All Forum Posts by: Darren Looker

Dmitriy you're right. I've never paid her as an employee.

Thanks for your feedback @Eric James. There's more to consider, but options are narrowing down.

I think we will keep it in retirement. Now to research Solo 401K vs. SDIRA with/without LLC.

I recently took a full time job, so my photography business will have fewer funds. All of this retirement is my wife's. I might consider rolling into a Solo401k for her and pay her most of my profits as an employee. Thoughts?

@Bernard Reisz @Justin Windham @Eric James @Mike Reynolds

Thanks for all the great feedback so far!

These sources are a traditional IRA and traditional pension plan. My understanding is that since they are pre-tax money, they need to be rolled into another pre-tax vehicle such as SDIRA. I don't think I could put these into a Solo 401K based on their income source being corporations instead of self-employment.

Tax rate is 25-28% on income. Would profits be income or capital gains?

Regarding how we want to invest, we would be a hard money lender in flips. We would be a secondary lender or consider borrowing in a non-recourse loan to be the primary lender on some projects. I'm unfamiliar with UDFI and have a cursory knowledge of UBIT. I'll get educated.

Based on a discussion with a SDIRA company, this is not enough money to warrant using an LLC. "Too much extra work." They suggest SDIRA with custodian.

We have around $25K in several traditional retirement accounts. We'd like to invest in real estate and already have deals lined up. Which is better/cheaper from a tax standpoint- roll into an SDIRA and pay taxes later or pay the 20% penalty now and put the money in an LLC and pay capital gains on any profits each year? I already have an LLC.

Don't allow the seller to live in the house beyond the closing date unless they are willing to do a lease back option. They will have to pay an amount that you set to remain in the property. At the very least you would want this to cover your expenses.
This is common today in my area. Many houses sell with 0 days on market and the seller needs to have their house sold to qualify for a purchase.

I am new to BP and am definitely interested in meeting fellow RE investors in the area. I live in N Oak Cliff.

Look up brown paper flooring. It's inexpensive and looks much better than it sounds. You can also put a different floor over it later instead of ripping it up.
I've also seen stained plywood done nicely.