All Forum Posts by: Daniel Dietz

The others have givien great replies. 

I would add that if/when you find the right lender the loans can still be 'competitive'. We just closed on a deal last week on a 4 plex in our LLC. 20% down, 5.125% fixed for 10 years, 25 year amortization, and a max of 1% per year rise after that. The most it can ever get to is 11.125% after 15 years into it.

And, we can do as many of these as we want to as long as the DSCR stay good. We can even do owner carry for the 20% if the DSCR stays in check with both loans factored in.

We use a small regional lender that keeps these loans 'in house'

Dan Dietz

I would break from the pack here and take a look at Rentec Dircet. We have used it for a couple of years for everything BUT accounting, and are working on setting things up for accounting in it for 2019. 

I have talked to a few other users that are using it for accouting and it sounds like it can do the whole deal. They other users did mention that they did NOT use the depreciation feature, which is not a big deal to me as I think either way we would leave that in the hands of our accountant. 

Price is reasonable. We are using it for 29 units spread over 6 different entities/owners and I dont see any reason we could not easlity do many more than that. 

A big part of the appeal to me is that it offers 'single entry accounting' for most things. We use Sage Accouting for our 'day business' and although it CAN do more, we don't really NEED more. Keep it simple when you can :-)

Dan Dietz

@Rupert Grant, @Justin Windham cover that expertly. I have both. 

The one DIS-advantage to the SOLO401K is that you can NOT do a 'roll-over' from an existing ROTH IRA into one. You ARE allowed to do that with a SDROTHIRA.

In my case, most of my existing retirement saving, which is much larger than what I contribute due to income limitations, was ALREADY in a ROTH. That is what made it necessary to have both. 

Dan Dietz

@Joe Homs I used @Dmitriy Fomichenko for my plan provider and would recommend him for that. I had already found the Law Firm of Mark Kohler (just google him) who specializes in 'self directed' account including setting up the LLCs for them. I worked with a gentleman named Jarom there. 

My local lawyer that I use for 'regular' LLCs didn't want to touch it  when it came to the SDRIA aspect and advised to stick with the specialist

Dan Dietz

@Nolan Gray I am not sure actually. I know they check my, and my partners credit etc.... But I am actually working on a Conventional Loan for a duplex I am going to buy in my own name, and I know it does NOT affect my DTI ratios for that. We each do have to sign a personal guarantee on the commercial loans. I am sure they could explain better how it affect your personal credit reports.

Since we applied for that loan, rates have moved up to 5.375%, which is still a great rate and terms I think.

Dan Dietz

@Nolan Gray give Dave Cooper at Paper City Savings a call. Not sure what kind of or price of properties you have, but we have been very pleased with their service, rates, and terms. 

I am closing on a 4 plex today, and we got our loan @ 5.125% amortized for 25 years, fixed for 10 years, and a max of 1% a year rise after that with a max of 11.125%. Those are by far the best terms I have found for commercial loans (we buy in our LLCs name) I have found. 

Dan Dietz

What @Ryan Blake said. I would add that as you let people know what you are doing, to add in "if you ever know of anyone that might be interested in investing or partnering, have them give me a call"........ I guess being 'proactive' instead of waiting for them to ask. 

We are fortunate to get rates more like 5-6% for 1-5 year terms. On private lender is going in 50% on a new buy and hold - he is bringing 100% of the down payment and we are doing 100% of all the finding buying and ongoing PM. He is looking for more than the 5-6%, and we could not do the deal without his $$$ - win/win!

@Yong Park I used @Dmitriy Fomichenko for my SOLO401K which is very similar and was very happy with his firms service. I have an LLC with two other SOLO401Ks, and also another LLC where my SDIRA invested with two other SDIRAs. We had both of those done by the Law Firm of Mark Kohler (just google them) and a member there named Jarom. Very happy the service there too. I think the cost was about $1600 for each. I assume it would be cheaper for a single member LLC. I am NOT in California, so not sure how that would change things.

Dan Dietz

I forgot this part before. Lots of good links to take a look at.

Dan Dietz

https://www.biggerpockets.com/forums/51/topics/645...

Here is another discussion going on too, with some really good links down in one of the last posts. I will write more as I have time on how we do things - 5 different entities with 5 different owners, including SDIRAs and SOLO401Ks :-)

Dan Dietz