All Forum Posts by: Brett Synicky

@Martin Kim many of our clients invest in private funds that loan to fix and flippers as an example.  You can get well over 5% doing this.  $30k is enough to get started.  

@Ashley Dennis Are you looking for an attorney to review the paperwork involved in purchasing real estate?  Or are you looking for guidance on setting up an SDIRA?   I ask because there is little difference in the mechanics of a real estate transaction inside of or outside of a retirement account.  What specific guidance are you looking for?

 If this is a qualified retirement account (tsp’s are) then you can transfer/roll this into an SDIRA or solo 401k and as long as the custodian allows for alternative asset investing you can invest in real estate or just about whatever you want.  You can learn more about both here:   SDIRA Solo 401(k)

Depending on the amount of transactions you’ll do it may make sense to have checkbook control.  Hope this helps!

If you're self employed with no w2 employees working more than 500 hours annually other than you and your spouse, you can qualify for a Solo 401k which has benefits the SDIRA does not have.  You can learn more here:  Solo401(k)

Additionally it should be noted that the Roth IRA is the only QRA that cannot be rolled into a 401k. So if you wanted to invest in alternative assets using your existing Roth IRA you'd have to do so in a SDIRA. With the SDIRA you can have pre-tax or Roth but they're two separate IRA's. With The Solo 401(k) pre-tax and Roth are included in the same plan.

Also be sure to check out the difference between full custodial vs. checkbook control.   

Happy investing!   

@Zehua Zhou A CPA like @Michael Plaks can help you out with the details on this.   But you're missing a key number, how much is the income?   Once you get to around $14k you're going to scale up to $37% but you can deduct half the expenses and depreciation which will reduce your taxable amount of income..again without knowing the income this is not possible to calculate.   Once you figure that out, definitely check with a tax professional who understands self-directed retirement accounts.  

@Sheri Ayoub

As long as the proceeds from the sale go back into the IRA LLC bank account there are no taxes. Mom's IRA could not buy out brothers half since her son and her are disqualified parties to each others retirement accounts, so a sale to a 3rd party is best in this situation.

@Michael Calhoun Interesting. Never heard of this.   

I remember this one.  Yes it was Josh and Brandon.  I forget the guys name.  Mormon guy from Utah I had looked him up after I heard the episode.   Since then however, I’ve learned that it’s best to keep life insurance and investments separate.  Term life insurance. I’m sure there are ways to make money with whole life or universal but the fees are outrageous and the payouts are not what they seem to be.  Btw I don’t claim to be an expert here I’ve just heard enough wealthy people talk about this.  

 Another thing is you can't have what's called straw man transaction.  Sell the home you currently own to a non-disqualified person then have them sell it to your retirement account...just in case you're thinking about getting creative.   

@Devin Basile correct. Everything must be done in the name of the IRA LLC front start to finish. All money, home inspection, deposit, down, closing funds etc must come from IRA. If you got a home under contract in your name and wanted to switch to IRA then the contract would have to be canceled and redone.