All Forum Posts by: Loren Whitney

Brian is correct, Custodian Name FBO (Your name) IRA. Some SDIRA providers have created shorter versions of their titling to convenience investors in these situations.

 I wouldn't follow Dave Ramsey's style unless you lack motivation.

How did this turn out for you @Dominic Lucarelli ?

This makes things rather simple. Your IRA cannot benefit you or your growing business. The sooner you come to terms with that, the sooner you'll find purpose for the IRA.

@Chuck VanDyne

It sounds to me like you've been misinformed about certain things. It's true that you cannot provide any goods or services to the plan. This means no picking up tools yourself, even for maintenance projects like painting. You can however make all of the decisions related to the maintenance, repair, and improvements made to the property. You select contractors, tenants, and finishes. The IRA pays for all of the expenses.

Owning IRA real estate is very much like operating an out of state real estate investment. It's a delegation model that requires that you outsource your work and limit yourself to decision making. This is regardless of the investing model you follow in real estate.

IRA real estate investing is a shift in practice and strategy for some but its important you weigh all opportunity costs, compare your options, and most importantly crunch your numbers.

Many try to compare the tax advantages of real estate investing outside of an IRA to similar investments made inside of an IRA/401(k). Unless you actually know how to calculate the tax benefits and see the difference for yourself, it's like comparing apples to oranges. Every investor has a different tax profile and therefore its important that everyone perform their own comparison.

On the topic of tax advantages and IRA investing, did anyone know that your IRA can avoid paying tax on the depreciation that your IRA benefited from in prior years by paying off the loan 12 months prior to the sale.

@Karen Reynoso

I agree with Rick. The answer completely depends on your investment strategies. Some custodians are far more automated from a technology angle than others and many still require you to complete paper forms for every action. Convenience, knowledge, speed, and accuracy should all be top priorities. Best of luck!

Hey @Shawn Smith @Brandon Turner

The BRRRR method is IRA friendly but only for the benefit of the IRA and only with your indirect involvement (decision making only).

Process:

1. Purchase an investment property with you IRA funds

2. IRA pays all rehab expenses (you can't do the work yourself)

3. rent it out (rents are paid directly to your IRA)

4. refinance it in the name of your IRA (non-recourse loan)

5. REPEAT (Plug for Brandon)

If anyone has questions, I'd love to chat more!

Hi @Jillian Johnson

Mark's Checkbook IRA highlights are a great start. Aside from mechanics, it's important to know that all IRA/IRS guidelines extend to the LLC as an investment vehicle. Due your due diligence and be sure to understand all of the rules before engaging this structure.

Here are some other things to learn about:

• Cash flow mechanics in/out of the plan
• Who are disqualified persons? 
• What is a prohibited transaction?
• Funding an SDIRA (Transfers vs Rollovers)
• Writing offers and issuing earnest money
• leverage and the use a mortgage (specifically UBIT)
• Fair Market Valuations

Great talking with you earlier Jillian - Best of luck. Feel free to ask new questions in the future.

That is surprising to hear and I'm sorry you're being subjected to those fees. It's ordinary to pay a fee for an outgoing wire because all banking institutions charge one but not for incoming funds. You shouldn't have too much trouble finding an SDIRA provider that doesn't charge for incoming funds no matter what the method of deposit is. 

Hey all, 

I'd like to hear from some of the seasoned investors that have personally witnessed a fall and rise in interest rates. I'm looking for arguments that oppose debt-reduction, specifically in the type of environment we face today.

How was your success or failure attributed to using/keeping debt on your books? 

If the Fed's zero-percent rate days come to an end soon, what happens next and how will keeping debt benefit us as real estate investors?