All Forum Posts by: Ben Cochran

Mark Ferguson, I haven't checked out borrowing against the 401k but I will, thanks. I'm now looking in the Greeley/Evans area as I realize that finding a multi unit in Ft Collins will be extremely difficult with the financial situation I have. Also I really enjoy keeping up with you on Invest Four More and watching your progress over there in Greeley. Michael Evans, thanks for the suggestions regarding an LLC. I'll definitely research this option more. I actually just created my LLC (Altitude Property Investments) a couple months ago for any future REI's. And thanks to everyone else for there input!

Thanks Joshua Daniels, I know there is a pretty substantial penalty for withdrawing any funds from a 401k, so that's why I had the idea of rolling it into a IRA. As far as buying a multi unit in Ft Collins for 15k down, slim to none.

I'm not sure how to proceed with the funds I have available and hope to get some advice from all the great minds here on Biggerpockets. I live in the Northern Colorado Fort Collins / Greeley area. I am looking for my first investment opportunity. I have roughly $15,000 in an old 401k and about $15,000 in my current tax return. I'd like to combine these somehow to give myself approximately 30k to work with. My goal is to flip 1 or 2 properties a year in order to purchase buy and hold rentals. With an end goal of 15 to 20 rentals within 10 years. I'm considering rolling my 401k into a self directed IRA and maybe combining that with my tax return that way. I'm no tax expert so I'm not even sure if this is possible. In order to get started, I am open to purchasing a multi-unit and moving into one of the units or flipping a SFU to gain more capital. But on the flip side, I just read that I can't live in anything that I purchase with IRA funds. Does this apply to a multi-unit? So basically how would everyone handle this financial situation? I know it's a lot of questions, so I thank everyone in advance for their patience and input.

Thanks everyone..

@, @, yes I have actually done quite a bit of homework on this, so I fully understand about the NO mixing of personal funds and NO sweat equity with a SDIRA.

My plan is to use my SDIRA to buy and flip my first investment property in whichever capacity I can.

I have educated myself for the last two years with books and message boards and have attended a couple REI club meetings which were more sales pitch than REI club.

My goal is to find a partner/mentor for my first project. I really want an experienced rehabber/flipper to work with and learn from.

So I've got a old 401k with T Rowe Price that I want to roll into a SDIRA. They just informed me that they don't do SDIRA's that allow for real estate investing.

So now I'm looking for someone that will allow this.

My question is; Since I am looking to invest locally in Northern Colorado (Fort Collins area) do I need a custodian that is also local?

If so, do any of my fellow local investors recommend anyone?

If the custodian doesn't need to be local, who do you guys n gals recommend?

And a follow up question; It is a small 401k (around 20K), after rolling over to a SDIRA, can I still contribute to it?

Thanks in advance everyone..merry Xmas!

Hey there James, Another great place to look is Meetup.com or the Meetup app. Just enter your zip and see what comes up. I know up here in Fort Collins ICOR has a few each month and I'm sure Denver is no different. Good luck!

Originally posted by Dion DePaoli:

@Ben Cochran How about one more option for you that might be much more workable.

Your new lender, doing the underwriting for your new loan, is adding in the mortgage obligation per your credit. That is proper. However, you may be able to show your divorce decree, wife's cancelled checks and allow for a Verification of Mortgage on those payments to show that you are not paying the obligation and the obligation has been paid over X years. This might allow an underwriter to sign off on offsetting the debt by the ex-wife's payments.

This is not uncommon but requires a manual underwrite. There are some caviets to this but inquire this strategy with your new loan officer and see what they say after they run it up the flag pole. Fannie Mae and Freddy Mac allow this, some other portfolio lenders will also allow it but their rules may be a little different.

Dion,

thanks for the advice. I will be back in the US next week and will be meeting with lawyer. I will keep this option in mind.

Thanks

Hi @Jerry W.
Thanks for the advice. I will get this taken care of immediately!

Thanks @Tim Farrell but @Matt Devincenzo is correct, the open loan would still be attached to my name and thus my DTI.

@Michelle Y., even though the divorce and property are in NE Wyoming (Campbell County), any Wyoming divorce attorney recommendation would much appreciated!

Thanks @Wayne.

I agree, I will have to get a attorney to get this straightened out once and for all.

Should I get an divorce attorney locally or get one in the state in which the divorce took place?