All Forum Posts by: Robert B.

@Shannon Sadik check The Daily Record

This will give you all the info you need. It's been crowded lately...

I told them, there is no way I would put 100% EMD before researching the title, etc... I sent them my proof of funds and 2% EMD. We'll see what happens next...

Now they say the listing needs to be posted in the MLS for 6 days before they look at the offers...

Thanks for your prompt responses! It's an Asset Management Company not a bank... They're from Utah, the property is in New York.

Hi,

I just put a cash offer on a foreclosure that was listed last night. It's a good deal and I'm first in line. However, the seller countered my offer demanding 100% earnest money deposit.

Is that normal...?

Thanks,

Robert

Great point @Dmitriy Fomichenko. Thanks for that tip!

In our particular situation then, we will setup two Solo 401k: one for my wife, sponsored by her property management LLC, and one for me sponsored by the technology Sole Proprietorship (and not by the property holding LLC). That way we both would be able to rollover our old Traditional IRAs into those plans. She would then be able to contribute to her plan up to the allowable limit, whereas I would continue to max out my day-job employers traditional 401k plan in anticipation of rolling it into my Solo 401k in the future (after severing employment).

In the meantime we would like to use those Solo 401k's to invest in real estate flips. Thanks to @Mark Nolan I understand that we would not need to create a separate C-Corporation, just buy and sell properties in the plan's trust name. The only drawback I can see in this scenario is that my wife would likely not be able to represent the plans as real estate agent (i.e. earn commission) in those transactions, as she would be considered disqualified person, right? So, if we were indeed to create a real estate development C-Corporation would that Corporation be able to "employ" my wife...?

Thanks in advance,

Robert

Thank you @Mark Nolan for this prompt and very informative response! Very much appreciated! 

I understand that once the individual Solo 401k plans are created and funded, we (or rather "they" - the Solo 401k plans) will have to form a new C-Corporation, which will then be able to conduct any real estate business (or any business for that matter). Obviously I will research the subject some more, but that's how I understand the overall concept... Am I correct...?

Once again, thanks for all the help and direction!

Welcome Everyone,

I'm a new BP member and a novice Real Estate investor. I'm determined to move my IRA funds from traditional to self directed accounts. I was hoping fellow members of this forum would be able to help me with that and share their knowledge and expertise on this subject.

Currently I'm full time employed, but I also own two (really) small businesses - one in a single member LLC that buys properties and collects rent from residential tenants, the other is a sole proprietorship technology company with just a handful of long term clients. The LLC generates more substantial income, and I was wondering if I could use it to sponsor a Solo 401k...? Can I have two such plans (one for the LLC, and one for the Sole Proprietorship)...? Does it matter that I also have a traditional 401k sponsored by my current employer...?

I have couple of old IRAs (Traditional Rollover and Roth). Assuming I can open a Solo 401k, would I be able to roll them into it...?

My wife is a real estate broker, but also owns a property management single member LLC, with just one customer...;-). I would assume that LLC would be suitable to sponsor her Solo 401k, right?

Again, assuming we can open one or multiple Solo 401k plans, would they be able to invest in the already existing LLC I own as a single member...? I'd like to use that funding to finance flips and possibly other real estate related activities (notes, mortgages, etc...).

What are the main aspects of choosing Solo 401k custodian...? Would you recommend any...?

Many thanks in advance for your time and advice!