All Forum Posts by: Dan Schwartz

@Lindsey Vargas I ask for them when I've narrowed the field.  I do background checks one at a time, and it includes their submitting pay stubs.  A well-qualified applicant should have no problem submitting these, and a well-organized applicant should have no problem procuring them (even if they don't log in and look at them every single pay period).  I am increasingly running into large employers outsourcing their employment verification, which is adding to cost-creep.  I don't like to have (and thus need to safe-guard) any more personal information than absolutely necessary, so my application says pay stubs will be needed, but I do not require them to be submitted with the application.

Sounds good @Roger Rosa.  Best wishes!

@Roger Rosa are you in a position to keep the existing house AND buy a place in your desired neighborhood? That's the path I'd take. You haven't said what your existing house is worth (nor do you need to), but remember that getting a LOC that exceeds 80% combined loan-to-value will be difficult, if not impossible. So, some portion of that $175K in equity is not accessible. And as you've seen by listing your house, selling will eat a portion of your equity as well.

@Peter Austin, I'm not familiar with your market, but the five-year appreciation of only $66K caught my eye.  It lags the local index quite a bit.  Will that change and will you see the appreciation you seek over the next 10 years?  Sometimes houses we buy and enjoy for ourselves are not the best investments.

Data source: https://fred.stlouisfed.org/series/ATNHPIUS34017A

You can accept checks via Stripe.  It's rather complex to do so.  Your bank's Treasury Services Department likely offers a lockbox service where they receive and process checks on your behalf.  Some people just like to send checks.

@Uzair Syed I've never had to report to whom I rent the property acquired through a 1031 exchange to anyone.  It's immaterial.

@Jimmy Chao unless you take the house hacking advice/route, do whichever is the lowest housing cost you can put on your first mortgage application.  We had this same question when we started and our mortgage broker pointed out that we could lower our housing cost by $300 a month by buying in our area.  Not only was that a wise financial decision, but it allowed us to get a primary house (which has since been Section 121'd) AND our first rental.  Lowering our monthly housing outlay was key to that step.  Good luck!

@Casey Parish, it's all good.  I'm not sure how valuable my opinion is in this space, as I have near-zero experience here (I've looked at a few deals offered to me, and didn't have the ability at the time to devote the time necessary to fully understanding them, so I passed).  But, just thinking from a purely business standpoint, I'd be looking for your exit strategy.  If this is a property that will just throw off cash for a long time with minimal improvement, then I'd want to invest for the long-term.  If it's a property which is going to see a massive increase in value in a short amount of time, then I'd expect the property would be sold and everyone cashed out when it reached maximum potential value.  

I've seen both models, and I don't know which one you are.  Also, different investors will look to be in for different lengths of time.  

@Todd Stennett I guess I'll have to contact the owner of IRA Financial Trust, then, since no one else at the company follows through with their promises.

@Couryn Beleck ask any provider if the annual certification of assets is included or not. At IRA Financial Trust, for example, they charge $199 a year on top of the other charges to certify that your investments are compliant. That said, when I called and emailed about such compliance, I was told to talk to my CPA. When I called someone else to ask "why should I talk to 'my CPA' about this when my $199 buys 'unlimited' access to your lawyers and accountants?" I was told I would get a phone call from a lawyer that night. Six months later (and additional follow up requests)......all I've received is the next invoice for $199. Clearly, I do not recommend IRA Financial Trust. I have an HSA there, so maybe an IRA would be different.

Conversely, I have found Sense Financial to be wonderful. I have a solo 401(k) there, and they also offer self-directed IRAs.. I have to imagine that the majority (if not all) of the active providers on BP are top-notch.  

Good luck!

@Casey Parish, the agreement to be bought out is a big turnoff.  If someone has enough confidence to fund your very first deal, and it goes gangbusters (whether by skill or luck), do you think that person would be eager to back your next deal after being unceremoniously kicked out of the first one so you could retain the outsized profits for yourself?  Kudos for exploring this.  I don't have anything to add about the numbers, but the buy out did catch my eye.  Good luck!