All Forum Posts by: Dylan Mathias

@Dave DeMarinis

Thank you Dave. I will check them out and get in contact with someone their to see their pricing and what they offer. 

@Brian Eastman

Brian I really appreciate your time. Does your firm have the ability to assist in a process similar to this if I decide to move forward with it? 

So ultimately you can put up the the real estate investment you buy through the Checkbook LLC as collateral but you cannot put up anything else to get a loan.

@Brian Eastman

Thank you Brian. This information was extremely helpful. After doing a little research it looks like the Checkbook IRA LLC is what I have been wanting to do.

Just to summarize what I would do, is take my money from my employer 401k once I leave roll that into a pre-taxed IRA. Then from there into a Roth IRA.

After this create an LLC. Assign the Roth IRA as the passive investor of the LLC and assign myself personally as the manager that will not be compensated.

I would open a bank account using the EIN number after establishing the LLC.

From there I can invest in real estate and manage all the inflows and outflows through the LLC without commingling money with your personal assets.

Is this about right?

My last questions is if I used those funds in my Roth IRA as a down payment and got a loan how would that work? I am assuming that would complicate things for tax reasons.

@Diana Smith

Can you send me his contact information? Do you know for sure if he specialized in this?

Hi all,

While in college I worked fulled time at a fortune 500 company. I was able to put away a good amount in my 401k in the two years I have been at the company. I am now leaving the company and am going to roll my 401k into a tradition pre-tax IRA and then a self direct post tax Roth IRA.

I am moving most of my money into more conservative investments in the economical environment we are in.

I am wondering if anyone has information on how to invest in real estate rental properties with a Roth IRA. I have heard you have to hold your money with a 3rd party and besides that you can pretty much just use the money to invest.

I wanted to get peoples thoughts and if anyone knows someone that specializes in this area. I live a little North of San Francisco so someone close to that area would be great.

Hi all, 

While in college I worked fulled time at a fortune 500 company. I was able to put away a good amount in my 401k in the two years I have been at the company. I am now leaving the company and am going to roll my 401k into a tradition pre-tax IRA and then a self direct post tax Roth IRA.

I am moving most of my money into more conservative investments in the economical environment we are in. 

I am wondering if anyone has information on how to invest in real estate rental properties with a Roth IRA. I have heard you have to hold your money with a 3rd party and besides that you can pretty much just use the money to invest.

I wanted to get peoples thoughts and if anyone knows someone that specializes in this area. I live a little North of San Francisco so someone close to that area would be great.

@Joshua B.

You have pretty low interest rates on all three loans. If the 10K is all you have in your savings, I would keep that money safe

With the information you provided I would pay down your solar loan just factoring that it has the highest interest rate. That is usually the rule of thumb. Pay off all debt with the highest interest rates first. 

@Ellis Hammond

Buy a used car in cash! In my belief cars are one of the worst investment. They are depreciating assets. I buy average cheap cars in cash. 

To put it in an easy to understand way. Leasing a car is like renting. Financing a car is like buying a house the only different it is far worse because houses on average appreciate and cars depreciate. If you do the math it is good to use leverage for appreciating assets and bad to use leverage for depreciating assets. If you have to finance then you have to. I would buy a used car and do not consider your car an asset. It is a liability (Rich Dad Poor Dad). 

@Adam Boertje

Regarding your second question. You will not be allowed to apply it to your existing loan. 1031 exchanges have specific criteria you have to abide by. 

1. You have 45 days to identify the next like kind property. 

2. You have 180 days to close on that house. 

There is more details and criteria but these are two of the big ones. 

Also if the next property you are buying is less then that selling price of your current home you will have to pay taxes on the different. You can also buy multiple like kind properties from the sale of one property. There is specific criteria regarding this as well. 

The below link is from the IRS and is more detailed. It is a good read though. 

https://www.irs.gov/newsroom/like-kind-exchanges-u...

This other link is more of a summary. 

https://www.erg1031.com/1031-exchange-overview/

@Account Closed

Thank you Chris. It looks like I am already connected with you so I will reach out when I get back to the bay area.