OfflineThere is finally a closing date for a cash out refinance on my first deal. Yay! I bought an Reo for $45,000 with financing through a local bank. The rehab was about $30,000, and the appraisal just came in at $114,000. I can go up to 70% on the cash out, but am only taking out $35,000. I have the place rented out, and will still give me monthly cash flow. So I guess, after closing, I will make my first $5000!
I have a 2nd property I bought with a self directed IRA, for $39,900. Once that one is rehabbed, I could possibly pull out $85K. I'm trying not to count my chips while I'm still sitting at the table... but Holy Cats!
Gina
__________________
Congratulations! Now onto many more!
Together, we can be successful!
Gina, awesome job! Did you start on your next project?
Raymond
Thanks Stevin and Raymond!
Raymond, I'm waiting until I close on the refinance to start the next. Maybe after a few more under my belt I can try two at once. This is sooo exciting!
Gina
Counting a few chips is okay!
You are doing wonderfully. Thank you for sharing
Tina
Never, Never, Never Quit, N3Q
"Nothing happens until you place an offer."
"Skip Deal #1, go straight to Deal #2; it's so much easier."
"There is nothing so useless as doing efficiently that which should not be done at all." — Peter F. Drucker... so, "Don't sweat the small stuff." -R.Carlson. "The greatest mistake you can make in life is to be continually fearing you will make one."~E.Hubbard, The Note Book, 1927...so, Do it for the right reason and "Do it with a headache!" - Dean Graziosi, Weekly Wisdom #176
Its nice when a plan comes together. ( The A Team)
Jimmy
Can you pull out $85k from a property you purchase in an IRA?
These sound like great deals! keep up the awesome work. on to the third and so on!(: your on fire theres no stoping you!(: congrats.
Robert.
yesterday is history, tomorrow is a mystery, but today is a gift. That is why it is called the "present."
"Be not afraid of growing slowly; be afraid only of standing still"
It's good to hear that you are on your way up,it just gets easier from now on.
I'm planning on having my first one done soon,all the pieces are coming together rather quickly.
David Boisvert
Hi Thomas, good question! I have had a few hiccups with my CPA, so I think I will have to call my RE attorney and financial advisor to make sure I do everything right. Thanks!
Gina
Great job! Looking forward to hearing about your next deal?
Les
As a man thinks in his heart, so is he!
Think on these things: whatever things are true, whatever things are noble, whatever things are pure, whatever things are lovely, whatever things are of good report, if there is any virtue and if there is anything praiseworthy- meditate on these things
Gina, From what I learned at an IRA Seminar any profit from an IRA Investment must go back into the IRA only.
Andrew
Great job Gina!
You are on a fast track to success. Keep it moving.
Sandra
"You can never get to the top, if you are not willing to climb. Do not look at the difficulty of the climb, only anticipate the view from the top."
"Can't even walk without you holding my hand." (Song)
"Is anything too hard for the Lord ..." Genesis 19:14
"In all things, wait on the Lord."
"Think not of your own deliverance, but trust in God who will give in abundance."
"When you are down to nothing, God is up to something." Unknown
"Our lives begin to end, the day we become silent about those things that really matters." Dr. Martin Luther King Jr.
How did you finance the first? Sounds like you aren't just wading into the lake of REI, but jumping in...congrats on the refi, why did you decide not to pull out the 70%, would you not have had cashflow if you had done that?
I am very interested in your IRA deal, I have used by 401K by taking a loan but not my IRA yet.
Congrats
Judi
Fantastic job Gina!!! Keep up the awesome work. I am so anxious to tell my first story like this...
I have a 2nd property I bought with a self directed IRA, for $39,900. Once that one is rehabbed, I could possibly pull out $85K. I'm trying not to count my chips while I'm still sitting at the table... but Holy Cats!
Gina
Take "self" outta the equation and eliminate the problem. Learn to think with a wealthy mindset and live unaffected and abundantly.
Hi Andrew, that is what I thought too. Originally, my CPA set up an LLC for my SDIRA. After I had borrowed the funds to buy the property, he asked me what terms I wanted on the note. I asked if I could do 15yrs at 4%. He said absolutely.
This is actually the first question on my list to ask. I have many others for him, but I'll have to start here.
I financed the first property with my local bank. The down payment came from cash I had gotten out of a credit card. I put it in my savings account a few months before I needed to get the loan, since the bank only went back 2 months. I had a HELOC on the home I live in, and used that to rehab the place. My plan was to get all of the money I put into it plus $8K. I don't really have a good answer on why I didn't pull out up to 70%, but it just doesn't "feel right." Something in my gut said to just pull out what I need to pay back my loans to show my lender I'm not maxing out my equity on the first property. But the second.... Ha ha!
I have to learn more about my SDIRA as well. When I get more information I will post again.
Gina
I financed the first property with my local bank. The down payment came from cash I had gotten out of a credit card. I put it in my savings account a few months before I needed to get the loan, since the bank only went back 2 months. I had a HELOC on the home I live in, and used that to rehab the place. My plan was to get all of the money I put into it plus $8K. I don't really have a good answer on why I didn't pull out up to 70%, but it just doesn't "feel right." Something in my gut said to just pull out what I need to pay back my loans to show my lender I'm not maxing out my equity on the first property. But the second.... Ha ha!
I have to learn more about my SDIRA as well. When I get more information I will post again.
Gina
It looks like you aren't just jumping in blind but with some caution and most importantly you are learning. Thanks for sharing!
Moving forward daily will get you to your goals!
"You become what you study" - RTK Rich Dad Poor Dad
http://bulkassets.com
Great Job on your first deal! Not a bad little payday!
Chris
"Faith is the eternal elixir which gives life, power, and action to the impulse of thought.
"Faith is the starting point of all accumulation of riches!"
- Napoleon Hill, Think and Grow Rich
I just put under contract a property that the asking price was $160K, I purchased for $100K and I don't know if I should flip the deal or try to get rid of it under a finders fee.
Can someone help me on this?
Love your deals Gina! Keep them coming, the most important thing is to take actions. I have a similar deal getting materialized, at the beginning stage of doing a cash-out refinancing, it's exciting!
Crwiggins, do you have a buyer lined up to sell the deal to? It's mostly about the final profit -- if you flip it, you might need to come up with money (it's not difficult), and if you just get a finder's fee it might be a simpler transaction.
Real Estate Investor, if you would like the chance to work with me in the US East Coast, send me a PM (Private Message) anytime to see if we are a good fit for each other.
Wishing you abundance,
Ken Siew
The deal has taken so long to go through my buyers are not responding so I may have to search for more buyers. I'm not interested in rehablling as I don't have a hard money lender at the present. How do I manage the transaction to get a finders fee?
WOW. Great News! You Cannot be Stopped
Mike Brown
Brooklyn, NY
Thank you everyone for all of your great comments! And no, Mike Brown, I can not be stopped! Ha ha!
As for earlier questions about my SDIRA. It is a SDIRA LLC with checkbook control. I guess for this particular account, you start an LLC, get a business checking account in the LLC's name, and roll your IRA or profit sharing monies into this. You can then write a check from your new IRA account to buy property, rehab, etc. Any profit goes back into the account.
But my CPA set mine up differently, and I am still waiting for him to get back to me with the list of questions I gave him. I started 2 LLC's. One for my SDIRA, the other for my REI company. My REI borrowed $ from the IRA. The REI has to pay that loan back at what ever terms I want. 15yrs @ 4% is what I chose. So I believe this clears me to refinance with cash back. Of course, I still need to confirm this...
Gina
Thanks for sharing that. I did a little research and learned something new tonite
http://www.irafinancialgroup.com/iracheckbookcontrol.php
CONGRATULATIONS!!! Sounds like you're on your way to the top. That first deal is the most exciting, especially when you get the cash in the bank.
I'm also working on my second deal now. Keep learning and keep doing what others say is impossible to do!! We are responsible for our own success.
My Journal- http://www.deangraziosi.com/real-estate-forums/investing-journals/86100/...
Keep on rocking!!!