All Forum Posts by: Grant P.

I'm closing on my new project in 2 weeks, and was planning on financing the rehab, however I realized that I have an old IRA that could fund the build out.

How can/do I structure this? Self directed IRA? What are the details I need to be conscious about?

I have very limited experience with self directed IRA/solo 401k. I didn't really know they existed/ were actually utilized until spending time on BP.

Thanks in advance as always

I wish I could have made it.

I had forgotten it was my dad's 60th birthday. Had to bail on the meetup and give the family some love.

I'm in for sure on the next one, I wan't to meet all the local guys on BP. Lately I find myself on the site for a couple hours a day. The amount of info on here is seemingly endless.

I'm about to close on my new house to live in/rehab project, and I have started my first development project(8 unit infill project).

There just aren't enough hours in the day!!!!!

I have only had 1 rehab going at a time, I do it on the side and struggle to as my primary occupation consumes almost all of my time.

I send out periodic emails to all of my investor clients. I don't currently work with any large scale investors, just a solid group of investors from my previous career of being a financial adviser. Not necessarily seasoned RE investors, but usually wanting to make a change due to poor returns in the financial markets.

My strategy may not work for everyone, and at times I may create competition between clients, but I don't think I have yet.

Joel Owens I agree completely with you, for many of the reasons you've listed is the reason I invest the way I do. I just was curious if/how others got to 2% on deals, but it seems you must have a property with a value that doesn't interest me in my market.

The piece to this puzzle that i didn't divulge is I'm going to live in this one for a while before I rent it. My title should have been "2% rule in a house I actually want to live in"

I like the central markets for reasons other than the weaker returns on rents. I think this strategy takes more into account than just the 2%, such as neighborhood stability, property appreciation, ease of management(I manage these myself, but account for the cost), Dealing with well qualified renters. I'm too busy to deal with that and am happy with deal like this for these reasons. Plus I have to live somewhere. I just wish I could make them work with the 2% rule

My newest 1% deal will look as follows

purchase price 217k rehab budget 27k. Market value 310k minimum when complete. 66k in equity created.

Monthly expenses $1200 rents for $2200.

I'm not mad at me deal, I just struggle to get to 1% in central Denver. 1% is not crap, its what you get if you don't want to be a slumlord in Denver.

My big dilemma is the 2% rule. I see and hear everyone talking about it, and I am jealous of the ROI they are getting, but I have a few issues with it.

1. I really don't see this being possible in my market, not without dealing with a bad neighborhood/issues that come along with that.

2. I am happy with 1% because I still cash-flow plenty and I'm holding in hot areas that are appreciating quickly, and I typically rehab them to create equity in these places.

I know you can't have everything, and my strategy is different than those that just seek the 2%, but why am I stuck with 1% in a hot market with high rents?

One of the major flaws in you system seem to be all the time you spend chasing these deals. You need to partner with a good broker to do most of the legwork for you.

I am a broker and I do quite a bit of business with investors/flippers, because it allows them more time. I am always on the lookout because I actively invest/flip myself, and devote a couple hours a day to scouring the market for potential deals because I know I can sell it to someone if the numbers work.

Rehabbers are some of my favorite clients because I usually get the listing when the project is complete. My investor clients have me on call 24/7 and I am happy to answer my phone anytime for these guys.

I will admit it is hard to find a broker that truly understands investment real estate and rehabs, but once you find one your workload will decrease.

I'm here in Denver as well. What part of Denver do you live in?

I'm a real estate broker by day, Investor by night. I focus in the central Denver markets, primarily because they are more interesting to me, but also because much of my model is based on rehabbing then holding as rentals.

Welcome, I'm pretty new to the site, but I have learned an invaluable amount of info already.