This forum is for Real Estate Investors and Professionals who are interested in networking and talking about Wilsonville, OR and surrounding area (Tigard, Canby, Tualatin, Lake Oswego) market and investment opportunities.
Hey guys. I am an Attorney and Broker in Wilsonville, OR. I have noticed that not many of the people that I have connected with know of each other's existence and needed a local forum to network. Wilsonville and its surrounding area is growing fast. The more we know of each others existence and start building a larger network of Real Estate Professionals in our local area, the better it would be for all of us. No question is a bad question. We are all hear to learn, educate and help. Best.
Thanks for setting this up Brian!
thank you as well.
Excited about this, thanks Brian.
Sounds great Brian! Next we need to move on to a meetup!
No need for any thanks. I’m excited to see where this leads for everyone. Especially once it gets a little traction. As I connect with clients in my practice, or network with others on different sites I was shocked to see how so many local RE Investors or Professionals we have just in our local backyard, but nobody knows of each other. Or one person has a property but no money, on with money but no property, one with equity and a desire to invest but no connections, one with deals but no GC or vendors, I see lots of situations with one piece of the pie missing.
I find part of my job in RE Law is to connect the dots of people and adding value to complete deals. I think this site can be one way.
excited to see this set up!
I also think setting up a meetup would be a good next step. I’m thinking possibly after the holidays, possibly mid-January.
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What are your guys thoughts on self directed 401ks as alternative funds for investors. I’ve had a few clients and friends bring up the funding real estate discussion. None of them had access to funds in savings. But all Gad funds in their current IRAs and 401ks. Thinking out of the box my thoughts went to transferring enough of those funds to cover the upfront investment costs into a newly formed self directed 401k. Then using those funds to invest in a property to help fund retirement portfolio. Should be an interesting topic to alternative funding.
@Brian Bradley this is a very common practice And @brian Eastman is who you want to be speaking with ..
I first bought property in my sepp in 1981... :)
It’s funny Jay because besides the I need legal help question one of the most common questions I get get is I want to invest but have no money. When I see it more of that they don’t have the proper financial education, and to nervous to reach out to their CPA and ask the questions. Most my friends are doctors, lawyers, nurses, tech people. All professionals with good jobs. But over extended in a big house, expensive cars, kid in private school but not much in savings. They all want to invest but don’t want to take the equity out of their big house. But they all also have 401(K)’s, IRA’s and RIRA’s they fund. So the funds are their. They just need to learn how to tap into it.
Brad they need to be self employeed they can't use company 401k
the ideal person is one who worked for a company has a million in their 401k leaves the company then rolls that into a check book self direct 401k and then can go shopping.. that's what @brianeastman does and specializes in.. I had a sepp with entrust but they were just killing me with Fee's Brian got me moved to a 401k there is a fee up front to set it up BUT THEN no fee's or VERY little fee's once your up and running...
High wage earners with little actual cash is not uncommon I would say its probably the norm in reality. At least out here on the west coast were the cost of housing is far higher than other areas.
you can take the same professional in many other markets that is knocking down 250k a year but they have a fantastic house they bought for 400 or 500k same house on the west coast would be double that in Portland and 5 times that in SF or prime Seattle or Prime LA....
so in essence we get married to our mortgages... :)
They should be able to roll over their traditional employment 401k into a RIRA or IRA. And then go from their. But the costs of housing on the west coast is substantially higher. We moved from Michigan and the cost difference is astronomical. But we also lived in So. CA before so knew what to expect. I’m glad more people are interested in learning how to divorce their mortgage and start funding alternative ways to support themselves then relying on their employers.
I reached out to Brian. He will be a good source. I find not to many CPAs r savvy regarding their real estate investment advice. So when u find one treasure that person. Just like ur lawyer.
Thanks for setting this up, I am just over the hill in Newberg.
No problem Even
Jay. Talked to my CPA. He clarified the 401k use or not. But a good point he made that others should talk to their CPA about before using retirement accounts is that their use might not work and create other negative tax consequences for them in the overall picture of their tax situations. So talk to your CPA who knows your financial story before jumping into using self directed accounts.
Hey guys. I had some free time and just came across pod case #222. It is well worth it. Tons of great information from a very seasoned 40+ year veteran in the real estate business 'I'm kind of a big deal' @jayhinrics. I am not big on pupping people, but his insite worth listening to. Listen to his ups and down and how he grew his career. We are luck to have him as a member of this forum also. But I would say do not PM him. Just ask your questions in the forum so everybody can learn and offer their perspective.
Updated 9 months ago
and sorry for any mis-spellings. Right now most my replies are one handed while holding a 4 week old.
My investing mechanism is non-performing promissory notes secured by real estate. I generally use Joint Venture capital to fund the transactions. These JV investors frequently use their SDIRA or Solo 401k funds as their capital. This is especially useful for very busy professionals that would like to find a investment vehicle to park their funds on a passive basis. To this point, this seems to work well.
That is an interesting area @Cody Cox that I think people need more information on. From the investment side of things people are purchasing the note to get the underlying asset and upon default you then control that asset. I have been interested in investing in non-performing notes, but I am not sure I am ready to jump into it just yet. But I like it as another option of how to gain control over a property I want.
On the contrary, my investment approach for notes is NOT to acquire the property. Rather, I prefer the cash-flow from being the lienlord, rather than a landlord. My approach every time is to seek to find a resolution for the owner/borrower to retain ownership and remain in their home. With an NPN, there is flexibility in finding the right workout solution for the borrower, with an attempt to get them back on track to make payments. If not, we then go through the process of a Deed-in-Lieu or a full foreclosure, and then immediately re-market the house.
Enjoying the cash flow as the bank rather than as a landlord is my preference.
@Cody Cox that is a great win win. But since they are non-performing, they are not performing for a reason. So then do you go and renegotiate the terms of the loan and payment to yourself? And since they are non - performing for a reason, lack of cashflow to pay, I would see a higher percent of the assets going to you upon default.
we attempt to determine if the reason they went NPN is resolved. We also look for ways to restructure the loan (modification) that meets the ROI levels we need to a viable return. Unfortunately, this only happens about 30% of the time. The other times we look to provide an elegant way for the borrower to gracefully exit the property.
@Cody Cox for those new to investing in notes, or hesitant, what are done first steps an investor would take to get lined up before coming and talking to somebody like you? I think you’re specialty is a great alternative investment for portfolios.
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