All Forum Posts by: Ryan Sanders

I have begun my investing journey and was lucky enough to stumble across my neighbor, who has access to close to $250k in a 401k from a previous employer which he has not moved yet. As such, he is eligible to move it into a self-directed IRA and I have suggested he do that so we can invest in real estate together with this. Reading more about self-directed IRAs, I now have some questions that I can't seem to find answers to.

1) I am the 'primary' investor and I own the LLCs used to purchase the real estate and his IRA would merely provide funding to the LLC through a partnership agreement between us. Can his IRA do this without the IRA being listed as the owner of the property, and can he keep any profits or do they have to roll back into his IRA? Also, are my share of the profits affected in any way? This then leads to another question:

2) Can I invest some of my free-and-clear (non retirement account) income in these deals and use his IRA for the rest?

3) As many on here will attest, leverage is very powerful, and just because I've gotten lucky access to a large fund of cash, I would still like to leverage properties to maximize my growth and return. Can we still leverage deals using the IRA for down payment?

4) Lastly, If my LLC purchases a rental property using solely my neighbor's IRA funds and I rent the property, is my LLC allowed to contribute to maintenance of the property at all, or does all money for the property have to come from the IRA?

Thank you for any assistance,

Ryan

Glad the tool is helping you out :)

I've just finished a massive update to my analysis spreadsheet and uploaded it to the fileplace here. This spreadsheet will analyze buy and holds as well as fix and flips. A lot of inspiration came from the biggerpockets tools, but this goes further and adds more info. Please let me know what you think, and if you think I should add anything just let me know!!

Thanks and I hope this helps someone!

Full Analysis Tool - Hold or Flip

thanks very much everyone! Sounds like I need to start doing some more research :)

seems like it may be worth looking into as a possible cheap method of acquiring a property or two

I'm studying for my Broker's license and I came across something very interesting. Apparently, if someone is delinquent on their taxes, the property goes to a Tax Sale where the highest bidder (above taxes owed) gets a Purchase Certificate. Then if they pay taxes on the property for 3 years they can take ownership of the property with a Treasurer's Deed. This is all dependent on the current owner never bringing the taxes current during that three year period. My question however, is how can a property owner become delinquent on the property taxes? I thought the priority of mortgage payment was: escrow (for taxes and insurance), interest, default interest, then principal. If this is the case, then the only way to be delinquent on taxes is if you're in default on the mortgage and then the foreclosure process will be much faster than 3 years.

Can anyone explain this to me? Seems like it could be a neat (albeit risky) investment strategy.

got it. The plan if the note was called due would be to refi some while paying cash for some. Either that or full refi. What is an AITD?

I'm definitely still new, but have enough capital to back up what I'm doing. I'm not worried at all about a lack of ability to pay, but I would be worried if I paid the seller and they did not pay the lender and I lost the property because of this. Not only would the property be gone, but so would all the money put into the property through rehab

I might be getting a deal sub2 original loan, but I'm unsure who I would pay if this happens. Do I pay lender directly? Or the seller? Or do I even go so far as to pay a 3rd party who then pays lender? If the last option is the best one, where would I find someone like this?

Thanks for any help as always!!

I use @Norberto Villanueva and he has been very good to me!