ROBS - anyone have any experience (vs.self-directed IRA)

[Jill Green]

I am interested in starting a flipping business with a friend.  This friend is already a successful flipper, but needs more capital (so we can buy at auctions, etc., for cash).

I lost my job of 28 years, and have a 401k with my previous employer. I'm interested in reinvesting my 401k by using some of it to start a ROBS, or a solo-IRA.

Interested in advice on doing this, and which avenue I should go with (ROBS/IRA), what are the benefits/disadvantages of each.

[Brian Eastman]

@Jill Green

If your goal is to be able to be hands on in the business of flipping and be able to draw an income, then the ROBS platform is the way to go.  We have worked with many clients to implement such a structure for the purposes of forming or expanding a real estate development company.

The self-directed IRA or Solo 401(k) option would only be a means for you to say, lend to that other party for purposes of their transactions, with all returns going back to the plan. It is a diversification tool.