All Forum Posts by: Paul Vail

Quote from @Henry Lazerow:

If its not your property and its city property its not even ID. If it was ID you would be getting paid by city. You did a title search and a survey of what land is actually yours prior to buying. I doubt you have any case. 

 ED  :)    (not ID)

Quote from @Joshua Ocean:

I do agree that it is on me to do my due dilligence. It is a hard lesson learned and i will make sure to do exactly that in the future. As of my current situation...do you have any advice on what i should/can do?

Is this something that would have been covered by Title Insurance?   If it was city ROW, not sure how one could quantify $$$ damages for a claim.   Then again, will this vastly improve the safety, sight lines, driveability, walk/bikeability of your street?  Will it enhance or improve water flow, or utilities, or parking opportunity?   Will it address an eyesore from the prior roadbed?  

Quote from @John Underwood:

Quote from @Paul Vail:

Much of this conversation is about SD tax-deferred accounts.  How about SD-Roths?  Once one identifies what the IRS will/won't permit within a Roth, there's a lot of opportunity to use a Roth IRA with a LLC to optimize returns?

 I have 2 ROTH SDIRAs that each own rental houses. I'd rather pay tax on the seed than the crop.

John, did you do your own or have an atty set them up for you?

Much of this conversation is about SD tax-deferred accounts.  How about SD-Roths?  Once one identifies what the IRS will/won't permit within a Roth, there's a lot of opportunity to use a Roth IRA with a LLC to optimize returns?

@Dmitriy Fomichenko -- Do I need to create the LLC first or open a SD-Roth? (Keep in mind, this LLC is intended to loan private money out to real estate investors.) Thank you.

Quote from @Dmitriy Fomichenko:

@Paul Vail

The Solo 401k plan also has a Roth component so you could have both: pre-tax account and Roth account within the same plan. You just won't be able to transfer existing Roth IRA account into it, but you could make new Roth contributions, transfer existing pre-tax accounts into it and also convert any of those funds into Roth.

If I'm reading this correctly, I can open a Solo401k with a Roth component, but I cannot then xfer from my existing Roth into that Roth component?    If this is the case, I could otherwise open a SD-Roth by itself (without the Solo401k structure), and then xfer from my exsiting Roth into the SD-Roth?

Quote from @Daniel Dietz:

Quote from @Paul Vail:

@Dmitriy Fomichenko - thank you!  awesomely concise. 

I had not considered leveraged property, but having LT or ST rentals through the LLC would be one intended exit strategy, depending on market conditions and how competent of a team I could find/craft for renovation and property mgmt. I'll have to learn more about UBTI. I'd expect to be as hands-off as possible to avoid self-dealilng conflicts -- everything would run through the SD-Roth LLC.

I do have a side-gig, 'though it isn't intended to generate a tremendous profit for funding the likes of a Solo401k.   However, there's always the option of building another business outside of the Roth that could fund said 401k.

One thing to keep in mind is even if a side gig generates small profits, it does make you eligible to have been a solo 401k into which you can roll existing 401k or traditional IRA balances, can be significant for some people.

You're right -- and even 'though I part-time moonlight with my old gig for Roth money, cover the business expenses of cell phones/internet/mileage, there's no reason I couldn't dribble a few bucks into a Solo, then shift other IRA assets over. I prefer the Roth for its tax advantages, but both avenues can be used. Thank you for pointing out what should have been obvious to me.

@Dmitriy Fomichenko - thank you!  awesomely concise. 

I had not considered leveraged property, but having LT or ST rentals through the LLC would be one intended exit strategy, depending on market conditions and how competent of a team I could find/craft for renovation and property mgmt. I'll have to learn more about UBTI. I'd expect to be as hands-off as possible to avoid self-dealilng conflicts -- everything would run through the SD-Roth LLC.

I do have a side-gig, 'though it isn't intended to generate a tremendous profit for funding the likes of a Solo401k.   However, there's always the option of building another business outside of the Roth that could fund said 401k.

Quote from @Brian Eastman:

@Paul Vail

That is an awfully big list to address on a web forum.  

The better thing to do will be to research who are professional providers of self-directed IRA plans and line up a consultation.

So many of the details with self-directed IRA and 401(k) plans are not one-size-fits-all answers. Every investor is their own special mix; with employment status, existing funds, investment goals, geography, etc., all factoring into crafting the right plan solution and the right investment strategy.

@Brian Eastman - Oh, I totally agree it's a long list.   To properly address it, each line item would be their own question, no doubt.   However, I think the meat, even if broken up in little sausage links, is totally perfect for a forum or series of forums here on BP.  Or a 200pg book Brandon's wife Heather could throw together with some co-authors who specialize in each area.   It's certainly the start of the questions I have if I'm going to jump into this kind of 'investing', used either for private money, or holding assets short-term or long-term.   You've brought up two additional big components (investment goals & geography), thank you!

With all that in mind, I think I'll start a new forum rather than hijack this thread so we can all learn from what I learn.  Thanks again for giving me some additional items to clarify.

Obviously it's just a starter list... I'm sure I am leaving out a tremendous amount of useful detail.   Anything glaringly obvious I've left off immediately?