All Forum Posts by: Tj Noye

Can someone tell me where the paperwork comes from to start the solo K? Does it come from the current admin of the 401k or the former employer? 

I am trying to set this up myself.

Thanks ahead of time... 

I agree with Curt - we plan for all these things but most of the businesses I have seen in the startup phase do not have all the above in place, simply because they can't! Unless you are well funded (not easy to get capex for startups) you will have to start out very small and sometimes by the seat of your pants. 

Do you need a license if you are managing your own properties? I do not think you do. 

I am in PA and you need a Brokers license of you are going to market to clients. 

We would like to do this eventually but we need the Broker license - a broker may hang his/her license so you may operate. Anyone correct me if I am wrong. 

You can use the SOLO K to invest in a private company as long as it's an arms length transaction. The LLC would need to have all the proper docs to accept the investment ie PPM and subscription agreement, operating agreement. I personally like this route.

I dont think you can if you are utilizing a third party escrow account - even in-house escrow account would hinder this. 

I am anxious to see if anyone else has any ideas on this.

TJ

Thanks for this information. It does appear that syndication is what we are proposing. I will look around this region to find someone that can walk us through the process - especially since this is somewhat new to us. I have seen other groups go down in flames because they were not properly registered with the SEC. 

Would this be a reg-d issue even if the investors are owners in the LLC?

We are planning to bring them in and be named on the operating agreement for the LLC which, would own these properties. I was unsure what the distributions should typically be for these investors - many of them only make 3-4% on their money now.

Thanks.

Can anyone give some insight on structuring a deal that would contain multiple investors (about 10) that would be putting up around a million of capital for various fix and flips and some commercial holdings? How much (%) should go to the investor pool vs with the partners in the LLC. Any good info out there for this?