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All Forum Posts by: Laura Powell

Laura Powell has started 1 posts and replied 4 times.

Post: Free guide for beginner investors

Laura PowellPosted
  • Real Estate Agent
  • Laguna Beach, FL
  • Posts 4
  • Votes 6

I created a free guide for beginning real estate investors with an overview of the critical considerations for starting out. I'd love to share it here in case it's helpful for anyone! 

Happy to connect with others who have further questions or interest in the Emerald Coast area in Florida. 


Download Free Guide Here

Post: Can i take out all of the money out of a 401k account ?

Laura PowellPosted
  • Real Estate Agent
  • Laguna Beach, FL
  • Posts 4
  • Votes 6
Quote from @Christie Gahan:
Quote from @Laura Powell:
Quote from @Christian Rodriguez:

Still working on finding my first deal but luckily have found my market ! Now i have been tasked with helping my mom invest the money in her 401k account, I was wondering if there was a way to be able to take out 100% of the accounts balance to buy property with it . I'm not too familiar with this form of financing would love some advice on how to capitalize on it !!


Check out something called a Roll Over Business Startup (ROBS) account. You roll your 401k into an investment account that purchases stock in a corporation. You create the corporation and use it as a property management company, and the ROBS account essentially funds it by purchasing the stocks. There are a few companies which manage these types of investment accounts and can help navigate the setup process.


 If 401k funds are rolled over, is that a taxable event?  Do you have to roll the funds from the 401k to a self directed 401k first ?  

Who is on title to the property?  The corporation?  What happens to any profits that the corporation makes?  Do those go to the corporation as income?  Or do they flow back to the 401k ?    It sounds like it may be possible to use 401k funds , in a round about way, to end up with current income.  This is exactly what the IRS does not want.  For any one considering this, please talk to your accountant and lawyer.  You are going to have to nail every step of every transaction.  I'm not sure how this would get around the prohibited transactions of a Roth.


 All very valid questions - and all answered by one of the companies that manage these types of accounts (whose CPAs and attorneys will advise you). You can see more info on this type of account here: https://catchfirefunding.com/want-to-use-retirement-money-fo...

It's definitely complex, and there are absolutely restrictions, but also absolutely ways to make it work. Each situation is unique so I agree - alway ask for professional advice!

Post: Can i take out all of the money out of a 401k account ?

Laura PowellPosted
  • Real Estate Agent
  • Laguna Beach, FL
  • Posts 4
  • Votes 6
Quote from @Christian Rodriguez:

Still working on finding my first deal but luckily have found my market ! Now i have been tasked with helping my mom invest the money in her 401k account, I was wondering if there was a way to be able to take out 100% of the accounts balance to buy property with it . I'm not too familiar with this form of financing would love some advice on how to capitalize on it !!


Check out something called a Roll Over Business Startup (ROBS) account. You roll your 401k into an investment account that purchases stock in a corporation. You create the corporation and use it as a property management company, and the ROBS account essentially funds it by purchasing the stocks. There are a few companies which manage these types of investment accounts and can help navigate the setup process.

Post: Where to invest for STR and MTR

Laura PowellPosted
  • Real Estate Agent
  • Laguna Beach, FL
  • Posts 4
  • Votes 6
Quote from @J Lyftogt:
Quote from @Michael Baum:

Hi @Ivan Aldana, so you are a not really informed based on some of you statements.

First off, COVID drove people to vacation at STRs all over the place, but especially in more rural areas where they can get away from it all. Most of us saw record occupancy and nightly rates during the pandemic.

Urban STRs were hit harder due to the heavier restrictions in larger cities.

Regarding the rural vs urban, I believe in beaches, lakes and mountains for any STRs I look at. I almost never look at urban places.

In an urban/city you can expect STR restrictions, unreasonable regs (sometimes) and an overall dislike of STRs in general.

In a rural area, you can expect more acceptance due to the distances between homes, the taxes STRs bring in can make a real difference (plus the places people visit drive revenue) etc.

There are a ton of folks converting their STRs to LTRs due to outright bans in the bigger cities.

Buying your STR in the right area will be important. Plan ahead if you buy in a seasonal area. We are very seasonable and planned accordingly. No problems making a profit.


Lots of great advice in this thread. Do you or anyone have any recommendations on a market to look in for a short term rental that would cost under $150k?  This would be my first property and I'd like to pay cash and not stress about having an additional mortgage. Also, I think I would struggle to qualify for any loans because I am already self employed and we don't pay ourselves a huge salary. 


I would look at the Panama City Beach, FL area. You can get a decent waterfront and/or close-to-the-beach condo for $250k or less. I know that's above your range, but you mention self-employment and struggling to qualify for loans. Have you looked at DSCR loans? They qualify you based on credit, down payment + reserves, and the projected rental income. For an area like PCB, the projected rental is strong and the area is growing like crazy.