All Forum Posts by: Ryan Sweeney

New to real estate and learning through passive investments with my self directed IRA.

I am interested in meeting new people, building relationships, learning and assessing possible investments as a private investor. My focus is relationship dependent, but prefer straight loans for flips or partnerships for single family and smaller multi family homes.

I would like to learn the ins and outs of the market, and potentially tax liens and auction processes in return for supporting projects financially and physically where I can.

Thank you and happy connecting!

Ryan

@Steve Armstrong currently I live just outside of Madisonville.

@Reno Puente no sir.

@Joseph Cacciapaglia thanks Joe. I have and I know I qualify for testing positive. You don’t get taxed on income, but I cannot get a clear answer if paid back within 3 years if you will get taxed again when you withdraw it for retirement. One would hope not but it is the government! I may go that route for a flip if I lose my job, but not for a rentalConnection invite sent and thank you very much.

@Justin Windham thank you and agree with Linda’s excellent post. I think an SDIRA of what would amount to 1/5th of my retirement to invest is my plan. Then when I get where I am going, househacking / pvt lending time start small seems like the way. Perhaps I roll over my 401k if I make it a full time gig, but seems to be no rush in that. Thank you both!

@Linda Weygant some very detailed insight and I appreciate the feedback. My small bites have grown large before putting my toe in the water as others have messaged me. I think I am over analyzing and digging deeper than necessary in the business entity, at least right now.

Only thing I would say is I am trying not to play with cash the puts food in my mouth and want to invest in something I actually have control over (unlike the market). That cash in discussion is about 1/3, which would still leave well invested in the market.

The background:  I once lived in San Antonio and My wife is from Austin.  We moved to rural Kentucky about 4 years ago and were forced to buy a house/wanted to.  This sparked my interest in RE as it was a bad decision.  My industry has been hit hard by COVID and we are pending heavy layoffs, which is fine and may free us up to move back to Texas since we had a child here and need support.

It turns out I have a friend investing heavily in Wisconsin and another in South Carolina.  As I sit and wait the corporate job situation, I want to get into the game and have explored a SDIRA to invest in my partnerships. Then after layoffs, roll my 401k into a ROBS or Solo 401k and start investing myself in rentals in SA.

I analyze things and haven't yet jumped into the game. I want to, but also want to do it right. After talking to IRA finance group, the advise was potentially starting LLC a in those other locations and partnering with my SDIRA and then when I move creating a C Corp to umbrella them.

I think I may be over Complicating the process, but I don’t want to get hit with taxes and want to protect myself and use some of my retirement investments to get going and play with my cash simultaneously Incase I can li find employment and this thing turns truly full time (tracking notes, liens, getting my broker license, etc). 

Request: given the above, I could use advice and mentors in the CenTex market as well as growing my connections, getting feedback on possible structures, tax implications and perhaps finding a good CPA and lawyer to help guide me.

Thank you so very much and all the best

Ryan

According to my CPA...you dont pay the 10% early withdrawal penalty 

Also, as I understand it, you will get income tax on that money, so take that into account.  I have been thinking of withdrawing $50K for an investment, which should equate to actually $61k after taxes are paid on it.  I am still more confident of the CoCROI even given that versus what I think the market will do, but that is all skeptical and I am still trying to figure the ins and outs.

Hi Taylor.  My CPA is not RE specialized.  I live in Rural KY and didnt plan on investing until moving and establishing myself and network back in Texas, where I could finally settle down (former military) and evaluate from more options.  This guy is one of the handful in town and new little about the act in general and basically read of the IRS website.

I have ran the numbers in addition to what my friend has shown me.  This area is his farm and he has a few dozen properties there.  He has already agreed to a purchase and has the cash himself, he is asking if I want in as basically a favor.

I didnt consider whether the SDIRA could partner on its own and would need to look into that!


Hi Basit, so truth be told, see above comment to tailor, my CPA struggled to understand the situation and basically advised that it would be a spread over 3 years.  In this example, I would borrow $50k and spread that at $16,666 over 3 years onto my income bracket of currently 22% which would equate to around $11K.  This is all my math, as I stated, since prior to this my taxes have been pretty simple.  I haven't sought out a RE focused/experience CPA because I plan on moving from here yesterday.