All Forum Posts by: Kurt Bouma

Thanks all for the replies. Sounds like I have homework to do. And, in the short term, probably easier to find a way to make the RE investment(s) using cash other than what's held in the IRA

So, apparently he was just saying that as long as the money is in the IRA with him (Edward Jones) they don't allow for real estate holdings inside of an IRA. I've been meaning to close my accounts through EJ and roll them into a fully self directed account elsewhere anyways. Do any of you have input with regard to that process?

Thanks for the detailed reply @Brian Eastman

My financial advisor had this to say in regards to the question of whether or not I could (without penalty) use funds in a self-directed roth IRA as a down payment on an investment property. I have no reason to doubt it's truthfulness but it seems to go against what I've always heard:

"Your Roth IRA's are already classified as self-directed IRA's. You are not able to hold real estate as an investment within an IRA. So unfortunately, the only way to use these assets to purchase real estate would be to pull the money out of the IRA incurring the 10% penalty plus paying the taxes on the growth in the account. I hope this helps but I'm guessing it isn't the answer you were looking for."

Looking for feedback on that from anyone who might confirm or know otherwise...

@Jamie Bateman Thanks for the intro. I'll check it out.

Having followed Scott's podcast on and off for a few years I'm quite surprised to find this thread (and others like it) on here. The bigger story, and most telling, is the fact the Scott himself and nobody else has jumped on the defense. 

So often there are folks prone to drama who make mountains out of mole hills and they aren't worth paying attention to but these are some serious claims and, given the rep I thought Scott had, I'm stunned that, through lack of response, he and the team are basically admitting guilt and running the other way. 

While there still seems to be valuable info on the podcast, I'm going to be listening with a different perspective now. 

Curious as to the strategy behind going all cash out of the gate? If it's going to cashflow either way why not put a mortgage on it and keep those funds available? Maybe you've got a big chunk still available above and beyond the $115k?

It's a 2 unit and cashflowing $1500/mo at that purchase price? You must be renting out around $1400/mo per side? 

Mortage $382K @ 4.5% 30 yrs - $922/mo

Taxes (no idea) $3200/yr - $266/mo

That's $1200. 

Do you have another 25-30% of rent factored for management/cap ex/vacancy? 

Craig - Yes, I do have a PM. I already own another duplex and two SF. The whole street is a rental district.