All Forum Posts by: Shannon Dennis

Hello Bp,

I would like some feedback on this creative financing I am trying to do.

I have done 2 successful flips and also have one 1 buy and hold.

Now that I have a little skin in the game I’d like to ask my dad who is 62, with a 6 figure 401k to allow me to use $50,000 to invest in more real estate. I’d like to pay him as if he’s my private money lender after each deal.

He’s funded my deals by taking out a loan from his 401k and I would make the biweekly loan payments , and pay him a fee once I sold my flips and refinanced my last property. That way we both made profit.

But we can’t do another 401k loan for another 6 months .

My question is , what steps would I need to take if he does the 50k withdrawal instead of the loan? Since he's 62 I know we can withdraw with no penalty, but is there a way to avoid taxes ? Like transferring the funds to a SDIRA or Roth IRA ?

Thanks for the feedback

Also, I'd like to maybe do 2 deals at a time this year if the opportunity presents itself, should I start building relationships with HML's ? Or am I on the right track by avoiding fees and points and keep partnering with my dad. Thanks

Hey BP Community,

So I'm a newbie to investing and I just stumbled across Civic Source with all their enticing possibilities. Particularly, the adjudicated property sale. I found a really good looking house in an awesome area that was adjudicated back in 92, why hasn't anything been done with it for so long????? No bid has been initiated on it and its occupied. So say I did initiate the bid and win the auction, would I have to kick these people out? Also, I read somewhere that they may have a right to reclaim their title?? Any info on the subject would help, I couldn't seem to find too much detail about it. Thanks so much!

Hey BP Community,

So I'm a newbie to investing and I just stumbled across Civic Source with all their enticing possibilities. Particularly, the adjudicated property sale. I found a really good looking house in an awesome area that was adjudicated back in 92, why hasn't anything been done with it for so long????? No bid has been initiated on it and its occupied. So say I did initiate the bid and win the auction, would I have to kick these people out? Also, I read somewhere that they may have a right to reclaim their title?? Any info on the subject would help, I couldn't seem to find too much detail about it. Thanks so much!

 hello, do you please mind sharing your experience with me in DM. Just started my application process with them. 

Thank you

@Chris Seveney sorry, I didn’t mean I need to close by 6/21. I know a lot of lenders want you to hold the property for atleast 6 months before they will consider refinancing. So 6/21 will make my 6 months of holding. 

Hello,

December of 2021 I purchased another fix and flip. It is complete and market ready.
unfortunately the flood insurance is so expensive that is puts all the interested buyers over what they can afford.

I’m reaching my 6 month mark 6/21. I’ve reached out to try an do a cash out refi.

A non qm lender approved me but the interest rate on the offer is 9.5%.

I want to reimburse myself soon as possible so I can free and clear my credit as I’ve used my personal lines of credit to purchase and pay for labor and it’s maxed out causing my credit to be a 660.

what’s my best exit strategy being that I didn’t factor in flood insurance before purchasing.

I am all for holding and renting the property. But the terms said in 5 years I’d only be done paid 5,000 towards the balance due to such a high interest rate.

I’m not in favor of the interest rate .

Any feedback would be greatly appreciated.

Hello, 

December of 2021 I purchased another fix and flip. It is complete and market ready. 
unfortunately the flood insurance is so expensive that is puts all the interested buyers over what they can afford. 

I’m reaching my 6 month mark 6/21. I’ve reached out to try an do a cash out refi.

A non qm lender approved me but the interest rate on the offer is 9.5%.

I want to reimburse myself soon as possible so I can free and clear my credit as I’ve used my personal lines of credit to purchase and pay for labor and it’s maxed out causing my credit to be a 660.

what’s my best exit strategy being that I didn’t factor in flood insurance before purchasing. 

I am all for holding and renting the property. But the terms said in 5 years I’d only be done paid 5,000 towards the balance due to such a high interest rate.

I’m not in favor of the interest rate . 

Any feedback would be greatly appreciated.