All Forum Posts by: Jordan Lassiter

So, me and my business partner have built a decent portfolio and are now getting to the point where we need to raise capital to keep the ball moving at a good pace. I have a direct family member who wants to invest with us a debt partner. We have come to terms with an initial 70k investment from her at 8.5% interest for 5 years which can be secured by a piece of real estate. The wall we are hitting is that she wants to use her traditional retirement account but does not want to be taxed yet. My understanding is that you can roll the 401k into a self-directed IRA without any tax penalties, and she is over 59.5 years old so there is no pre penalties either. I'm having a hard time finding a custodian that offers this type of account for this purpose. Most are telling me it can be done but its murky waters and that's about it. The process would be that she rolls her traditional 401k into self-directed IRA, then wires her 70k investment from IRA account to our LLC our LLC will pay her monthly installments at 8.5% and balloon payment at year 5....Can this be done????

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $110,000
Cash invested: $30,000

Wonderfully remodeled duplex in Albemarle. 2 large bedrooms on each side with one bath. Hardwoods have been restored. Separate drive. Glassed in back porch with a large yard. New roof in 2016 as well as an ac unit. Great income producing property.

What made you interested in investing in this type of deal?

Personally we love multifamily. The more doors the better and this was a off market deal brought to us so it was effortless on the buying end and not worrying with any competition. Most duplexes don't last a day on the market in our area

How did you find this deal and how did you negotiate it?

This deal was brought to us by our property manager off the market. This deal alone shows how valuable networking is to get the proper amount of deal flow

How did you finance this deal?

conventional loan for 30 years, 2.75% at 25% down

How did you add value to the deal?

We updated one side with new paint, blinds and had a new heat pump installed. We also installed a washing machine hook up in the laundry room and removed it from the kitchen

What was the outcome?

We renewed the lease of one tenant and put a new tenant in the updated unit.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes we worked with Kimberly Lambert with four seasons reality. They also manage our properties