All Forum Posts by: Svetlana Foley

since it is two properties it has to be commercial loan with 25% downpayment requirement.  The seller will absolutely not carry you at 3% they can get way better return and less risk on their money elsewhere.  Expect to pay the going rate of 10% on seller financing.  The only feasible way of structuring this transaction is to ask the seller to carry 25% of the purchase price minus 3k or however much you can afford to put down at 10% interest 3 year term.  You also need to make absolutely sure that your rehab costs are correct and there are no zoning ordinances issues or code violations all of which would need to be factored in. Im also assuming  that 2% rate is on the loan from family and friends since its the only way you will get that rate. Rerun your figures with this assumptions and see if it still makes sense and if you are in a position to pull it off finamcially. Any questions feel free to pm me

@Conor Hesch - can you share the name of your lender for portfolio conventional?  

You will love the REIA! The number one thing for you to do is to determine your exact strategy, and stick to it until you have enough knowledge/income to expand. Are you going to do flips? Buy and hold? wholesale? price range? There are many different venues, and you really must determine from the outset exactly which way you want to go, then concentrate on learning/making connections/running your numbers for that one specific strategy. Best of luck!

ARV for that area of town is....lets just say beyond optimistic. You will also have a hard time getting a lender to let you pull out equity if purchased at prices quoted.

Welcome to BP! If you have questions about Milwaukee, feel free to PM.

If you read the post carefully, as I mentioned there are two different ways of setting it up - solo 401k is very, very different from the custodial accounts such as Sterling or Guidant.  A couple of my investor clients had been using Guidant or Sterling for years, but their portfolios are in millions - will have to check on the Guidant.  The goal is the same - invest in RE with your retirement money. Set up, rules and regulations are completely different for SOLO vs custodial accounts, and should be used depending on your situation and finances - thus, talk to the accountant who is knowledgeable about the stuff.  Trying to set it up on your own can be extremely costly - must know regulations inside and out.

Jil - do not count on getting 10-15% return through a stock/bond/etf route. Real estate is definitely a way to go, you just need to figure out an exact strategy - in state, out of state, notes vs rentals, etc. You should definitely have a talk with an accountant. If you have IRA or can transfer money from your 401k, you may want to set up Solo 401k or 401k custodial account (Sterling Trust and Guidant Financial are pretty much your only choices as far as I know) - both are vehicles for investing your retirement funds in real estate without paying taxes on it while it is in the account. This route should immediately give you access to large equity you amassed in 401k with a much higher and stable return than the stock market, and you should be able to afford to look locally. The rental income does not have to stay in 401k and can be used for paying down the debt, and you would use the extra 50k for paying down debt as well. Highly recommend to shop around accountants and find one knowledgeable about this, put together a plan, find a local realtor, and jump right in!

Welcome to BP, and good luck!

Hey, fellow New Berlinite (home of the two top high schools in the United States, according to USA today)!  Welcome to BP.  Jerry is correct - talking to the lender to get clarity on your situation is step number one.  I would be happy to recommend a couple of really good ones.  My office is next to Sendiks - feel free to drop by.

Getting access to MLS is a very easy part - any realtor can do that for you. A search can be set up to fit your criteria. If you looking at a significant number of properties and need a whole lot of details without writing a contract, you can have an agreement with a realtor to do that for an agreed upon price.

However, both Shorewest.com and Zillow will also give you general info and you can set a search in both for automatic notifications.

Mike - being a realtor is a full time job until you have enough income from rentals/flipping.  If you have a lot of "free time" as a realtor it means you bank account is empty - guaranteed.