All Forum Posts by: Dwayne Dilbeck

I am looking for a reliable independent turnkey home inspector in Detroit(metro area), Mi.

I am also looking for contractor and Property manager referrals as well. While a good turnkey should be able to deal with the contractor and property management, I would like independent information just in case.

@James Wise Thank you for the information, it is very useful.

Dwayne Dilbeck

@Dmitriy Fomichenko, @Bernard Reisz

That is awesome information.   I did not believe I qualified for a solo401k, since I was participating in my 9am-6pm Employer's 401k.  I will need to dig into this.

I don't do a lot of loan signing(Notary Public), is there a minimum income requirement for the solo 401k?  It will be at least another 34 days before I can even take the CA real estate sales exam, so that should not be a consideration for qualification.

I have read all the comments and find them interesting. But what about an IRA owned LLC in Michigan? While I am the manager the IRS rules greatly restrict what I can and can not do. I just set this up to manager rental property in Michigan, and want to make sure I stay on the legal side. Any one have a Sunnyvale local lawyer I could consult?

@Larry FriedThank you for the Welcome and the hints on things to watch out for. Luckily you didn't mention anything I have not read.  That means I have been doing a good job of research before pulling the trigger on my purchase.

1) No performing work on the property nor doing the PM.   This is one reason I am looking for turnkey out of state. Otherwise my wife would be trying to drive by everyday to check on the property putting me in a bad place.

2) IRA does all the funding. My future plan is to keep 10-15% liquidity in the IRA in case of issues. But initially I am planning 40% for 6 months to a year. I am even considering the Non-recourse loan to keep even more funds available initially.

3) Unrelated Business Income Tax (UBIT) - Only an issue if I do take that Non-recourse loan for more liquidity. Not sure if any bank would even loan to a fresh IRA LCC even when the IRA has 200% of the purchase price in cash. Still looking for that answer, but I am looking out for UBIT.

If anyone else has things to watch out for, yell them out.   

@Jon Rambis I would recommend determining your target state first and setup your LLC there. In my case I started my LLC in Michigan as that is where my first target investment was. Other states do have cheaper annual fees. Later your LLC can register in each new state as a a Foreign LLC as it grows.

@Christian Sifuentes  - If the state requires a registered agent, you are out of luck. You will have to spend $80-100 annually for the agent.   Michigan has this requirement.  I just setup with InCorp,  $67/year when purchased for 5 years.

I can not comment on the service yet, give me a few months then I can comment

Greetings,

I'm Dwayne Dilbeck. I just converted my IRA to an IRA LLC, thus allowing me to invest in real estate. I am looking to invest out of state. I am currently researching options. I am leaning toward turnkey in Mi, Oh, or In. My planned strategy is rehab and hold.

I am studying for the California Real Estate Sales License. I am also a Notary Public.

If there are any Bay Area RE clubs, I would love to hear about them.

During office hours I am a hardware/software engineer working for an Inteligent Building company.