All Forum Posts by: Peter Vander Ploeg

@Peter Vander Ploeg I am very interested in your future blogs on the subject. I am starting my own small business focused mainly on development of small niche projects, including small multifamily and neighborhood office (duplex, fourplex). Additionally I will be re-investing development fee profits and cash flow to expand into the multifamily investment arena. My wife and I are in the middle of getting our current financial house in order and working with a CFP in our neighborhood, but I would like to get some additional expert input on the real estate aspects including creating a ROTH IRA that can be used for future investment. I would welcome input on strategies for building my fledgling development business into something sustainable. Will be looking for partnerships and to enter into consulting contracts for income initially.

@Peter Vander Ploeg

Hey Peter,

Thanks for gauging and gathering opinions. A few things off the top of my head where I could see it adding value.

1. Tax planning - how will the real estate investments I have impact my personal tax situation. If I spend more on CapEx or repairs, will that save me meet in taxes? What about combining it with IRA & 401k contributions. Strategies to play the least amount of taxes and how to combine real estate.

2. Not sure if this falls under CFP, but book keeping and performance metric calculation advice. Just general methods.

3. Tax strategies and Advantages for forming an LLC vs not.

Thanks for providing the content! Looking forward to reading it.

Thanks,

Ryan

I've had rentals for about 15 years now; mainly banking on appreciation and not rental income. Recently, I've started looking into ways to maximize my assets and better plan additional acquisitions. Maximize equity gain and maximize rental income and its starting to pay off. Thanks BP for the great advise!

What questions do you want to ask a Certified Financial Planner (CFP)?

I'm intrigued by the $57,000 yearly maximum that can be contributed to a 401k (ROTH). Total from self investments and company contributions combined. How can I leverage my real-estate assets, present, and future, to help me contribute to a 401k and especially a ROTH 401k. Should I move my properties into an LLC to do this? Are there better alternatives? Will an LLC allow me to contribute "company" contributions to get me up to 57k? It sounds like the contributions can't be more than 50% of income. If my income isn't that high, how can I maximize what I do get from it?

Thanks!

Question 1 is WAAY to broad. Deal-flow, financing, tenant mgt. Easier to be a successful REI that later becomes an advisor than vise versa. I'd stay out of the micro weeds.

A common problem I see for seasoned investors is transitioning to passive 'retirement'. What are some viable actionable and tax-advantaged options when we want to sell larger complexes that have been paid off and depreciated? Lower cost DSTs, installment sales, NNN, 1031 into TIC syndication...? Not much written on that. Maybe be a transition expert.

Since you have expertise in RE finance, maybe assist us in being lenders?   Some of us have large opportunity funds earning squat in mmkt or savings accounts or want to switch niches on some level.

My underlying theme is more hands off.  We've built via hands-on mostly. Help us transition. Look forward to your blog👍

1 - Creating mature deal flow pipelines with 100's of opportunities flowing through the funnel is the #1 challenge for most part-time investors (both active and passive).

1 - Many investors struggle with systematic property management...and finding affordable, reliable contractors. Both are harder without scale.

2 - Not sure. Real estate CPAs and attorneys handle taxes, bookkeeping, asset protection, and retirement plans. Diversification and asset allocation is pretty easy. Term life insurance is basic. Provision Wealth provides wealth management for real estate investors...may want to check out that business model.

3 - Owning a rental property is like running a small business. It's less about financial planning and more about strategy, deal flow, and operations.

My problem is going to be handing over the reins of the real estate when I either get too old or the estate when I "shuffle off the mortal coil". My wife and daughter have no interest and my son who has some lives 1,800 miles away. I have yet to meet a CFP who has a clue about how to do that without liquidating it and putting it into investments that they do understand, completely out of the realm of real estate. Then they can charge AUM fees.