All Forum Posts by: Steven O'Leary

@Dmitriy Fomichenko thank you for the feedback.

@Brian Eastman, thank you for the feedback. What was confusing to me was that the language specifically spells out you can't lend to an LLC you owns a >50% of. Interesting that's even outlined since there would likely be personal benefit for any LLC an individual owns regardless of percentage.

@Nicolas Schuitemaker we were able to close with the second appraisal. It was a reach for comps, but he made it work... you?

I'm a passive partner, 30% stakeholder, in an LLC where we buy and hold rentals.

I'd like to create a SDIRA or SOLO401K and loan the LLC money at fair market rate.

Since I’m not a majority stakeholder, I don’t believe I’m a disqualified person.

The retirement account would only receive the interest from the loan.

I would receive some benefit as a 30% owner in terms of rent, tax benefits etc.

Is there a way to legally do this in any type of retirement account?

Thank you!

Steve O’Leary

@Cory Land did you ever get a clear answer on this? I'm in a similar scenario. The way I'm reading the IRS guidance is that if you own less then 50% of the LLC, you are not considered a disqualified person.

I have almost the exact scenario you described above. 30% owner of the LLC, passive partner.

@Christopher Fougere, what did you end up finding out?  Interested and similar situation.  

@Bobby Foster, have the property manager or real estate agent list it for rent and then pick the most qualified tenant.

@Noah Farley I’d say finish school, save money now for a down payment. Read the bIgger pockets books that interest you. If you’re in the US consider using a FHA 3.5% down on a 2-4 family owner occupied, great intro to landlording. Also, if you have extra money, start ramping up your 401k to the max of 18,500 a year. So many options, but I’m in my early 30’s and these are some steps I took that helped me launch. Last, and most importantly, become a pilot as a ski resort so I can come heli skiing!

@Rebecca Arko we had six figure student loan debt and bought an owner occupied three family which allowed us to live for free in a high cost of living area right outside Manhattan. This allowed us to plow money into the student loans which are now down to $6,600 and will be done this year. If you can find a 3-4 family and use an FHA loan at 3.5% down, as long as the numbers make sense as a strong investment on its own, it is a great introduction to landlording and can give you the power to pay off your loans. In my opinion you shouldn’t pay down debt or invest, it’s better to both simultaneously. We will only know what the better decision was in hindsight, but doing both hedges your bets.

@Michael Heredia love cozy.co The system is set up completely for landlords and you can run all charges through there. Haven’t used Zelle for this, but haven’t had a reason to change.