All Forum Posts by: Jeff Cichocki

@Tania Reubens you should consult whoever set it up for you and check your plan docs for proper titling of the transfer. Once I ou have that, then go for it. You won't regret the move. Godd luck!

@Merle Brubacker I don't think so. My profile is set up. You can find me at biggerpockets.com/users/JeffCichocki.

@Tania Reubens a solo 401k has checkbook control, no need for a Custodian (you can put your money at your local bank), if you make a prohibited transaction the account is not blown up - you only pay a 15% penalty on the dollar amount to transaction (not the entire account) and you can borrow up to 50k (just like an employer plan). There are other benefits as well, but these are the biggies. If you want to learn more, there is a book I would recommend you buy. It's written by two experts in investing and a tax attorney. You can find it here... https://assets101.com/shop/solo-401k/. I don't get anything for recommending the book. It's just something I've found to be very helpful.

I absolutely love mine. Can't recommend them enough.

@Chad Leton typically when I hear that someone is looking to unload properties one at a time, it's for tax purposes. There are strategies available that your grandpa probably isn't aware of that would allow him to sell faster and either pay the taxes slowly or completely delay them for up to 30 years. Few people truly understand the tax code well enough to guide people through the process. If your grandpa would be interested in learning how to do that let me know. I'd be happy to help if possible.

@Merle Brubacker welcome! I'm from Green Bay and my business partner is from the Wausau area. If you haven't connected with the WiscoREIA yet, you should. They have meetings in the Wausau area. You can check them out at WiscoREIA.com. Hope to see you there.

@Tania Reubens I set up a solo 401k instead. Way better benefits than the traditional SDIRA setup.

@Dana LeSher One other thing to note regarding the Solo 401k that I keep seeing others mentioning regarding checkbook control IRA's. A Solo gives you checkbook control. A Solo gives you the ability to borrow up to $50k from your account for personal use (just like you typically get with your employer). If you do something that is construed by the IRS as a prohibited transaction, you are capped at a 15% penalty against the value of the transaction (not the entire account balance); the penalty negates the distribution rule that exists with IRA's - The account is still open and valid after the transaction. In other words, the Solo gives you all the benefits of a Checkbook control IRA with a bunch of other safety nets included. A solo doesn't work for everyone, but if you qualify, it trumps the IRA hands down. If you want to learn more about them, order this book...

https://assets101.com/shop/solo-401k/

It's $28 (I don't get any kickbacks or commissions if you buy it). But, it's worth every penny. It was written by 2 Incredible investors and an attorney. It's a must have for your library.

Good luck!

@Dana LeSher if you can set up a solo-401k, it will be better than any of the other self directed IRA stuff out there. There a ton of advantages. The biggest one being a prohibited transaction does not blow up the account.

@Ana Klein happy to help if I can. If you have any questions about investing, let me know. I'm not just a lender.

In the meantime, checkout WiscoREIA.com to if there's a location nearby. Great group of guys running this one.

Good luck!

Hi Ana,

I just read through your thread. You're getting some pretty good advice. I know I'm tainted on the topic, but Hard Money can be a great tool if you learn how to use it properly. It can get you into a deal for no money out of pocket (if the deal is good enough). My caution though is that you do need to be careful who you work with. Not all lenders are created equal (I've even seen some pretty shady private individuals who lend). The most important thing to consider is what's best for your business and not everyone else's. If HM is good for the project, it's good. If it doesn't it's not. HM when done right is typically cheaper than a partner. My business partner & I also flip homes in addition to lending. We see things from all sides. Everyone involved needs to make money. If not, there's no point in them playing the game with you. It's a tricky balance sometimes.

If you do decide to go down the HM path, make sure you find a lender who is interested in your success, is willing to work with you if things go astray and doesn't judge you based on your credit score. A good lender should be more interested in the property and your ability to succeed above all else. If not, don't do business with them. Only work with people who truly want to see you succeed.

Also, if you're not already in one, find a good REIA to attend meetings at. You need to network with other investors. It will help you find good contractors and leads of properties from wholesalers.

Let me know if you ever need any help. I'm up in Green Bay.