All Forum Posts by: Mark S.

lol.  

I think it highlights the fact that SD-IRAs are not worth the hassle to invest in real estate with leverage. 

I think he’s asking about whether or not they can demand full payment and accelerate the loan, almost like a due on sale clause, because his W-2 income is gone. I think that might be what’s stopping him from going to the lender for a refi.  My strong guess would be no,they can’t call the loan and that yes, they can likely do a refi using both rental income and if nothing else maybe an asset based loan (using your 401(k), etc.) but double check your loan documents and speak to a qualified loan officer.  

@David Hutson, are you talking about Jeremy?

@David Hutson, I’m surprised MSHB isn’t also still doing their short-lived “investor exchange” program, where they facilitated the sale of their homes between investors.  It seems like this program lasted somewhere between a few weeks and a few months.  I bought my second rental through that program back in early 2018 for $74,480.  It rented for $850 at the time.  It now rents for $875/month, but the tenant in there has been there ever since.  I might be able to bump rents a bit, but she pays early/on time; she’ll have been there 3 years coming up in the spring and I’d like to keep her.  Plus, and maybe I’m wrong here, but wouldn’t want to do that to an existing tenant during COVID.  

My third rental with them I bought for $84,000 in late 2018 and it rented for $885 at the time.  We bumped it to $905 a year later.  Then tenant recently moved out after about two years and they had it released in 5 days for $995.  This one is in 38118.  Rental market there is definitely strong. 

@Michael Cox, to @David Nutakor’s point, I would make sure the provider has a 1-year (or similar) warranty.  One of the providers I work with has a 1-year warranty.  Of the 4 turnkeys I have with them, I think only once did a property need something in the first year.  The one other “provider” I used for 1 property did NOT have a warranty (or at least, I wasn’t aware of it until well after the fact when they called me up to try to sell me another property and asked how the first one was going - and I had $1,100 in HVAC repair bills in 9 months - and they ultimately did NOTHING for me).  That other provider also outsourced (at the time, not anymore) the PM function.  In short, I would recommend a provider that offers both a warranty AND does in-house property management.  If not, NEXT!

I believe that’s John Larson’s group, right?  If so, I met him on a vacation property discovery trip in Belize.  Really nice guy, but not sure I would do business with them.  We found out one of the lead people in the group selling the luxury vacation properties was involved in securities fraud while on the trip.  Needless to say, no investment was made.  It was a fractional ownership play that was supposedly different than owning a timeshare.  I used to listen to the podcast but got tired of the same things being said repeatedly.  I forgot all about them until this popped up in my feed. 

Mid South Home Buyers in Memphis, TN 

Yes.  Very unprofessional.  And they’re also just a marketer, peddling other people’s properties, not a true turnkey provider.  You can do much, MUCH better.  

Run away.