All Forum Posts by: Shawn Melis

@Kevin M Strong

Thanks Kevin, I am hearing the same things.

@Coral Hernandez

Working the phones, should hear back from my lender Monday on updated pricing, looking like at least 150 basis points, but could be a lot more.

@David Avetisyan

We extended a week, lender is increasing basis at least 150 basis points, could be more, updated pricing coming Monday.

I am working with a broker to fund a loan for a duplex in Baltimore...the lender being used by the broker is Visio Lending. We signed closing documents this morning, and at 1:45pm I got word the loan didn't fund. Sellers are willing to wait for financing to come through. Does anyone have any advice or has this happened to anyone else yet? 

I am a relatively new real estate investor as well...and agree with a lot of the advice on this thread...and would add the following.

1) make sure you have 3-6 months reserve in case you can't fill the vacancies.

2) if you dropped the rent below market ($100-$200/month) would you still be break-even or cash flow positive? 

3) have you considered registering the units for section 8? It might increase your rental pool, but you would need to really vet your tenants.

4) have an alternative exit strategy...sell, house hack, rent by the room, etc.

Thanks for posting, I am trying to close on a 3 unit as well, and have many of the same concerns.

Shawn
 

@Ned Carey

Thanks for clarifying, appreciate the expertise.

@JP Sullivan

Sorry, got a little behind on BP threads...\

This is the one @Ozzy Sirimsi mentioned

https://www.meetup.com/Maryland-Investor-Network-Real-Estate-Meet-Up/

I also found this one:

https://www.meetup.com/BuyBaltimore/

@Kurt Bouma I think it's also possible to create a C-Corporation, then the IRA can purchase the stock of the C-Corporation. You should be able to take any normal business expenses associated with RE including section 179 and normal depreciation. Definitely talk to a CPA...they are not necessarily invested in where you put your money, only how to minimize your tax liability.

@Kurt Bouma identify a new custodian for the funds (vanguard, fidelity, Schwab, etc), and tell them you are interested in moving your retirement account, they will have the appropriate paperwork. It is a pretty straightforward process as long as the current fund is not with your current employer.

Thanks @Ozzy Sirimsi, have you gone in the past, what did you find most helpful with that group?