I am Real Estate Investor from NY

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  • Michael S.Pro Member
    Biggerpockets Support · Las Pinas, Metro Manila · Member since 2015 · 7k+ posts · 1k+ votes
    10y

    Welcome to Biggerpockets Herby. Great to have you on the site. 

    BiggerPockets
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  • Al Williamson
    Rental Property Investor · Sacramento, CA · Member since 2011 · 2k+ posts · 1k+ votes
    10y

    @Herby Estimablehello and welcome.

    You should consider moving some money into a self directed IRA and then you'll be able to fund your real estate deals. You won't, however, get to keep any of the cash flow - your self-directed IRA get it all.

    Hope that helps.

    I recommend checking out Jim Imersoll if you wish to learn more.

    0Reply
  • Herby Estimable
    OP
    Real Estate Investor · Suffern, NY · Member since 2015 · 2 posts · 1 vote
    10y

    Thanks for the info. I will follow up with Jim.

    0Reply
  • Regina Abayev
    Professional · Manhattan Beach, CA · Member since 2015 · 37 posts · 10 votes
    10y

    Herby,

    Out of curiosity, why are you interested in investing through a 401k? If you're going to invest in real estate through a retirement account (solo 401k/IRA/SDIRA/etc) please take the time to really understand the ramifications of using a retirement account. You should discuss your plans with your tax advisor and go through your short term and long term goals. I would recommend being especially careful if you intend to use a retirement account with leverage/financing. Unfortunately I've come across a number of disappointed investors that were surprised to learn about things like UBIT, UDFI, UBTI and when combined with custodial fees, LLC fees, etc ended up with negative cashflow in their IRA!

    Make sure you understand the difference between investing in capital assets vs other types of investment and the difference in using pre-tax vs post-tax retirement accounts.

    0Reply
  • Loren Whitney
    Investor · North Idaho · Member since 2011 · 332 posts · 107 votes
    10y

    I just posted an article on UBIT here on BP. Check it out:

    https://www.biggerpockets.com/blogs/5105/48636-udf...

    0Reply
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