All Forum Posts by: L Lee

Dan and Joe, yes, 8 years. But, with my prior employer, I traveled 2-3 weeks out of a month. And, being newer to Jacksonville, I didn't know contractors, etc. No excuses though. It was also out of sight, out of mind, with everything that was going on with my primary employer. However, I am now full time in re investing and still learning. Thanks for the feedback! 

Thanks for the update. Sooooo, another question. Does she have family that may have claims to the house? Has she left the house to someone in a will? Can the family claim that she was not competent to make the transaction? Elderly abuse is real and it doesn't take much for a family member to make a claim... meaning, you may make the repairs and her family doesn't know what is going on. Like I mentioned before, be sure to do your due diligence. Good luck! 

Check your suburbs also like White Bear Lake, Brooklyn Center, Little Canada, or Maplewood-like areas. I haven't lived there in a long time but my parents still do. There are newer duplexes and 4 plexes in those areas. They are probably around the 2k build time. Good luck. 

Hi Niraj. There doesn't seem to be much cushion in the deal for unknowns. Cumming, GA was a fast-growing area when I lived in Alpharetta, years ago. Not sure what it is like now. However, the market has been riding high for quite some time. You know, what goes up, must come down. You didn't mention why the seller is selling and then staying on for 3 months. It's a tight deal but if you can find a tenant that will continue at a $2100 rent, then it could be a good deal (depending on the mortgage and if repairs stay around the $20k mark) If I did the math correctly, that would put a positive monthly cash flow around $1100 a month minus expenses, taxes. Be sure to do your due diligence to make sure there are no hidden issues like bad sewer lines or 2nd mortgages/other liens, etc... Good luck!

I do not believe a primary residence should ever be used in RE transactions. With that said, I would recommend looking for private funding or a funding source that would carry the cost and rehab. I would also try to negotiate the price down, so you're starting with more equity in the deal. BUT, I'm not new but newer to real estate investing and have made some costly mistakes that I have learned from. A 4-plex could give you a nice cash flow and like Antonette mentioned above, there are a lot of expenses and maintenance to consider.  If the number work, go for it. But if the numbers don't, market changes, value changes, or tenant headaches, you may find yourself with 2 properties in jeopardy. My 2 cents!

Investment Info:

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

Purchase price: $43,000
Cash invested: $15,000

2 buildings on one property. 2nd building is a 2 bed/1 bath apartment (2). One building is a large house but is zoned commercial (it used to be a church), and the other is zoned residential.

The back of the property has enough cleared land to build approximately 3-4 townhouses or an apartment building. That is the long-term goal.

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

The rental and future growth potential.

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

My son's realtor offered it.

How did you finance this deal?

I paid cash.

How did you add value to the deal?

The main house (used to be a church & zoned commercial) is being turned into a barber/beauty salon/nail studio with individual chair rentals.

What was the outcome?

Still in the process of rehabbing and setting up the shop on the commercial side.

Lessons learned? Challenges?

Biggest lessons learned is that Georgia allows reroofing over old shingles. There were about 7 layers of shingles that had to be removed and new roof put on both buildings. It cost more in shingle removal.
Also, one building is zoned commercial and the other is zoned residential. The county will not allow the separation of the properties to different addresses because the buildings are too close to each other.

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

I worked with an agent for the contract and a title company for closing.

Investment Info:

Single-family residence buy & hold investment in San Diego.

Purchase price: $7,000
Cash invested: $32,000

Pushed into retirement from an employer due to Covid and 28 years of service. Finally, focusing on real estate. Hoping to complete the home by February 2023. The estimated Cash-Flow per month is $1200. The property is a 3/1 in Jacksonville, Florida. For some reason, the investment info shows San Diego.

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

Wanted to get started in real estate investing on a part-time basis. I wanted a home that had good structure but needed work so I could learn how to fix/repair things. I felt this would help me know if the contractor was doing the job correctly based on what I would learn. However, time and inexperience got in the way. I wasn't sure where to start, who to trust as a contractor, and had no one to oversee the work since I traveled most of the month. Too many unknowns.

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

I joined an REI group and met a real estate agent that located the property for me.

How did you finance this deal?

I paid out of pocket.

How did you add value to the deal?

New roof, windows, floors, bath, and lighting. Painted interior. Still have exterior painting, landscaping, and patio to build.

What was the outcome?

Still working on it. But hope to have a tenant by March 2023.

Lessons learned? Challenges?

Lessons learned: 1.) Build a trusted team. I could have done this through the REI group. Hindsight is always 20/20. 2.) Obtain a financial advisor for a plan that included purchasing more properties. 3.) Start somewhere but start! 4.) The biggest lesson was the missed monthly money if the prop could have been completed years ago!

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

I worked with a real estate agent. Unfortunately, I purchased the property in 2014 and do not remember her name. But, if I do, I will update the post (if allowed).

Hello everyone. 

I am trying to create an SDIRA LLC EIN number. I followed the instructions from the trust company to register the business. The trust company will not advise on the EIN number but refers me to my CPA/Accountant. I contacted them and they want $1200 bucks to register the SDIRA LLC for an EIN number. A cost I find ridiculous.

I went to IRS.Gov, clicked on apply for EIN number, then when it asks, "What type of legal structure is applying for the EIN," I chose, "View additional types, including tax exempt and governmental organizations." On the next screen, it lists the other types, and I chose "IRA." A few screens later, it asks for your qualifying ss number. I keyed in my number and followed the prompts. I entered my LLC business name but when the EIN issues, it stated my name, IRA.

I tried the other way where I chose LLC as the legal structure. I chose the number of members as 1 (the SDIRA) and the state. I chose "start a new business" but the next screen only allows for an owner/member. I can only be the manager per the trust company.

Can someone please advise how to correctly obtain the EIN number for a SDIRA LLC?

Thank you so much!! Lisa