Looking for flippers to invest in
Investor · Member since 2022 · 78 posts · 42 votes
Looking for flippers to invest in
Most Popular Reply
Brett SynickyPro Member
Solo 401k and SDIRA Consultant · Orange, CA · Member since 2013 · 872 posts · 496 votesQuote from @Chris Magistrado:
Quote from @Brett Synicky:
Quote from @Chris Magistrado:
Looking to lend against my 401k for some flips, but I want to work with a team that has flipped before in or around the Bay Area. Sacramento is okay too. If this sounds like you or a team you know, please let me know!
Or something else?
Exactly. Loan against a portion of my 401k. My income is high. Across the rest of the US, it's very high. But am looking to reduce risk by working with an existing team that does flips. I have others interested in investing as well, but we want a team who knows what they're doing.
Interesting. Are you confident the spread is going to be high enough to be worth it? I mean the loan will be prime plus 1 or 2%. So that's 8.5 or 9.5%. Yeah you're paying the retirement account back but that's not your money until distribution so I'm asking about the personal funds, does it make sense? I'm genuinely curious about this.
5 Replies
- 1yBrett SynickyPro MemberSolo 401k and SDIRA Consultant · Orange, CA · Member since 2013 · 872 posts · 496 votesWhat do you mean, “lend against your 401k”? Like you’ll take a loan from it and loan the money out then pay the 401k back from the principal and interest payments?
Quote from @Chris Magistrado:
Looking to lend against my 401k for some flips, but I want to work with a team that has flipped before in or around the Bay Area. Sacramento is okay too. If this sounds like you or a team you know, please let me know!
Or something else?
- Investor · Member since 2022 · 78 posts · 42 votes1y
Quote from @Brett Synicky:
What do you mean, “lend against your 401k”? Like you’ll take a loan from it and loan the money out then pay the 401k back from the principal and interest payments?Quote from @Chris Magistrado:
Looking to lend against my 401k for some flips, but I want to work with a team that has flipped before in or around the Bay Area. Sacramento is okay too. If this sounds like you or a team you know, please let me know!
Or something else?
Exactly. Loan against a portion of my 401k. My income is high. Across the rest of the US, it's very high. But am looking to reduce risk by working with an existing team that does flips. I have others interested in investing as well, but we want a team who knows what they're doing.
- 1yBrett SynickyPro MemberSolo 401k and SDIRA Consultant · Orange, CA · Member since 2013 · 872 posts · 496 votes
Quote from @Chris Magistrado:
Quote from @Brett Synicky:
What do you mean, “lend against your 401k”? Like you’ll take a loan from it and loan the money out then pay the 401k back from the principal and interest payments?Quote from @Chris Magistrado:
Looking to lend against my 401k for some flips, but I want to work with a team that has flipped before in or around the Bay Area. Sacramento is okay too. If this sounds like you or a team you know, please let me know!
Or something else?
Exactly. Loan against a portion of my 401k. My income is high. Across the rest of the US, it's very high. But am looking to reduce risk by working with an existing team that does flips. I have others interested in investing as well, but we want a team who knows what they're doing.
Interesting. Are you confident the spread is going to be high enough to be worth it? I mean the loan will be prime plus 1 or 2%. So that's 8.5 or 9.5%. Yeah you're paying the retirement account back but that's not your money until distribution so I'm asking about the personal funds, does it make sense? I'm genuinely curious about this.
- Investor · Member since 2022 · 78 posts · 42 votes1y
Quote from @Brett Synicky:
Quote from @Chris Magistrado:
Quote from @Brett Synicky:
What do you mean, “lend against your 401k”? Like you’ll take a loan from it and loan the money out then pay the 401k back from the principal and interest payments?Quote from @Chris Magistrado:
Looking to lend against my 401k for some flips, but I want to work with a team that has flipped before in or around the Bay Area. Sacramento is okay too. If this sounds like you or a team you know, please let me know!
Or something else?
Exactly. Loan against a portion of my 401k. My income is high. Across the rest of the US, it's very high. But am looking to reduce risk by working with an existing team that does flips. I have others interested in investing as well, but we want a team who knows what they're doing.
Interesting. Are you confident the spread is going to be high enough to be worth it? I mean the loan will be prime plus 1 or 2%. So that's 8.5 or 9.5%. Yeah you're paying the retirement account back but that's not your money until distribution so I'm asking about the personal funds, does it make sense? I'm genuinely curious about this.
Yeah, I live in the Bay Area, where most these houses are $1M+. Per flip, can get anywhere between $50k-$100k in the numbers are right. Only need to come up with 10% Purchase Price, because 90% of it is backed by Hard Money Loan. HML covers all rehab as well.
So if we need to come up with $100k for a $800k-$900k property, and it requires $100k in rehab, and sells for $1.1M, or $1.2M, it sets us in a good spot to repay both the HML, plus the 401k loan.
I'm happy to be proven wrong here on BP, than proven wrong by experience and with my money. If you crunch the numbers and see something different, please share! Open to hearing your thoughts as well.
There are also houses in my area listed for $3M just because they're next to a park. I'd like to connect or establish a great flipping team here, and work on smaller properties, $500k-$1M range, then go up.
- 1yScott ScovilleBusiness MemberReal Estate Agent · Sacramento, CA · Member since 2019 · 497 posts · 272 votes
Quote from @Chris Magistrado:
Looking to lend against my 401k for some flips, but I want to work with a team that has flipped before in or around the Bay Area. Sacramento is okay too. If this sounds like you or a team you know, please let me know!
Hey @Chris Magistrado. I'm an investor and agent in Sacramento. Between my partners and I, we've done over 100 renovations (flips & rentals) in the past few years. Happy to give some direction or advise if you're interested.
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