Bradley Shive
Self Directed IRA's - anyone have experience?
30 September 2016 | 20 replies
Any sweat equity work like repairs has to be done by a non disqualified party; therefore, you cannot do repairs on real estate owned by her IRA.The lenders listed on the following link will loan to an IRA or a solo 401k. https://www.biggerpockets.com/blogs/3441/51027-nonrecourse-loan-debt-for-self-directed-solo-401k-investment Following are the similarities and differences between the solo 401k and the self-directed IRA.The Self-Directed IRA and Solo 401k Similarities Both were created by congress for individuals to save for retirement;Both may be invested in alternative investments such as real estate, precious metals tax liens, promissory notes, private company shares, and stocks and mutual funds, to name a few;Both allow for Roth contributions;Both are subject to prohibited transaction rules;Both are subject to federal taxes at time of distribution;Both allow for checkbook control for placing alternative investments;Both may be invested in annuities;Both are protected from creditors;Both allow for nondeductible contributions; andBoth are prohibited from investing in assets listed under I.R.C. 408(m).The Self-Directed IRA and Solo 401k DifferencesIn order to open a solo 401k, self-employment, whether on a part-time or full-time basis, is required;To open a self-directed IRA, self-employment income is not required;In order to gain IRA checkbook control over the self-directed IRA funds, a limited liability company (self-directed IRA LLC) must be utilized;The solo 401k allows for checkbook control from the onset;The solo 401k allows for personal loan known as a solo 401k loan;It is prohibited to borrow from your IRA;The Solo 401k may be invested in life insurance;The self-directed IRA may not be invested in life insurance;The solo 401k allow for high contribution amounts (for 2016; the solo 401k contribution limit is $53,000, whereas the self-directed IRA contribution limit is $5,500);The solo 401k business owner can serve as trustee of the solo 401k;The self-directed IRA participant/owner may not serve as trustee or custodian of her IRA; instead, a trust company or bank institution is required;When distributions commence from the solo 401k a mandatory 20% of federal taxes must be withheld from each distribution and submitted electronically to the IRS by the 15th of the month following the date of each distribution;Rollovers and/or transfers from IRAs or qualified plans (e.g., former employer 401k) to a solo 401k are not reported on Form 5498, but rather on Form 5500-EZ, but only if the air market value of the solo 401k exceeds $250K as of the end of the plan year (generally 12/31);When funds are rolled over or transferred from an IRA or 401k to a self-directed IRA, the amount deposited into the self-directed IRA is reported on Form 5498 by the receiving self-directed IRA custodian by May of the year following the rollover/transfer.Rollovers (provided the 60 day rollover window is satisfied) from an IRA to a Solo 401k or self-directed IRA are reported on lines 15a and 15b of Form 1040;Pre-tax IRA contributions on reported on line 32 of Form 1040;Pre-tax solo 401k contributions are reported on line 28 of Form 1040;Roth solo 401k funds are subject to RMDs;A Roth 401k may be transferred to a Roth IRA (Note that from a planning perspective, it may be advantageous to transfer Roth Solo 401k funds to a Roth IRA before turning age 70 ½ in order to escape the Roth RMD requirement applicable to Roth 401k contributions including Roth Solo 401k contributions and earnings.)
Michael Hicks
Renting to a buyer prior to closing? Thoughts?
24 May 2015 | 10 replies
@Michael Hicks this is not an accepted practice for those that are in the business of selling homes to home owners... when we sell our new construction homes.. the last thing we want is someone in then sale fail then have to spend 5k cleaning up their mess.Plus it keeps the pedal on the metal to get the house closed.. once they are in the motivation to get out of the apartment or pay for continued storage is high and they want to close as bad as you do.NEVER give occupancy until the deal has closed and funded ...
Meng W.
Free market house and tenants
27 August 2015 | 2 replies
Tenants terrace has 3 doors 1) window door, 2) terrace screen door and 3) metal door, all able to open at free will.
Padma Mody
How much its cost to demolish SFR?
16 July 2015 | 5 replies
How much its cost to demolish the metal frame single family home?
William Howley
Should I pull permit for new roof? additional stipulations apply-
31 May 2017 | 18 replies
However, most a/c units are much smaller than a roof and ours, in particular, is behind our fence. 2- I bought 2 old 1928 house recently. 1 of them has some real pretty new metal roofing.
John Chan
Squatter's Rights?
2 January 2009 | 21 replies
But we also have the untamed variety of squatter who uses houses as toilets, set open fires on hardwood floors, tear out all the metal to sell for drugs...these people will set a house or building ablaze causing terrible damage and harm to people.
Michelle Payne
Duplex with slanted floors and foundation problems
6 June 2018 | 6 replies
Those tend to shrink slightly over many decades, causing the floors to slope.Often they've been replaced by temporary lally columns - the metal adjustable ones.
Ryan Braman
Did I make a mistake on this property?
22 November 2019 | 3 replies
Hopefully I'll know enough in a year or so to help develop more realistic numbers for future analysis.I've briefly thought about dumping it, but I've got the emotional part of me where it's like, I just met all the tenants, had great conversations with all of them, it's not like they're my friends but there'd definitely be some awkwardness there.
Linda Chov
Advice on a cash flow rental in 46218
1 November 2019 | 10 replies
I see a lot of out-of-state investors missing a home by a block or two, and they they are left trying to secure everything at the home. ( Metal bar casing around AC units and extra security at home) Getting a good team together on the ground is always your safest bet.
Mike Gordon
Curtains or Blinds in a new rental?
12 April 2023 | 28 replies
I install metal 1" blinds from online stores, custom fit to the windows.