All Forum Posts by: Tim S.

If the 401k is with a previous employer then you can move it to a self directed IRA, from which you can invest in real estate without triggering a withdrawal. There are some significant restrictions, but it is possible. I'm going to assume from your age that the 401K is with your current employer.

You do not need to be an accredited investor to buy notes. Some note funds will require it though. 

Just to add, regarding the original down payment amount.  I was selling a note last year, and the buyer wanted to know what the original down payment was.  I didn't have that info, the buyer couldn't understand why I didn't know.  But the fact was I didn't have it, nor do I think it was important information.  I knew what their original loan amount was, and when they bought the house, but I didn't have in my records the sales prices, and couldn't find it on-line.  This was a loan originated in 2006.  

If it's a newly originated loan, seller financed, then the down payment amount would be pertinent info.  But for an older loan it doesn't really matter.  

You have to set a rental price that is competitive and still allows you to make a profit.  See what your competition is pricing their rental for, try to be the same or a little cheaper (for similar properties: location, size, features, condition, schools).   

Not sure what you mean by "fair to the renter", The market sets the price, not the landlord.  That question kind of implies that landlords can set any price they want and potentially gouge renters.  If your price is set too high no one will rent it, they have other cheaper options.  If you set it too low, you will probably lose money.  It's not that easy to make a profit, unless you inherited the property, or have owned it for many years. 

I've read at least 5 books on note investing, the only one I'd recommend is "Bulletproof Title Due Diligence: Protecting your investments", it's very detailed on one aspect of the business, probably the most important aspect.  All the other books are very superficial, probably worth getting one if you know nothing about notes, but you will quickly be needing more information.  "Paper Profits" is one of the better ones. 

@Bonnie Low it's much more unpredictable than traditional RE, lots of hidden issues, legalities that I have no expertise in.  I know how to fix just about anything that goes wrong on a house.  Not that I do the work myself, but I know what it takes, and what to expect. 

I have no idea how to fix legal issues, don't like being at the mercy of lawyers, BK courts.  Dealing with a lot of unreliable people.  There is money to be made, but it takes a lot of attention to detail, and a lot of time. 

I used to invest in notes but have moved away from it.  There are some good Facebook groups that are helpful to connect with people active in the space.  "Nationwide Note buyers" , "Notes And Bolts From The Good Deeds Note Investing Podcast"

Also listen to the Podcast "Good Deeds Note Investing"

Finding notes to buy is much more difficult than real estate, there is no MLS for notes, have to develop contacts, and there are more sharks/scammers. There is a lot to know in this space. Most of the books barely scratch the surface and are little more than an intro, not enough to actually invest in them.

Not to be a buzzkill, but be aware there are a lot of hurdles between pre-approved, and final approved.  

I would never do a student rental in an HOA controlled property, too many busy-body neighbors will cause problems for you. Make sure the property is very close to campus, students are lazy and want to be as close as possible.

https://www.biggerpockets.com/...

Don't do student rental in an HOA controlled property. That seems like a recipe for disaster. There are likely to be complaints, and the HOA has too much power to cause problems for you.

This thread should answer a lot of questions

https://www.biggerpockets.com/...