All Forum Posts by: Pete M.

 Just re-read your post, I had missed the part about it being a loan from the owner of the self-directed account and not an equity position!  That shouldn't be subject to UBIT then.

@Limor Hanannia Are you asking to learn more about SD-IRAs in general, or what's your specific question?  Are you looking to use your own funds, or someone else's?  Note that SD-IRAs do not offer a loan option, only SD-401ks.

SD-IRAs & SD-401ks are two ways of being able to put qualified retirement funds towards real estate investments.  SD-IRAs are subject to UDFI (and you must use a non-recourse loan); SD-401ks are not subject to UDFI.  @Chris Seveney gave a good quick overcap of what that is.

Hi, @Anne Lu--a financial planner/advisor is not a replacement for an attorney and/or CPA.  Often, we can connect you with professionals in those spaces for your needs and help coordinate the pieces and how they come together without losing sight of the original goal/vision.

Before jumping into real estate investing, I did something similar with regard to talking to an estate attorney and finding a real estate-knowledgeable CPA to work with.  Happy to talk more if you're interested.

Thanks.

 No worries--reach out any time if you want a second opinion or explainer!

@Terence Crafton Are you looking for an advisor familiar with real estate investing? Full planning, just stock/bond market advising, or something else? RE is well outside of mainstream financial advising courses, unfortunately (other than "let's put money into a REIT"). As Bob noted, a fiduciary duty is required at a firm level for RIAs, meaning even those without a designation are held to the fiduciary status.

CFP is the most well-known designation in the space (because it's the oldest and markets the most, honestly).  I'm in the midst of doing my ChFC right now, which entails the same seven CFP courses plus one more.  Also own some rentals in KCMO, but don't reside there.

That deductible ($25k) is rather high, honestly.  I'd normally look at $5k-$10k and plan to keep capital reserves for anything not covered or below that.  The limits seem low to me, but I'm not a P&C insurance specialist.

Happy to make a connection for you to another real estate investor-friendly P&C broker, if you want a second opinion.

Also, not sure if Matthew G meant "friendly to tenants," but I certainly would not call WA state (and especially King county) as landlord-friendly.

Ours is a negotiated relationship with a large lender for our clients.  I know of others who have used BNY Mellon for individual portfolios, in addition to the other options above.

Can be a great way to get funds working in multiple ways, just have to be cognizant of the pros and cons that come with utilizing leverage, of course.

Lots of good info from @Daniel Johnson here.

I do this and get access to 65-70% of my portfolio as an SBLOC I can pull on to fund my RE investing (private notes, syndications, buy-and-hold). Have had zero issues with margin calls, but that goes back to how it's invested. Interest rates have gone up sharply this year, but still cheaper, faster, and easier than hard money for funding RE if you have assets to back it up.

Full disclosure: I work as a financial advisor managing investments and helping set up things like this with clients. You can do it on your own. Nothing I've written should be taken as financial advice specifically for you.

@Paras Newbe Fellow Issaquah resident here.  You'll struggle to find "cash flow" (I put it in quotes because that also depends on how you calculate it) in this area without getting creative on financing, strategy, or finding the seller yourself.  Price-to-rent ratios here for standard long-term just don't often make sense, especially if you're looking for a turnkey property.

There are some local meetups you can check out to start exploring options.  DM me and I can point you to a few.