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All Forum Posts by: Bob McIntosh

Bob McIntosh has started 25 posts and replied 218 times.

Post: Trust Deed Investing- Using a self directed 401k

Bob McIntoshPosted
  • Real Estate Investor
  • Hoboken, NJ
  • Posts 230
  • Votes 6
Originally posted by "Wheatie":
Its very easy, but you won't like the first step.

1) Quit your job.
2) Open an account with a custodian that allows RE investments. Several are mentioned above.
3) Send the new custodian the form to roll the money out of your existing account into the new out.
4) Sometime later, maybe a couple of weeks to much longer, depending on the old account holder, the money will appear.

Its that first step that's the killer. As long as you're still working for the company, you can't get your money out of the 401K into the new SDIRA. You can just withdraw it, but you'll pay taxes and penalties.

I was afraid you were going to say that :P

For right now quitting my job is not an option. I need the income to keep me afloat until REI can take over. But it is good to know that I have this option when it comes time.

What is your guy's feelings about stopping my 401k payments and instead using that money to invest into real estate. I know that this will increase my taxable income, but I feel like even with the taxes deducted from it I may be better off using that money for REI, and getting a better ROI...

I would be interested, I was forumless all of last week due to being in training for my full time job as well as moving to a new place so I missed the announcement for that call.

Post: Trust Deed Investing- Using a self directed 401k

Bob McIntoshPosted
  • Real Estate Investor
  • Hoboken, NJ
  • Posts 230
  • Votes 6

Can you go into detail on how one would "roll their 401k" into such a program.

I currently have a full time job, and am making payments into our company's 401k with Vanguard. I do have enough in there currently to do at least one decent sized deal. Personally I believe that they have done a crap-tastic job with my money as I am in the "aggressive" fund and making just under 6% a year. As far as matching my contribution, my company barely match's anything so I am not worried about loosing that money. Can I take the money from that and put into a SDI without facing a tax penalty? If so does one of the companies mentioned here help you with that? If I do that how can I have the same money that would normally be going to Vanguard go to this SDI instead?

Just trying to get a clearer understanding of how this would work.

Thanks!!

Post: Buying an Island

Bob McIntoshPosted
  • Real Estate Investor
  • Hoboken, NJ
  • Posts 230
  • Votes 6
Originally posted by "TimWieneke":
Yeah I know I'd have some major construction costs going with it. That's why it's a dream that's "out there" in the future after I get my little green houses here in order. It's not so much the construction costs that scare me as the cost to transport the materials and the crew there. I don't know, maybe I should just buy a portapotty and a prefab shed from Lowe's and slap in together out there so I can wax a little braveheart, "Stephen is my name and this is my island!" Primo - you're welcome to the top bunk...lol

I have looked into this quite extensively in the past and what you find is the easiest thing to do now a days is actually to "go green".

You can buy prefabbed modular homes (made from a variety of materials from wood to old shipping containers). These homes run on minimal energey and reuse as much as possible for everything. There are lots of companies that specialize in making just these kinds of homes, and the cost is not nearly as much as you might expect. Now of course if you want something custom built, and all that, then yes you are going to be increasing your cost, but what I like about these modular homes is that you can "customize" it to an extent. You pick what "modules" you want, and how you want them laid out and they make it happen. Most of the modules are designed to "snap in" with each other so you can really do anything you want with any of the modules. Its pretty neat.

As for the other most important piece which is power, water, etc.. you can now buy complete "civilization systems" as I like to call them. These systems include a multitude of things. Most include solar panels as the primary power generation source, solar panels are becoming cheaper and more efficient every day. Many also employ a Wind generator as well. They all include a gas backup generator which will only be used if necessary. These systems also generally include a waste treatment facility which will clean out all the water you use, as well as clean out rain water which is collected. Now if you want to be fancy you can also get a desalination plant to pull water from the ocean, but those are still quite expensive, energy hogs, and not needed unless you have some serious water demands. They also include a unit of battery's that will store all of the energy collected from the various sources so that you can use the gas generator as little as possible. From what I have read though if you employ solar and wind power generators then you are pretty much set, because if its not sunny then its likely stormy which means more wind :)

Basically the civilization systems include everything you need to live a civilized life on an island, are completely self sufficient (you could remove the generator if you didn't mind the occasional black out), and again not as expensive as one would think, especially with the "go green" attitude really coming into play now a days, you may even start to see these kinds of systems becoming available to the rural population, and as economics dictates, the more widely available something becomes, the lower the price tends to be.

Just thought I would throw what I know about islands out there for everyone. Personally an Island would not be my choice, i have as my goal to build a castle, but a Castle on an Island would be pretty sweet :P

-Bob :groovy:

Post: BP chat room

Bob McIntoshPosted
  • Real Estate Investor
  • Hoboken, NJ
  • Posts 230
  • Votes 6

Well there is one, but there is no way to effectively idle in it. I think thats the biggest problem with it. It will kick you out after a certain period of time with no activity. It would be much more useful if we could idle and then if someone wants to chat they can chat, and then when someone else gets back they can respond, etc...

Post: Buying an Island

Bob McIntoshPosted
  • Real Estate Investor
  • Hoboken, NJ
  • Posts 230
  • Votes 6
Originally posted by "Typerider":
Security.

No one yet has mentioned the problems with ensuring one's own personal security on an island.

Well I can't imagine that you need that much security on an island where there is no one else. I would think the biggest thing you may have to worry about is pirates which really they are not really a problem in the Caribbean (unless you are Jack Sparrow :P ).

Post: Surrounded by UGLY Duplexes :(

Bob McIntoshPosted
  • Real Estate Investor
  • Hoboken, NJ
  • Posts 230
  • Votes 6

You may even be able to sell the owner on painting his as well. With a little markup of course, you can have the whole thing looking nice for less :)

Post: Land Trust

Bob McIntoshPosted
  • Real Estate Investor
  • Hoboken, NJ
  • Posts 230
  • Votes 6

I know that my family owns several properties that are currently held in a land trust to which the beneficiary is our LLC. This was done simply for the anonymity in dealing with most standard applications. If you have a determined lawyer they are going to find out who owns it eventually, however this does provide you anonymity from law suit mongers who are just going around looking for people to sue. If there is one more step in them getting your money, its one more chance they will say "it's not worth it".

As always consult a lawyer because I am not even close to one :P

Post: How I Get Calls From Motivated Sellers Daily

Bob McIntoshPosted
  • Real Estate Investor
  • Hoboken, NJ
  • Posts 230
  • Votes 6

Smithestate, I hear a lot of people state that lease purchases are great for the investor but bad for the purchaser because they generally still can't qualify for the house when it comes time to buy... What sort of experiences have you had with that type of situation, and how often do you see it happening?

Post: The New Guy

Bob McIntoshPosted
  • Real Estate Investor
  • Hoboken, NJ
  • Posts 230
  • Votes 6

I think that is very situational... I don't own my own condo right now but I am in the process of purchasing a duplex. Now the reason for that is because the area I live in I can't afford a condo that is similar to what I am currently renting for anything less than an additional $500 a month. My expenses are to tight to be able to afford that right now (which is the reason I am getting into real estate investing :D )