All Forum Posts by: Carl Fischer

@Myles Christian

Have you considered private lending? This avenue can partner you with an experienced real estate investor who can lend you the funds. They could use their personal funds, but some investors prefer to use a self-directed retirement account to make the loan. You would then have an experienced investor who may be willing to help you learn the ropes. 

I wish you the best in your investing!
Thank you,

Carl Fischer

@Cody Dover

Have you heard of using a self-directed funds for the deal? There are couple ways this could help fund this deal.

1. You could find a private investor to loan the entire amount with their retirement funds (you can often find a private investor at REIA Groups)

2. You could partner the deal with your personal retirement funds (there are a couple restrictions you would want to make sure you are not violating)

@Scott Graham

I also agree with Brian and Dmitriy. I have heard many people who have been very unsatisfied with equity. 

We are a SDIRA administrator, but out of respect for bigger pockets we don't want to blow our own horn. Below are 3 things to consider when selecting a custodian/administrator for a self-directed IRA.

1. Knowledge (They actually know what they are talking about)

2. Customer service (can you reach a person, how quickly?)

3. Ease of transactions

If you have any questions or would like to connect, please feel free to send me a message. I would be happy to share some links to you for our fee schedule.

Thank you

Carl Fischer

@Carolyn Morales and @Luke H.

I am not aware of similar forums like bigger pockets focused on those types of investments. If you would like some basic information on how the accounts work, I would be happy to set up a call and talk to you about the basics. 

You can also find a lot of posts on bigger pockets about these subjects. Some well discussed topic are self-directed IRAs and Solo 401(k)s.

Thank you

Carl Fischer

@Adam Craig

Did you know you could still max out your SEP/ HSA and still invest in real estate? It is called a self-directed account. You can use the retirement funds in the tax sheltered environments to purchase and hold real estate. There are a few rules and regulations that are straight forward. I have personally used these account, and I know thousands of people who also use a self-directed IRA. Bigger Pockets also has a lot of great forums and articles about self-directed investing.

Thank you

Carl Fischer

@Sherry Lee

There are many things you could do to invest in Real Estate from abroad. Here are some ideas

-You could partner with your Roth IRA (using a Self Directed Account) to purchase a rental property to gain monthly rent that would go both to you and your IRA depending on how the deal was structured. (You can set up a property manager to manage the tenants and the property)

-You could look into an REIT (Real Estate Investment Trust)

-Perhaps you could find an online crowdfunding platform that would allow you to invest your $35K into a much larger project

-You could use a Self-directed account and lend the funds to someone looking to purchase Real Estate.

I wish you much luck in your investments. I would be happy to connect and answer any questions you may hav

Thank you

Carl Fischer

@Mike Reynolds

You are correct, when borrowing funds for a deal with your IRA, the loan would need to be non-recourse. There are many ways to structure a deal including a loan in your IRA, personally partnering with your IRA, or perhaps you could borrow funds from a private investor. You can often find a lender at a Real Estate Investment Association meeting (REIA). There are many ways to fund an investment.

Thanks

Carl

Jeff,

You can actually do flipping in a checkbook IRA as you discuss or better yet a solo 401K. You do have to be careful because the way you discussed flipping, I believe the IRS would consider it a business. The properties would be considered inventory and not investments. If it is considered a business you account would most likely be subject to Unrelated Business Income Tax (UBIT). This gets to 40% tax very quickly because it is taxed at "trust" rates. Look up IRS for 990T and the instructions 990T on the IRS website for more details on UBIT.

In regards to the cost, it would be the attorney fee to set up the Checkbook IRA which can range from $500- $1,500 depending on the attorney. Then there would be the cost of setting up a SDIRA, which can range in price depending on the custodian. I would be happy to connect with you and answer any additional questions you may have.

Thank you

Carl Fischer

@Jairus Gunn

In regard to the REIA's. If you are going to make the drive, see if there is a full day REIA meeting coming up soon. That way you would be exposed to different speakers and topics to make your drive and time as meaningful as possible. I am located near Philadelphia, PA and there frequently are full day events. Usually on a Saturday. Our company will usually send a representative to speak.

@Jairus Gunn

Do you have any funds in a retirement account? Perhaps you have saved $25,000 in an IRA. You could partner with your IRA on the deal. This is a special type of IRA called a Self-Directed IRA. There are many BP posts about it, I would be happy to help you with any questions you may have.

Thank you

Carl Fischer