All Forum Posts by: Alfred Bell

I don't understand this UBTI. Will have to talk to my CPA about it, and that costs $.
Until then, can anyone give me a bit of an understanding on it? If you buy a rental property or a business with your SDI IRA monies... the income would be going back into your IRA. An IRA is tax deferred. Why and how could there be a tax (UBTI) on that income? If this is the case then an IRA isn't a tax deferred retirement account. Could someone possibly clear this one up? Thanks in advance.

Sorry for the caps.
I don't understand this UBIT. Will have to talk to my CPA about it, and that costs $.
But can anyone give me a bit of an understanding on it. If you buy a rental property or a business with your IRA monies... the income would be going back into your IRA and an IRA is tax deferred. Why and how could there be a tax (UBIT) on that income? If this is the case then an IRA isn't a tax deferred retirement account. Could someone possibly clear this one up? Thanks in advance.

FOUND OUT THAT BETTER THAN AN IRA LLC IS A IRA IN A TRUST SO THAT YOU CAN AVOID THE TAXES AND COSTS ON AN LLC. YOU BECOME THE TRUSTEE AND HAVE THE CHECKKBOOK SO THAT YOU CAN INVEST AS YOU SEE FIT, NO CUSTODIAN IN THE WAY. NEXT POINT TO GET DATA ON... DO I REALLY HAVE TO PAY $3500 TO HAVE SOMEONE SET UP THE TRUST FOR ME, OR CAN I SET THE TRUST UP MYSELF AND SAVE SOME MONEY? ANYONE KNOW ABOUT THAT?

I'll look into the self admin 401k. Might be workable, as long as I have control of the money and immediate access to it whenever needed.

Thank you. Yes, I just learned that the expense if pretty high. But I think I just discovered a low cost and more optimal method. Creating a pension plan for my corporation, giving me full control and instant access to the money.

I currently utilize a self-directed IRA. My IRA monies have been invested in a real estate project. I'm coming out of that investment soon and I now want to use those IRA monies for buying at trustee sales. This "Checkbook IRA LLC" seems like it could be the ideal vehicle for this. I'm not familiar with their workability, validity with IRS, etc.

Does anyone use or know about these? Thanks in advance.

I currently utilize a self-directed IRA. My IRA monies have been invested in a real estate project. I'm coming out of that investment soon and I now want to use those IRA monies for buying at trustee sales. This "Checkbook IRA LLC" seems like it could be the ideal vehicle for this. I'm not familiar with their workability, validity with IRS, etc.

Does anyone use or know about these? Thanks in advance.

Bob Hines:
Ah, inexpensive houses is the answer. Not very real to us who live in California. Altho, due to REOs and foreclosures, we finally have prices down to the point where in some circumstances rents can cover PITI. Pretty smart strategy you've got going. You need to be aggressive, that is good. You just need to temper that with excellent due diligence and caution so that you do the right thing. Smart to use HELOC before bank takes it away, and you've got it backed up with cash in case interest rates spike, so that's good. Just don't use leverage and credit in excess or Bernanke will have to bail you out too (don't you wish).

That must be your daughter. Real cutie. Bring her along with you and your guaranteed to close any deal just on her charms alone.

Best,
Alfred

Bob Hines:
Getting your properties paid off in 5 years via tenant rent is amazing. How can one possibly do that? These must be really cheap houses? How does your strategy work? Thanx, Alfred

Matty,
Gold is an interesting subject. I don't think it wise to base future performance on past performance. It has seemed to disconnect from inflationary, deflationary and stock market activity over the last few decades... it hasn't been following the predictable rules that people expected it would.
The anti-gold viewpoint seems to be that: you can't eat it, you can't live in it, you can't wear it. It doesn't give you any yield (and cash flow is what it is all about). Holding it you can only double or maybe triple your money (if you sell it when it's up). Eg. If you bought at $700 and it went up to $2,100 you'd have tripled your money. This could take many years to happen. But a successful business that you own can return your original investment to you over and over, can give you 400-800% annual returns for example. A leveraged income property can give you a great return as well, plus tax shelter, and appreciation if you're lucky. Gold is a store of wealth not an investment. I think this is the attitude that most non-goldbugs have about gold. You can't get wealthy with it but it might come in handy if the existing currency disintegrates. But only until a new currency comes on line.