All Forum Posts by: Carl Fischer

First, congratulations @Steven May for looking at this at such a young age. You're way ahead of the curve. However, you can have your Roth IRA and invest in real estate at the same time. You can have real estate invested in a Roth IRA and have tax-free income for life. A little known fact is that you can also take that money out early for many reasons, tax-free and penalty-free. So, I wouldn't give up on my Roth. You've chosen a noble profession in nursing, so I'm not sure if you want to start a business while pursuing nursing -- that is a personal preference. You can do real estate outside of your IRA as well, but my philosophy has to be minimize the income that I am not using because I'll pay higher taxes in a higher tax bracket, and I don't believe in investing in real estate to lose money and have tax write offs.

"Asset rich and cash poor" is the way of real estate investors, and I feel it's hard for a real estate investor to let money sit in a bank or a CD at a tenth of a percent or no interest when it can be invested in real estate and be making 10-15%. There's lazy money and there's hard-working money, and if I ever need the cash, I have an equity line tied to most of the real estate properties. So in summary, I would keep the Roth IRA, I would use it to invest in real estate, and I would consider investing in real estate outside of my IRA to replace my nursing income to obtain financial freedom, but I will get there a lot faster with tax-free income than with taxable income. I hope this helps. For any additional questions, feel free to connect.

Sorry 51/49. 

@Luke Grieshop

Think about borrowing the money needed for repairs and hiring a project manager or contractor

Why do you need a partner? What is the partner bringing to the relationship that you can’t purchase?But if you do need one don’t give up control -keep more than 50%. Make it 52/49.  As @Michael Plaks advised an LLC should suffice. The entity Type probably isn't as important as the operating agreement.

@Luke Grieshop

Your welcome and attorneys charge $250-$500 per hour. State filing fees should also be considered above attorneys fees as mentioned by @Moises R Cosme earlier.

@Luke Grieshop

I think attorneys are needed for the most part. However, If everything goes as expected and it is a short duration you might not need one. They add value if you have an experienced attorney. They help you see what other problems you can run into. What happens if one partner dies do they get bought out or are they now partners with the heirs? What happens if market goes south? How do you end the partnership? Does one partner have more than 50% ownership? How are differences decided? Is there a general partner? Etc etc etc? How are taxes handled? Who does the partnership tax returns?

To save money, meet with your partner and, discuss as many contingencies as you can think of. Document each issue how you want them handled-you and your partner initial them. Then interview attorneys to get one with a lot of experience and pick one, schedule a meeting with partner and attorney, review your points on the document see if you missed anything and let him draw up(Legalese it) the agreement With the salient points you both wrote down. Hope all goes well but have your paper done like you are going to court. I’ve seen too many partnerships and marriages fall apart. More fail than make it. Spend a little $$ up front and it can save a lot down the road. 

@Jesse Hodges

I have been doing a Roth IRA since 1998 when they started. I was in real estate before that. I put real estate in my Roth IRAs.

I am 65 now and had your same thoughts-I am very happy to have the real estate in my SD Roth IRAs. A lot better than social security. Tax free income for life plus 10 years is very nice. Worry free from increased taxes gives me peace of mind.-I don’t know any individual or professional that isn’t glad they have a Roth. On top of that many people who don’t have Roth’s wish they did. I see it in my clients all the time.

In addition, a little known fact, Roth IRAs provide asset protection and penalty free access to your money.

Do both is my suggestion.

@Michael S.

Try Michael Jordan at strategy investment group. He may have some info to help you. 

@Matthew Ruderman

The one you live in or near where you spend a lot of time.

@Rav Ram

It’s relatively easy. Get with Benetrends they have an office on both the east and west coast and have been ROBS experts forever. Our company  used to do them  but benetrends has the talent, expertise, processes and procedures to help you accomplish your goals. Definitely worth looking into. 

I'm sorry to hear about your troubles, @Michael S.. Due diligence upfront in your investment is very, very important. To fully answer your question, I would need to know if you had a mortgage or deed of trust that was recorded on the property, which would keep them from selling the property with a title policy. The title company normally would contact the LLC or lender for payoff information. Even if you don't have a deed of trust or mortgage, you should have a promissory note. This promissory note was hopefully signed by the LLC and by the individuals. This would allow you to go after the LLC, the individual, or both. I would contact the attorney that helped you come up with the paperwork. If you didn't use an attorney, I would get ahold of a real estate atty and ask them the question you asked at the end of your post. I'm not sure how much money it is, and obviously the more the money, I would go after it. This is something you should consider when deciding if pursuing the LLC or individual is worth attorney fees. If this was a checkbook LLC in your SDIRA, the IRA should pay attorney. If you have further questions, feel free to contact me.