All Forum Posts by: John Kinlaw

Hello friends!

I have a self directed 401(k) question that pertains to disqualified persons. Here's the scenario, my father wants to invest in real estate with his 401(k) self directed and he wants to hire the general contractor's company that I work for as a 1099 employee. Would he be able to hire this company knowing that I might possibly be sent there to work? (I will add that I have zero control over the contractors business entity.)

• I might as well ask a related question. While listening to a BiggerPockets podcast, the guest speaker mentioned that he started his business with a self directed 401(k), then he also said that he himself worked on the property to fix it up. Is this within the rules that govern the account? I would think that as long as a person doesn't pay themselves a salary to work on a project or manage it, and they also don't co-mingle funds, then it should be legal? Any opinions? To take this question one step further, can that plan participant acquire the materials with 401(k) funds or must those acquisitions be handled by a non-disqualified 3rd party?

Thanks for your time sharing the knowledge and wisdom to help us on our paths! =)

Okay ladies and gentlemen investors I'd love to hear your thoughts on this subject!   We are just starting on this journey and could use some of your strategy ideas.

This is my situation, My business partner and I are trying to decide whats the best way to get our feet wet. In one scenario we could scrape up the $150,000+/- down payment for a 12-16 unit APT complex but all of our capital would be tied up in that one deal and it would be awhile before we could do more deals without hard money. Or on the other hand we could start growing a portfolio of SFR with the BRRR method.

It would be extremely helpful to hear the pros and cons of each scenario.  I know that the situation always depends on many circumstances but the more viewpoints I can get the more well-rounded and informed our decision can be. 

Thanks!

Thanks for the quick responses!

Darrin,   Thanks for the invite.  We're planning on going so we hope to meet you!

Paul,   I appreciate the Congrats!  So the land is located near the border of Trotwood.  It's the 2 plots that attach to the end of Smallwood Rd.   PID's: R72 17105 0001   and   R72317110 0002 .  

Monique,  Thanks for the welcome.  The revitalization in Dayton is definitely in full effect.  Most notably the Oregon District as well as St. Anne's Hill, Huffman Historic District, and Walnut Hills.  I am interested in all of these areas but it is hard getting in there because there is so much competition. 

Hello my name is John,

I recently moved to the Dayton, Ohio area. My business partner and I have formed an LLC to concentrate on real estate investments. Our overall strategy is to acquire and flip houses in order to generate capital to buy revenue producing properties (apartment complexes ect.)

So far the only steps we have taken are 1.) we have formed an LLC and 2.) we bought an 18 acre plot of vacant land inside the city of Dayton at a treasurer's tax auction for $2000. It's not in the greatest location but something we believe we can market because of multiple factors including the fact that it adjoins to a city park on one side that has nice amenities and on the other side it has 3 ingress/egress streets that deadend on the property line with utilities that follow. We are exploring the idea of converting part of it into an community garden for a number of years until we have enough created enough capital through flipping to possibly develop the land. But we might also test the market this spring. I might be tempted to sell it if i get a high enough offer.

Question,   should I put the money up to have it surveyed and create a preliminary planned development? It is zoned as suburban residential but with a P.D. the county is much more flexible with the zoning limitations. This can allow me to create a higher density development.  I ask because this I'm of the mind that the property might be much more valuable if I can "sell the dream" for lack of a better term.  By creating a preliminary blueprint for a development.  I very much would appreciate any feedback I can get.  I am learning as I go.

Thanks for reading and have a great Thanksgiving!