All Forum Posts by: Jackie P.

@Glenna Wood

Are you still with Madison Trust and are you still happy with them?

I am definitely not a big fan of Madison Trust. They cannot meet their advertised 4 day processing window and if they have questions or require minor changes to any form, the 4 days starts over again. Of course, you can pay a $50 fee to expedite. And, their fees have gone up considerably since I started using them when Sunwest Trust got out of the IRA custodian business.

Can my IRA purchase a mobile home in a park that is titled as personal property?

A previous IRA custodian told me that my IRA could not purchase personal property mobile homes in parks. They said I could finance them for another buyer through my IRA. A brief search on the forums here seems to indicate that may not be the case. Also, I have perused the tax code and none of the prohibited transactions seem to apply to personal property mobile homes.

I have done this in the past with used homes on land, but not on a permanent foundation in the Houston area. I have owner financed them back out and still hold the notes.

Best market is wherever affordable housing is needed and there aren't zoning restrictions that prohibit MH.

@Justin Turner, that was my model for several years with used homes on lots I purchase in a MH subdivision in the Houston area. I bought the lot, installed the culvert and driveway and pad, put in electric and water and septic and owner financed them back out. All of this was done in my ROTH IRA. Affordable housing is so badly needed.

@Misook Foley I just did my first 1031 exchange with my duplex! I sold my duplex and bought 4 turnkey manufactured homes (rentals) in 4 different parks on land leases, so they qualify as real property. I am the owner and I have everything in place to manage and maintain the homes. It's a breeze. Happy to provide more details if you are interested.

Good luck. It sounds scary, but it's really simple if you know the rules and the timeline.

Your ROTH IRA can invest in property. When I first started out, I bought a mobile home on land for 10K and sold it for 19K and owner financed it. I think the buyer put 5K down, so I was only out of pocket for 5K. All the payments went back into my IRA. Wash, rinse and repeat!

As a new investor, I highly recommend you start where you live now unless it is cost prohibitive.  I say that because you will need to build a team and you should already know people where you live.  An easy way to get started would be to move out of the house you are in now and rent it out, either short or long-term.  Buy another house to live in using conventional financing for primary residence.  Good luck!  

We are currently rehabbing a Gilpin County property.  Would love to chat with any others in that area.  On the hunt for a solid cleaning company now.  Planning to open for business sometime in March 2022.

Summary:

1. Owners:  Husband died in Jan 2021 in CO, wife in Jan 2022 in IL.  Neither had wills.

2. Heirs:  One son and one stepson, both are willing to sell to me.

3. Currently not in probate.

4,  Foreclosure auction moved multiple times, now scheduled early Mar.

5.  I have a CO agent who can write the contract.

Question: Can anyone point me in the right direction with next steps?