Who knows what Social Security will be paying in the year 2033, so my wife and I recently set up a self-directed IRA and funded it by rolling-over $390K from of our 401K's.  Next, we put 55% down on a $700K property by simply writing a check.  Since the rental fit "The Blue Chip Model" (low price & high rent, inelastic renters, high density of beds, etc) it was cash-flow positive on Day 1 so we should have it paid off in under 15 years.  We'll probably keep it after that, and look forward to the extra $6000 in monthly income.  Its comforting to know we'll have a strong revenue stream in our retirement in addition to, or instead of, Social Security."

Joseph & Ashley D.
San Diego, CA

>> I had a lot of questions... <-- Click to open -->

Blue Chip Realty was able to answer our many questions thru every step:

  • Can you build me a spreadsheet for my situation?
  • What are the downsides of staying 100% in the stocks? Upsides?
  • What are the upsides to buying a rental property? Downsides?
  • Do we need a custodian?
  • What are the options in non-recourse loans?
  • If you were investing your own money right now, what would you buy?
  • What areas in California has the strongest “low-price-to-high-rent” ratio?
  • If its a competitive market. how do we stand out to a seller?
  • What do you recommend we do with the extra cash we generate each month?
  • How do we advertise for renters and select them?
  • Can you manage the rental for us? Are you certified?
  • As a broker, do you have all the legal forms and disclosures for renters?

Kate H, Sacramento, CA (click  >>  above)

>> An experienced guide on an adventurous journey...

BCR made our rental purchase more like an adventurous journey versus an arduous process. From helping us pick a custodian to selecting a loan to reviewing the financials to discussing the taxes to showing us properties and closing the deal, it all worked out seamlessly. I was nervous in the beginning, but I guess I shouldn't have been.

We picked a rental that fit "The Blue Chip Model" and we moved very aggressively to get a signed offer.

About 35 days later we got title to this great rental property. BCR managed all the details to close escrow and they are currently managing the rental. They posted the place on the university's Facebook page and had gaggles of students responding. They invited us to meet the 12 groups (over 50 students) and together we selected a great set of young ladies to rent this year.

John R., Sonoma, CA   (click >> above)

"We had multiple offers at roughly the same price on this property, but decided to sell to your "IRA clients" because of the 55% down payment and your attention to detail" 

— Kathy S, Agent,
San Luis Obispo, CA

“In 2018, my husband and I rolled-over $500K out of our 401-K's into a self-directed IRA and put down 55% to purchase a $870K rental with the help of Blue Chip Realty.  It was renting "under market" for $3,500 to a group of college seniors but our new lease we signed last week starting in July will generate $4,950 in monthly rent. 

The spreadsheets BCR gave us had a 15-year plan showing the expected income, expenses and appreciation. Since we plan to spend $100,000 per year in retirement, this decision will give us 8 more years of runway in our "Golden Years."

Cynthia & Jeff P