All Forum Posts by: Ray Li

@Brian Eastman Does being an out-of-state investor make things more complicated with regards to UBIT tax? If I flip maybe one or two houses a year and do private lending rest of the time with my SDIRA funds, would that work?

Thanks,

Ray

Hi follow Dallas investors, my name is Ray, I'm an out-of-state investor from California, and I'm considering using my IRA funds to flip and sell houses in the Dallas area. I'm looking for an investor who has done the same thing (using SDIRA to flip) and has time in the next few months to help me through two or three flips, in exchange for half the profit on each flip.

I have around $130k in my IRA, so I'd like to target 3bd/2ba or 4bd/2ba SFH's with a purchase and rehab price of around $120k (leaving room for errors) with an estimated ARV of at least $150k. I've already started a direct mail campaign in the Garland area, which should be a decent area that fits my above requirements.

To be specific, I have a rental property already but I've never rehabbed a house before, so I will need help with everything including:

• How to set up an SDIRA and use it to fund a purchase
• How to set up a legal entity for a partnership to split profits.
• How to perform thorough due diligence on the house.
• How to select good general contractors and how to evaluate their bids for extensive rehabs.
• How to manage rehab progress as an out-of-state investor.

Let me know if anyone is interested in this, or whether or not I need to make any changes to attract experienced investors.

Thanks,

Ray

@Bret Blackburn Hi Bret, I'm also planning on investing in the DFW area. I'm looking for a real estate agent who has experience working with investors. Do you know anyone that you'd recommend?

Thanks,

Ray

Couple of reasons

1) I'm currently renting an apartment with 2 roommates. We split the rent between the three of us, but my mortgage broker told me that I will still be liable for the entire rent when calculating DTI ratio. This makes it harder to get a loan, although not impossible, from a conventional lender.

2) My broker also told me that even though I can now get up to 10 loans from a conventional lender, I'd have to wait some amount of time between subsequent loans. I'm just starting out right now, but as I scale up I'd rather not wait to be eligible for another loan.

3) Working with private lenders will hopefully give me more flexible terms, for example interest only payments, that's probably not possible with conventional lending.

Hi, most posts and articles I've seen on private lending talks about short term high interest rate loans. I'd like to look into how to structure long term loans with private, with respect to interest rate, interest only vs 30 year amortization, loan period.

I'm considering buying and holding distressed properties and repositioning them using my own cash, and then find private lenders (as opposed to conventional or commercial lenders) to do a cash-out refinance. If I were to offer first lien position on the property (but no additional collateral), with around ~70% LTV (based on appraisal after repositioning), 5% interest only payment, and 10 year balloon payment with some kind of per-payment penalty, is this something lenders would be interested in? Or would you want better terms?

Thanks,
Ray

@Chris Policicchio Great thanks!

@Ronald Rohde I'm actually considering purchasing investment properties in Dallas. Would you happen to specialize in securities? Or is there anyone that you'd recommend?

Thanks,

Ray

Hi, does any one recommend any securities lawyer who can help with setting up private lending deals in the south bay area?

Thanks,

Ray

Hi, so I read through a couple of posts on how to set up a private lending deal, and most people said to talk to an attorney with experience in SEC guidelines.

My question is that does the state matters? For example, if I live in California, buy investment properties in Texas, and look for private lenders in New York, should I be looking for attorneys licensed in California, Texas, or New York? Or does it not matter?

Thanks,

Ray

Hi question, when I use DFE at let's say 75% LTV, is it

1) 75% of my initial purchase price?

2) 75% of the appraised value at time of purchase?

3) 75% of the appraised value when I apply for DFE later?

Thanks,

Ray

I'm just looking to get into investing, and I'm trying to compare the BRRR strategy for SFR vs MFR.

Is this stabilization period something specific to MFHs? For SFR I was under the impression that as soon as I rent out the house I can refinance to pull out the equity.

Hypothetically speaking, if I buy an older MFH with 50% vacancy, even if I rehab the vacant units and rent it all out, I still have to wait an year for it to stabilize before I can refinance?

Also does the reason for refinance matter? For me I'm just planning to buy and rehab with cash, and then refinance to pull out the equity.

Thanks

Ray