All Forum Posts by: Mushfiq S.

Just a note that you are below the 1% rule, i.e., $1395/165000 < 0.01

What zip code is this property in? I have some properties in JAX so I can advise a bit.

Originally posted by @George Blower:

@Mushfiq S.

Yes you will need to use the services of a solo 401k plan provider. Reason being, it is the solo 401k providers plan documents that allow for investing in real estate. However, E-TRADE will offer the brokerage account that comes with a checkbook. 

Will the solo 401k provider handle everything for me? How hands off is this?

Also how 'easy' is to get a non-recourse loan to supplement the 401k funds to purchase a property? Is the approval process much more stringent than a normal loan? 

My property is doing well from Roofstock. I made sure to pick a property that had a new roof and hvac. Also I made sure to contact the property management company prior to my purchase to make sure the area is rentable.

Roofstock does not allow an inspection during escrow. You are allowed to bring your own lender and property manager if you wish.

Roofstock was my first invesment and now I have put together a team on the ground in the same location and have purchase 3 more properties. I see Roofstock as a starting ground for beginners.

...

George Blower thanks. Is this something I can do myself? Do I need to use your mysolo401k services? If I enable Free Check Writing, does that essentially mean when I am ready to buy a property, I will write a "check" on behalf of the 401k to pay for the property? Sorry just a bit confused on my next steps

Hi,

I opened a Solo 401K via Etrade for my LLC in 2016 and deposited the IRS limit 18k + 25% of W2 income. Note that my LLC is not related to real estate. I thought I would use the 401K to invest actively in stocks, however, I have not done so. I am investing in real estate actively though.

I would like to invest in more real estate via the current balance in my Solo 401k. After doing some Googling,  seems to be a good option for me

A few questions for those who have done this before:

1. Can I 'rollover' my current 401K that can only invest in stocks to a real estate-based 401k?
2. Are there any penalties for doing this? I do not see this as a withdrawal and thus don't think their should be any penalties.
3. Can I have multiple Solo 401K accounts (ensuring I don't pass the IRS limits)? For example, keep a brokerage account via Etrade for some stock investing, and another real estate-based 401K for properties? This will give me the best of both worlds.

I am very close to reaching out to companies that help me legally setup such a 401K. Just a few questions for the Bigger Pockets community before I do so.

Thanks!

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Jeffrey Wardlow are you sure 32244 is a C zip code area? It is just south of 32210 and close to NAS.

Great discussions. I purchased a property from Roofstock in November 2016. If any specific questions, happy to answer

Originally posted by @Michael Barbari:

@Mushfiq S. If you show on your tax returns that you cashflow every property you should have no problems. It's the investors who show losses who have a tough time. I deal with this daily at my bank.

 If I had not investment mortgages, I can use a basic calculator to determine 'how much house I can afford'. It is straightforward.

If I have properties that cash flow and is proven by tax records, do they still somehow discount that since it is possible that tomorrow my cash flow could stop because of a bad tenant. 

Any ideas on how they factor this in?

I do not want to buy too many properties that cash flow but is still counted against me when I try to go buy a home for myself.