All Forum Posts by: Patrick Bunn

@Jonathan Greene

Thanks for your response.

There may have been some confusion in what I was suggesting, or maybe I’m confused. I would not be offering a connection to a private money lender, but rather offering my own money directly to the potential mentor at a discounted rate.

As someone just starting in real estate investing, I have been reading a great deal and listenting to podcasts to gain as much knowledge as possible. Even so, I recognize a need to find a mentor to help fill in the gaps and give practical advice to compliment the information I’m taking in. But I don’t want to be that guy that’s like; “Hey, you, successful person, I choose YOU to be my mentor. I have nothing to offer but I expect you to train me for free! Aren’t you so lucky I’ve selected you for this glorious task?” As such, I fell like I need to be able to bring something to the table. With that in mind, here’s my question; would being able to provide a potential mentor with private money at a discount rate be a viable option as a value to add to their business?

@Brian Tunnell

Awesome! Thanks!

Does anyone on the Birmingham Area have a CPA they'd recommend for someone trying to get into REI?

Anyone?

I’m reading about different classifications for both areas and houses and I realize that it’s subjective. My question is this; are there places that you just shouldn’t make a rental property?

From my understanding, a Class A area would be the rich side of town, Class B would be middle class area, Class C would be maybe blue collar and a bit lower income and Class D would be the parts you don’t go to by yourself.

If that’s correct, would it be weird to have a rental property in an expensive area? I would think most of the home owners in the area would take issue with non-owner neighbors. Is that a thing? IDK. Thoughts?

@Scott Jensen

I didn’t really think of it was the opportunity loss from the money not being there. I kind of figured the interest I’d be paying myself back on the loan would equal the gain I would have gotten had it be invested in the stocks and mutual funds in the 401k.

Maybe I just pick sucky stocks and mutual funds for my 401k. 😂😂😂

I haven't done much research into it yet but I was thinking it might be a good idea to do note investing inside a 401k. I'm not sure the ROI on note investing, so I'm not sure if it would out perform my 401k elections.

@Scott Jensen Thanks for your response!

That’s a solid idea on a management company to qualify for the solo 401k.

I know it's not the best idea to mix retirement funds with REI, especially for someone just starting out. Mainly, I was hoping to use the money I already have in my 401k for either a down payment on my first property, or set myself up as a hard money lender. I'm not sure if either of those are sound strategies. I could probably just open a line of credit with a bank for the down payment for my first property, I just thought it would make more sense to pay myself the interest instead of the bank.

To be clear, it was not my intend to buy rental properties with retirement money. I wanted to take a loan out on my 401k to fund the down payment for a rental property. I was also looking at selecting something different (not rentals) to invest my retirement account into besides stocks, bonds, and mutual funds.

@Dmitriy Fomichenko I'm glad you posted this! I learned something very important; I assumed I'd be able to create an LLC for rental properties and that would be the legitimate business, but after reading some of that tread, I realized that passive income does not qualify as a business for qualifying for a solo 401k. I'll have to figure that one out.

@Dmitriy Fomichenko Thanks!