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All Forum Posts by: William Simmons

William Simmons has started 2 posts and replied 10 times.

Post: Self Directed Roth IRAs

William SimmonsPosted
  • Ocean Springs, MS
  • Posts 10
  • Votes 2

@Jackie P. Good catch. I had yet to investigate uDirect myself--just relayed a suggestion another investor told me. The link I posted earlier should have several bonafide IRA custodians from which to choose. It can be exhausting going through them, comparing all of the fee schedules!

I did have a great consult with @Brian Eastman earlier this week and learned the benefits of a checkbook IRA, where your IRA actually owns an LLC. Your funds can be in a business banking account and you have signing authority for the benefit of the IRA. There is an initial fee that makes it more costly to setup this way, but it seems in the long run, and especially if you engage in multiple transactions per year, going this route is more economical and definitely more streamlined when it comes to lending or however you self-direct your funds. They are also there to answer questions as you invest and be sure you don't engage in prohibited transactions. From what I have gathered, most custodians just process paperwork and can't/don't offer any legal guidance.

Post: My first flip in Columbus, MS

William SimmonsPosted
  • Ocean Springs, MS
  • Posts 10
  • Votes 2

How did you find the motivated seller? @Brandon Tedford

Post: Self Directed Roth IRAs

William SimmonsPosted
  • Ocean Springs, MS
  • Posts 10
  • Votes 2
Originally posted by @Jon Wylie:

Does anyone know a good company to use for the self-directed IRAs for real estate? I am having a tough time finding a place to transfer my IRA to do this.

Jon, here is a great list of SD-IRA custodians: https://www.biggerpockets.com/...

Last year I opened an account with Millennium Trust Company (MTC) and used the money in my SD-IRA to loan to a real estate investor flipping a house. We signed a promissory note and deed of trust to secure it. It should have been a simple process, but I found it to be cumbersome. Being new to self-directing, I had several questions along the way and was dissatisfied with MTC's customer service. For example, I had to send multiple emails asking the same thing because my question was not answered or explained well enough. Once I finally found someone's personal email address instead of the generic customer service address, communication did improve, but the paperwork process was not easy to follow, in my opinion, and I could tell the person borrowing from me was getting frustrated.

Equity Trust does does produce some good content--webinars, informational PDFs, blog posts, etc. I have read mixed reviews elsewhere on BP, though. 

I am talking with another real estate investor right now with whom my wife may use her IRA to lend money to, and he said he has had mostly great experiences with uDirect IRA.

After reading @Brian Eastman's posts on this thread and other places, it is clear he is very knowledgeable and willing to help, which I now know is very important, even for simple transactions. Therefore, I have gone to his website and scheduled an appointment to chat with him on Monday about transferring my wife's Roth to a self-directed IRA.

I live less than a mile from that Felicity listing and went and looked at it in January. The property manager that showed it to me said there is one guy that owns several of those duplexes and is just trying to sell them all. He's trying to drive up the value of the area though, and the listing price is way too high, in my opinion. They are modular duplexes, which I wasn't crazy about. That particular one has had the same renters for years, and the place was in decent shape, but using one of the Bigger Pockets calculator, I would have had to offer about $50K less than asking price for it to get near the minimum cash on cash return I am looking for. I just decided to move on and keep my eyes out for something else. 

Ocean Springs is generally a more expensive area than D'Iberville, Biloxi, and Gulfport.  Also, there isn't really a good supply of multi-family homes on the market. @Pat Heidingsfelder is a knowledgeable realtor and investor in the area that does some wholesaling and is building his SFH portfolio. He can probably answer your specific metric question better than I can.

Post: Do YOU need $25K for rehab costs or a down payment?

William SimmonsPosted
  • Ocean Springs, MS
  • Posts 10
  • Votes 2
Originally posted by @Jesus Lopez:

Actually yes. I am interested in this. How can we move forward?

 Thank you for your interest, but I am in the process of closing with another investor.   

Post: Do YOU need $25K for rehab costs or a down payment?

William SimmonsPosted
  • Ocean Springs, MS
  • Posts 10
  • Votes 2
Originally posted by @Jesus Lopez:

Would you be interested in partnering up with me for the Fayetteville North carolina area?

It depends on what you mean by partnering up. Due to limitations of Self-Directed IRA's, I am strictly looking to lend $25,000 for someone else to use on a property in which I do not have an ownership interest and receive $27,750 in return after that person closes on the property (for a flip or refi for a buy-and-hold) but in no case later than 11 months later.

Post: Do YOU need $25K for rehab costs or a down payment?

William SimmonsPosted
  • Ocean Springs, MS
  • Posts 10
  • Votes 2

I am looking to lend $25K out of my SD-IRA for an 11% return, with principal and interest payable back in one balloon payment up to 11 months later. We'll sign a promissory note and deed of trust for the property on which the funds will be used.

Any before/after pictures you can share?

Post: First Office Building to Purchase

William SimmonsPosted
  • Ocean Springs, MS
  • Posts 10
  • Votes 2

Do you have any pictures you're willing to share? Having grown up near Tupelo, I am curious which building you purchased. 

Post: Numbers seem to work, but...

William SimmonsPosted
  • Ocean Springs, MS
  • Posts 10
  • Votes 2

View report

...this property is on the Gulf Coast, so the thought of hurricanes/flooding/storm surge worries us. This would be our first investment property.  

*This link comes directly from our calculators, based on information input by the member who posted.