All Forum Posts by: Daniel Dietz

Quote from @Maya Gavasheli:

Thank you! I am just starting out to research what are the rules of this game of SDIRA, so any comment  from the professional person in the field is very helpful!

Is it any recommended read, book to self-educate in the field

The book I I would I would recommend is by Matt Sorensen kkos lawyers and accountants, self-directed is one of their specialties. I believe the title is the self-directed IRA handbook. Just Google it you will find it is the number one selling book on the subject.

I would also recommend Googling Mark Kohler kkos lawyers. He has tons of great info on YouTube.

as for how to use your money, you could just use the money in your IRA it's a down payment and take out a non-recourse loan. Typically loan me $30 to 40% down for these loans.

Quote from @Alberto Vargas:

Is 20% the norm for down payment for DCSR loans? Are there any DCSR leaders that would take less than 20%? Texas.

we have quite a few of these loans that are LLC uses. We have done a couple only 10% down oh, but these were with our long-established lender oh, and we had to pledge the equity of other properties that we had were they also held the loans.

Quote from @Kenneth LaVoie:

I'm starting to warm up to the idea of putting these properties into IRAs. We have enough in our Iris to just about put all of our properties in. I don't know what the timing looks like with that sort of thing though.. or the mechanics, I assume that you take all the money out of the IRA and replace it with the market value of the real estate. So for example an IRA with 250,000 would simply purchase my $250,000 building? Then that 250 in cash would simply go into a taxable account for our financial advisor or us to manage.

  hate to be the bearer of bad news, but that is not at all how self-directed IRAs, or solo 401 Work

you cannot buy property from your IRA that you already own. This is what is called a prohibited transaction, or self dealing. I would recommend hopping on the forum hear that deals with retirement plan investing. There is lots of great professionals there who can give you some advice. That is where both my three partners and I also found our providers. We own over half of our properties in self-directed retirement accounts

Hello, just following along here

are you guys saying that if you get this certification you will be able to invest in syndication that require accredited investors, even though you do not other criteria as far as income goes?

I am in the situation where I am a real estate professional, but my net worth or my income do not qualify me as accredited. Thanks for any feedback

@Stephen Craul we have used NASB several times with great results. There terms vary with type of property - SFH, duplex, fourplex ect.... - we have a couple 20 year loans with them and a 15 year loan also.

We have also done loans with a Private Lender (a friend who used to own his own rentals and now wants more passive income). These need to be set up as Non-Recourse, which we did through a local lawyer. On these loans though they are only 5 years, but also only 5% interest. We use them within our SDIRA LLC where we use ALL of the cash flow from our existing properties to pay off the new one in 5 years. Rinse and repeat :-)

Dan Dietz. 

@Michael Plaks, thanks for sharing that great knowledge with all of us here in the BP Community.

One that I hear SO much about is the S-Corp. In our 'day job' business of remodeling we have stayed just a partnership with an LLC. No employees as we use a few subs for the labor. The KISS System if you will. We also take our draws/income in a different proportion that what each of our Basis' are.

One things that I have often wondered when people are thinking of doing the S-Corp thing to 'save on FICA' - I get that, in general. But it seems to my simple way of thinking isn't that *also* going to reduce your monthly benefits to a large percent? Meaning if you only 'pay in' on say 50% of your income each year by using the S-Corp strategy that you will also only get a proportionate retirement benefit down the road?

Thanks, Dan Dietz

We use a program called Rentec Direct, which I *think*is similar to Stessa as far as no balance sheet etc...., and have been VERY happy with it. It does all kinds of PM tasks too. Great support and easy to use.

Dan Dietz

In regards to a few comments of people not recommending that I would completely disagree. There is some are you kidding yourself that you need to do oh, but there are tons of resources out there for that.

I am just seeing you are like myself and my partners and you already have your Assets in your retirement account. So in my eyes the question becomes not should I buy real estate inside or outside of my retirement account, but how do I make the best use of my retirement account.

for us, that came down to buying rental properties. We already had others that we held traditionally oh, so we were very used to being landlords. The question was simply do you want to get 10 or 12% returns if you are lucky in the stock market, or would you like to get 15 to 20% returns in real state? Seems like a no-brainer to me

I do believe there is court cases saying that you can self manage your property and your tenants. Just like you would manage a stock portfolio in the ira. It is true that you are not supposed to contribute what is often referred to as Sweat Equity, such as improving a property that needs work. Maybe one of the professionals on here could comment on that aspect?

As far as who to use or a provider I would recommend calling a few of the providers who are active here in the forums. You can tell by their signature lines. I contacted three or four of them and would venture to say they could all have been a good fit. I ended up Sense Financial and am very pleased.

Two of my Investment Partners also used them with good results. We invest jointly in two different llc's that are made up of with one being each of our solo 401ks oh, and the other made up of our three self-directed IRAs.

as far as lenders go we have used nasb, who specializes in non-recourse loans and have been very happy. There is a list of non-recourse lenders that often gets shared here in the forums let's maybe somebody could post a link to.

As far as who to use or a provider I would recommend calling a few of the providers who are active here in the forums. You can tell by their signature lines. I contacted three or four of them and would venture to say they could all have been a good fit. I ended up Sense Financial and am very pleased.

Two of my Investment Partners also used them with good results. We invest jointly in two different llc's that are made up of with one being each of our solo 401ks oh, and the other made up of our three self-directed IRAs.

as far as lenders go we have used nasb, who specializes in non-recourse loans and have been very happy. There is a list of non-recourse lenders that often gets shared here in the forums let's maybe somebody could post a link to.