All Forum Posts by: Dan Call

@Miguel Rubio,

Thanks for the response. I have had a conversation with my JV partner about using a self directed IRA instead of the 401k. I just am not sure of the tax implications of switching from a 401k to a self directed IRA.

This is one of the reasons that I am looking for a real estate CPA in the Northern Virginia area.

Also, thanks for the recommendation to look at mysolo401k.net I'll check it out.

R/

Dan

@Mark Nolan,

Thanks for your response.  That actually really helps to clear up my confusion about how the income from a producing asset is handled with using a 401k.  I assumed that the borrower had to use some sort of repayment schedule, but I wasn't clear how the profits were to be handled.

My next question would then be, I do I use funds from a cash partner that wants to use his 401K? I'd prefer not to have the title go directly to the JV partner. Perhaps taking title as joint-tenants or tenants in common would work.

Thanks,

Dan

BP Family,

I live and work in the Northern Virginia area.  I am just starting to invest in this area and I have a cash partner that has a little over $200K in a 401K that he would like to invest in some properties with me.  (I have experience investing outside of Virginia, but would like to pick up some properties here)

This question that I have is, how exactly do we use a 401k for RE Investing?  I have read several of the other forum posts and responses, but what I don't understand are the exact steps.  

If, I split all profits with the cash partner that is using a 401K, how do we put the funds back into his account?  If the original balance and proceeds need to go back into the 401k, how do I make sure that I can retain my split?

Additionally, if anyone knows a CPA or RE attorney in the area, I would love some referrals.   I have just recently obtained my RE license and am actively looking to flip SFRs in Warrenton, Culpeper, Winchester, Haymarket, Gainsville, and maybe Fredricksburg.  Long term I am looking at mid to large multifamily properties in those areas.

Thanks,

Dan

Brandon L. , Thanks for reaching out. I took the 60 hr pre-licensing course at NVAR in November, then signed up for the very first possible PSI exam. Both the national and state exam were incredibly simple. I passed both the first time with no additional studying course work. (Guess the NVAR course did a decent job of prepping me) Additionally, I just signed on with Liz at the same brokerage that I think you are associated with. Thanks, Dan

@Jacob Pereira,

You nailed it.  I couldn't agree more.  Camaraderie is great, and a forum for vets/active duty would be a good place to get input from those who understand your unique situation. Additionally, there are many vets on here with a ton of experience and give great advice.  

However, I will continue to seek my investing advice directly from the guys that are doing this full time and have much more experience than I do.  (That is why I joined this site in the first place, thanks @Joshua Dorkin!)  Too many times in my career, I have sought out, listened to, and applied the advice of those that were around me, because it was easy, because they were brothers in arms, I know them, they know me and they wouldn't steer me wrong.  Only problem is, they didn't know their a** from a hole in the ground when it came to investing. I will try to avoid that mistake again....

That being said, I am stoked that there are so many active duty/vets on here getting involved with investing.  I love the interaction, honesty, and networking that happens here.  I wish everyone the best and look forward to hearing all of the success stories from mil/vets leaving massive legacy wealth for their families.

Please let me know if there is anyway that I can add value to your investing endeavors.

R/

Dan

Bryan McAlexander , I haven't seen anything in your posts about the current leases. Sure, raising rents to market is a great way to increase your cash-flow however, you may not be able to legally raise the rents "immediately". It depends on several factors. One of which is the terms of the current agreement. (You may have other options for eviction/rent increase if you intend to occupy one of the units yourself) I would suggest asking for proof of everything in your due diligence process. I'm not saying that you will get formal documents for everything, but you should ask. You should be able to see more than just spreadsheets. Ask for bank statements, if necessary, to show proof of income. Let me know if there is anyway to add value to your investment career. R/ Dan

Lynn M. , Thanks for the heads up. That's great news. I'll definitely look into going that route. Let me know if I can do anything for you. R/ Dan

Cesar Rebolledo

Cesar Rebolledo , Thanks for asking. I took the 60hr pre-licensing class at NVAR, passed it and took the PSI exams at the very first opportunity. I passed both exams on the first shot and am looking to affiliate with a broker right now. Dan

Anthony Ronco , Welcome to BP. There are lots of other active duty military guys (as well as vets) on the site. It is absolutely possible to get your RE licence while on active duty. Take the time to get some education and then just get started. The education process will never end, start investing now and keep learning along the way. You can make it happen. Let me know if there is anyway that I can add value to your journey. R/ Dan