First Turnkey and Self Directed ROTH IRA investment

First Turnkey and Self Directed ROTH IRA investment

Member since 2019 · 3 posts · 3 votes

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $76,000
Cash invested: $30,000

Single Family in Self-directed Roth IRA, using turnkey provider.

What made you interested in investing in this type of deal?

My first experience with Roth self Directed IRA, and also with using a turnkey provider.

How did you find this deal and how did you negotiate it?

Turnkey - cashflowsavvy, Mercedes Torres

How did you finance this deal?

Non-Recourse - Solera Bank

How did you add value to the deal?

Nothing yet - turnkey, but did get discount from seller on purchase price.

What was the outcome?

Still have it - $400 per month cash flow - tax free

Lessons learned? Challenges?

Self Directed sounds more scary than it is, and so does turnkey out of state.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Property Management team is critical

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Solo 401k Expert · Anaheim Hills, CA · Member since 2012 · 18k+ posts · 6k+ votes
4y

@Steve Donovan,

The down-payment requirements for the non-recourse loan depend on the lender and property type, year, condition, etc. There are lenders that will finance as much as 70% LTV. Here is a list for you to review, hope you will find it helpful:

https://www.biggerpockets.com/...

See this reply in the discussion

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  • Member since 2022 · 1 post · 0 votes
    4y

    Hello, that is something I've been thinking about doing...out of state investments sound like you don't have any control over them. You really have to trust your numbers, although those companies do everything for you (even the numbers, proforma, 10 yr analysis report, report of the scope of work, lending companies that they work with), and really have to trust the management company. I have looked into Memphis Investments Properties, LLC, has anyone heard of this company (good for business or not; or can you recommend any other companies? Is it similar to investing with fidelity accounts (not retirement)? Thank you!

  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    4y

    @Claudia Williams

    Memphis Invest is A-1 org. Just know you will pay retail prices for their properties.

  • Solo 401k Expert · Anaheim Hills, CA · Member since 2012 · 18k+ posts · 6k+ votes
    4y

    @Charl Van Wyk, congratulations on a tax-free investment using Roth!

  • Rental Property Investor · Green Bay, WI · Member since 2016 · 150 posts · 94 votes
    4y

    Hello @Charl Van Wyk and congrats on a great project! Question for you regarding the non-recourse loan... I was under the impression that the IRA has to put at least 50% of purchase price down in order for non recourse. Apparently that is not true? Again congrats to you and best of luck in your investing future!

  • Solo 401k Expert · Anaheim Hills, CA · Member since 2012 · 18k+ posts · 6k+ votes
    4y

    @Steve Donovan,

    The down-payment requirements for the non-recourse loan depend on the lender and property type, year, condition, etc. There are lenders that will finance as much as 70% LTV. Here is a list for you to review, hope you will find it helpful:

    https://www.biggerpockets.com/...

  • Rental Property Investor · Green Bay, WI · Member since 2016 · 150 posts · 94 votes
    4y

    Thanks @Dmitriy Fomichenko for the very valuable information!  All the best to you!

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