All Forum Posts by: Sherrie Tullsen-Chin

@Chris Seveney thanks for that input but I'm not looking to put together this type of deal myself as I'm new to private lending. I'm looking for someone in Florida that is putting together these deals so I can participate and learn from other private lenders with more experience than me. I have a self-directed IRA trust that would be lending my money. There are folks doing what I've described in other states but I would prefer to lend in Florida since I plan to do a house hack there and lending there would help me see deals in Florida from the lending side and learn in the process.

Hi everyone!

 I'm looking to do my first private lending deal with partners where a fractionalized deed of trust is used to protect the proportional interest of each lending partner. I'm looking for someone who puts these types of deal together in Florida, specifically Southwest Florida. I want to lend on deals in that state because it's also where I plan to do my first house hack. I thought doing some private lending for properties there would help me learn about the market and get to know other investors in the area. 

My questions:

1. I don't think fractionalized deeds are legal in all states, and I don't know if these types of deals are even allowed and being done in Florida. Does anyone know?

2. Does anyone know of someone in Florida putting together these types of deals? 

Thanks and Happy Holidays!!!

Hi. I'm saving for my first house hack and trying to find the ideal place to park my savings. Criteria are: liquidity, safety, tax protected, return, and able to pull cash out when it's time to purchase. 

I opened a Roth IRA with Betterment with the intention of investing mostly in Bonds. Stock market is too volatile and I don't want it to drop right before I'm ready to pull the money out for a down payment. (I already know I am limited to $10k as far as pulling out any earnings in the Roth penalty-free for a home purchase but I can pull out the entire basis without tax or penalty.)

But maybe even bonds are too risky. 

I also have a high yield savings account that pays 5.5% with Wealthfront. Should I stick to the savings since it's FDIC insured?

What would you do? Thanks!

Hi, I'm just starting out and planning to purchase a duplex or triplex in about 18 months to house hack. I want to get lost of practice analyzing deals. How do you recommend getting that practice? Is a BP pro membership worth the money to use the calculators for practice? Thanks!

@Tisha Chafer I already have a SD IRA. Great advice but yes you can only purchase property is you don't live in it.

@Chris Seveney You were right I checked with my tax guy and you are allowed to remove 10% of earnings in a Roth IRA for a first time home purchase. You are allowed to withdraw all the basis at any time tax free. Thanks!

Quote from @Chris Seveney:

Quote from @Sherrie Tullsen-Chin:

Hi everyone!

I have a goal to purchase a duplex or triplex in Cape Coral Florida in 18-24 months to house hack. At my current savings rate I won't have enough liquid funds for the 5% down payment for a conventional loan (this is a new loan product...the down payment used to be 15% for a duplex and 25% for 3 or 4 units) plus the closing costs and required reserves. I am thinking about whether to use some funds from my Roth IRA to help with the down payment and closing costs. I will be considered a first time homebuyer, and my understanding is I'm allowed withdraw from my IRA for a property purchase given I'm considered a first time buyer and as long as I pull out original contributions and not earnings.

What I'm not sure about is whether the property can be a 2-4 unit multifamily property or if this only applies to SFRs. Does anyone here know? Thanks!

 I believe the limit though is like $10k correct?

 I'm not sure! I've asked my tax guy to see if he knows.

Hi everyone!

I have a goal to purchase a duplex or triplex in Cape Coral Florida in 18-24 months to house hack. At my current savings rate I won't have enough liquid funds for the 5% down payment for a conventional loan (this is a new loan product...the down payment used to be 15% for a duplex and 25% for 3 or 4 units) plus the closing costs and required reserves. I am thinking about whether to use some funds from my Roth IRA to help with the down payment and closing costs. I will be considered a first time homebuyer, and my understanding is I'm allowed withdraw from my IRA for a property purchase given I'm considered a first time buyer and as long as I pull out original contributions and not earnings.

What I'm not sure about is whether the property can be a 2-4 unit multifamily property or if this only applies to SFRs. Does anyone here know? Thanks!

Quote from @Kai Kopsch:

Quote from @Sherrie Tullsen-Chin:

Quote from @Kai Kopsch:

@Sherrie Tullsen-Chin I don't know Jamil Damji's Astro Flipping coaching program, but they're all similar. The real estate market is constantly shifting, and most coaching programs are outdated. You find here on BP tonnes of free RE advice; please save your money for investing in RE. Wholesaling is one of the most challenging ways to start your carrier in real estate; over 90% fail within the first year. Besides the failure rate, wholesaling is legal when done right, but most programs teach you to practice real estate without a license which can get you in trouble. 

All valid points and why I'm hesitant Kai. The free advice on BP is great but often conflicting as everyone's situation is different. I think there's little to help folks like myself starting with little capital who want a more realistic path in than save $100k and then get started. That advice isn't feasible for everyone and not everyone wants to wait 5 or 10 years until they save $100k to get started, nor should they have to. But I appreciate that those who have found their footing in real estate and are doing it successfully want us newbies to understand it takes work and at least some capital. There are no easy fixes.

The best way to get started in REI is but treating it like a business, and you don't need 100K to start. Most start by analyzing deals and forget the fundamentals of every business, like getting a Tax ID, bank account later, Business Credit cards, and lines of credit. Setup all business tools like a CRM, MLS access or RE software suites a webpage digital business cards a Facebook business account. Even with very little cash on hand, you can get creative financing; for example, I did my first flip renovation with a new business Credit card one year with 0.00% APR, paid everything back after the sale, and got points and signup bonuses. What counts most in RE are relationships, and this is as easy as going to RE meetups and adding every day just 1 new contact in your CRM, and following up every other month.

 That is gutsy Kai and I admire your willingness to take risks to get started. I have thought about using a credit card or line of credit but if the deal goes south...ouch. Better make sure it's a good deal and get lots of feedback from more experienced investors before you go for it. Good for you just getting started with your first flip that way. Of course markets change and the chances of a profitable flip have changed as well. Thanks for the ideas!

Quote from @Kai Kopsch:

@Sherrie Tullsen-Chin I don't know Jamil Damji's Astro Flipping coaching program, but they're all similar. The real estate market is constantly shifting, and most coaching programs are outdated. You find here on BP tonnes of free RE advice; please save your money for investing in RE. Wholesaling is one of the most challenging ways to start your carrier in real estate; over 90% fail within the first year. Besides the failure rate, wholesaling is legal when done right, but most programs teach you to practice real estate without a license which can get you in trouble. 

All valid points and why I'm hesitant Kai. The free advice on BP is great but often conflicting as everyone's situation is different. I think there's little to help folks like myself starting with little capital who want a more realistic path in than save $100k and then get started. That advice isn't feasible for everyone and not everyone wants to wait 5 or 10 years until they save $100k to get started, nor should they have to. But I appreciate that those who have found their footing in real estate and are doing it successfully want us newbies to understand it takes work and at least some capital. There are no easy fixes.