All Forum Posts by: Chris Wilson

Hello everyone! I'm a realtor that assist investors in Saint Louis and my parents were investors when I was a kid living with them. So I have a good foundation in finding and analyzing deals especially 2 and 4 family duplexes. I want to invest for myself and I want to start with at least 20 units. I want to reach this goal by the summer of 2022. Also, I'm trying not to reach into my own funds to buy the property. 

My strategy is to do seller financing for the 20% that the loan would not cover and having the seller cover closing cost if possible. If not I want to find a private lender to cover the closing cost and pay them their funds back with a percentage on top. I want to find my first property in Missouri because I have my real estate license in Missouri. By handling my own deal I will get paid a commission. I want to use that commission to help pay back that private lender that they gave me for closing cost. 

Has anyone ever done this? Or does anyone have any input or suggestions on this strategy? Thanks in advanced! 

Hey Petya, I worked as a stock broker and almost became a financial advisor but stopped because the companies that I worked for didn't want me to practice real estate. The thing that is concerning to me is that if you are under the age of 59 1/2 you will be penalized for taking the funds out too early. Also, it will depend on what type of IRA that you rollover into if you have to pay taxes on the distributions or not. Typically, you can pull from your IRA early for a first time home buyer and avoid the penalty if you are younger than 59 1/2.

Long story short could you do it, yes you could. But there could be consequences for doing so. The best thing you could do is to sit down and talk with your Tax Advisor or CPA to see how you can make that particular strategy work without loosing your money to taxes or penalties. 

I'm not a tax professional or a lawyer, so be sure to speak with a license professional for the final say!