All Forum Posts by: Todd Dexheimer

@Wesley Branaman the DST is the replacement property. In today's market many people are placing their money in a DST after they do a 1031 exchange since the market is getting inflated. Many people think that this market has reached its peak. If you place your money in a DST when the market crashes and then starts to rebound you will have an opportunity to 1031 exchange Again.

Two suggestions: 

Buy it on a lease with the option to purchase or master lease

Or find him a replacement property - this is easily done by hooking him up with a company that offers DST's (Delaware Statutory Trusts). A DST is basically a great 1031 exchange tool to park your money after a sale tax free. They are usually set up to invest in "mailbox money" investments, like a walgreens, Wal mart, etc type building.

Have a plan and tell them your plan. Not just what your doing with that 1st investment, but what you plan on doing going forward. If you have some spreadsheets showing the profit/loss of the building now and in the future that would also be good. Also you should have a good understanding of your own financial well being - income, debt, credit score, etc. 

To ask the bank: 

- interest rate

-loan terms

-length of the approval process

-fees at closing and any other fees

-lending limit in the future. 

-What their favorite toppings are on pizza

Good luck and no need to be nervous

The fastest way in my mind is the by a rental house, fix it to add value, then finance it to get all of your money out and do it again. The other way is to buy apartment buildings or commercial real estate - you can do that with little to no money if you raise the money through a syndication. Of course the other ways are to wholesale and flip. That creates a 2nd job, but can be a good way to get some extra money.

Choose the market based on new jobs and job types, population growth, affordability, city involvement towards positive growth.

Former high school teacher hear - turned Real estate investor! Good luck with you're aspirations. I don't wholesale, but from what I know it is all about the volume of marketing. Focus on finding the deals and you will naturally find the buyers. I see too many wholesalers focus on finding buyers before the deal, which makes no sense. That's my 2 cents - oh and don't forget to use the profits to buy rentals

If you can put 50% down - $43k, then find something that will cost around $200k. You may be able to get a 5-8 unit at that price. The more units the better for out of state

Use an inspector that does business with multi-family. He/She will do a survey (inspect 3-5 units) and inspect the mechanicals, roof, exterior, foundation, etc. This will cost between $2k-$5k depending on how much you have them do. I would also get the sewer scoped and a termite inspection. You should also walk all the units. 

@Cody L. I require tax statements prior to the expiration of due diligence and have never had anyone second guess providing them. 

Limits and rules for the 401K loan. What you can do it transfer your money into a self directed IRA and use that money to invest in real estate privately as a lender/equity partner or invest in your own income producing real estate. You cannot take any gains (cash flow or otherwise) until you reached retirement age. You also loose out on depreciation and tax benefits, but don't pay additional tax on the gains. Google Self directed IRA custodians and a handful of companies will come up that can explain in more detail (equity trust is who I've sent my limited partners to). Also, you can't transfer you companies IRA into a self directed IRA unless you quit or get fired.