All Forum Posts by: David Morgan

Under what circumstances would you take out more than the required minimum distribution? If you find a 4-plex with 25% CoC ROI (on paper, anyway), would that be good enough reason?

What's the best way to invest an inherited non-spousal IRA? The first RMD will put me into the next tax bracket, so I'm tempted to draw more out and put it towards a couple of multi-families with good cash flow.

I also see the benefit of stretching out the RMDs and otherwise leaving the IRA alone (in funds), or maybe switching custodians so I can buy notes, flip land, etc. But I'm guessing multi-families will give me more bang for the buck over time, especially if I'm in a higher tax bracket in my later years than I am now.

Anybody have experience they can share?

You don't need to justify wanting a deal. Might as well shoot for 12% cap and see what happens. They can always counter.

@Edward Rhoads 

From what I've gathered, you can have more than one ESA, you just can't contribute more than $2000 per year total across all accounts with the same beneficiary. So you can just leave the ESA account at Scottrade and start a new one elsewhere, or move your account to a new custodian like Equity Trust (as Andrew mentioned) or Quest IRA. There are other custodians, too.

You can invest in the same sorts of things as you can with a SDIRA, like tax liens, notes, etc.

I'm not an expert -- I don't have a self-directed ESA yet, but I've been reading about them. For me personally, I probably won't set up a self-directed Coverdell ESA until I am maxing out contributions to our Roth IRAs, which also allow disbursements for education expenses with no penalty.

@Edward Rhoads @Andrew S.

Self-directed Coverdell ESAs do exist and you can put the same kinds of investments in them as you can put in a self-directed IRA. Here's an article about it: BiggerPockets Coverdell Blog Post

I will be with you tonight in spirit and will do my best to make the next evening get-together, whenever that might be.

@Brian Eastman -- very good suggestions. Thank you.

@Ian Cox I took a cursory look at Palm Beach, Lee, and Manatee Counties. It was enough of a look to know I'd better talk to someone who knows what they're doing before I learn a lesson the hard way. I'm also wondering what kind of due diligence I can realistically do from a distance.

@Mark Nolan, @Brian Eastman, @Justin Windham, if I'm only able to sock away $10,000+/- per year from a side business into a solo 401k, is it even worth it to set it up? Also, I'm assuming the (self)-employer contribution would go in one account and employee Roth contributions in another, and couldn't be used together, is that right?

@Royce J., @Wayne Brooks, I suppose I had been thinking that if it came down to it, I would either let the tax certificates expire or try to sell them to someone else (if that's even possible) if the property owners didn't pay the principle and interest within a year or so. Probably if I were to buy liens on a property with a house on it, intending to foreclose, I wouldn't want to do it in a 401k due to loss of rental depreciation. My thinking was to spread the risk across several small liens on nice, preferably mortgaged properties, hoping the owners or note-holders would pay up. And if I actually wanted to get properties out of a tax sale, go to a tax deed state and not use a 401k (unless it's undeveloped land). Am I thinking about this the right way? I obviously have a lot to learn.

Thank you everyone for your thoughtful comments and advice, I really appreciate it!

Florida tax liens look interesting.

1.) Does anyone have a recommendation for a place to set up a self-directed 401(k) with Roth? Or is this a bad strategy for buying liens?

2.) What happens to the liens that aren't bought in an auction? I see tons of them listed online in some counties, and it's well past the auction date. Why didn't someone snatch them up?

Thanks!

Hi, I'm new to real estate investing. My wife and I just moved into a home we bought from HUD. Then we purchased the lot next door, which someone had used as collateral and was bank-owned. We got great deals on both. Now we want to create cash flow. We have the opportunity to buy a wooded lot on a cul-de-sac in Blount County very cheaply. A home site would need to be cleared. The problem is who to sell it to, and how long would we be sitting on it. Any ideas or suggestions as to what to do?