All Forum Posts by: Account Closed

While I'm not even close to being a financial advisor, I have some experience in the SDIRA and Commercial Real Estate world - and I think they go together quite nicely.  If the goal is to hold real estate in the SDIRA, I would have two recommendations.  

1.  Buy an asset that doesn't depreciate - a land-lease or vacant, raw land.  These are easy to use and are very unlikely to need any sort of involvement from the owner of the SDIRA.  Use after tax dollars, or leverage, to acquire your depreciation needs.

2.  Focus on cash flow, rather than appreciation.  Find something that will give you monthly cash flow and that could be used to fund other, non real estate related deals.  This will help with the RMD, Required Minimum Distribution, that will hit when the SDIRA owner is 67, I think. 

This is where a CPA and your Qualified Intermediary comes in. There could be a way to do what you want to do. 

Note - please check with your CPA and QI. 

I would say it depends. Is the LLC a disregarded entity? Meaning, is it an entity that you own alone and you will be the only person paying taxes? Then yes, that is okay.

If it's an LLC with multiple tax payers, it can cause problems.

Others, if I’m missing something, or don’t have it just right, please correct me. 

@Steven Wertheimer, best of luck to you.  My [unsolicited] advice?  Do your homework and make sure the people around you in this process can get things done.  All too often, unfortunately, 1031 exchanges feel undue stress and pressure and bad decisions follow.  Your QI, real estate agent, and title company can, and hopefully will, make this process turn long-lasting returns.  Best of luck to you!!

@Charlie MacPherson, let's connect.  Our booth is 405.  Come by and let's meet.

Looking forward to the next one.

Are there any agents planing on attending NAR in Boston this year? If so, let's connect!

If your seller is a landlord, and reluctant to sell because there are no good options for his 1031 exchange replacement property, I'm happy to help find him a replacement property.

Need to cover boot?  There are options out there.

Moving from a SFR to a fractional TIC ownership in the right building can bring stability and security to your portfolio. While it's not for everyone, it can bring peace of mind. I believe in a 100% debt free approach. Leverage = Risk.