All Forum Posts by: Cory Damon

@Matt Devincenzo

Great point(s)!  Thank you for your insight.  I agree, I'll error on the side of caution and avoid this... unless things become more clean-cut in the future.  

@Loren Whitney

Thank you for the reply.  But in looking at the "rules" of the custodian they make dealing with my in-law's a disqualified person.  Which would mean that I am disallowed to invest in them at all.  Or am I not reading this correctly?

 Hey David, I know this is really old but I thought I'd ask anyway.  This is only the case going one way correct?  What I mean is that I could invest in my parent-in-law via my SDIRA, they just wouldn't be able to invest in me with their SDIRA.  Do I understand that correctly?

 I know this is old but it's the closest thing I've come across that pertains to my question.  So based on what you wrote above, my SDIRA would be able to transact with my father-in-law... but he (if using his SDIRA) would not be able to transact with me.  Is that correct? 

I ask because I read the IRS info the way that you did but when looking at custodians to setup an IRA LLC I read this,

"A “disqualified” person is: 
• Yourself 
• Your lineal descendants (children, grandchildren, etc)
• Your lineal ascendants (parents, grandparents, etc)
• Your spouse, your spouse’s lineal descendants, and your spouse’s lineal ascendants"

According to this they would disqualify a transaction between my SDIRA and my father-in-law.  

@John Leavelle

I applaud you and thank you.  For those of us that are newer to BP, we quickly come to understand the importance of taking action.  But this must be done with diligence.  You are an example of both.  I love this idea and I'm excited for you and this journey you're on.  I will travel it with you... keep blazing a trail :-)

@Nick B.

Thank you for sharing your insight, keep it coming!  Questions and comments like yours help us think it all through - a needed process.  

@Eric Smith Just curious, are you working with a portfolio lender?  Are they strictly a local bank, or regional, or state wide?  Great post, thank you for sharing your insight.

Hey Greg - are the fees different for MLS only membership? Thanks.

I love it!  Thank you everyone for your feedback so far.

@Nick Noon

Not rude at all, I appreciate your insight and that you took time to respond. I was thinking that by paying down the principal I'd have more access to cash if/when needed it through the HELOC (over and above the $30k). But as I read the responses I see the downside to this approach. Thanks again for your comment.

@Steve Vaughan

I have $215k remaining on a 30yr fix. I don't have any other debt besides this.  And perhaps this is why I ask the question.  Like @Allen Clark I have an urge to get rid of debt but this may not be the most effective use of my cash at this point.  

#askBP

I have $30k saved and ready to use.  Is there an advantage to using this to pay down my current (primary) mortgage and then getting an equity line of credit, or should I use this strictly as investment capital? 

The reason I ask is because... well I'm ignorant.  But also because I see the advantage of having an equity line of credit to pull funds as needed without having to go through an approval process each time.  So, I thought if I paid down my mortgage I would have more available to me through the line of credit.  

Thanks in advance for your insight and opinions.

Cory

Hello BP community!  First off, what a treasure to find BP and this amazing community.  I am so excited to engaged, to learn, and to bask in all of the insight found within this community.

My name is Cory Damon and I am a total newb.  I moved from LA to Austin last year and I'm convinced that I need to stop thinking about real estate and start doing real estate.  So the journey begins.

The end-goal (kinda): My wife and I want to purchase a 5 to 10 acre piece of land to do two things.  1. to run a ranch that rescues animals (dogs and horses mainly), and 2. to partner with orphanages and foster programs to bring kids to the ranch to connect with the animals.  Many of these kids have never experience unconditional love, and our hope is that they will experience this through connecting with the animals... and us :-)

I'd like to have enough cash flow coming in from various real estate investments to cover all of our expenses to run and maintain the ranch.

I'm not a spring chicken any longer so it's time to get after it!

I look forward to connecting with many of you soon.

Thanks for stopping by, 

Cory