My 2nd and 3rd Deals

7 Replies

I haven't posted in a couple of days, but I have been busy. I did a deal with Beckstone Partners to purchase a Duplex in Mechanicsburg, Pa. Beckstone is a turnkey provider that specializes in Solo 401K and checkbook IRA investors. They provide everything from buying the properties, rehabbing it, setting up the non-recourse loan, and performing the property management. I was reluctant to do this deal at first, but after speaking with them and making several request from them on the deal, I felt it was a safe purchase. We will see how it turns out.

Last weekend, I went to Wilmington to see some properties from the MLS as well as see the property I already purchased. We meet the tenants and had an inspection done on my first property. I met with another investor that gave me a reference to a contractor, and we had a great time. I met the contractor and I really felt he knew his business. I plan on getting quotes from him to fix up my first purchase (based on the inspection).

I met with my wholesaler, and we negotiated another deal that I am waiting on the contract to sign. So I now have three real estate deals in progress (one purchased, one in contract, and one about to be in contract). Assuming everything goes well, I will have three properties with two of them needing to be rehabbed. I need to get my two new properties rehabbed before I am prepared to purchase anymore properties, but that doesn't mean I am not doing anything. I am looking at some "out of the box" real estate deals. I will provide more details if these opportunities pan out. :-)

@Anthony Smoke, how did you find Beckstone Partners? If I understand correctly your IRA is buying a property from Beckstone? And they are the fiduciary setting up your IRA?/Solo 401k? Better check with the IRA providers on Bigger Pockets to see if that is not a prohibited transaction.

Did you ask or know who the lender is providing the non recourse loan? Is it an affiliate or related company to Beckstone?

Did you know they own many properties across the US that they buy and wholesale to investors?

So you went out to " buy a duck and came home with a cow"? You went out looking for a retirement plan provider and came home with a provider, property the provider profited by selling to you, gave you a loan on property they currently own and are now graciously providing property management services for the property?

You have shared your "good luck and prosperity" without disclosing the most important details of the transaction;the financials , qualified inspection, title search,terms of loan  etc.

Todd Goedeke

@Todd Goedeke Beckstone Partners is not the company that setup my Solo 401K plan, nor do they control the funds. It is not a prohibitive transaction. I am aware that they are own properties across the US. They buy in bulk and then sell to investors. I am not sure if the loan company is affiliated with Beckstone, but I am basing my decision on the numbers. I know my costs and the income, and I think it is a good deal. I was concerned about the loan terms and I did make a post on the loan a while back. I anticipate selling the property in 5 years. The property management fee is better than I can get anywhere else. It is 8%, but for the first year it is 4%. The loan is 60% LTV and with an interest rate of 5% for the first 5 years, 6% for the sixth year, and 7% the seventh year, and a balloon payment for the rest of the loan in the eight. The balloon payment concerns me the most about this deal. I did not claim anything about "good luck and prosperity". In fact, I mentioned my reservations about the deal. Thank you for your response. It is easy to get caught up in the real estate hype, so it is good to have someone question your decisions. If the real estate investments I have done turn out to be bad deals I will learn from them.

Account Closed I didn't want to post anything until I actually have the deals done. When that happens I will post the ROI and cash flow. I am trying to get a ROI of 9% or greater.

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