Setting up C Corp with IRA funds? Experience with Guidant Financial?

[Lisa Liberski]

Looking to possibly set up a C Corp and have our IRA buy shares so that we would have available capital for fix and flip opportunities. Does anyone have this arrangement set up or had in the past that can give me advice as to whether this is a "safe" method for utilizing IRA funds? Viability of this arrangement in the future with the IRS? Any successful exit strategies?

Also, if anyone has used Guidant Financial that would like to share their experiences with this company and their products, I would love to hear your input.

Thanks!

[Mike McDermott]

Given the expense, the necessity of 3rd party oversight, the nebulous nature of DOL interpretation, and the likelihood of inadvertent violation, why even discuss this? If you're a small investor, particularly one starting out, why not just roll to a 401K, take the participant loan and go from there. If you borrow the max ($50,000) at the rate of prime + 1% (4.25%) and amortize for the longest period (5 years), your payments will be $926.48 per month. As trustee of your own 401K, you can allow the first payment to be made 3 months from the making of the participant loan.

Is this enough money to start a bakery, open a restaurant, fund a manufacturing company? No, not at all. Is this enough money to place a bunch of options on houses then wholesale the options, buy some tax liens or re-lend to others at hard money rates? ALL DAY LONG!

Rather than beat the ROBS question to death, why not develop some strategies that would allow the beginning investor to get access to his money in the simplest fashion, then profit immediately from it.

IMHO, kill the idea of ROBS and do something with your funds that make you money, both inside and outside your 401K, immediately. I bought a duplex last summer for $9,000 which is making me $600 per month right now. If I had spent $6,000 of that on a ROBS program, I'd have $3,000 and a ROBS program.

As a side note: Someone stated that they don't like the lending restrictions inside a retirement plan. I own 6 duplexes and a 3-unit, and I'm 100% financed on five of them, the other I bought outright with profit from the first five. I don't see any restrictions at all.

So please, forget ROBS, and keep your money for profitable real estate transactions. JMHO