All Forum Posts by: John Vietmeyer

I have a contract on a duplex and just realized it is in an opportunity zone.  Wondering if the following is possible:

1) set-up a LLC and self certify as an opportunity zone

2) used hard $ fund to close on the property 

3) sell property to create a capital gain

4) Use capital Gains to renovate the new duplex in opportunity zone (100% of purchase price) 

5) refinance or sell more property to payoff Lender. 

6) Rent and hold 10 years to maximize tax benefit. 

Interesting. The contract is in my name "or assignee". Plan was to close it in a LLC name that my 401k would be invested in. At least that is how I understood it. The self directed IRA, Equity Trust, would handle the logistics.

Sounds like I’m already out of compliance? 

I just got a contract on a duplex that I need to execute by Jan 31st. I’d like to fund it with my 401k and was planning to use Equity Trust.  I’m now reading reviews and am second guessing Equity Trust.  Should I find another custodian?  Scrap my approach and go after a hard $ lender?

I’ve been considering the same.  Did you use 1031 to make the jump? 

They don’t need to charge you to make money.  They holds the funds for a day or two making interest.  This is a small amount until they are processing billions of dollars of rent payments then it becomes very lucrative.  This is how the pay check processing companies work.  

Anyone using the application, background check or payment features in Zillow?   I’ve been using their site for listings, my smart move for background checks and Cozy for payment.  Looks like Zillow has made a play to do it all.  

There is a point when you have to go all in.  I did not read all the details, but seems you have done you’re homework.  Don’t second guess now.  Charleston is a great market and hard to enter at the price point you have.  

I expect you will do well. At minimal you will get a very cheap/low risk education. 

Best of luck!

I’m self managing. Live in Charleston Sc. 

The process can vary, but expect they will want earnest $ and proof of funds as soon as you win. Full amount due within ~30 days at closing. I doubt they will agree to allowing entry for appraisal and inspection. Maybe if it is not an occupied home. HELOC or 401k maybe alternative to your bank loan.

Recommend calling and talking to the auction.com folks directly.  

yes, I used it for a few years with successful results.  Now have 7 rentals and got married.  Shifting to accountant but will miss the lower fees on TurboTax.  It took some time, but made me more aware/conscious of tax regs and how best to stay organzized.  If you don’t have time and interest, pass it on to a professional.