All Forum Posts by: Gaston Barua

Thanks everyone for the input so far!

@Jack Shea I have the same question as Berlinda. Also, I was told that I would want to look into doing an "in service transfer" my company currently allows withdrawals and roll overs into IRA accounts, but is an In service transfer different? Also I was told that once i am able to create an account with this company that facilitates this in service transfer process into an IRA that the money I transfer into the IRA would be tax free?

I am in the process of confirming all these details with my employer as well, but want to have some added input form the BP community.

Thanks!

Hello BP!

I am highly excited because after going to my first REI meet up I learned about a new creative way to fund a down payment for my first investment property thanks to a fellow investor who does this for a living. He helps fellow investors leverage their 401k and transfer a portion of the funds into an IRA for investment purposes. I am currently looking into details about doing this through my company.

My questions are:  

has any one used this method to fund a deal? Whats the process like? What should I be cautious of? What was the biggest obstacle?

Thanks in advance. Happy investing! 

@Terry Miller hahaha that is a good point! i had not realized that. Seems that is what will make the most sense right now. 

Thank you for your input!

Hello Fellow Investors!

I am quite new to the REI game, but am very excited and motivated to get my first deal going. I am in a bit of a tricky situation and don't have the experience right now to confidently pick a path to follow with regards to my situation and my first deal.

Option 1) I am looking to buy a property with a partner at the moment, however we live in Southern California where properties tend to be quite expensive. My partner and I are in the process of saving for a down payment. We spoke to my lender and he suggested that we look into getting a multi family property via FHA loan and live in one of the units. This however, would limit potential cash flow as well as limit the options we would have because we need to BOTH be able to live on the property and still rent out the other units. Not to mention that the small down payment for the FHA plus PMI etc would be a cash flow killer right off the bat.

Option 2) The other option we are considering is investing out of state (i.e. Texas) due to the bang for your buck I have observed in properties out there. However, that would take away the option for an FHA loan since we cannot live in the property. This would be ok though because prices there are so reasonable we could get a conventional loan more than likely (Ive heard if you can even get 5% of a down payment you should consider a conventional loan). The down side to this of course would be that we would need to find a good PM company, and the distance would make it difficult/ risky to manage.

Option 3) Finally, it has crossed our minds that perhaps it would not be a bad idea to do flip for our first deal on a home that needs basic and minor cosmetic updates (new coat of paint, laminate floors to replace carpet, updated appliances and cabinets perhaps). My partner has connections with trusted contractors who would not mislead us and save us money. This way we could buy a SFH in the area for half the price of a MFH, perhaps look into getting a 203k loan (to cover rehab) or a conventional loan/ARM and then use the profit to put toward a bigger down payment for a rental property in the area that will cash flow.

I am itching to hear from some successful investors out there regarding which of these options would benefit us most given the situation? Is there an option we are not considering?

Apologies for the novel but as you all know every detail counts. I guess having options is not a bad problem to have, but never the less it is a problem when ironing out goals/plans for a good investment.

PS My credit score is fair at the moment and am W2. My partners is low 700, but he is 1099.

Thank you all in advance! 

Awesome!! Thanks @Matt Devincenzo. Good to hear this wont delay my goals and aspirations! 

Cheers and happy investing everyone!

Thank you both for your input! @Isaac BlocherI see you are a private lender here in CA? What exactly does that mean? And if I were trying to get a loan through you would you tell me that this was a serious issue? Or could it be worked around? 

Thanks

Hello All,

I am pretty new to the REI world and am looking into my first rental property. However, I am a bit concerned because I am working with my lender currently to get pre qualified for a loan, and am in the process of getting him all of my statements necessary for the pre qualification process etc. One of the things he asked for was HOA statements.

I recently had a bit of a mishap with my HOA on my primary residence. I attempted to set up an automatic withdraw for the HOA fees to be taken out of my bank account on a monthly basis. However, for one reason or another it did not take. I failed to pay attention to whether or not the money was actually being withdrawn and once I noticed I owed $1800. The management company via county clerk then placed a Lien on my condo.

Long story short I have payed the debt in full and I received notice that the Lien will be released with in the next few days. 

so my question is:

Will that record on my HOA statements seriously affect my ability to get a loan? Again, the lien has now been paid off in full and my account is current. Of course I will not make the same mistake again either. 

Thank you all in advance for taking the time to share your knowledge!

Hello BP Guros!

I am new to the RE Investing world and am doing some research on buying my first investment property. I am a little confused however by what a "Unit" is defined as in terms of real estate. Is a "Unit" a single bedroom? Or is it each individual housing space in say a duplex, triplex, or fourplex? I have heard the broad term used in both cases. Also, at what point does a property become commercial? How many "Units" would be necessary? 

Thank you all in advance!

Thank you everyone for the tips! 

Hello All!

I am a new investor and am looking for that first wholesale deal! I am preparing a marketing campaign to find a seller quickly. 

Between short letters, postcards, and bandit signs which would be the most efficient to begin my campaign with? I live in Los Angeles by the way and I have heard you may need a permit to post bandit signs. 

Any direction would be much appreciated.

thanks and happy Investing!