All Forum Posts by: Jim Goebel

@Abdullah Dimion

I'm pretty bearish (pessimistic) on Chicago; I'll keep my eye on it but until the overall crime, and both real and perceived corruption and moral hazard stuff gets worked out, there's no end in sight for their $5-6k / yr in taxes for one of those cheaper homes you're referencing.  It's a shame because there's a lot of houses and opportunity there if it wasn't for that.

I'd recommend checking into middle tier markets a bit more, perhaps things like Witchita KS, Des Moines IA, Omaha NE.  I can't speak to all of their numbers but there are deals out there.

@Deshawne Peak

Get creative with phasing in the remodels, perhaps?  When you do that, use the cash flow to fund future work, even if it means you have to go slower... You'll need to be very, very, smart about splitting up that scope, and renting a place partially.  

Most lenders lend on cash flow; however you may find a lender who has experience in more equity lending, but those tend to be investors that don't mind 'taking' your asset, if you catch my drift.  As in, a worst case default situation they'd still feel good about their position.

Good luck

@Jared Garza

This looks like an 'on slab' house/pour?  Image is rotated.

@Joshua Yang

A few 'stake-out' nights, or perhaps even confrontational barging in and letting airbnb guests know the situation and that they cannot stay there, and informing them they need to give a 1 star review, will have a huge impact.

If you want to go all the way, as well, you might see if you can get law enforcement involved.  Some people don't get certain messages unless they are faced with dire consequences, unfortunately.

@David Brooks

I'd rightfully be nervous about wiring funds to someone to handle stuff.  If you're not going to put the pieces together yourself, including the closing, and figuring out how to make the time you need in the area you're investing in, you're doomed.  Just do some searching on folks with out of area horror stories and you'll hear enough reason to be nervous - and enough examples of what not to do.

Doesn't make it easier; but the choice to live comes with consequences. REI is something for the already established, usually, in high priced markets, or the active 'doer' that is doing active re-development or fix and flips. The passive investor - not so much. The out of town passive investor, well - with capital, they are regarded as a mark by many. For contractors, they're hard enough to get to do what you want when you're right there cracking the whip...

@Blake Johnson

I'm not sure about partnering with someone OUTSIDE of an IRA but I was just informed that you can partner with someone else with a self directed IRA. Also, you can partner with funds in a Coverdale account (that's an educational program kind of like a 529 plan).

I use Strata Trust Company and have been pleased with them.

@Henry Budrewicz

Do you have any avenues to get your hands on some actual tools, real working experience, etc?  That'd make a lot of sense and help you long term.

@Maxine Kunimura

This may not be what you want to hear, but if you feel dependent on a contractor to effectively cost out a fixer upper, you may be dependent on them in a way that you don't want throughout the project.  I'd suggest figuring out how to get into some work yourself, even if it means taking on something less appealing initially as a project.

For that contractor (that's any good) they don't want the risk that they're wasting their time going out to walk a site that may or may not close, or that you may or may not actually use them on...

Most that are any good aren't contractors anymore, by the way.  The one's that are good figure out they can do much better as an owner, and have the integrity to build credit and not be creepy.

@Nicholas Fazio

@Carl Fischer

I've had a brief conversation and my understanding is that there may be a mechanism to essentially add something to the 72t balance over time, thus increasing the payment / distribution (which by the way is taxed at marginal income amount).  I could be wrong on that, but that's the one data point I have.

By the way I was also informed to be careful about flipping houses under the IRA. Makes sense, and that's fine with us as we don't do much of that anyways.

@Carl Fischer

Hi Carl, thanks! I'm wondering when you say buy and holds with 72t works, do you mean we'd just evaluate getting some of our growing cash balance amount out in the 72t, or is there some way to directly convert that income (ie rent payments into the IRA) into payments? I guess if there was some mechanism to commit future rent payments and get the balance in line with the discounted future cash flows, and then use that to 72t - if that makes sense. Not sure if some mechanism like that exists?