All Forum Posts by: Josef Super

Does anyone have a recommendation for 203K FHA consultant in Pittsburgh, PA area? Any that I should stay clear of? Any advice when working with an fha consultant? Any advice would be greatly appreciated!

You can reach out to @Josh Caldwell for info in regards to Pittsburgh REIA.

Thanks @Carl Fischer and @George Blower! I will be reaching out to both of you.

Hello BP community!

I wanted to reach out and see if anyone in Pittsburgh area knows of legal experts who can provide consulting at a reasonable price. Looking for someone with extensive experience working with Self-Directed IRA's, setting up an LLC's, as well as general knowledge of PA real estate laws. Any referrals would be greatly appreciated!

Cheers,

Joe

Welcome Marc! I am also from the Burgh and new to REI. Let me know if you want to connect and bounce some ideas as I am always interested in hearing new perspectives on local real estate.

@Brian Eastman

Thanks for the advice Brian and I will make sure to call SDIRA providers directly for additional information from them. Your point on the return is a valid one (partnership vs leverage). 

@Dmitriy Fomichenko

I agree that responsibility falls on me, but I didn't know if some custodians are better than others at providing assistance to insure you don't commit a prohibited transaction. I also saw a couple of your other posts on a solo 401K threads. After reading through the threads I am now considering a solo 401K over SDIRA due to its advantages. Ability to borrow and no need for a custodian is very appealing.  Now I need to develop a business in order to qualify for a solo 401K.  

-Joe  

Hello BP community! I have recently switched jobs and have accumulated $88K in my 401K. I am looking to invest these funds in real estate instead of keeping it in mutual funds, bonds, etc. My plan is to roll it over into a Self-Directed IRA with a checkbook capabilities. SDIRA would then allow me to purchase an investment property, which I would be able to rent out. Implications with purchasing a rental property within SDIRA is that I will need to follow IRS imposed SDIRA rules such as no self-dealing, running an active business, and not providing a service to the property. As a workaround, my plan is to have my friend manage my property for me and compensate him based on the amount of work he needs to do on the property. Another potential challenge is the difficulty of obtaining a non-recourse loan that would require me to put down ~40% on the property at a potentially high interest rate. A workaround I am exploring is to create an SDIRA LLC and partner up with my friend who also has funds in a 401K from previous employer. This way my partner and I would be able to combine our funds and buy a property without a need for a non-recourse loan also allowing us to avoid paying Unrelated Business Income Tax (UBIT).

Here are some of the questions I have:

• Suggestions for a reliable custodian to insure I don’t violate any of the IRS transaction rules and also charges low fees.
• Does the custodian setup a SDIRA LLC or will I need to have a lawyer set this up?
• Advantages and disadvantages of purchasing notes instead of property within a Self-Directed IRA.
• Overall comments or deficiencies in the plan I have outlined above?

My overall goal with setting up a SDIRA is to identify and utilize a best option for the highest returns for my retirement account. I am currently 30 years old.

Thanks in advance,

-Joe  

Gary Swank I would love to hear some of your ideas as well. I currently reside in Pittsburgh's South Side.