All Forum Posts by: Charles Andrews

Hi - I've channeled some retirement funding into an LLC with an eye towards RE investing. Once I've found a deal, what suggestions would you have on finding a lender? This would be a first-time investment for the LLC.

Thanks!

Highly recommend this, if you haven't already gone through it:

https://www.amazon.com/Mobile-...

I'm about to begin due diligence on a tiny MHP (5 spaces, 100% occupied, no park-owned homes), and am looking for help with the analysis...just to make sure. This is my first deal, so I'm a little apprehensive.

Looking for someone with experience who can share their thoughts. Not looking for a handout - happy to contribute back for your time.

Thanks!!

I'm looking at a property in an up and coming tourist market, as a possible STR. When I asked for a current P&L statement, the listing agent said it would be made available upon receipt of an offer (the property is currently being used as a STR).

Since even submitting an offer would be contingent on a favorable P&L, that seems like the tail wagging the dog.

Is this a typical response?

Thanks!!

Hi All

I'm looking at a very small park (5 units, no park-owned homes, 100% occupied). It needs work, but there are a couple large cottonwood trees that are pretty close to the homes. 

My inclination is to have them removed, as they do present a risk of falling onto somebody's home. 

Having said that, a couple questions:

• *If* a tree were to fall onto somebody's home, would my park owner insurance typically cover damages to a tenant-owned home?
  
• Have any of you removed trees for that reason? Does it seem like a good idea, or am I being paranoid?

Thanks in advance!

Thanks, Brian - I see you're in Boulder - is this something I could work with you on in a professional adviser capacity?

Charles

Originally posted by @Brian Eastman:

@Charles Andrews

Actually, not many CPA's specialize in self-directed IRA plans offering the checkbook control of a LLC. There are several specialty services firms that offer this service, and most use a qualified tax attorney and/or CPA in some capacity. You definitely want that level of expertise in this area of investing an tax law.

The formation of the entity is a bit of a catch-22. You may not personally benefit your IRA, so if a deal comes along before you have the structure in place and funded to some degree, then you will be out of luck. An offer needs to be made in the name of the LLC and any expenses such as earnest money deposits or inspections must be paid with IRA-LLC funds.

Many investors who are unsure of what/when they may purchase will establish the structure and fund with a minimal amount such as $5-7K so as to be able to handle those initial costs. They will then transfer the rest of what they need from another outside IRA or 401k once they have the property under contract.

Hi - I'm interested in converting a portion of my 457(b) - about $80k - into a self-directed IRA, obviously for purposes of RE investing.

After that, it seems logical to form a LLC around those funds.

A couple questions:

• I'm leaning toward engaging a CPA for the process; is this overkill, or a good idea?
  
• Is the LLC something that should be immediately created, or wait until I find a deal I want to pursue?
• I just finished 'Tax Strategies for the Savvy Real Estate Investor', and it was a great read. Any other books anyone would recommend that address this area?

Thanks in advance,

Charles Andrews

What are the steps to evict a tenant from a M.H. park who owns their own trailer? Trailer will need to be hauled - I'm setting aside a $5k chunk for that task.

Background: Looking at a small mobile home lot - my first investment. It's a dump; only 5 spaces, all occupied with pre-1979 trailers. All trailers owned by tenants. One tenant, in particular, has a nasty trailer on a nasty space. One of the first things I'd have to do if I purchase is evict this person - they haven't paid rent in over a year. All other tenants are current. I'm making an offer that's about 1/3 of last asking price, BTW. 

THANKS!!

Megan - We bought a property in Fruita near the entrance to CO Nat'l Monument - offered asking -5k, and was accepted immediately. Next day, offer came in at offer +10k, and another two days later for asking.

Suffice to say, we were very happy and still are. Fruita market is great - I have a wonderful realtor who I'm happy to recommend to you.

Let me know - happy to help out.

Howdy - I'm new, but have been studying and saving to get my first deal.

There's a section of town that has single and double wide mobile homes on both sides of a public street. One of those lots is vacant, however gas and H2O hookups are in place.

I'm interested in the lot, but have a couple questions:

• What's the best way to identify the current owner of the lot?
• Are lots in this kind of scenario typically all owned by one person, or do different people own each lot?

I do plan on walking the neighborhood and asking people about ownership arrangements, current rents, etc. but wanted to drop this here for any feedback.

Thanks in advance,

CWA