All Forum Posts by: Daniel Dietz

@Patrick Hall I would second what @Bernard Reisz said about taking a look at the providers who are active here on BP. I called several before I chose @Dmitriy Fomichenko, who I have had great service from, and ALL of the ones here gave me more time and advice for my situation that any of the 'big firms' that I contacted. 

I think some people thing the larger firms *might* be a little cheaper (not sure) but when you are talking about an investment potential hundreds of thousands of dollars, what is a few hundred to get the best service when needed?

Dan Dietz

@Patrick Hall you are getting some good advice here from some excellent contributors here on BP. 

I have both SDIRA and SOLO401K. As stated above, the UDFI only 'is due' on the SDIRA if non-recourse loans are used (non recourse is the only kind of loan allowed in any type of retirement plan, I believe), but NOT on the SOLO401K as it is 'exempt'. 

My 'roll over' amounts were MUCH larger than my contributions since I switched over, as is often the case I think. The reason that I have BOTH kinds is that a good portion of my funds were in a ROTH IRA, which is about the only kind that you can NOT roll into a SOLO401K :-(. I believe that you CAN convert traditional funds over to ROTH AFTER they are in the SOLO401K thought.

It seems from all the research that I have done that if a person qualifies for a SOLO401K it is a superior type of plan in almost every way. 

I am just reading a book that is called "Keep It" about advanced tax planning for IRAs or any type of similar retirement plans (thanks to whoever recommend it here) that has TONS of great info and I would HIGHLY recommend it.

Dan Dietz

Bump.... I would like to hear what others thoughts are also. 

Dan Dietz

@Tim Schroeder I am not sure on the Traditional side of lending like FHA, but we have done similar to that and are planning on doing it again with our commercial portfolio lender. We need to keep at least 10% skin in the game and the LTV ratio needs to stay at 80% or less.

Dan Dietz

@Koob Moua, the terms we got were fixed for 10 years, and a max of 1% increase each year from 11 on. I think this is rare in most parts of the country and we are very fortunate to have a local lender like that. But as you pre-shop for your NEXT one, it might give you incentive to keep checking around. I actually found our lender through our regional apartment owners association, and they are about 100 miles away from us. I would likely not have found them if they were not member of that same association.

Dan Dietz

We borrow through our LLC so have to go the 'commerical portfolio loan' route. We work with a small local bank (not big chain) and they hold these loans in house. We can borrow at 20% all day long with this system. Ask to talk to their Commercial Loan Department also when you call around.

Dan Dietz

Hi, could someone who attended give a 'summary' on how things went, so those of us considering attending have an idea of what to expect? For me it would be almost a 2 hour drive, so just looking for a little 'feel' of how things started out.

Thanks, Dan Dietz

@Stephanie P., no points, and about $3500 of closing cost on a 400K loan. They do want our DSCR to be 1.2 or better for that rate. They will loan down to a 1.1 DSCR for existing customers, but higher rate and costs too. We prefer to keep the more conservative ratio too. If there is not at least that much 'meat in the deal' we will keep looking until we find one :-)

Dan Dietz

@Ryan Moore, @Stephanie P. covered it pretty well above. 

I just wanted to add what we are getting for terms so you have an idea of what is out there. Keep in  mindd thought that every market is different too.

We are working on getting two properties right now, a duplex and a 4 plex. The terms we are being quoted from our existing commercial portfolio lender are 20% down, 5.125% interest, amortized over 25 years and locked in for 10 years with a maximum of 1% per year increase in rate starting in year 11, and a max rate of 11.125%.

From the feedback I get here on BP those are great terms. Unfortunately for you, they only lend within my state.

Dan Dietz

@Esther Thomas I am by NO means an expert on 1031s - I am just starting to look into them more to be knowledgeable as I talk to 'reluctant sellers due to the high tax burden of selling' - but I HAVE done a lot of research here and otherwise. 

It *seems* like from what I hear from friends selling in your area that a Reverse 1031 Exchange deserves strong consideration. 

Part of what I am running into is the sellers that I tell about 1031s say "how will I find something soon enough", so I am working on the idea of the Reverse 1031 too. Essentially finding an replacement property and line things up first. 

Just a thought, Dan Dietz