All Forum Posts by: Eldon Hongo

Do you know if this loan has a due on sale clause or could it be transferred/assumable?

Is this standard operating procedure? This agent is rental property landlord (20+) and a potential mentor. He s been doing this in this area for 30+ years. I am a new investor and am going to purchase my first rental property as soon as I find a good one. His commission can be included with the loan but I also don't want to handcuff my other potential options with other realtors and FSBO. Thank you all for your advice

Congratulations! You did it right. JV w/experience and knowledge. Good luck the rest of your way

Aloha, EldonHongo

I would never sell the goose that lays the golden egg! $1700 p/month net! Get a heloc or refi for down payment on another rental that has potential positive cash flow,equity, and appreciation. Your original house has enough positive margin to make a heloc or refi easy.

I invested in precious metals and made 8% in 6 1/2 months. Gold and palladium were the best performers silver only shows potential. Best of Luck to you

Greetings Brandon! I haven't come across any books on this subject but one of the countries most prominent custodians that you'll need to work with, has a ton of info on this process. They provide webinars,articles written by professionals and links to people doing exactly what you're interested in. theentrustgroup.com is based in California and they handle over 7 billion dollars of self directed IRA funds. My personal custodian I use is kingdom trust.com in Kentucky. I live in Wyoming and Hawaii. After I transferred funds from my traditional IRA to a self directed IRA LLC, through kingdom trust, I then was able to invest in real estate, precious metals, stocks/mutual funds, crowdfunding investments and the lists of available options are impressive. Of course you have to jump through many hoops to facilitate this checkbook control, but it's definitely worth it. Aloha, Eldon

Greetings Kate! I have no experience with this loan but it looks like it could work in many applications. It seems similar to a non recourse loan. Do they require larger down payment and charge higher interest with shorter duration? Can you disclose contact info and more details on this loan please? thank you and good luck.

Eldon Hongo

Thanks Brian for your accurizing clarity. I have always had a passion for real estate but previous options disallowed it. I even entertained crowdfunding in REIT's. But that is also a static, mechanical investment instrument. Real property has soul and a significant life contributing pulse. I'm located near Cheyenne, Wyoming so perhaps we may correspond more in the near future. Aloha, Eldon Hongo

Any experiences with using a non recourse loan for a self directed IRA to buy a rental property? Pro's, con's?

@Dawn Brenengen

Greetings Dawn! Hope all is well. It took a few days to obtain info from the usda office because of government shutdown. I talked to them today and you are completely correct that I can’t get a loan for purchasing a rental property through them. In Brandon Turner’s book “Investing in RE w/no or low money down” he indicates that the usda offers a loan w/10% down for non owner occupied property.

Oh well. I just have to go another way. Thanks for your correspondence and Aloha, Eldon HONGO