All Forum Posts by: Teri Feeney Styers

@Philip McCollum I learned a ton about zoning regulations from county website but their building permit section doesn't offer much; and to top it off the City of GJ has its own requirements. So I can pull my own permit in one area and am required to hire a general contractor in another - even though my subs have pulled their own permits... Networking with my contractor, electrician and plumber have been helpful. My local REI group tends to lean more towards rentals than rehabs - so not so much help there. I have an advantage being a woman I think - I can ask "dumb" questions and the guys answer me - (no eye rolling) - but I make sure I learn whatever the lesson is - I'm "trainable". If it doesn't affect my bottom line or vision for the overall project I will frequently defer to them and say things like "you are the expert - how would you handle this?" I give them buy-in. I think 2016 will include my first new construction job. I expect to get a huge education from that.

We are also looking at a second home / maybe some flipping in California. Can someone please define "Inland Empire" for me? 

I haven't seen them - but title companies in my area (Mesa County) produce some interesting lists and charge something like $5 per week to subscribe... 

learning about permits... when do I need one, what is structural, what needs to be inspected and what doesn't, when I can pull my own, when the county will require me to hire a general or other licensed professional for the permit, etc. 

@Shawn Smith what no one mentioned is that you can partner with yourself and your sdira to acquire the property. I am currently doing this. My sdira owns 50% and I own 50%. When I pay bills and repairs 50% of the money comes out of the sdira and 50% I write a check for. I don't do any work - just supervise, order materials and do the bookkeeping. When I sell, 50% of the money goes back into the sdira and (because it is a Roth) that "gain" isn't taxable EVER! 

@Melissa Wright-Morrison I have a self-directed IRA and currently own a project that is owned 50% by the IRA and 50% by us as individuals. The difference is it was purchased that way. You can partner with them (they use their self-directed IRA $$ and you use whatever $$ you have) on a future property but they can't sell you this one.

A new LLC just for this property. And a really good outline of scope of work, who will do it, what you get paid for and what you don't, assign a value to work performed by each separate from the investment itself. Example - you will do the bookkeeping at $20 per hour. He will do framing at $20 per hour. There should be profit for the LLC over and above any labor performed by each. You want to stay buddies, correct?

@Linda Clark explain "can't find deals"... do you need owner financing? are there no underpriced properties in your area? besides sitting on the computer, what have you done to locate deals? Not picking on you - just need some clarity to your situation. 

@Brandon Beale the advice you received is good. Always think about how you look on paper - no one ever regrets having "good credit". The powers that can control your financial life will see someone with low debt and a steadily growing bank account and asset sheet. Debt to income ratio is huge when you are trying to get financing to grow your wealth. 

@Vinod Sirimalle it sounds like you are willing to tie up almost $40,000 of your own money for a 6.5% rate of return. You will have no equity (I am assuming) since the property is fixed and being sold at current ARV. Only you can decide if this is enough. Is it better than a bank will pay? Absolutely. Is is "slow money"? Yes. Are you just parking the income (don't need it to live on)? Or are you trying to roll yourself into more properties? You haven't provided enough details on your ultimate strategy. That said - I would have a hard time paying 100% of value on anything... but that's just me.