All Forum Posts by: Damien Cobbs

Can you suggest some non-qm loan products that allows for family members to occupy but doesn't require you to make it a primary residence? I am interested in doing the same as the OP.

@Jasmine Williams Can you share the name of the company you used? I am looking closely at GF but also would like to be aware of others. Thanks.

@Matthew Maggy , I'm definitely interested as well. I am just starting out and would benefit from any/all discussions. I am in the Richmond area as well.

@Balla Koroma Did you ever get referral information? I am interested as well.

Welcome to BiggerPockets and the REI community in the Richmond, VA area. I am fairly new to REI but I see it as being worth it. Let's connect.

Damien

Congratulations to whomever got this property. Any word on the total rehab cost? Given that location, I would expect it to sell fast and close to the asking price.

Damien

@Brian Eastman @Dmitriy Fomichenko@Chris Soignier

Thank you so much for the information. Things are clearer now. Brian and Dmitriy, I have reached out to your companies for information and look forward to speaking with representatives to review your solo 401k products. I am still researching but will act fast once my research is done.

Thank you again for all of your help.

Damien

Hello BiggerPockets family,

I have finally decided to open a solo 401k to help me with my house flipping adventures. I think I am at a point where I have read so much and I have confused myself and started to blur lines. I see that some solo401k (or self-directed or self employed 401ks) cost money to open while others appear to be free, $0 to open and $0 annual maintenance (like Fidelity and TD Ameritrade). I have not called any of the providers yet to get a lowdown on their fee structures or what services they provide. What are the differences between the solo401k providers that charge fees and the ones that don't advertise that they do? I already have a LLC setup. What am I missing?

Thanks,

Damien

@Brian Eastman

Thank you for the information. Yes, I fell "victim" to the real estate gurus and their ridiculously expensive courses and I almost fell victim to the hype of the SDIRA. Fortunately, I researched that first, else I would have been greatly upset. 

What other ways would I be able to contribute money to the SD401k? I am actually trying to do a couple of things: build retirement savings hence wanting to put a "little extra" into the SD401k (which may not be possible), build/operate a real estate business, pay down personal debts, and have an alternate way of funding college for my children. They all hinge on real estate investments I want to make now and in the future. I would be able to use funds from the SD401k to use for down payments for fix-and-flips but not for buy-n-holds, is that correct? Is there a restriction to also work full-time with another company were I am an employee with another active 401k?

This is my very first post! I have been reading about Self Directed IRAs as it was a recommendation from a conference I attended (and paid quite a bit for) regarding real estate investing. The way it was described made it seem like I could roll money from my previous employer 401k's and use that money to fund buy-and-flip property transactions. From my reading, a lot of reading, I think I have determined that a SDIRA is not the vehicle I should use. From my understanding, and please correct me if I am wrong, any proceeds from the flip would have to go back into the SDIRA, meaning that I could not use the proceeds to pay off other business expenses. I also could not use entities that I, my partner (wife), or family member set up.

I turned my research to self directed 401k's. They seem to be a better fit for what I am would like to do. I can roll over money from 401k accounts I have from former companies into a self directed 401k account. From there, I could loan myself the lesser of 50% of the SD401K or $50k to use for whatever purposes I choose. I would then have to replay the loan over the course of a specified time frame at a particular interest rate. Is that correct? Here is what I want to do (using arbitrary numbers):

- Put $80k into a self directed 401k account

- Pull $15k out to use for a down payment for property to rehab

- Use hard money for balance of rehab property purchase (I know the rates can be high for hard money but I have not built the private money relationships yet as we are not proven yet).

- Use Business Line for property rehab costs

Now, after the rehab is complete and the property has sold, I would then pay off the hard money lender, repay the business line, and then put the $15k, interest, and a little extra back into the SD401K. The rest of the money (let's say $17k) would then be used for business expenses, small salary, and used to build company reserve funds. 

I know that pulling all the money directly out of my old 401K's to completely fund the purchase would generate a rather substantial hit to the funds available to which there would be limited recourse as a $100k loan may actually only generate $65k of actual available funds. This would also wipe out any profit if I were to try to put $100k back into the property.

Is there anything that I am missing? Is there a better/different way? I have done so much reading that my mind is turning into mush. I really think I am hit by the analysis paralysis bug. 

Please advise.