All Forum Posts by: Greg Moran

I suggest Quest Trust company. It's not the cheapest, but you get what you pay for. Their fee schedule is posted online: https://www.questtrustcompany....

If my math is correct, the $80k note at 7.75% for 15 years comes out to $135,540. Plus the $25k down comes to a total of $160,540.

if we run the $125k house through 2% inflation for the same 15 years, the house should be worth $181k. All food for thought

Howdy Chris, I use QuestTrust as the custodian for my Self-Directed ROTH IRA, and use it exactly the way @Andrea Weule describes: Private money lending, and starting to explore syndications. As for Pros and Cons: Just like anything you get what you pay for. The absolute cheapest Custodians, may never have a real person answer the phone, nor would they offer educational webinars or conferences. I'm very happy with the service I get from QuestTrust, and their fee structure seems fair to me. They're also very responsive when it comes to funding my deals quickly. If i have my information in order, it's possible to close a deal in 24 hours.

Sent you a DM... Love to connect with other DC folks. In your case, do you have David Greene's book on Long Distance Real Estate Investing? https://get.biggerpockets.com/longdistancebook/

I sent you a DM. For the best local coaching in DC, check out Dr @Joe Asamoah! He is features in the first BP magazine and is the most amazing inspiring genuine person.

I really like Matt Faircloth's book called, "Raising Private Capital" as a guide to organizing your thoughts about the subject. His book is really helpful to learn the terms as well as practical implementation suggestions for soliciting other people's money. He makes it seem simple, and it really is.

Yup, time to get more creative with your funding and strategy. If everyone else is beating you at your approach, then either "up your game" or "change the rules"... I like to think of real estate deals as puzzles to solve. Sometimes you aren't playing with enough pieces to complete the deal, unfortunately. 

1) Do you have an investor friendly RE agent looking for off-market deals for you? If not, i suggest going to your local REI groups and networking to find one or more.

2) Run the numbers a bunch of different ways. Can your strategy be successful with duplexes or triplexes? Maybe you can start smaller like @Matthew Perry suggests. Or expand your search criteria and widen the radius to include Cincinnati/Covington, Columbus, or even Indianapolis? Your strategy may work better in some markets  than others based on the local supply and demand.

3) Yes, Private money is another option, and I recommend Matt Faircloth's book, "Raising Private Capitol" as a way to structure your thinking about, and approach to soliciting OPM. These lenders will care about exactly how you plan to a) protect their money; b) use it effectively; c) provide them a reasonable rate of return. If you were going to pull in private or hard money lenders, you'll need to have a solid plan in place for what you want to do with their money, AND multiple exit strategies to get their money back at the end. 

4) Is there anyone else in your area doing what you're doing? Maybe reach out to someone who "stole" a deal from you and offer to partner with them? Maybe Rent one of their units and offer to manage the property in exchange for mentorship. 

Good luck and keep up the grit!

Respect,

Greg

And OBTW, big 'Congrats' on your first successful BRRRR! Here's to many more!

Howdy Cel,

I think you're correct. But the answer is, "it depends". Asked another way, your question becomes, how fast do you want to scale up? If you take the $15k out now you can quickly put that capital back into another deal faster than if you accrued the $100/mon cash flow for 12+ years. But if you value long-term stable cash flow, over fast cash now, then leave more money in the deal. There are mathematical optimization calculations you could do, but at the end of the day, REI isn't an equation to solve. It's more like a series of puzzles. There is no "right" or "wrong" answer per se, so Good Luck piecing your next one together!

Respect,

Greg

Yes, Aside from my house hacking I have done a couple Private money lending deals. As the money provider, I use my own personal capital to fund other people's REI deals. Right now I am working with a rehabber in Roanoke, VA who is BRRRR-ing a project using funds from my Roth Self Directed IRA (SDIRA). I am also learning about lots of other sources of capital, from 0%APR credit cards, to borrowing against my Govt Thrift Savings Plan.

I choose this investing method because I have more money than time available right now. And this is the best investment with a combination of passive income and higher ROI.