All Forum Posts by: Robert Pickles

Hey folks,

Several weeks ago, I posted some questions about what I suspected was an un-informed group offering IRA advice. As I suspected the advice was bad, as indicated by the answers I got here, my accountant, and other due-diligence. I "think" I've found the company I want to go with, but in the interest of doing better due-diligence than I did the first time around I'm looking for more feedback.

Has anyone used MidAtlantic IRA based in Frederick Maryland? All of my correspondence to date has been very positive. Scott their rep, travels down to our local investor group every month, and several members use them. Very interested in comments on the fee schedule. They seem similar to other companies I've researched. I'm specifically not using a company that is doing check-book control accounts, because based solely on my personal research, I don't feel confident that those accounts won't run into problems later. Big debate I know, but easy enough for me to avoid.

This link if it works should give you access to the entire packet. Fees are broke down on page 3: https://dl.dropbox.com/u/5272936/New%20Account%20Kit%20-%20Trad-Roth-SEP-SIMPLE%20IRA.pdf

Ditto to all three replies thus far. The broker owns the listing, the current listing agent has an "interest" in the current transaction. You already know to interview better when hiring an agent, so I won't belabor that point. Best thing you can do from here out, is to keep pushing your agent for performance. At my brokerage, this happens from time to time. My brokers position is generally to pass the transaction to a more suitable agent and split the commission. Neither agent is happy, but both know they are doing what is best for the transaction and the reputation of the company in general.

Thank you everyone for your replies. The search for "Hampton Roads" was quite helpful. I knew about the local investor group and am just now getting my arms around when and where they meet.

I found one wholesaler on craigslist thanks to you guys. So I'm off to get all the partners huddled around the business plan, assign someone the task of looking for and evaluating properties. . . With any luck we will make our first purchase in 90 days or less, and be millionaires by year end (lol).

Hi,

I live in the Hampton roads Virginia area. How do you find local wholesalers?

Actually I wasn't 100% on this. If painting is a contribution via sweat equity, it seems interviewing subs, taking bids, reviewing work, schedule payments would be as well. Which is why I'm trying to come up to speed as quickly possible. Some of this seems common sense, some seems like you gotta follow the rules, regardless of if it makes sense, and some things there just isn't a consensus on, and only an audit or possibly an IRS "opinion/permission" letter will clear it up.

Thanks to everyone for your' posts.

I've been in the biz for 3 years, and hired my wife 2 years ago to handle all of my transactions. She is an employee (as opposed to 1099) and is paid $1000 + $150 a closing. I do 40ish transactions a year and feel like I can concentrate on selling better while she manages all the logistic's for closings. Last year she took on a few other agents including our two adult kids that are licensed as well. She typically has 35-40 transactions open at any given time, and closes 17 this month, a record for her.

Do 8-10 yourself so you know exactly what is going on, then up your volume and get a TC.

Thank you guys for your response. You have both confirmed what I already thought was the truth. I will meet with their accountants on Monday to hear their rationale, but it is very unlikely that I will go forward with them. Instead I will spend more time on this forum learning what is and what is not acceptable practices. Then I will be interviewing custodians before doing anything further.

Hi All,

Very new to this forum and so far am very impressed. If what I'm asking has already been answered (I can't believe it hasn't) please direct me to the appropriate post. I've tried searching but I can't seem to get the right search terms to generate the results I want.

Background: I'm a real estate agent in Virginia. I have a previous employer based 401K that I will be moving into some form of self directed structure, possibly a Solo 401K. I'm researching allowed/prohibited transactions, and custodians now (thanks for all the good threads here on that). I have friends here (also agents/brokers) that are using a local custodian here, but from what I've learned so far I think they are doing things that if audited would cause them some grief. Trouble is, so many plan providers are giving contradictory advice and I can't seem to understand what parts of the IRS code apply to each version of a plan, or how to interpret them if I did. . .

1) Agent John, acts as the buyer broker for an investment property to be acquired by his retirement plan. The plan funds the transaction, the property is properly titled and John earns a standard commission which he puts in his "personal" RE business. Seems like that is a prohibited dealing, but the plan provider assures John it isn't. (I meet this plan provider Monday).

2) Agent John, now acts as the listing agent for the newly renovated property. The plan sells the property using John's service, and now John earns a commission on the listing site, and again, that commission goes into his personal RE business account.

3) Agent John, is a hands on guy and a work-aholic so he oversees the entire project and manages the contractors, and he and his wife do their own finish work. They paint, install light plumbing fixtures, clean . . . Contractors are not disqualified individuals. The work that John and his wife do are NOT expensed back to the plan, but somehow they pay for the stuff, not sure if it comes out of their pocked un-reimbursed, or if the plan cuts checks to local suppliers. Can John manage the renovation by managing the contractors, and can John and his wife work for free. This seems to me a prohibited dealing.

4) Agent Sally, is buying VA Vendee properties, which are initially titled in her name. Later (30,60,90) days - she re-titles the property to "custodian .... for behalf of Sally". This seems wrong on so many levels from what I've learned. One, the bank could call the loan due when it learns the property has been transferred into a plan. Two, how in the world can she transfer property that "she" owns into the plan? Three, now the plan has property that is financed, does this open up the UBIT stuff?

These are not made up things, my associates are doing these things right now. I want to put my RE knowledge and connections to work, and I have enough money in my retirement to get started, but I want to do it right.

Again, feel free to point me to threads that have already dealt with this or help me learn to use the search tool better if these specific questions have already been answered.

Thanks in advance,