All Forum Posts by: Christopher Telles

Here are a couple of questions I would consider asking:

1. When investing through a self directed IRA does it matter what type of IRA it is e.g. standard IRA, Roth IRA, SEP IRA (self employed pension).

2. How is debt treated in an IRA investment

3. How do I stay clear of issues that threaten to disqualifying my IRA as a tax deferred investment vehicle.

4. How must the IRA investment be listed on the ownership entity/docs.

5. Can the IRA be a stockholder in a private corporation or a member of an Llc

6. Is there an affordable service that can be utilized to keep the IRA in regulatory compliance

 Really what do you have to lose by asking? Exactly, nothing so ask. 

If she isn't interested then offer her $500-1,000 to execute a quit claim deed but before you accept it make sure you've checked title and know what obligations you'll be assuming.

if the bank went bankrupt there's a fair chance another lender acquired their assets. 

Start by Googling the bankrupt bank name with a search such as "who bought x bank" or "x bank bankruptcy". You'll need to read through the information and documents that appear and then start looking up companies or people mentioned in the found information.

You can also look up the trustee that's listed in the deed and call them too.

As a last resort your state Secretary of State or comptroller should have an operating unit that works in cooperation with the FDIC or other federal agencies that oversee bank closures.

$100,000 per year is a worthy long term goal. However, getting there should built around a series of short term goals.

These short term goals should be built around your desired earnings potential, the type of asset you find attractive, and your tolerance for risk.

There is some sound advise already here I this thread, but I can't notice that it's all linear. Advise geared towards only SFR or MF. Why?

If the goal is to hit a certain 'income number' (and not ('invest in residential properties') why not consider investing in real estate assets that typically pay much greater returns.

Residential real estate is a great asset class, but it's also an asset class that atypically pays the lowest returns for buy and hold investors (assuming no distressed or value add acquisition). Why is this so attractive? Is it because of the relative ease of financing? Is it asset familiarity? 

Idk, but if we go back and review the original goal then if any of the above is a reason to stay in that particular asset class then it might be time to reconsider the income goal (or at least it's time horizon) or instead consider expanding the investment horizon to include buying real estate assets that consistently pay a much greater cash flow return and enjoy equal or greater rates of appreciation.

Incorporating the latter into your investment universe could substantially reduce the amount of time required to hit your desired income goals.

 That's a great first step. Now to complete the qualifying process simply ask them "are you willing to assist a buyer in financing the purchase of the property?". You're likely to get one of two responses; No (which is really not a no until they've rejected an actual offer (and for me they need to reject it at least three times) or what do you mean (or what do you have in mind). 

If the answer is the latter then you should already be prepared with a potential structure based on the quick analysis you may have already completed prior to making your call.

I just made that exact same yesterday. The seller asked what I meant so I told him financing 30% of the purchase price (I already knew I'd need at least a 25% carry back to buy it quick using hard money). I did say in what position the carry back would be in. His next question was "so you would pay 70% at the closing?". My answer was "yes, I could pay you 70% at the closing with the amount you finance if it is subordinate to my new loan". Him "I could do that".

you are right that is a bad situation.

If you can afford to pay the taxes then pay them, I'm assuming you aren't going to walk away from the property, and see if they record immediately.

If they don't then get your lawyer involved asap.

I'm not sure you would want to "bundle" several properties together to do a commercial loan. 

Bundling in real estate is cross-collateralizing real estate assets under the umbrella of one loan. One loan  experiencing one problem equates to way to much risk and a possible loss of more than one property.

I know people who do LOC's to gain cash buying leverage and these loans are personally guaranteed. One blip and phooph everything the own is at risk.

While cross-collateralizing properties isn't the same as an LOC it does have the same consequences against the asset securing the loan should problems arise during the loan term.

 @Russ is right much more details including objectives would help others to offer advise on how to get good deals done.

The deal you mentioned, using only the details provided, is not what any investor would consider to be a good deal.

With a rent of $3,400 per month using 50% as the expenses the NOI would be $1,700/400k = 0.00425% return. That's assuming all four units are rented.

In any reasonable real estate assessment this is a negative cash flow deal.

 Typically in real estate borrowing/lending there is a promissory note that is secured by a lien on the property. There's only one lien created to secure the note (loan).

 In the note your investors would own x% of the note that is secured by the lien. Say two investors would own 50% each, four 25%, etc., where they're individual interest (either personally or through their entity) in the note is secured by the lien that is recorded at the time of the loan.

"but I am curious if the rules of forced appreciation still come into play" not sure what that means. Anyway, how you finance these units will really depend on what your plans are for the units.

Since you have separate buildings on separate lots you may want to consider financing each with a conventional loan. This would give you the flexibility to hold onto some and or sell less than all at opportune times to sell. 

If your goal is to operate and manage all the units as one large complex and package them for sale as one complex some time later then you might want to consider obtaining a commercial loan at today's low interest rates. A buyer can then assume the loan later after rates have risen and you'll make your property more attractive Vs competing properties in a higher interest rate environment.

Create a short term and long term business plan for these assets and this should help guide your decision on which way to lean in financing the acquisition. You might also want to price the cost of each option. You'll need to pay for points, and appraisal cost for multiple properties Vs a commercial appraisal.