All Forum Posts by: Richard Jump

@Carl Fischer @Bryan O. @George Blower @Edward B.

Thanks for everyone's feedback.

Based on your comments, I'm now leaning toward buy and hold rentals.  The reason I was attracted to lending money was how passive it could be but I now see more clearly the risks involved.  But by getting involved directly in real estate, that will take me into a much more active role, at least from what I understand today.

Are there any words of caution/wisdom in dealing with attorneys and keeping legal costs to a minimum? Are there any unique legal documents required because of funds moving in and out of the Self Directed IRA? What has been your experience with purchasing buy and hold properties using SDIRA funds and the legal fees I should expect? Is it much different than a typical residential closing?

Again, thanks for your time and opinions!

Hello everyone... I recently set up and have moved money into a Self Directed IRA. I initially thought I would loan money on a short term basis to a group that bought, rehabbed and sold properties, but discovered other opportunities once I networked with other local investors.

With a variety of investment options, I met with real estate attorneys regarding required documents and to figure out what their involvement would be with each investment.  I came away with a very strong feeling that they thought this type of investing was more risky than what it was worth.  Needless to say, this took the wind out of my sails.

Considering I'm just learning the self directed funding processes, I'm wanting to learn what scenarios more seasoned SDIRA investors have pursued that might ease me into the use of my funds.  I think I would be most comfortable with scenarios that have minimal legal involvement with a decent rate of return.  Examples of your favorites would be appreciated... along with the types of legal documents and expenses one should expect.

Thanks in advance for your assistance and sharing your experiences.

Hello Mario. Welcome to the BP community. I'm in Omaha and a Investor wanna be. Feel free to contact me or this forum with questions about the market in the Omaha area. As info, I have access to the local MLS, if that is of interest to you.

Welcome @Adrian Cervantes !  Hope to run into you at an upcoming reia meeting.

Hello Nate,

Your analysis is fairly solid.  There are many subdivisions in the Millard school district that fit your description... homes built around 2000 and later, tend to be starter homes and 3 bed/2 bath/2 car.  Not as many in the Elkhorn schools.  Home sale prices in this category have been strong due to high demand and low inventory.  I doubt if you find the price you mention without going for older properties or ones in poorer condition.  Rental rates are relatively strong with rates in the $1200 to $1400 depending on sq. footage and condition for homes that sell in the $140k to $160k range so you are not quite getting the 1%.

Hope that helps!

Within the Omaha MLS, there is a 'Residential Rentals' section that shows what homes are available for rent and what the rental rates are. Some of the local property managers list their rentals there, too. Just need to find someone with MLS access to look them up for you. I'd be glad to assist if you like.

- Rich

March 2nd works for me.  Looking forward to it!

Count me in.  Probably need to start getting an idea of when and where.  Thanks Matthew!

Hello Eric,

It's always good to hear of others in the Omaha area interested in Real Estate Investing.  Welcome!

There is a REIA meeting on January 18th. Go to www.OmahaREIA.com for more details.  There are always a few of us BPers at these meetings and I hope to run into there in the near future.

Lots of good information available at Biggerpockets.  It's a great resource!  Take advantage of it.

- Rich

Please include me as well.  Looking forward to the discussion.