All Forum Posts by: Jonathan Chan
Jonathan Chan has started 30 posts and replied 130 times.
Post: Question for those who are interested or who have a self directed retirement account
- Lender
- Clermont, FL
- Posts 143
- Votes 78
After opening a SDIRA or Solo 401k, what's some information you'd find helpful? Would it be information about how to deploy your cash, investment types, additional information about your current retirement account?
Post: Looking for People who buy stabilized rentals in Baltimore
- Lender
- Clermont, FL
- Posts 143
- Votes 78
I have 1 stabilized rental 2 blocks west of Hopkins Hospital and a tenant moving in on 9/1 on another rental 5 blocks east of hopkins hospital. Looking for serious buyers.
Post: Who has a Self Directed IRA
- Lender
- Clermont, FL
- Posts 143
- Votes 78
Quote from @Todd Goedeke:
@Jonathan Chan Yes,RE investing can be passive.Learn about triple net leasing RE to operating companies or management firms. As lessor they pay for all maintenance, taxes and insurance. There is no management of property managers.
Yes, I'm familiar with them in concept. I haven't gone that route but it's something I will get into later in my investing career.
Post: Who has a Self Directed IRA
- Lender
- Clermont, FL
- Posts 143
- Votes 78
Quote from @Jeff S.:
Quote from @Dan Hawtree:
@John McKee Really not so much based on my experience as on IRC. My related experience is I used to draft qualified plan docs. Currently I provide tax compliance services to a large trustee of self directed services.
Your question has illicited some interesting comments. I find schemes like the self styled "checkbook control LLC" a disaster in the making, as they are non compliant. You simply can not have unfettered access to the quslified funds, period. Of course, the reason they are popular is that someone sold the idea, it would be incredibly convenient. since compliance is presently at a low, the lack of backslap leads people to believe it's ok. Just like the several year period where people took their 401k $ and created an active business. Just like then, you couldn't convince people that the scheme wasn't allowed, Until they lost 50-75% of everything to Treasury.
Read the comments posted. Several contradict each other. That should not be the case.
Your comment, Dan, makes as much sense as saying, “Don’t invest your self-directed retirement money into debt because you will only have to follow the rules.” Yes, there are rules, but they are remarkably easy to understand and follow.
We've been lending from our SD 401k plan to local house flippers since 2010. It's been a great business (sorry, Dan, it's a business) with strict rules that are easy to follow, and it has allowed us to retire comfortably. I started investing in an IRA from my very first paycheck from my first job after college. I eventually converted that into an SD IRA, and ultimately into the SD 401 (k) plan we have today, along with my wife.
@Jonathan Chan wrote:
“I see a lot of people putting a lot of work and effort into trying to grow an account that they don't have access to for 20+ years.”
You look somewhat young in your photo, Jonathan. If not having access discourages you from investing in a retirement plan, reread this thread in thirty years and see if you then agree. I don’t know what “a lot of work” means, but all investments require some effort. Lack of access to the money isn’t a good reason to avoid investing in a retirement plan, if that’s what you’re suggesting. Of course, nothing precludes you from investing in a retirement plan as well as separately with your after-tax, personal funds. Enjoying the benefits of tax-free or tax-deferred growth has been the stronger motivation for me.
I own rental property and I also lend money. I see people working towards buying property in their accounts without the understanding that owning property takes a decent amount of effort. Landlording is not passive. You still have to stay on top of your PMs. I've leveraged my solo 401k to be a private lender or be a LP. Yes, everything takes work, but some less than others.
Post: Who has a Self Directed IRA
- Lender
- Clermont, FL
- Posts 143
- Votes 78
Quote from @John McKee:
I am curious as to the type of real estate or other investments you are investing in and why? What say ye?
I do private lending with a 30 year real estate investor. I see a lot of people putting a lot of work and effort into trying to grow an account that they don't have access to for 20+ years. Find something that works that's low maintenance and let it keep going.
Post: Looking for a Chattanooga Agent
- Lender
- Clermont, FL
- Posts 143
- Votes 78
Quote from @Rik Hunter:
Hi, Jonathan. I'm an agent and sold my duplex this past fall after rehabbing it and self-managing for a decade. Now, I'm just getting starting as a Realtor and haven't sold hundreds and hundreds of properties, so I can understand if you're looking for someone with more experience. But let me know if you'd like to chat.
I appreciate your response. Will reach out prviately.
Post: Looking for a Chattanooga Agent
- Lender
- Clermont, FL
- Posts 143
- Votes 78
I have a couple properties in Chattanooga I bought as BRRRRs and have rented for the past few years. I'm looking for an agent who's specializes in working with investors who can also help get properties cosmetically cleaned up to hit the market. Any recommendations?
Post: Getting Started in Private Lending—What’s the Lowest Amount You Started With?
- Lender
- Clermont, FL
- Posts 143
- Votes 78
Quote from @Steve Chaparro:
I’m looking to break into private lending at some and would love to hear from those who’ve already started. I know some people start with deep pockets, but I’m curious—what’s the lowest amount you’ve successfully used to get started?
I’m considering lending out my own capital initially before scaling up, possibly through a structured fund or syndication model. But I want to be realistic about where to begin. If you started small, what strategies did you use to grow? Did you focus on short-term loans, real estate deals, or business lending?
Appreciate any insights!
There are deals where you can put in as little as 10K. CHeckout a website called fractional.
Post: Do I have enough money to start private lending for fix and flips?
- Lender
- Clermont, FL
- Posts 143
- Votes 78
Quote from @Ivan Castanon:
Hello all!
I am currently reading books and educating myself about private lending. I am interested in jumping in, but I am not sure if I have enough money. I have $110k ready to invest in Florida. I would like to fund a fix and flip deal with a first lien position in Florida.
Is this reasonable or do I need more money? I know that I should try to stay at 60% - 70% LTV. But is this possible with my current capital? Is this LTV based on ARV or the purchase price?
If I don't have enough for a first position lean, is it even worth it getting second positon liens?
Thank you!
There are ways to do a portion of a deal, so the 110K would be more than enough. Make sure you know what security documents you need and the process to ensure that you're actually protected. Never send money directly to a person, everything must go through a title company. Items needed:
- Title policy to protect you against mistakes a title company may make
- Lien on the property, so they can't sell that property or do a cash out refi without paying you out.
- Make sure you're listed as a loss payee on the insurance policy.
- Promissory note that outlines the details of the loan itself
- Personal guarantee, but it's only worth something if the person who's borrowing from you isn't totally broke.
Post: Private Lending Questions
- Lender
- Clermont, FL
- Posts 143
- Votes 78
Quote from @Doug Pham:
Hello all , I am fairly new to private lending documents and am here to get some idea and direction on an agreement and what to include to insure my private lender is comfortable lending.
He’s a good friend and willing to support my home build project for a flat interest rate. In addition to a promissory note he is wanting something to insure he has more security ( maybe a lien / deed ? ). I am also thinking I would attach my plans with a finalized budget to the loan request. I didn't have to do this on previous projects but willing to put it all together.
Land acquisition and construction. Flat interest rate. Principle and interest would be pay back at the end of the project when its sold.
Appreciate any help and feedback.
Everything needs to go through title. Your lender needs a lien on the property, promissory note and a personal guarantee. It's also important to make sure your lender is listed as a loss payee. Don't forget to pay for title insurance as well. You want to protect your lender against any mistakes a title company may make.