 lots with M-2 zoning. and is priced at about 1/4 of bulk large tracked M-2 land let alone 14 seperate lots. There is a reason why its priced cheap ie the contamination but also leaves a lot of money on the table if the potental libility can be negated or reduced to a manigable amount.

Its more ment as a way to have more protection from the epa as well as a pretty profitable investment. If it affords the protection that Im looking for it will basicly cover my entire retirment and Im only 28

Thanks for the suggestion I have read all of the posts from your BP Group
Thanks
Ryan

I am looking at setting up a self directed ira to purchase a property that was and is still currently used as a salvage yard. My Ira will be converting it to a mini storage property. Given this has been a salvage yard for 65 plus years I know that there will be soil contamination from the previous owners. The current owners will not let me do a pahse II. My question is if purchased in an ira owned company and 20 years down the road the epa comes looking up the chain of title and finds my ira as an owner on it, can the epa hold me personaly liable for the soil contaimanation from the previous owner? I realize they can take every thing from that retirment account towards the clean up but can they take my other assests? IF they do and they ask me to pay for the clean up in escess of the value of that ira that owns this property wouldnt that be considered an illigal contrubtion to my retirement account and there for be a prohibited transastion?

what I am looking for is if your ira owns something and the epa comes knocking they can wipe out my retirement account but they shouldnt be able to make me pay more than the maximum allowable contrubtion limit to an ira in any given year. There for I have limited my potental libility to the value of that ira and at most 5k per year for the rest of my life if the max contrubtion limit for an ira is kept at 5k.

What are your thoughts on this?

Also Any sugggestions on a law firm that has someone who is sepcilized in both self directed iras and purchasing of contaminated properties or a firm who has one person for each?

Thanks
ryan

I am wanting to find other ways of financing that are out there. I have found a deal that I would like to try and raise capital for instead of borrowing or paying cash for it. Borrowing has all ways treated me well but I feel I have missed out on some good deals because of it. I generaly buy forclosed houses and fix them up to either sell or keep as rentals. I will need to raise 45k for this project so we are not looking at a large sum. I will be keeping this particular property and I would have it paid back in 12 months. How dose one go about doing this? Do I start with my attorney? or start talking with people I know about this investment? Is there a company that helps you with this? How do hard moneys loans work? Any help or suggestions would be great I have been doing this for 3 years now and think that its time I start learning something new. Thanks in advance