All Forum Posts by: Kylie A.

OP looking at your previous posts you do wholesaling?  If you’re a millionaire liquidity is a small part of your investment strategy since the return is low.  Anything you do is fine since the objective is not higher return.  

Kylie, 

You referenced Roth IRA, so I will provide some education on this topic to hopefully help you:

1) Roth IRA contributions, can be distributed from the Roth anytime tax and penalty free. Many are not aware of this. For example, in 2024, you can contribute $7,000 when under the age of 50, and $8,000 when 50+. Let's say you are 30 years old and you make over the next 10 years, $25,000 in contribution, we shall call this your basis. Let's say you make $20,000 in income from that basis, which of course grows tax-free. Now let's say at the age of 40, you could really use that $25,000 basis. Despite being under the age of 59.5, which is the qualified retirement age, you can distribute the $25,000 because it is after-tax Roth contributions. I like to call this a nice safety net for those that our younger and looking to save but fear locking up all their capital.

2) Keep in mind to contribute directly to a Roth IRA, you need to be under the Modified Adjusted Gross Income (MAGI). For example, in 2024, as a single individual, you make less than $146,000 MAGI, you can make a full contribution to the Roth, $230,000 if married filing a joint return. If you are over these amounts, you can do a backdoor contribution, which is contributing to a Traditional IRA and then immediately converting to a Roth IRA. Keep in mind though, the distributing from basis, won't work in this case, but you still have tax-free Roth savings. There are hardship withdrawal provisions and others that can be exercised if you meet the requirements.

3) If you have access to a workplace plan, like a 401k, with a Roth component, you can consider that as well. 

4) If you setup your Roth with a Self-Directed IRA custodian, they can allow you to invest in assets like real estate, private lending, private equity and other alternative assets.

Worse case scenario you distribute from your Roth early and pay taxes and a 10% penalty. Should not hold one back from contributing. 


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Hey Kylie,

Your question hits home for a lot of us trying to make the most of our hard-earned money. Balancing growth with liquidity can feel like threading a needle...

I remember a friend of mine, Lisa, who was in a similar spot. She wanted her investments to grow but didn't want her money locked up for decades. From what I've heard, peer-to-peer lending platorms can offer decent returns and the ability to withdraw funds relatively quickly if needed.

Personally, I've found that investing in short-term real estate projects can be a sweet spot. A few years back, I invested in a fix-and-flip project in Austin that wrapped up in about eight months. It offered a solid return without tying up my capital for too long.

At the end of the day, it boils down to what you're comfortable with. If you're interested in digging deeper into some of these options, especially in the real estate sphere around Austin or Phoenix, I'd love to share more over a coffe chat.

Take care,

Pat

Turning investment visions into REALITY in Phoenix, AZ - Ranked #1 for residential real estate growth and opportunity by PwC

In some states double closing can be a work around because your are actually buying the property, even if it's for a short amount of time. However, for example South Carolina, wholesaling and double closing are now illegal because the intent is the same.
My team has funded a few of those.

Quote from @Kylie A.:

There are many new laws being implemented across different states, and I’m curious about yall game plan moving forward. With states becoming stricter, how are yall still managing to wholesale? What strategies are you using to navigate these changes?"

While this is a good question, the answer is absolutely location specific.  The majority of states have NOT enacted any rules, regulations or legislation that has altered the “wholesaling” landscape.  The states that have fall into two broad categories 
1. Requiring a real estate broker/salesman's license to operate as a wholesaler 

and, or 

2. Disclosures, or other restrictions on transacting with homeowners.  

Requiring a real estate license can potentially be a “trap” for wholesaling, as real estate licensees may in in violation of their code of conduct by way of their wholesaling activities.  For example if the states licensing code holds the licensee to an agency relationship with their client, then the wholesaler tying up a homeowners property for a below market price may be in violation.  The dust has nowhere settled on wholesaling, but to be hones “wholesaling” is a misnomer.  What we are really describing is “contract flipping”.  Real wholesaling is buying something in bulk and or for a middleman’s price and then reselling at a retail price. The key is actually purchasing the goods or property in question, and not merely acting as a broker or agent.  So, the theory goes, if wholesaling is actually NOT. wholesaling but brokering or agency, shouldn’t the “wholesaler” be required to have a broker or agency license? 

Wholesaling really isn’t much of a problem with the larger, experienced and ethically run wholesalers.  Most I know fully disclose what they’re doing, the risks to the homeowner as well as the benefits, and will actually tell the homeowner id\f they think the homeowner has a better option.  In other words, they’re in it for the long run.  The problems are with the inexperienced under capitalized people studying wholesaling strategies as put forth by a variety of guru/mentors and the temptation these people feel when they smell a profit.  

@Tyler Cobb

I’ve invested in mobiles for two decades. Flips, parks, land - you name it.

For the few that understand this niche it can be extremely lucrative.

Takes less money, less time and hassle, and there’s little competition.