All Forum Posts by: Sonny Ruckstuhl

There were 2 commenters after this podcast, but no responses from anyone about their issues.

In the podcast, it was not clear whether the person interviewed violated IRS rules about using self-directed retirement monies on projects he did.  I am trying to understand what exactly he did and how it stayed within the bounds of IRS rules.

There weren't enough details given as to how the self-directed money was used on a project that either he (or his company) worked on and stayed legal with the IRS.

@Brandon Turner @Amanda Han @Dmitriy Fomichenko, any insights available?

@Angela A.

I found one partner through Bigger Pockets. Originally we weren't partners. I just found a project that I couldn't do and, after looking over his profile, it seemed a good fit for him and he ran with it. Then, as he needed my kind of help, we joined up on 4 projects. 2 through my SD401k and 2 through personal monies. He manages the rehabs and found the opportunities and I managed the money.

I prefer to use Property managers on the ones I have done on my own or with my sister.  Tried being a hands on landlord and don't like it. . I like managing the manager and not the tenants. Reviewed, interviewed, and got references on 5 different ones before settling on my person. He had the contacts for the rehabs needed for those projects.

Everyone has their own way of doing things.  I want more peace and will trade a piece of the money for that. You get to learn what your preferences are.

Happy to chat with you more if you want to PM me.

sonny

@Tony Gunter

I am a client of theirs and found Justin helpful, responsive, and have nothing but good things to say about them. You can PM me if you want to talk more specifically. I have referred others to Justin and will continue to do so.

The setup was straightforward.

When I have asked him for specific input on deals I am looking into or questions about ideas I am considering, he is quick to provide me the information, steer me away from violations on my self-directed account, and help me with strategy questions.

Feel free to contact me.

sonny

@Brandon Vannoy

My own strategy was to listen to all the podcasts, start attending local real estate investor meetings, and generally following @Veni F. ideas.

There are so many paths to pick from that it will take time to learn enough of any of them to determine what path you want to take and what the steps are to begin with.  Your local real estate investors are great to learn what they have done, are doing, and are planning to do.

Then, pull the trigger with some form of action whether it is directly investing, or contributing time/services to an investor who is willing to mentor you.

Good luck and welcome!

@Angela A.,

I have begun investing this year at 52. I am transitioning from my current career to RE investing. My strategy is to buy and hold rentals in a BRRRR strategy. After enough seasoning, will refi to look to acquire additional properties with the cash from the refi.

I also used my self-directed 401k to buy distressed properties with a partner. He rehabs and then we will decide to either hold and rent long-term or do owner financing after the house is rehabbed.

I look to provide passive income (or rather, minimally active income), conduct this business with property managers so I don't have to do that part of the business, and it gives me an activity/hobby to focus on over the next 30 years or so where I can decide how much time I want to invest growing it or just keeping it well run.

I figure to have w-2 income for the next 2-3 years and have the flexibility in my job to dictate how much and how long to work.

@Chingju Hu

Not weird at all. As our nest empties over the next 3 months, I am looking to rent out my primary home and move into a smaller place more appropriate for this time in my life. It was nice having a home for the kids to grow up in. But financially, I feel I would have been much better off with focusing on rentals first, as you are doing.

Congrats! and keep it up!

@Kevin Moen

If I am able to access more monies in my 401k, and I am able to find deals that return 50-100% b/c the purchase is so good, and have the time/opportunity to rollover these gains to a self-directed Roth IRA, would rental properties be reasonable then?

I am wondering what the crossover point is to owning rentals in retirement accounts. If the COC/appreciation return is @ "X" on a rental, what "Y" tax savings is worth it to hold a deal personally vs. in a self-directed account?

Don't know if anyone has done such a thing to help us noobs understand how to make the most optimized decisions.

I like the idea of partnering. I understand it can go bad and ruin personal relationships. But, if all people are motivated for their own role, honest, and able to resolve conflicts while seeing multiple points of view, I don't see a particular problem.

With family members, it helps to see how stable their position is.  If they are limited in time and money, that might put too much strain while you figure out the partnership details.

With business relationships, make sure the money people are protected with insurance should the labor part of the deal get hit by a bus.

The biggest thing for me, a track record for resolving conflict.  Being easily injured emotionally is the quality I would run away from. Too many bumps in the road with real estate to have thin skinned people to partner with.

Lenders always want people together on loans. Imagine what is more powerful.  I rent to 2 people w/separate lease agreements or I rent to 2 people on 1 lease agreement. The likelihood that both are motivated for the shortcomings of the other is much more likely in the 2nd arrangement.

Hope that helps. Good luck w/your RE journey!

@David Zheng

Congrats! Keep going! I echo @Jon B. that I have read some of your other posts and you are someone to follow and be inspired by. Thanks for sharing your journey.

@Ben Leybovich, That is my next level of focus. I'm gaining clarity of what type of businesses I want to set up and how to develop systems for that.  In a departure from most of my life, I am starting to use a filter for tasks around 2 things: Is the task the highest and best use of my time? and, How do organize/design how I want a task done to have someone do it for me?

Reading 4-hour work week now with the e-myth likely coming next.