How to find SDIRA'S

Question

We are looking for sites and others that have used SDIRA'S. How and where do we go to use these funds for our fix n flips?

Debra Leeson · Answer

How and where do we go to use these funds for our fix n flips? I think you are looking for private money, people with SDIRA that are willing to fund a deal for you through a loan or partnership. Only one way. Personal relationship.

network, network, network. Do NOT even mention money until you talked to the person at least three times and one month after meeting.

Jeff S. · Answer

You come here asking a question you don't know about, @Jeffrey Sampson, then strongly disagree with an answer because you have 32 years of experience (and less than one flip under your belt, according to your profile)?  What is it you want to hear that you don't already think you know? Though money gets discussed from day one, @Debra Leeson is actually spot on; private lending like this is based 100% on relationships.

You don't walk up to any private individual waiving a PowerPoint presentation and expect them therefore, to invest their hard-earned personal retirement money in you, solely on that basis. How pretentious. To be clear, these investments really are in you.  Until you are known, liked, and trusted, the property details are almost irrelevant.  These are not conventional loans based upon a pile of anonymous loan docs from strangers you never see.  There are better ways to find these borrowers.

Real estate clubs are a good place to meet those that invest both their after tax and retirement money (why would you care).  You might ask those you meet to see your properties once you get some more rehabbing experience.  With due respect, one flip is not enough experience to ask anyone to risk their retirement assets on you.  This is not only unfair, it's presumptuous.

We'll meet a potential borrower at their properties and then maybe go to lunch or dinner a few times.  These are not one-off loans.  A smart investor will find those who do many deals.  The idea is to determine if they know what they are doing and understand better than we, how to flip a house, as well as possess the requisite personal integrity.  Anyone can generate a PowerPoint presentation.

Alternately, if you simply want to find the names of those that invest their IRA's in real estate, you could do a title search.  The beneficiary in the deed of trust or mortgage will typically be stated as IRA Services Trust Company, Custodian FBO John Smith IRA #123456, Tax ID 12-12345. So search for keywords like, IRA, Custodian, FBO, IRA Services, Pensco, Equity Trust, etc. This could lead you to these individuals, but then what will you do?

Jeffrey Sampson · Answer

Debra,

I couldn't disagree with you more! I have been in this business for thirty two years and honestly speaking this is terrible advice.

When you meet lenders regardless of how or where their money is coming from discussions must start from day one with open honest conversation.

Please learn when you approach ANYONE about money it is about being prepared, personally, professionally and with ALL the properties information. You can use powerpoint presentations and a host of other software programs to present the opportunity to them.

And leave them with the information so they can go through their due diligence and VERIFY your claims then you can call them in a couple of days as a courtesy and answer any questions they may have.

If you have done your job they will have the information needed to verify your claims. Always remember if they see competence in the person and the presentation with verifiable information your request will almost certainly be met with positive results.

If a person comes to me three times before talking money to me i promise that i will become suspicious of them.

Travis Sperr · Answer

Are you looking for a custodian or individuals with SDIRA's?

How to find SDIRA'S

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