All Forum Posts by: Stephen R.

I second what Filipe said.

@Peter Kopchik

To be licensed in MA or to take the course? No, no Massachusetts address needed.

Monica,

Are you currently licensed in MA? If not I used Metropolitan School of Real Estate outside of Boston. Michael is a great instructor and you can complete the licensing course in two weekends. He offers tuition discounts on Groupon so keep an eye out for them. Once you are licensed in MA you basically have to file a form and, of course, pay a fee to the State of Connecticut and you will have your CT license. 

https://marealestatelicenseschool.com/

@Diane Manders

PM sent

I have a property in Fairfield Connecticut that will require a transfer from a septic system to town sewer. Over the last 28 days I have called 14 excavation companies, each numerous times, looking for an estimate. To date I have received one (1) proposal and a bunch of empty promises. 

I'm looking for any recommendations for a RELIABLE contractor who can hook up to city sewer.

@Craig Bellot Where are you finding 1.7% rent to price in Bridgeport?

Thank you @Dmitriy Fomichenko, @Justin Windham, @George Blower, @Daniel Dietz@Daniel Dietz@Daniel Dietz

I appreciate the responses. So in this situation I would have to reverse the roles? The solo 401k would purchase the property and the hard money lender would fund the rehab? Let's also assume that the down payment was covered by a non-disqualified private money lender and I had no personal funds involved. It seems as though that is what Daniel did, with the difference being he used a private lender rather than hard money. 

Does the personal guarantee that the hard money lender would require on THEIR funds somehow violate the terms?

I'm looking to partially fund a fix and flip using money from a self-directed solo 401k. My thought is to purchase the property using hard money and then fund the rehab, which exceeds the purchase price and current value, using the solo 401k.

1. If I used personal funds to make the down payment and pay closing costs, would it then become a prohibited transaction because of commingling? Would I have to use funds from the 401k to fund the down payment and closing costs as well? Could I use private money to cover those costs? Could I use funds from my corporation?

2. Since the hard money lender will require me to personally guarantee the loan, will that make it a prohibited transaction? Or do I only have to offer the solo 401k loan as non-recourse? 

3. Can the property still act as collateral to the non-recourse 401k loan if the hard money lender holds a first lien position? 

4. If it is possible, how would I structure the deal? How is title held? 

5. Although it would not be possible given the circumstance of this transaction, would a better partnership be to fund the purchase completely with the solo 401k and fund the rehab, either in total or in part, with hard or private money?

6. As a licensed agent would I be prohibited from acting as the agent on either the purchase or the final sale of the property? Would that make it a prohibited transaction because I "personally benefit?" What if I handled the transaction but didn't accept a commission?

I'm looking to syndicate a large multi-family project and have received interest from a few foreign investors. They are primarily family and friends, mainly from Brazil. I am looking for advice from members with experience on moving large amounts of capital into the country in the most cost effective way.

@George Wells

Here's the link for CT MLS forms. Use either the standard form contract or purchase agreement.

https://smartmls.com/forms/

There is no wholesale purchase agreement form. Get the property under contract using a standard form and language such as "[buyer or entity name] and/or assigns" or note in the additional terms "Buyer has the right to close in the entity of their choice." Then use an assignment of contract form with your new buyer.