All Forum Posts by: Tom Waddell

I heartily recommend Sense Financial and @Dmitriy Fomichenko. I have a solo 401k (checkbook control) with Sense Financial that I've had for over five years now. Dmitriy and his team are awesome. Very quick to respond. And Dmitriy's advice has been extremely helpful, even sometimes at his own expense. Can't recommend this company enough.

Thanks @Mark Nolan. Yes, I'm trying to figure out how to take a massive tax hit and move my funds from the pre-tax side to the Roth side this year.

@Dana Whicker

I just looked up the Truth About Lending post from Zack Karp. This is a wonderful resource, so thanks for pointing that out! 

https://www.biggerpockets.com/forums/49/topics/210...

Thanks @Dana Whicker. I've kept hearing that season periods are 6 months or a year, so this quicker 1-2 month turnaround could make this 401k loan doable, especially if I can rehab/add value to the property in order to meet refi requirements (70% LTV?). Thanks much.

Hi all. I'm going over my options to purchase a buy and hold investment property. I don't want to purchase the property inside my self-directed solo 401k, so I'm considering taking out a loan from the 401k and pairing that with conventional financing. I've searched the forums and read a lot of the pros and cons of using 401k loans as down payments. 

Assuming I pursue this idea, I can't find in the forums where anyone has mentioned the following:

1. Since a 401k loan is required to be paid off in 5 years, the payments are pretty high despite the low interest rate. Therefore, it's been extremely difficult for me to find a property that can even break even with this scenario, let alone cashflow after all expenses. I'm a newbie, so maybe I'm missing something here. To those who have had or are using 401k loans as down payments, how are you cashflowing with two loans on a property?

2. Is your exit strategy based on refinancing the property as soon as it has seasoned in order to pay back the 401k loan? I just can't see having this extra 401k loan on a property any longer than necessary since it's such a huge hit to any cashflow.

Thanks for any wisdom you can offer.

Hi Shae -- I'm planning on doing the same thing. Good luck to you. Not sure if you saw this great post from the other day: 

http://www.biggerpockets.com/renewsblog/2015/03/04...

Gregory, congrats on your first deal. I will likely be proclaiming the same this December. I've got one question. How did you get 100% bank financing?

I'd prefer ones who are also investors themselves. Thanks much for any input you can provide.

Thank you @Raymond B.

@Mark Maire, when you say the property needs to cash flow before the down payment, are you saying we need to always analyze properties assuming 0% down?

@Mark Maire, when you say the property needs to cash flow before the down payment, are you saying we need to always analyze properties assuming 0% down?