All Forum Posts by: Regina Abayev

Any advice on how to minimize any costs associated with foreign investors sending cash to the US for RE investing? I know that using dollar denominated accounts abroad is useful, but what are other options given the large dollar amounts being transfered?

It is possible.  A loan in a retirement account is still a loan and can be refinanced.  Keep a few things in mind:  

1. Are there prepayment fees on your loan?

2. You can't get the $ out of the retirement plan (unless you qualify for distributions) without penalties, however, you can use the funds to reinvest in other assets through your retirement account.

3. Let me know if you're looking for suggestions on non-recourse Lenders that would lend to an IRA. I just talked to a company that has pretty attractive terms.

Welcome!

What types of properties?

Checkout Antioch in Northern Cal and San Bernadino, Pomona, Ontario in SoCal.  

Herby,

Out of curiosity, why are you interested in investing through a 401k? If you're going to invest in real estate through a retirement account (solo 401k/IRA/SDIRA/etc) please take the time to really understand the ramifications of using a retirement account. You should discuss your plans with your tax advisor and go through your short term and long term goals. I would recommend being especially careful if you intend to use a retirement account with leverage/financing. Unfortunately I've come across a number of disappointed investors that were surprised to learn about things like UBIT, UDFI, UBTI and when combined with custodial fees, LLC fees, etc ended up with negative cashflow in their IRA!

Make sure you understand the difference between investing in capital assets vs other types of investment and the difference in using pre-tax vs post-tax retirement accounts.

Hi Jonathan,

If you're thinking of investing in the US, make sure you think through currency fluctuations and where the US dollar is trading as compared to the Canadian dollar.  I believe last time I checked it was $1US/1.34CAD.  This makes a big difference in the value of your investment.  If you don't think through the currency conversion, it can be a very expensive omission!

Welcome!  What type of real estate investing are you interested in?

A lot of what you're seeing has to do with market dynamics: increased competition, limited supply and REO trading direct to hedge funds/PE through private deals (vs auction or MLS).

Great idea, add me to the list!