All Forum Posts by: Nathan Yee

Hello BP Community,

I'm looking clarify the following questions:

What would the tax/penalties (if applicable) be for rolling over 1) my ROTH IRA and 2) my old, traditional employer 401(k) into a Self-Directed ROTH IRA? What are my max contribution limits? (I'm under 59 1/2 years old). 

Based on my research, I'm currently thinking that there are no tax/penalties for a ROTH IRA rollover and you'd pay ordinary income tax (via 1099), but with no penalties for a traditional 401(k) to Self-Directed ROTH IRA conversion. As far as max contribution limits, I'm under the impression the max amount I can contribute is $5500 (2017) and that this contribution would be across all ROTH retirement accounts.

Lastly, if I qualify later in life for a Solo-401(k), can I convert an existing Self-Directed ROTH IRA to a Solo-401(k)?

Based on my research, I'm thinking I don't qualify based on IRS rules: 

https://www.irs.gov/pub/irs-tege/rollover_chart.pd...

Background:

I'm looking to set up a Self-Directed ROTH IRA for the following reasons: 1) I believe I'll be in a higher tax bracket later in life and 2) I'm focusing on investing in large MF syndication deals as a limited partner. Although I love the benefits of a Solo 401(k), I don't qualify to set one up - I'm currently a W2 with no additional sources of income. The Self-Directed IRA seems to be the next best thing.

I appreciate everyone's help/input on this!

-Nate

Ramel Sherman - many investors in LA work with Robert Hall & Associates. You can schedule a consultation session with them (free) to see if it makes sense to incorporate.

For Crime statistics block by block, I use this site (updated month by month):

http://crime.chicagotribune.com/chicago/community/south-chicago

Jolene Blazey what's frequency of this event? I understand it's the first one, so this may be fluid. I will be unable to attend, since I have a conflicting meeting that evening, but like others I hope to be able to be present at the next one.

Thanks for reaching out @Alex Bok - sent you a PM.

Hi BP Chicago,

I'm looking to invest in South Chicago and seek to establish local connections with RE Brokers and Management companies with the following experience:

-must have multiple year track record partnering with investors and must own or manage investment properties

-specializes in residential multi-family properties (2-4 flats)

-Focus on South Chicago (East of I-90/94)

If you've had positive experiences partnering with certain individuals/companies or if this is you, I'd love to chat. 

Thanks everyone!

Nate

I'm a big fan of books. Here's my list. I got a lot of good nuggets from each one. If you're starting out, I highly recommend the ones in bold.

Reading List Queue
◾Multi-Family Millions by David Lindahl
◾The Unofficial Guide to Real Estate Investing by Spencer Strauss
◾Protecting your #1 asset: Creating fortunes from your ideas: An intellectual property handbook by Michael Lechter
◾Tax-Free Wealth by Tom Wheelwright

Completed Reading
◾The Millionaire Next Door by Thomas Stanley
◾Investing in Duplexes, Triplexes, and Quads - The Fastest and Safest way to Real-Estate Wealth by Larry Loftis
◾The Ultimate Beginner's Guide to Real-Estate Investing by Brandon Turner
◾Rich Dad, Poor Dad by Robert Kiyosaki
◾Retire Young, Retire Rich by Robert Kiyosaki
◾The Millionaire Real-Estate Investor by Gary Keller
◾The One Thing by Gary Keller
◾What Every Real-Estate Investor needs to know about Cash Flow by Frank Gallinelli 

◾Loopholes of Real Estate by Garrett Sutton

Kysha McNeal - I'm interested in the mortgage broker you used for your FHA loan if you don't mind shooting the contact info my way. FHA is a good route to go due to the low % down payment. Just be cognizant of the 1.75% upfront Mortgage insurance premium (MIP) on the loan and the lifetime MIP per month when you run your numbers.

If you stuck with existing property...

Have you considered all ways to minimize monthly expenses? For example, are all/or certain utilities being paid by tenant? I agree with the above, it looks like you're running pretty lean now, but still worth exploring.

Have you considered additional ways to raise rents? With the existing property could you use some of this refinance money to rehab, force appreciation, and raise rents (if increase is supported by the market)? Have you looked at multiple lenders for the better refi terms?

If you purchased another property...

Would you cashflow more than if you owned just the current property? Leveraging may make sense to get better return on your equity. Are you in a market where you may benefit from appreciation? Would you benefit from additional loan amortization and tax benefits? If you go this route, hopefully yes to all.

As you scale, having a tax strategist (CPA, EA, etc.) and an attorney (versed in tax/real-estate) will be helpful. The former will cover your tax side, while the latter will cover your legal side. See if either offers free initial consultation.