All Forum Posts by: Jeff Caravalho

@Justin Windham Good question, I will ask provider.  They are already stated on the loan docs provided me in the sample forms section.  Since I am administrator, shouldn't I get the fees?

@Jay Hinrichs If I win bidding, what is the best game plan for turning around and selling?  I need to wait 60 days for 2nd to redeem (which never happens), correct?  Then I can sell?  Do I need title insurance while its on the market (may only be a week)?

@Jay Hinrichs Funding is in place.  I will have redemption rights.  We don't want to bid too high because if we don't win bid and want to come back and redeem property before 6 mo. time limit we have to add 9% to winning bid, correct?  So we're thinking bid a few thousand max over opening bid if needed to get it, otherwise let it go higher (hopefully not too much higher).  and come back and redeem in summer, price should have appreciated some maybe putting a dent in the 9% fee, and we won't be selling in mid winter.  BTW is 9% part of redemption law or from somewhere else?  What do you think about this strategy, should I be more aggressive and try to get it as long as my numbers still work, instead of letting it go at some point to redeem in 6 months? Thx again for all your help :)

@Mark Nolan There is a loan processing fee of $50 and loan maintenance fee of $35.  Do those also get paid to the solo401K account, tax free?  Thx

@Brian Eastman, @Justin Windham So I can pay quarterly, which means I may be paying back the whole 50K with interest in 3 months.  When I pay interest on this loan to my solo401K is that considered income to the solo401K?  If so, is that interest income sheltered from Uncle Sam?:) Thx

@Brian Eastman, @Mark Nolan, @Dmitriy Fomichenko, @Justin Windham.  Can I do this in quarterly payments?  If so, may only have to make 1 payment because this should go no more than a few months.  Also, when do I have make first payment?  Begining or end of 1st pay period? Thx

@Jay Hinrichs Cutting it close for funding this.  I think we'll make it but is there a way to get auction postponed just in case?  Thx

@Brian Eastman, @Mark Nolan, @Dmitriy Fomichenko, @Justin Windham Thanks guys, plan docs do contain a loan app & promissory note.  And yes, it is a self administered plan, so not custodial account.  I guess I should have said plan provider not custodian.  I have an email in to them for more input & am fully expecting it...or else:)),    How long after I apply to myself can I write my first check?  It's not like we have underwriting here since I'm applying to myself right? Thx again.

Hi BP,  I would like to loan myself 50K from my solo401K to pick up a foreclosure at auction.  My custodian says it's my responsibility to administer it.  Seeking direction on the best way to do that.  I'd like to minimize my payments on this, so 50K over 5 yrs.  Do I need to set up an excel spreadsheet?  What exactly does he mean by administer?  I know I need to fill out my own loan application & promissory note, where do I send those docs, to the custodian?  what else do I need to do to satisfy the requirements here, especially for the IRS.  Thanks!

@Jay Hinrichs Thank you so much!  We'll keep you posted.