All Forum Posts by: Chuck VanDyne

This is NOT his entire retirement account for he has much more in another account. This particular account was from when he worked at Kodak and he pretty much neglected it. $3000 to create an IRA LLC! I though the custodian would take care of that for a fee of around $300-500 I guess I'll find out when I hear from the specialists.

I wasn't planning on taking a portion of the profit. I really just wanted to gain the experience and relationships with people. This way I will can find other investors once I was experienced in REI.

I figure with a track record of successful investing whether it be fix n flips or buy and hold others will be more willing to fund my projects. 

@Brian Eastman : I can't benefit off RE commissions. That's good to know. Thanks Brian. Also, I like the idea of JV with other real estate investors on deals. Ill ask a specialist how to do that, step by step. I appreciate the feedback.

@Dmitriy Fomichenko : Thanks for the feedback. Very helpful. Ill look into the real estate notes. How do I go about finding real estate notes that are locally? I have never done any research on notes or really even thought about it. Also, Ill PM you for a recommendation. 

Hey Everyone,

Situation: I am 25 year-old living in Rochester, NY with a Bachelors in Finance. Licensed RE Agent (although I do not do many deals) Work full-time (25k salary). One of my father's retirement account from Kodak (Savings and Investment Plan) consists of $20k. He has very little financial knowledge and wants me to take the money and invest it for him and naturally i have chosen real estate. Keep in my mind I have never invested in real estate, only research for 3 years. 

My Plan:

1. Open a Self-Directed IRA

2. Establish an LLC

3. Transfer the 20k from my fathers retirement to his Checkbook SDIRA

4. Use the money to invest in fix n flips or buy and hold properties. 

Questions: 

1. I'm assuming the LLC, SDIRA, and Bank account have to be in his name. How do I get access to the funds without breaking IRS rules.

2. With the Checkbook IRA, how does this affect my ability to receive loans from credit union or banks.

3. Can I partner up with someone and split costs to buy and rehab? If so, how does this affect my tax situation when I sell the property for a profit since my partner is paying tax and I am not?

4. I've read about a SOLO 401k however, i am pretty sure we would not qualify. I do not actively work any deals as a RE agent and we both have full-time jobs.

5. Managing the property? I can't manage the property because I am a disqualified person (his son), correct?

*Most of my research has been done on BP, Dimitri's site Sensefinancial, and also a bit of Kaaren's UdirectIRA.com. 

*Bottom line is...What is the best route for me to take? I want to take my dads retirement fund of 20k and invest in real estate. 

Thanks in advance for feedback