All Forum Posts by: Timothy Riley

@Account Closed 

Yes Melanie please do get back to me on any views you might have after going over the tax time process.

@Mark Whittlesey 

im looking towards notes myself as a start.

@Daniel Dietz 

thanks for the input and @Lumi Ispas 

I think I will go with the direction of Kristin on at least setting up the LLC.

@Andrea Jones 

For me it depends on how they ask. Is it in the tone of a complaint or just inquisitive? Does their facial expression portray an attitude or simple curiosity?

I like when they ask and test things. It shows to me they care and not looking for a place to flop for the time being, and it somewhat shows me in the way they ask what type of potential tenant they will be.

@Glenn McCrorey 

Congrats!!!

@Dave Toelkes 

I fund my SDIRA with a percentage of my passive income profits. How I take make the purchase when ready depends on the deal and options at that time. Like @Brian Eastman 

mentioned this is a small step in the education process. @Lumi Ispas 

im with MidlandIRA and happy with them just reaching everyway possible for advice. @Crystal Smith 

Points taken and yes my plan to withdrawal was based on after the retirement age.

Thank you all...

Thanks,

@Account Closed 

That's reassuring on my "planned route" of which lending through the SDIRA is high on the list - I was hoping to use loan repayments and profits to fund the SDIRA holding. I'm only looking to acquire a few units (less than 5) in this scenario.

I own my home along with three rentals which I will probably triple that amount of properties by the time I can actually fund one through my SDIRA so I'm (fingers crossed) not expecting to need that portion of income for daily living.

@Stan Butler 

@Brian Eastman 

This is exactly the type of feedback I'm looking for. I might want to use the SDIRA for different types of investments.

If it matters I'm a buy and hold investor who is looking to go full time (leaving my nine to five within five years) but maintain some type of retirement vehicle. The SDIRA has already been opened and lightly funded (recurring scheduled deposits).

Thanks,

Tim

Welcome to BP!

@Stan Butler 

@Brian Eastman 

@Bill Gulley 

I Appreciate your feedback this is all educational. I'm aware that the property would be off limits to me to actually do anything which would lower the cash flow to the IRA . Not liking the lower cash flow but It's a savings mechanism that to my understanding I would save on taxes along with placing money out of reach (reachable but with the way I am a lot less chances of approaching than a regular account).

By no means would I ever create the LLC myself whichever route I take it would be done professionally. I thought it was odd that my attorney who promotes Series LLC's backed away from SDIRA's holding a unit.

So I'm taking from your comments that I can have my attorney (whom id rather have) set up my Series LLC (being created for other reasons) and deal with a separate company on the LLC with my SDIRA (it can be done with a unit in my series but recommended not to combine the two).

Thanks,

Tim

My secret mentor hit me with an honest curveball!

SDIRA Consultants, SDIRA Holders, Real-Estate Tax CPA’s, Attorneys, Chime in:

First - my secret mentor is my attorney which sounds odd seeing that we have two different paths in life.

The reason he is/was my secret mentor is because he’s the first that gave me real honest advice and asked me the first meaningful question that lead me on my path. That advice was “quit playing” and that question was “why are you using your money?”

That wasn’t totally it, this person gave me several pointers on the process of purchases and made every transaction an ease for me and empowering me on who I was with each deal and that this was a business “MY BUSINESS”. He instructed me on getting a team, not just knowing the names of people in the fields that I needed but befriending them. Breaking bread with my Tax CPA (still working on this @Steven Hamilton II LOL), Golfing with my Banker, Watching the game with my contractor…

With all this said I forwarded him some paperwork from my SDIRA to format my LLC to purchase property through that LLC. My original question to him was; my plan is to go with a series LLC is it possible to create a unit (separate llc) within that for the SDIRA to have for the purchases I make for that account or does it have to be a total separate LLC?

His answer was "What's a SDIRA? Speak to a CPA and whatever you do don't let the SDIRA Company create your LLC."

Now shocked that the person I thought knew it all didn’t but thankful for an honest answer rather than being misled, BUT I’m back to square one where all of you come in.

1. Is purchasing a real-estate in this format a good way to go (not everything just one or two for my later years)?
2. Can it be done as a unit within my upcoming Series LLC?

One question that I searched but never found the answer to is:

1. How to cash out when the time comes with the properties in the SDIRA (cash out the balance and take control of the properties, sell the properties within and then cash out)?

I can come up with several reasons - and outside of family they fluctuate in importance. It's easier for me to ask why wouldn't I want financial independence and the fact that I cant come up with one is what makes me strive harder into obtaining it.