All Forum Posts by: Mike S.

@Jay Hinrichs 

 Great info, would love to hear more about the specifics of the A&D loan, rate/terms etc.   

Also, how do you build these?  Do you have all trades on payroll?  Everything subbed out? A mix?

Good luck!

@Account Closed it only makes sense to pull the cash out if you can use it for another investment that makes sense and fits your investment criteria.    I don't think it makes sense, however, to keep the cash locked up in the property you already own just for the purpose of 'income'  - you are basically just buying cashflow with a larger down payment.  I want my property to still cash flow at 100% financing by forcing appreciation (not 100% leveraged)   

Are we talking about the same thing?

@Albert Bui Yea, you are right. I think their issue was more of a DSCR limitation (rent is about $2,200) and I was hoping for a better rate and 30 year am. I'll see what they say in a month or so. Thanks for the advice.

@Albert Bui 

 I bought a fix and hold last month for 165k.   I just put 70k into the property, appraisal came back at 315,000 so good equity there.  I have a portfolio loan on it at 5.5% over 25 that balloons in 5yrs.   Local bank lent $195k so I have around 40-50k locked up in property.   So I would have to wait 12 months for fannie or possibly just look for another portfolio lender it seems...

@Albert Bui 

On cash out non-owner is it 6 months title seasoning to use new appraised value instead of purchase price for fannie/freddie?  Thanks!

Just a heads up for anybody interested, If your sole intention is to be able to borrower against a solo 401k, the best and only option from the major brokerages seems to be ETrade. The others won't let you take a loan against the 401k. I know this isn't a self directed option, perse, but they have no fees!

Would doing a Solo 401k get around these issues? If I undersand correctly, I can borrow up to 50% of the 401k balance up to 50k, so I can just take this money and apply it towards my flips?

Bryan Hancock Jon Holdman I know this has been covered before, but I just need clarification. This http://www.trustetc.com/new/real-estate-ira/self-directed-ira-partner.html makes it seem like I can partner with my SDIRA, but previous comments have make it seem like a prohibited transaction.

If I want to rehab and flip a house, can my IRA be a partner with the LLC that will buy the property (that I will have 100% control over)? For sake of example, the purchase price will be 20k, my SDIRA will take an undivided interest of 25%, or 5k. Rehab costs will be 80k, so 20k will come from IRA. Remainder of funds will come from me, via the LLC. 25% of profit will go back to IRA

Is this prohibited or not?

@Sharon Vornholt would you mind sharing the professional white letter you use for probates?

Thank you!

Hello BP! This is my first post, I have been reading and absorbing all of the great information on this forum. I am about to start a wholesaling company, with the intention to keep deals for my own portfolio in the medium to long term. My question is: when is it appropriate to put a house under contract with just a standard purchase contract, and when do you use an option agreement? What factors go into deciding which method to use?

Thanks for the help!