How to finance second deal

Question

Vick Galu · Answer

@Michael Kulusich hey man I know a guy that does some financing deals. you can pm me and we can talk about it more.

Vick Galu · Answer

@Michael Kulusich hey man I know a guy that does some financing deals. pm and we can talk about it more.

Michael Kulusich · Answer

Thank You Brain, self directed IRA sounds very interesting. I will definately research this avenue as it sounds like just what I'm looking for. With $150k in 401k I would think that should be more than enough.

Thanks again

Brian Eastman · Answer

@Michael Kulusich

Since you have access to move your 401k, you may want to consider putting those funds in a self-directed IRA or Solo 401(K).  These are tools that will retain the tax-sheltered status of the funds, but allow you greater investment choices, including real estate.

All income will go to the plan.  It is not a means to create income for you at the current time, but rather a way to diversify your retirement savings.

Such a plan can leverage with a mortgage, but the loan will need to be non-recourse - meaning no personal guarantee from you.  These loans typically require more like 30-40% down.  You are not qualifying for the loan, the property is.

There is lots of good info here on BP on the topic of self-directed IRA plans.

John D. · Answer

What's your debt to income ratio?  Doesn't sound like your Canyon Lake rental should ding that too much, I suppose the rest of your expenses are the open questions.

"Could rent for more but use as tax break".....hrmmm......sounds like your sacrificing $3 (or $4) to save $1.  If you are planning on a second rental, you probably want to make sure you are handling your first optimally to begin with.

How to finance second deal

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