All Forum Posts by: Bernard Reisz

@Marlen Weber I actually discussed many of these topics on Best Ever Real Estate Show! :) 

@Christopher Romeo You've got multiple options, but "house hack" with a Self-Directed IRA-owned asset is probably not going to be one of them.

Flip is definitely doable, so long as all the rules are followed (https://www.biggerpockets.com/member-blogs/9734-the-self-directed-investor).

In the current environment, you would also want to explore options created under the CARES Act that provide greater flexibility.

There are likely going to be multiple routes to consider for using funds that are currently in tax-sheltered retirement account either (a) to invest in real estate in your own name outside of the retirement account - by pulling the money out through distribution or plan loan or (b) to invest in real estate in the name of the retirement account within the retirement account, each with different tax attributes:

• Taxable Distribution w/ 10% penalty
• Taxable Distribution w/o 10% penalty
• Coronavirus-related distribution (no 10% penalty and tax-management flexibility)
• Non-taxable plan loan to invest in your own name
• Invest within a retirement account (e.g., IRA/401k/QRP) w/ no personal income tax liability

@Yonah Weiss ALWAYS a HUGE honor to be mentioned by you!

@Andrew Flora Sounds great! And... in 5 years now will be in next election cycle, with new names - no Trump or Biden (even if Biden wins now, would not be surprising if he's unable to do a 2nd term) - new issues...etc. We're so focused on the present that it's hard to envision a post-Trump/Biden world!

@Andrew Flora Lots of great info on this thread. For those derive tax benefits from cost seg, it's a "no brainer" if you can work with a reputable and cost-effective firm. 

Not everyone derives benefit from cost seg, and the good firms help you and your tax advisor determine whether or not you should proceed with the study.

Another monkey wrench in all this is Biden's tax plan for real estate investors. My resource for all things cost seg is @Yonah Weiss.

Kudos to @Clint Harris for using a well-thought-out strategy! The only iimpediment to executing your strategy appears to be misinformation supplied by a service-provider - and, now that @Yonah Weiss has chimed in, you can connect directly with the highest-quality cost seg resource available!

@Christopher Lombardi Self-insurance makes sense in some scenarios when approached with a well though-out risk management strategy. Also, there are many degrees and forms of self-insurance. Usually, you'll end up with some hybrid between pure self-insurance and purchased coverage. Some examples:

- High deductible policies are a form of self-insurance

- Stand-alone captive insurance w/ re-insurer backstop 

- Group captive w/ re-insurer backstop

There are many other approaches, but the key is a solid understanding of risk profile and risk management. (And, beware of promoters that are selling captive insurance as a tax-shelter; not saying that they none of them provide the purported tax benefits - just that you need a captive insurance tax expert help you make informed choices.)

When pursuing these accounts and accepting recommendations from people, it's important to:

• ensure there's no conflict of interest (e.g., substantial affiliate kickbacks) and 
• perform at least a modicum of due diligence on the provider (# podcast appearances aren't too helpful; check if their background to see if it's aligned with their claimed expertise, etc.)  

I assure you it's not above your head if you choose to work with someone that will be transparent with you, rather than a promoter using marketing gimmicks. 

As a CPA that works with an array of self-directed investors, I'm constantly astounded by the # of people that have signed-up for some mysterious account type for which they shelled-out substantial $$$ - and they don't even have clue as to what type of account it is from tax & labor law perspective. And, if they don't know what they have - they can't possibly operate it compliantly. 

Work with a provider that thrives on knowledge; avoid promoters that thrive on ignorance.

(Please do not ask me to specify which providers fall into either category. You'll have to exercise your own judgement.)

@Breanne Lemons Yes

@Breanne Lemons You're taking a great approach by seeking input from a qualified source. Use of these accounts opens new worlds of compliance, strategy, and planning.

@Todd Nurnberger Glad to share. It's at: 

https://www.passivewealthstrategy.com/self-directed-ira-myths-what-are-udfi-and-ubit-with-bernard-reisz/