All Forum Posts by: Dmitriy Fomichenko

@Marcia Maynard thank you for the info!

@Ted Chan

thanks for the info, I actually discovered this club yesterday and connected with one of the board members. I will plan attending when I'm in town.

@Beau Eckstein welcome to the BP community!

@Sean Ploskina welcome to the BP community!

@Michelle Loftis

I don't know of anyone in Houston, but do have couple companies that I constantly refer my clients to for questions like that. And they are capable of helping clients anywhere in the US. Unless you have to have someone local, I would be glad to make a recommendation for you.

@JOSE LIRA

When you are approaching RMD, you need to plan ahead for it. For example, if you own a property in your Solo 401k with leverage (have mortgage on it), then your cash flow is not going to be great so by the time you reach RMD age, you will not have enough cash reserves to take the distributions. If that is the case and since you are unable to take portion of the property (say garage door or a bedroom) as a distribution, you will have to liquidate the asset.

Now if you buy property all cash now and have few years to collect the cash flow and build up cash reserves in your 401k, when time comes, you will have enough cash reserves and the property will continue to cash flow.

The bottom line is that you need to plan for it and have enough liquid funds to allow for RMD. Hope this helps.

Here is another scenario @Michael Crump if you wish to use the profits from the deal now rather it going back into the retirement account. By establishing Solo 401(k) plan with participant loan feature, you will have the ability to take a personal loan up to $50,000 and use the funds as you wish (i.e. put into a flip). In this case, you get to keep all the profit (which will be taxable) and simply make back the payments back to your 401(k).

If you decide to go this route, be sure to get yourself educated. But the good news is that you are in the right place. Self directed investing has been discussed on BP forum multitude of times and there is a lot more info outthere on the web.

Hope this helps!

@Michael Crump

if you have money in the 401(k) (I'm assuming it is with the past employer since you mentioned that you are unemployed), you can roll it over into a self directed IRA (or better yet into self directed Solo 401(k). By moving away from conventional custodian controlled 401(k), you will have the ability to use your retirement funds to invest in real estate. Now, keep in mind that if you go this route, then all of the gains and profits from the deal must go back into your retirement account (sheltered from taxes) and you are not allowed to do any work on the property yourself. You need to educate yourself on what "prohibited transactions" are when using your retirement account for real estate (or other non-traditional investments).

@Brad B. welcome to the BP community!

@Account Closed welcome to the BP community!