All Forum Posts by: Jennifer McMurtray

I don't think anyone was expecting wine or roses.  We expect about a third to a half of the notes to result in foreclosure, a third to be Deed in Lieus, and the rest modify and re-perform.   The costs are baked into the deal before we ever bid.  We increase success by buying notes for decent, owner-occupied properties, but we don't assume the people will be one way or the other.  I think Christina and other of Scott Carson's students are well trained and grounded in reality.

Thank you for the clarifications! I appreciate them.

Thanks for all of the input, everyone. Regarding RMD, I should have mentioned that that applies if you set up at least part of your Solo 401(K) as a Roth. The Roth portion doesn't have a RMD requirement. If you can, take the employer's contribution portion (which is pretaxed like a traditional IRA) and convert it to your Roth portion of your Solo account. You can have more than one account within your Solo 401(K).

Regarding the UBIT, this article was helpful: http://www.irafinancialgroup.com/the-solo-401k-and....  It says:

"Interestingly, unlike an IRA, using nonrecourse financing to purchase real estate will not trigger the UBIT/UBTI tax since it will not be treated as Unrelated Debt Financed Income (exception exists for 401(k) qualified retirement plans but not IRAs under Internal Revenue Code Section 514(c)(9).

The type of income that generally could subject a 401(k) or Solo 401K to UBIT or UBTI is income generated from the following sources:

• Income from the operations of an active trade or business through a passsthrough entity (i.e. LLC or partnership). For example, a store, restaurant, manufacturing business, real estate development company.
• Using margin on a stock purchase."

I would look up the IRS tax code, but I'm in Note Camp for the next 3 days and my attention is on those speakers.

Mark, thanks for the wealth of information on SDIRAs and Solo 401(K)s!

Tyler Carter of NuView IRA just gave a killer presentation on the Solo 401(K) plan, which is something you might be eligible for if you are self-employed and don't have common law employees. Between the contributions you make to it as an employee and the profit sharing contributions your employer (you) makes on your behalf, you could sock away up to $53,000/year (or $59,000 if you are over 50)! Even better, you can use that money to invest in notes tax-differed or tax free. The account has no minimum required distribution at any age, is exempt from UBIT and UDFI taxes, and if you set it up as a Roth (and convert all the employer contributions to a Roth), you can pass it along to your kids upon your death tax free. Oh, and you can take out loans from it, for any purpose (up to 50% of the account and up to $50K).

Tyler said this wasn't sexy.  But it is!

#notecamp #scottcarson #chasethompson #nuviewira #tylercarter

I'm enjoying Note Camp too.  It's motivating to hear experts in the note industry share their expertise.  It sharpens the sword! #notecamp