All Forum Posts by: Todd Krzeminski

@Dan Call

I've also done a 401k loan for REI through Fidelity. The process was ridiculously easy. Basically went on their website and filled out a quick form and the check was mailed within days.

I took the max available, which was 50k with a 5 year term. I know that it varies based on your company's agreement with the custodian.

I'm paying myself back at 4.5%, with semi-monthy payments of about $465 that comes out of my paycheck. I also have the option to make additional payments on the website.

I think I know the answer, but I want to double check -- on my P&L, should I be recording insurance and taxes as I pay them to escrow, or when they are paid out of escrow to the respective entities?

@Bob E. I like the idea of a lower price point with partials. Looking at the downsides -- am I correct that you don't get the advantage of the discount / kicker and if the note defaults the original note owner has the opportunity to foreclose, not you as the partial note holder?

 PM me.

 Yes, selected the home by reviewing new properties as they were released by the turnkey company. I did as much due diligence as I could -- double check their numbers, check schools, look at the property in Google Earth, etc.

When it came time for an inspection, I got referrals from BP members on who to use. It's not necessary to be present when the inspector analyzes the property. If you have a good inspector, they'll send detailed notes and pictures for you to review.

 I didn't buy until a couple months later. I never saw that property until recently, but I was confident in the operator after meeting with them and had the inspector to analyze the renovations. I don't think you need to see the property you purchase.

@Jamie Henkin I travelled to Indianapolis to visit with a couple turnkey providers before I pulled the trigger. I'm glad I did -- it's great to see the operation and understand to what extent they renovate the properties. And as a side benefit...I feel that once you put a name to a face and have the personal interaction, they might be more open to working with you (even if it's not intentional). Maybe it gives you the edge against other investors that they only deal with over the phone or email.

I also hired an outside inspector, not the one the recommended. I don't think that's necessary, but it gave me piece of mind to have someone representing me do it.

 Sure -- this note was acquired through PPR. They got it reperforming before selling it. It was a great experience.

I purchased a reperforming 2nd position Note in May with my SDIRA -- my first experience at buying discounted Notes. The payoff amount on the loan was just over $30k, but I was able to purchase the note at $23,500. 

The home happened to be in the same county as where I live. Just days after the note was assigned to me, I drove by the property and noticed a For Sale sign in the yard! The home was overpriced, so it sat on the market for several months, but it sold in September. So I was able to capture a few months of interest payments.

Closing just happened last week. With my $23,500 investment, I made $7,400 for a 31.4% ROI in just 4 months!

They're all this easy, right? ;)

Now I need to find the next Note and keep this rolling!

@Nehemias Ponce It's not a requirement to monitor it -- there are automated tools like Lending Robot that will buy the notes for you within seconds of when they're released.

@Chris Seveney You can probably get close on peer-to-peer if you're dealing with the risky loans (E+). Believe it or not, the interest rates people are paying for the high risk loans is up to 30%. But you also have to factor in the default rates that are going to occur with a percentage of the portfolio. I'm getting net returns between 16-20%. But once again, I'm not that comfortable investing this way. Another collapse and I'm gonna lose a lot of the money I put in. 

You also don't get the kicker that comes with discounted notes.