Q's about IRAs, Private Money Lending and Being a Slave to the Bank

[Karen M.]

Hi Everyone!

I'm a couple weeks into learning, and I have to say, Real Estate is fascinating and so far, it's been very fun to learn about.

Last night I went to a Milwaukee REIA meeting. I got to meet Dawn A. from Bigger Pockets! It was so cool!

Last night's meeting was a roundtable, Investing 101 and Strategy session. I learned some things and have some questions.

1. One person talked about owning a duplex in Indiana within an IRA account. This is fascinating... you can own a property in an IRA? It was explained that if you do this, you cannot "work for your IRA", so it seems that the property needs to be professionally managed. A few IRA places and "checkbook IRAs" were discussed. I'm not sure what a checkbook IRA is. I thought that my Real Estate investing would all be with non-retirement money.... we have IRA investments in equities and I'd like to learn more about how that works.

2. I learned a little bit about private money. I might like to become a private money lender, or at least look at that as a something to try. What kind of money do you need to do that kind of lending? What steps should I take to learn about private money and how to get started or better discern if this is the path we should take?

3. The meeting coordinator used a phrase "being a slave to the bank". My initial thinking is to become a buy and hold landlord, buy a suburban property and rent it out. 30-year mortgage. 25% down. We can only afford so much before we will run out of down payment money. I should ask the organizer what "being a slave to the bank" means.... but maybe you have insights.

Thanks very much! I appreciate your input and conversation!! --Karen