All Forum Posts by: Jeremy Paschedag

I have thought about getting my license as well and have had the same concern, as far as where to hang my license. 

From my understanding, if you are buying at least 2 properties a year, it might be a good idea to have your own license.  Assuming you are an investor.  If you want to be an agent, then that's a different story altogether. 

As an agent you'll have quicker and more accurate info on property with your access to MLS. Other online sources are not the most up to date. So it could give you an edge to see a property before Realtor or Zillow are updated. Then, of course you don't have to wait to get on an agent's schedule to see the property (still just need listing agent's approval of the time slot).

I think it's a good idea, in addition to the above, because it keeps you in the RE business.  Keep us posted on your process. 

Rehab costs? 

Dmitriy and Mark are the expertsame. Dmitriy has helped me with my Self Directed IRA in the past.

If you do not already know, don't take a loan against your account.  However, if you have checkbook control, it makes it easier to pay for things with your SHIRA.  The loan you have to get is a non-recourse loan.  There are not a lot of places to get those.  Find 1 or 2 and see what rules they have for property requirements.  In short, you can use your SDIRA account to purchase rental property. But unfortunately, you can't do any work to the property except tenant screening and rent collecting.  That money has to be deposited in you SDIRA account (or bank you have checkbook control).  You can take disbursements, but will be taxed at a high rate.

Thank you @Xavier G. for the follow up.

And Thank You @Joe Swanson

Hi Carlos, welcome to BP!

I echo what @Jordan Grimstad said about the book The Book on Estimating Rehab Costs.  You can get it here or on Amazon.com.  And about what Jordan said on closing costs.  With rehab costs, prices vary depending on area for both materials and labor.  You could measure your kitchen floor to get an idea of floor square footage, then go to a big box store to price materials to install.  Ditto for cabinets, bathrooms, waterheaters, etc.  Then you could call a handyman to get a rough idea on labor for a couple projects.  Then call a contractor and get the same.  Don't call more than one or two, they have jobs they need to work to get paid.  Then you should have a rough idea of the different costs for various project work.

The key to a successful BRRRR is buying below market value. Usually this means a distressed property, estate sale, foreclosure (may involve a LOT of rehab work) (my understanding is these are slow moving deals just to get to the closing table).

Buy and Hold and BRRRR are similar. Both are buy and holds, but with BRRRR the idea is to repeat the process in short time. This is done through buying below market value and refinancing. You make money when you buy, you just don't realize it until you sell.

The first property will be scary.  You'll make mistakes.  Forgetting some costs or expenses.  Learn from that and hone your process.  You'll get better.  Don't let the NOs get you down.  Keep your dream in mind.

Thank you for your service!  I appreciate that very much!

Welcome to BP!  TONS of knowledge here.

If you want, I can run your numbers and show you the results to give you another prospective look at the deal.  I'll send over a colleague request so you can send me the numbers.  I do not want to know the address of the property.

State Farm does both.  At least in Missouri they do.

@John Leavelle  @Xavier G.

THANK YOU both so much!

@John Leavelle

OK, that's what I'm wanting to do - avoid PMI. "Cash in" refi would be 20% of that loan? So in my scenario, 20% of $60k?

If you do not have money in after the refi, do you have to pay mortgage insurance (PMI)?