All Forum Posts by: Daniel Dietz

I would check out KKOS Lawyers & Accounting. There are not in NJ, but they work nationally and are considered experts in this field.

They have helped my partners and I figure things out for about 7 Entities that range from single member LLCs, several SDIRAs making up an LLC, several SOLO401Ks make up an LLC, and a mix of SOLO401Ks and Private Money making up another LLC.

If you google up Mark Kohler or Mat Sorensen you can find their Podcasts, Youtubes etc.... They also invest these ways themselves, so they understand it.

I agree 100% with @Brett Synicky on the checkbook control model. My partners and I all use them, plus we all use SOLO401Ks too.

We also use Sense Financial and could highly recommend them.

Quote from @Account Closed:

Hey gang, 

One thing ive heard alot from folks lately about is how they are having their spouse qualify as real estate professional status, and getting the hours for it via having them "manage the property manager" and review financial statements (known as investor

Account Closed I would be interested to hear your take on what other things can make a person a 'real estate professional'?

It seems like everyone agrees that being an active Realtor does. What about other 'property trades' people? Builders, Trades (plumbing, electrical, etc.... )?

Personally I do house remodeling full time. I also flip houses, but that is more on an occasional basis.

Do 'Trades' who actively work on houses qualify? '

Thanks, Dan Dietz

 It is almost as simple as that.

I have a friend who saw what we were doing with our SDIRAs & SOLO401Ks any buying rentals. He was/is a W2 earner with a commercial construction company.

He opted to start a 'construction consulting business' on the side and with the blessing of his employer. He estimates he puts about 10-20 hours a month into this 'side hustle' and earns 10-15% of what his W2 salary is.

I *think* the important part is the 'intent' to make a profit and be a legit business.

I should also mention his main reason to want to do a SOLO401K instead of a SDIRA is that he ALREADY had 500K + in a Traditional IRA that he rolled over, and THEN leveraged.

Quote from @Daniel Dietz:

Good advice above. We have been very happy with Rentec Direct. We have 24 units over 7 entities (Personal, SDIRAs and SOLO401Ks) and use the "Property Management" version and just treat each entity like a different 'owner'.

Dan Dietz

And I forgot the best part, SIMPLE

Good advice above. We have been very happy with Rentec Direct. We have 24 units over 7 entities (Personal, SDIRAs and SOLO401Ks) and use the "Property Management" version and just treat each entity like a different 'owner'.

Dan Dietz

We have done both borrowing and partnering (equity instead of loan) but usually do the partnering. 

Our latest one the "Partner B" (investor) brought ALL of the 20% down needed. We did ALL of the 'other' stuff; found, analyzed, inspected, bought, arranged loan (that we both had to sign) and all ongoing property management.

Cash flow is split yearly. Any equity growth from loan pay-down or amortization will be split when we refinance or sell down the road, but AFTER Partner B gets their 'down payment funds' back. There is NO interest paid on that since Partner B gets 50% of everything.

We are at about 25 properties, owned by 7 'entities' and a mix of 5 people. So we are 'small' but 'complex':-)

I agree 110% with others here that find an app you like. We use Rentec Direct mentioned above, and love it. We use the PM version since we have the different entities to keep track of. Those entities consist of an LLC owned by SDIRAs, an LLC owned by SOLO401Ks, 2 'regularly funded' LLCs with a mix of 4 Members, and 3 of us own 1 or more rentals as individuals.

Using an app like Rentec or similar makes all of this smooth.

We also have a shared google calendar and set a LOT of reminders of things that need doing. The apps probably have that feature also, but we all use Google Calendar in our 'day jobs'  so it makes it really easy to have those show together.
Dan Dietz

We have had a great experience with @Dmitriy Fomichenko at Sense Financial. I would check him out or others that participate here at BP such as @Brian Eastman, @Justin Windham, @Carl Fischer or others. I talked to most of them when we set ours up, and got a better vibe from all of them compared to the larger companies out there.

Dan 

My partners and I own an LLC made up of all 3 of our SDIRAs and another made up of our SOLO401Ks (great if you qualify).

Some people say that is not the 'fastest way' to gain wealth in RE is to highly leverage and go big. With the Self Directed accounts your leverage IS more limited, but ALSO your risk is reduced due to that lower leverage and non-recourse type of loans.

In our case we all ALREADY had all of our retirement savings in IRAs and 401Ks, so it seemed natural.

Feel free to reach out if you have any questions.

Dan Dietz