7 Closed in Flint
February was a short month, but we closed on seven assets in Flint. We did the due diligence on another five, but they didn't pan out. We might like buying low band assets (under $100k), but we do have our standards. So we dropped them from our list. Now it's time for the workout with the borrower outreach and the legal side of non-performing notes. We expect to turn two of these into REOs this month once their redemption period is up. Another has already agreed to Cash for Keys, so maybe we will have that one empty by Tax Day. Then we already have one re-performing note paying us out over 20%. That leaves three up in the air at this moment, but it has only been a week since we started our outreach program. With any luck, we will have three REOs rehabbed and rented by May and the rest by June or July.
In case you were not aware, there is only one way to get in on these deals and that's to know about them before I tell the rest of the world.
Why Use Self Directed IRA?
What is a Self-Directed IRA (SDIRA)? It is a program that has been around since the 70s that allows you to take your retirement funds and invest them where you want them. I do not mean that you get to pick your stocks and such. It is a great way to grow your tax deferred retirement, or tax free if it is a Roth account. Our first SDIRA investment was a few years ago when we purchased ownership in a brewery in the Dallas area. We doubled our money in 18 months, then moved on to apartment investing. We still have quite a bit tied up in that market, but we moved a large chunk into purchasing notes. Not too many people are aware of the UBIT (Unrelated Business Income Tax). What is the UBIT? The short version is that if there is leverage involved in the purchase of the asset, then you'll get hit with the UBIT. So when you invest in an apartment and there is 80% leverage, your tax free retirement investment will be taxed. So much for tax free, eh.
Why do I bring this up? Because there is not any leverage when purchasing notes. This is a cash business. The good news is, your tax free retirement is in a tax free investment. So if you are looking for a place to park your retirement funds, send me an email. If you do not have a SDIRA at all, you need to contact Quest IRA. There are many IRA Custodians in the yellow pages, but Quest is who we use and who a lot of my partners use.
Need a place to park your SDIRA or Solo 401k? Investing in notes is a great way to increase your returns.
We are always looking for JV partners.
If you want to learn more about a Joint Ventureship
CALL OR EMAIL ME NOW