Newbie intro and ? on discounted notes for self directed IRA/401k

[Claudia Burchstead]

Newbie in Lancaster PA. Finally introducing myself after stalking the forums and binge listening to the Podcasts the past few weeks. No interest in leaving my current career but working on subsidizing our retirement with real estate. Very intrigued after listening to Podcast 17 last night with Jeff Brown on using discounted notes through a self directed IRAs or 401K. What’s the downside of this? Is this typically done with your standard financial planner or do you need a specialist?

[Edward Synicky]

Good Afternoon Claudia, using your self directed IRA for note investing is very common and a good use of a retirement plan. While the self direted IRA's are most popular you should educate yourself on the benifits of a solo401K plan. One of its main benifits is giving you direct control and access to your own money, no need to ask for a check you simply write your own and it comes out of your IRA account. When using your retirement money I would be cautious of investing in 2nd TD's, you may have a higher return but you will be increasing your risk, not something I personally would do with my retirement money. I would encourage you to investigate 1st TD's, the return will be lower but the safety is higher. I am also not a big fan of using funds to invest my money into notes, I want to own the notes myself and be able to foreclose if it becomes necessary. Good luck to you.