All Forum Posts by: Steven W.

 Hi Jerry,

I never thanked you for this very creative solution! I'd never thought of private financing as a solution.

Best,

Steven

 Lawrence,

This is great advice. As someone who purchases SFRs from wholesalers in Jacksonville, it's readily apparent who knows the mindset of an investor, and who doesn't. I want to see estimated rehab costs (that actually come close at least to matching to a contractor's offer), pictures/videos, and a conservative ARV figure. I also want to hear about the wholesaler's experience in the area. Nothing wrong with being a newbie wholesaler--just don't try to bluff your way with mediocre deals.

Steven

HI everyone, my name is Steven and I'm a San Francisco-based investor looking to increase my portfolio of properties in Jacksonville. I own two SFRs at the moment (both were rehabbed by my partners on the ground in Jax), and am looking to purchase a couple more this year.

I prefer the Murray Hill and St. Nicholas areas of town for now. I like 3/1 configurations, but will look at 2/1s if it allows for adding an extra bedroom during rehab. I am most interested in buy and hold, but will consider flips as well.

Thanks,

Steven

@Mark Nolan @Zoran Stanoev @Account Closed

Thanks Michael, Mark and Zoran for the heads-up. I should clarify. I am planning outside of my 401k to partner with folks on the ground in a market outside of California to establish an LLC to purchase, rehab, and sell properties. I would put up the majority of the funding, but we would purchase the houses together, with all parties on title. We would agree to a split of the profits. I have purchased houses with these folks before as part of my buy/hold strategy (one of them is a RE agent).

However, I would also like to put some of my 401k funds into play in a similar scenario. In this case, I was told that it would be wiser just to act as the bank to fund the project, and not get on title, since getting on title and then selling properties could get me in hot water with the IRS.

If I understand you right, Michael, then I could/would have two LLC partnerships--one in my name with them, and one with my retirement account and them. Is that right?

In any event, I won't do anything until I speak with a RE attorney!

Steven

 Mark,

Thanks so much for the detailed instructions! They are very helpful, as it's easy to overlook one of these steps.

Steven

 Jeff,

Thanks! That's words to the wise.

Steven

 Mark,

Thanks so much for the quick response. That's so very helpful!

Steven

Hi everyone,

I am working with partners to purchase SFRs, rehab them, and then sell them. I would provide the bulk of the capital through my Solo 401k plan. I've been told by my Solo 401k guru that I can do this only if my name is not on title, but rather, if I act as the bank and lend money to the buyers. That is, they would buy it with a loan from me, they would rehab, market it, sell it, and we would figure out an equitable way to split the profits.

Are there any draft documents out there that people can point me to that could provide a platform for us to create a legal agreement for this kind of partnering? I'm sure that we'll end up hiring a real estate attorney to make sure that all of the legal verbiage is correct, but I'd love to see what other people have used in the past!

Thanks,

Steven

Hi everyone,

I am working with partners to purchase SFRs, rehab them, and then sell them. I would provide the bulk of the capital through my Solo 401k plan. I've been told by my Solo 401k guru that I can do this only if my name is not on title, but rather, if I act as the bank and lend money to the buyers. That is, they would buy it with a loan from me, they would rehab, market it, sell it, and we would figure out an equitable way to split the profits.

Are there any draft documents out there that people can point me to that could provide a platform for us to create a legal agreement for this kind of partnering? I'm sure that we'll end up hiring a real estate attorney to make sure that all of the legal verbiage is correct, but I'd love to see what other people have used in the past!

Thanks,

Steven

Thanks so much everyone. I had an excellent conversation with my PM, and there had been some communication issues that we resolved. I'm going to keep a more careful eye on my properties in Birm over the next couple of months and then reassess.