All Forum Posts by: John Williams

In general, the "lazier" methods will net you smaller returns. The more work you're willing to put in, the higher return you should expect. 

On the passive end of the spectrum you have a couple options. You could lend money to other investors (even this requires due diligence). Or, if you are an accredited investor, you could invest in a fund. You could also purchase shares of a REIT.

On the other hand, you've got several more active options. You could flip or wholesale properties. The amount of work required here is much greater, but you could potentially have much greater returns. 

All of these options can be "profitable." The only question is, how much time do you have?

I hope that perspective helps!

-John Williams

-Investor from Clarksville, TN

I want to start using my self-directed IRA to lend money on various small to mid-sized projects. I was planning on creating a website to offer various products and terms.

For example, my page might say something like "Borrow $50,000 at a 10% interest rate for 12 months."

The goal is to serve as a small-time "hard money" lender. Am I allowed to offer these kinds of products? Do I need any kind of license? Are there certain advertising rules I have to follow? Are there any kinds of restrictions as far as what kind of products I can offer?

If there is anyone out there who self-directs their IRA or lends privately? I'd love to chat and pick your brain a little bit!

Thanks!

John

Investor from Clarksville, TN

I recommend going with the option that allows you to put the lowest down payment. Money is so cheap right now, there is every incentive to borrow as much as you can. 

With that being said, make sure your payment is still reasonable and you do have adequate reserves!

I am not positive but I think you can only have one FHA loan in your name at one time. Perhaps refinancing into a conventional loan at the one-year mark could solve this problem?

If you can't refinance after one year and re-use the FHA loan, I would just try to find another loan program with a low down-payment option. I have heard of 10% down programs for primary residences. I bet you could find someone who would do it for 5% down.

I would just save, save, save that first year. Try to build a substantial down payment. I have been house hacking with the VA loan since 2017 using a similar strategy. With the VA Loan, you can have have more than one out at a time. This is a great (and underused) benefit for many Veterans.

I hope that helps!

-John Williams

Investor from Clarksville, TN

This is just a hunch but I think these older investors might not fully understand the impact of technology (as highlighted in Long Distance RE Investing) and how it has changed the game and made it possible to invest out of state. 

Here's a little thought experiment:

Suppose you've lived in a city your entire life, let's say Clarksville, TN. At age 30 you decide to move to California. Once you arrive, you discover Bigger Pockets and really start educating yourself on RE Investing. You quickly realize that your new market is too expensive. 

Now, would it be a bad idea to invest in Clarksville? Technically you would be investing out of state! However, you know the market very well and you have friends and family there. Maybe you already have a team in place!

Investing "out of state" is really just a mental barrier to entry. What's the difference in investing in your own city? What about 15 miles away? What about 100 miles away? What about 500 miles away? If you know the market, do your due diligence, and have a great team on the ground, investing "out-of-state" is really no different than investing in your own back yard. 

I hope that perspective helps!

-John Williams

Investor in Clarksville, TN

@Jonathan Yeh

I would do a BRRRR. You'd still be buying and holding but this is the best way I know to exponentially grow your portfolio. Make this project your One Thing give it all your focus. Make sure you get a good deal, know your numbers.

@Matt Hudson

Check out Clarksville, TN!

I live, work, and invest here!

If there are any active duty service members or veterans out there thinking about investing: Your VA loan is a great way to get your foot in the door! You can buy a small multi family or even house hack a single family home for no money down! Ive used this strategy myself and have seen others use it successfully as well!

I'll be happy to chat with you military investors out there!

John Paul Williams, Realtor/Investor

Clarksville, TN -"A growing city where appreciation meets cash flow"

The easiest way for veterans to get in with no money down is with the VA loan. True, only active duty service members and veterans can use this option, but not many do! Get started by buying a small multifamily or even house hacking a single family home!

Great way to get your foot in the door!

Cheers!

John Paul Williams, Realtor/Investor

Clarksville, TN. -"A growing city where appreciation meets cash flow"

@George Walker IV

I’m also an active duty investor. In fact, I’m a realtor now as well! I’m located in Clarksville, TN and I invest in rentals in town. If you have any questions about local rentals or the realtor side of things feel free to reach out!