All Forum Posts by: Carl Fischer

@Scott Walther

I agree with most of the answers, a solo 401(k) is a great retirement plan!

First, you must qualify for a solo 401(k).

Second, you can choose to have a custodian or not have a custodian. I know companies that offer both options. The main reason some investors choose to have a custodian hold their solo 401(k) is mainly for record keeping on the account. When you go with out a custodian, you need to make sure your CFP/Accountant knows what you are doing and how to file properly for the account. 

Brian hit the nail on the head. The answer simply put is if you buy with cash no deductions for expenses are allowed  but there is no tax. So the article is correct. If you leverage the property and are required to pay UBIT/UDFI the article is misleading or flat wrong. 

@Rudy Hernandez

I am a believer in using retirement accounts to receive the tax benefit for your retirement account. A 401(k) is great for the company match in addition to an IRA. A Roth is also great because you are not required to take distributions after the age of 70 and a half.

Did you know you can use your IRA or a Solo 401(k) to invest in alternatives such as Real Estate, notes or private placements? I believe these types of retirement accounts can help you truly become diversified and depending on the account holder, can be very profitable. There is always risk in investing, but I feel more confident in my investments when I am the one directing them.There are also many tax advantages to investing through a retirement account in alternatives. I have found much personal success investing in these types of investments and I know thousands of people who also prefer this type of retirement saving. I would be happy to connect with you and answer any questions you may have.

Thank you

Carl Fischer

@George Genovezos

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

I am looking for suggestions on how to best sublet office space. We moved out of our rental space with 2 years left on our lease. I have had it listed with 2 different realtors with little to no action. I tried to get the complex leasing agent to help but they declined to help because it would be competing against themselves. I have talked to other tenants in the building already and they are not ready to expand. Realtors say I am in a bad place because 5,000 sq-ft is too small for a bigger company and too big for a startup business. My lease does not have an out penalty as I am on the hook for the full 22 months, evidently in Blue Bell Pa it is standard practice.

1. The area has vacant space but is in an ideal location at intersection of interstates. (near Philadelphia)

2. The price is less than asking price in the complex.

3. The owner of course will extend the lease if a company wanted additional years.

4. Nice finishes in the building class B+ to A(lots of glass 2nd floor

What else should I be doing or looking for? Any suggestions? 

Thanks

Carl

@Mark Welp

Mark, I cant speak for NuView. 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.

Thank you

Carl Fischer

@Scott Speer 

I agree with Rolanda. You could move your IRA funds to a self-directed IRA to invest in RE. On the flip side, someone with a self-directed IRA could write you a note and loan you the money to purchase RE or a percentage of the property.

The same will work with a "Solo 401(k)" If the person is a business owner, they can purchase RE through this type of 401(k) or they could take a loan from their 401(k), or a private investor could loan them the funds from the private lender's solo 401(k)

@Greg Sonnier 

If you use a partnership /LLC/or other entity with your IRA and a "disqualified person" as the other party you are correct you will have to use a non-recourse loan and UBIT will most likely be required. However, if the other party is not a "disqualified person" they may be able to get the loan(if they are financially strong enough to qualify) and sign personally to guarantee the loan—you will not sign personally. However you may still be responsible for UBIT.

The second option, if the other person is not a “disqualified person” is to let the third party borrow the money from you and a traditional bank using the timber/contract as collateral-this may also avoid UBIT. Many clients will add a clause for a share of the profit, as well as a guaranteed interest rate.

Disqualified persons include family ascendants and descendants ,spouse, parents, children, business partners, fiduciaries, etc—reference IRS publication 590 A&B as well as IRC 4975.

Thank you

Carl

@Jonathan Berenson

I agree with @Richard Dale-Mesaros for some of the points he brought up. A Self-Directed IRA could be very beneficial to you for investing in Real Estate. There are many great resources on Bigger Pockets about this subject.

Here is a quick summary of what a Self-Directed IRA is. It is an Individual Retirement Account that allows you to invest in alternative investments such as real estate, notes, loans, mortgages, private placements and so many other things. Having these investments in your IRA has many tax advantages, more for a Roth IRA as the money is tax free. A SDIRA follows all the same rules and a normal IRA or Roth IRA would.

If you have any questions, I would be glad to help

Thank you

Carl

@Elliot Jones

Self Directed IRA's or Solo 401(k)'s are a great vehicle to diversify your investment portfolio. Many people find this to be safer, because they are in control of their investment. They choose it and do all the research into the investment. I have seen many friends, family and colleagues who have been very successful using a SDIRA to invest in a piece of real estate.

Some things to note, you or anyone linear to you (parents, spouse, children and grandchildren) can not live in or stay at the property or do any maintenance to the property. Second, Do you plan to hold the real estate in your IRA, or do you plan to fix it up and sell it again (flip)? Depending on what you plan to do with the property(ies) will help determine if an SDIRA or a Solo 401(k) would be better.

In order to have a Solo401(k) you will need to own a company and have no employees.

If you have any questions, I would be glad to help.

Thank you

Carl