My team is currently breakin’ a sweat settin’ up various groups for those who own or will own self-directed IRAs, Roths, or 401 Solos. These groups will acquire different kinds of real estate investment property dependent upon they’re agendas. Today we’ll talk about those trying to play catch-up from the 40% loss their 401k absorbed recently.

BawldGuy Note: There will be Buy & Hold — Income — and Lender groups also. You might wanna gimme a buzz if you’re interested, as we’re designing this to be somewhat limited in scope — not dominate the world.

We’ll be buying highly discounted properties in need of no more than cosmetic fixing to sell to end user owner occupants — at below retail prices. The turnaround time is targeted for roughly 120 days, twice as long as it should take, but considering Murphy never goes on vacation, I’d say six months or so and be happy. These groups will be capitalized with funds from 5-10 retirement plans, and will be very homogenous in makeup. At this point none of these groups will be capitalized at more than $1 Million — in fact, most will be about half that figure.

The homes acquired will be, at least at first, exclusively limited to San Diego County — a region hit particularly hard by this correction. It’ll be structured so that I won’t benefit from any sharing of profits whatsoever — no exceptions. Furthermore, any ‘management’ fee will be nominal at most.

All transactions in concept will be vetted not only by our in-house tax guys, but they’ll be paid by and beholden to the investors — never me or my firm. The idea will be to get in, have professionals do any required work, get out, rinse and repeat. To the extent possible, we’re makin’ this venture as vanilla and boring as we can. Speculation is not our idea of catching up.

My team already includes Qualified Plan Specialists, CPA, Real Estate Attorney, Interior Designer, and Lender if we so choose to use, say a 50% leveraged position. Our worst case scenario includes being unable to sell the property, being forced to rent it, and holding. If the cash flow isn’t impressive in this ‘Murphy-authored’ script, we won’t acquire the property. Again, very boring and vanilla. We’re not tryin’ to set the world on fire, just make solid returns in a reasonable time period in a market in which we’ve worked for over 40 years.

If you have any interest or questions, please call me — 619 889-7100 will do the trick. We’ll be talkin’ about this in more detail soon. Have a good one.