All Forum Posts by: Account Closed

I'm no accountant, but not that I know of. We have taxes to pay because while self directing, we also transferred to a Roth. A Roth is when you pay taxes when putting funds into the plan, but everything you earn is tax free since you already paid the tax. We made sure to have one custodian send directly to the next. I think there's a way the old custodian can send you the money, but if you dont send it quick enough to the new custodian, there are penalties involved as well :)

I used to use my American Airlines credit card a ton.. I have flown a ton for free.. The last year I've been using my American Express more and more.. Those points can be redeemed for travel, cruises, hotels, gift card, etc.

I am currently developing almost 4 million dollars worth of real estate.. A good chunk of it has been funded from private investors I've met on BP... Some of these relationships I made around 3 years ago, and we're still doing deals today.. I'm not as active as I used to be, partially because I'm a lot busier with how the market is today.. But I really would like to get more active again.. Not only did I meet investors for projects, I learned almost everything here.. I came here after buying my first rental which I soon learned didn't Cashflow that well :). After that first property, using all sorts of goodies I learned here on BP, I bought a nice portfolio of rentals and multifamily.. As the market turned, I sold a bunch of it to fuel my flipping and new construction. I've also met some of my greatest friends here on BP, and they were at my wedding a few months ago.. If you get involved and network here, I think the deals will follow :)

I will say the custodian that the school district used to handle the 403B was a bear to deal with.. They took almost a month to approve paperwork and release funds to the new custodian..once the self directed custodian received the money, it took no time at all. It was unfortunate we waited until early December to make the roll over (she transferred to a Roth once it was rolled over to the new SD custodian). We were hoping to have her pay the taxes in 2012 when she filed single as a teacher. Since we waited until the end of the year and the original custodian didn't release funds quick enough, she officially converted to a Roth the first week of January, and will now pay the tax as married in a higher tax bracket :(.

If you are able transfer to a solo 401k, you could avoid the UDFI.. This program has a Roth component as well.

My girlfriend at the time (now wife) had a 403b.. She had switched jobs, and it was a very easy process for her to roll it into a self directed IRA since she was no longer employed at that school district

Jared, correct me if I'm wrong, but I believe HUD offers ( or offered) a 40 year term for larger multifamilies..

This is common in infill development. It's the same for my area. We're building 500k-600k spec homes next to some eyesores that need to be 'taken care of' :)

Cashflow is more difficult with hard money but not impossible.. I paid 5 points and 15% interest for a year on a 14 unit building before I got it refinanced. I also paid 5 points and 14% on a quad for a while until I could refi.. These deals were around in 2009-2011.. They're getting harder to find and to get the numbers to pan out.. Thankfully I've found much cheaper money since then as well...Just wanted to throw a little real life example your way that with a good enough deal, the options open up tremendously ... I will say to make sure you have a strategy to get out of the hard money loan-- either through refi or sell Edit: I see I got on a rant and didn't address your question as good as I should've. :) Hard money lenders for the most part set their own terms and are pretty stiff on those.. If you find a local lender there may be some flexibility.. If you're doing a google search and finding lenders who loan all over the country they won't be...you can set the terms with private lenders, and as you prove yourself these terms can be mutually agreed to change for the better..I had one private lender who didn't want his money back.. He wanted it to keep rolling and earning him interest.. He dropped his rates when I wasn't using him as often bc I had found much cheaper money

Cashflow is more difficult with hard money but not impossible.. I paid 5 points and 15% interest for a year on a 14 unit building before I got it refinanced. I also paid 5 points and 14% on a quad for a while until I could refi.. These deals were around in 2009-2011.. They're getting harder to find and to get the numbers to pan out.. Thankfully I've found much cheaper money since then as well...Just wanted to throw a little real life example your way that with a good enough deal, the options open up tremendously ... I will say to make sure you have a strategy to get out of the hard money loan-- either through refi or sell