All Forum Posts by: Daniel Dietz

The experts can hopefully comment on this, but I *think* if she bought a condo and rented it out to others for a couple of years and THEN moved into it, there could be a large tax savings. Again, just a thought to ask your professional about.

Thanks for your input guys :-) 

In our area, small but prosperous Midwest town of about 10K and similar surrounding towns, there are almost no multifamily listings on MLS. So I have been on a campaign to located them by 'driving for dollars', looking up owners, an making calls or sending letters.

I did find 12 units from a seller that way a couple years ago, but a lot of un-productivity since then. I kept reminding myself of the 'funnel' that @Brandon Turner is so fond of talking about in the Podcast and hoping that SOMETHING 'would drip out the bottom some day'!

I was not really looking for a Seller Financing since it was hard enough to just find places at all, but a guy can dream right? I guess #PersistencePaysOff :-)

Thanks again, Dan Dietz

@Dmitriy Fomichenko, @Carl Fischer or any others with an opinion on this.....

Along similar lines I am working on a deal to be a portfolio of rentals, a couple a year over the next few years, from an individual that only wants to sell using seller financing. His goals are to avoid realtor fees, spread taxes out and have an income stream.

Is there any issue that I am not aware of other than needing to be drawn up 'non recourse'? We are still negotiating, but we would probably be doing between 10-20% down, 5%ish interest for at least a 15 year lock, probably amortized of 30 with a balloon at 15 most likely.

I guess I am wondering if there are any rules against balloons, etc... in the Self Directed world that I am not familiar with?

Thanks, Dan Dietz

I am not quite following. Why not just take your 3 SDIRAs and each of invest DIRECTLY with them into a partnership/LLC?

That is exactly what we do with both SDIRAs and SOLO401Ks and it works great for us.

We have 30 units in a couple of nice small Midwestern towns where life is generally 'good'. Our tenants are everything from retiree to factory workers, an accountant, office managers etc... a nice mix. 

Since there are 3 partners involved we track our hours religiously to figure out how to divide income up. This include painting and maintenance on turnovers.

On AVERAGE we spend just under 2 hours per unit per month. With that said, the per unit range can vary from a high of about 40 hours for a unit down to about 1/2 hour for a unit. 

Screening for GREAT tenants and having systems in place make a huge difference!

@Chris Seveney on this particular deal they would be Notes, and I believe held by individual(s), not LLC. I do know they have a 'family trust' listed on some of their properties as the owner of record though also.

For future deals that might come, what would be the difference if they were Land Contracts or acquired by LLCs?

Thanks for your time to chime in.

Dan Dietz

@Derek Dombeck could you elaborate a bit on how you are doing the part with others Self Directed Accounts?

What I am wondering specifically is are you just doing a JV, LLC, or something else? We are planning on doing this in the near future and have read varying things on if a Self Directed Account can own a different share of something than the % equity they bring to the deal. I am going to be talking to the lawyer who set up our own Self Directed LLC to get input soon too.

My goal is to set up an LLC and have the Partner bring the down payment with their Self Directed Account of say 20%, and *I* would sign the LLC Note for the 80% loan, but we would EACH be 50% owners as neither of us could have done it without the other.

@Jantsen Locke I would second what the others are saying about figuring out the sellers 'pain' and figure out how to take care of that.

I have not read any book DIRECTLY related, but Brandon Turners book on 'No & Low Money Down' address that a bit.

I have been trying to find 2-4 units in our area that people are willing to sell by 'cold calling'... there is virtually nothing on the MLS in our rural area like that. I found one seller with 12 units free and clear but could not convince him to Seller Finance even though he was going to just put it into CDs :-(

On the good side, when calling a rental applicant's reference to a fellow contractor I know I *may* have fallen into a sweet deal. I knew he had rentals and it was a chance to 'plant a seed' that when he is ready to sell I want to talk. Turns out that he wants to start selling NOW :-), and ONLY using Seller Financing.

His goals are to avoid realtor fees, spread taxes, and have a steady income stream for 15 years or more. He also has concerns about 'finding someone qualified that will take care of the places' as lots of newbies or less attentive owners might not keep them up and then weasel out down the road.

On the really good side, I think it will work to buy these with our SDRIAs and SOLO401Ks, with low down payments compared to non-recourse loans.

Just thought I would give this a bump to see if an of you have any recommendations for Loan Servicing companies in Wisconsin.

Thanks, Dan Dietz

@Sean Senatore, I agree that Private Money is EVERY where. One of the people that is interested, but I have not done a deal with yet, actually said to me "How about I write you a check for 100K right now and let me know when you find a deal" (he knew we would have to set up LLC etc....) I told him to just hang on and I'll see what I can find :-) Granted, this is probably less than 5% of his investment funds to keep it in perspective.

One other tip that I forgot to mention above is what Brandon Turner said on a Podcast............ When your mindset shift from THEM doing YOU a 'favor' to think of it as YOU are ALSO doing them a favor by giving them a great opportunity then it all changes..... Kind of changes the mindset from 'asking for money' to ' I will share MY deal with you'!