All Forum Posts by: Tushar P.

I wonder what the feeling is among investors about buying a sfh rental with stucco siding. I keep hearing stucco should be avoided in Houston but then I also hear that it is ok *IF* the material and installation is good.

Or simply have a bigger capex/maintenance reserve to account for rainy and humid Houston?

If someone takes a $50k loan from the solo 401(k) to buy primary residence, does the loan payment need to come from the funds/reserves inside the solo 401(k) plan itself?

@Justin Windham 

@Justin Windham

I’m unsure myself whether jumping the hoops to create solo 401k is worth it, even if it saves some UBIT/UDFI headache emanating from crowdfunding deals.

Other option is to use Roth IRA to buy reit stocks, which I can execute right now. Though I wonder if REIT stocks (eg brg, stag, epr, etc) are just broader versions of crowdfunding deals and will have the same UBIT/UDFI issues.

@Justin Windham @Carl Fischer

I was mainly thinking of using solo 401k for investing in crowdfunding deals without the hassle of UBIT/UDFI and filing for tax return extensions. Because many of these deals cause UBIT/UDFI in IRA and also they issue the K-1 much later than the tax filing deadline...

@Carl Fischer doesn’t the solo 401(k) ensure that there will be no UBIT and UDFI?

Also, when the balance in the solo 401k exceeds 250k - does it simply mean filing the appropriate tax return for book-keeping (with no tax consequence) or does it actually mean paying more taxes?

Finally, I guess solo Roth 401(k) can't take the money from Roth IRA. But it should be possible to transfer money from traditional IRA to solo Roth 401(k) via taxable conversion. IS that right?

Seems like @Dan P. and @John Dombrowski are looking to be part-time Uber drivers (or AirBnB hosts) just so that they can create a solo 401(k). They are not going to be able to put in a big contribution into this solo 401(k) because they wouldn’t be making much. But they will be able to transfer millions from their already existing traditional/Roth Ira into this newly created solo 401(k). And then they can use those millions to invest in real estate without worrying about UBIT/DFIT.

@Brian Eastman seems like they have a clear strategy which may require them to be an uber driver only a few times a year (or rent via Airbnb only few times a year). Other than that they can focus on their W2 job as well as invest in real estate via their solo 401(k) without worrying about UBIT. Isn’t this a good enough reason to open a solo 401(k)?

I make non-deductible contributions to traditional IRA and convert to Roth every year, and I'm also considering how to get into alternative investments via IRA without worrying about UBIT. So their approach makes sense, though I will have to think of something other than uber or Airbnb. Maybe I can just mow my neighbor's lawn once or twice a year 🤗

This statement will hold true if the buyers agent can get the seller to not add 6% to the fair market value. Not sure if buyers agent are up for this, since fair market value is very debatable. Also, why would any agent want the price to be lower?

@Ethan G. can the seller sue the buyer for fraud if the appraiser is not neutral and is already acquainted with the buyer? 

@Ryan Johnson did the seller let you use your own appraiser?

@Deepanshu Madan can you please share what’s your experience so far regarding investing in this zip code?

Yeah, made me believe there may be a pocket in Memphis that is actually growing 🤭