All Forum Posts by: Chatree C.

Thanks @George Blower wow that's more complicated than I thought. Thanks for clarifying.

I thought the custodian would also take care of Solo K plan document provider to establish the plan, then I can rollover the funds in. Are there custodians that take care of the first part as well so I don't have to deal with 2 parties?

I have a side online business, self-employed, and my CPA suggested that I should open solo 401k with that business and move my SDIRA funds into this Solo K account since it's got better tax treatment around UBIT.

I contacted IRA Services and Trust (custodian) whom I have IRA account with and they said in order to open Solo K, I have to establish my company's Solo K Plan and provide them with "Self Employed 401(k) Custody Agreement".

They said I can hire a CPA or lawyer to do that. My CPA said the custodian should take care of it. What should I do? Should I find another custodian or is it easy to set up Solo K plan as an employee?

@Wade Alderson how about start building passive cash flow income now? You said your money stops when you stop working. If you start small today, you'll learn and be in the game so when the time comes, you have knowledge, track record, and connections to invest a larger sum. You don't need $600k to start learning (and earning while doing it).

I compiled a list of "what would you do with X amount of money" here: https://www.biggerpockets.com/forums/48/topics/544... lots of discussion on cash flow investments with much less than $600k

Even not real estate, if you flip things on Amazon, or cars, etc. Can you try to make that more passive with process in place? When he time comes that you can invest a large sum in real estate, it would be even better that you have multiple source of income for your cash flow.

These threads come up a lot. Hope we can learn something from this :) If you're new and decide to start yet another thread like this, make sure you articulate your goals and situations so it's easier for people to give you advices. If the thread isn't just hypothetical or open ended, I try to tag the question theme with the link. Also I tagged popular for threads that are over 1 page. Enjoy!

$1k - popular https://www.biggerpockets.com/forums/12/topics/253...

$1k https://www.biggerpockets.com/forums/12/topics/506...

$1k - no job https://www.biggerpockets.com/forums/93/topics/495...

$10k https://www.biggerpockets.com/forums/48/topics/931...

$15k - flipper https://www.biggerpockets.com/forums/12/topics/799...

$15k https://www.biggerpockets.com/forums/12/topics/208...

$20k https://www.biggerpockets.com/forums/88/topics/970...

$30k - college grad https://www.biggerpockets.com/forums/62/topics/516...

$30k - from heloc https://www.biggerpockets.com/forums/311/topics/14...

$40k - popular https://www.biggerpockets.com/forums/12/topics/476...

$50k https://www.biggerpockets.com/forums/12/topics/463...

$50k https://www.biggerpockets.com/forums/12/topics/619...

$50k https://www.biggerpockets.com/forums/311/topics/47...

$50k https://www.biggerpockets.com/forums/12/topics/147...

$65k https://www.biggerpockets.com/forums/48/topics/323...

$80k - popular https://www.biggerpockets.com/forums/48/topics/397...

$100k https://www.biggerpockets.com/forums/48/topics/379...

$100k - popular https://www.biggerpockets.com/forums/12/topics/524...

$100k https://www.biggerpockets.com/forums/311/topics/46...

$100k https://www.biggerpockets.com/forums/12/topics/761...

$100k https://www.biggerpockets.com/forums/48/topics/980...

$100k https://www.biggerpockets.com/forums/432/topics/74...

$100k - commercial https://www.biggerpockets.com/forums/12/topics/371...

$100k https://www.biggerpockets.com/forums/311/topics/44...

$100k https://www.biggerpockets.com/forums/48/topics/833...

$100k https://www.biggerpockets.com/forums/48/topics/272...

$100k - passive https://www.biggerpockets.com/forums/311/topics/51...

$160k https://www.biggerpockets.com/forums/432/topics/73...

$200k https://www.biggerpockets.com/forums/572/topics/40...

$200k - passive https://www.biggerpockets.com/forums/12/topics/146...

$230k https://www.biggerpockets.com/forums/311/topics/10...

$100-300k - Scott Trench's research https://www.biggerpockets.com/forums/519/topics/48...

$300k - popular https://www.biggerpockets.com/forums/311/topics/37...

$400k - popular https://www.biggerpockets.com/forums/311/topics/34...

$400k https://www.biggerpockets.com/forums/311/topics/18...

$400k https://www.biggerpockets.com/forums/55/topics/103...

$500k - fastest growth https://www.biggerpockets.com/forums/12/topics/598...

$500k - $4k/mo cashflow https://www.biggerpockets.com/forums/12/topics/905...

$500k - $120k/yr cashflow https://www.biggerpockets.com/forums/48/topics/527...

$500k - popular https://www.biggerpockets.com/forums/12/topics/816...

$500k - $5k/mo cashflow https://www.biggerpockets.com/forums/48/topics/248...

$600k - inheritance https://www.biggerpockets.com/forums/12/topics/543...

$500-1M - commercial https://www.biggerpockets.com/forums/48/topics/110...

$1M - very popular https://www.biggerpockets.com/forums/61/topics/235...

$1M - popular https://www.biggerpockets.com/forums/61/topics/156...

$1M https://www.biggerpockets.com/forums/48/topics/786...

$1M - popular https://www.biggerpockets.com/forums/311/topics/72...

$2M - $250k/yr cashflow https://www.biggerpockets.com/forums/12/topics/328...

$2M https://www.biggerpockets.com/forums/12/topics/142...

$2.5M - commercial https://www.biggerpockets.com/forums/32/topics/381...

$3M - somewhere warm https://www.biggerpockets.com/forums/12/topics/474...

$3M - on SFHs https://www.biggerpockets.com/forums/311/topics/13...

$10M - fastest growth https://www.biggerpockets.com/forums/56/topics/676...

$20M https://www.biggerpockets.com/forums/311/topics/53...

Unless you can partner with other people, you’ll need to make income. If you really not successful being an employee, how about try to build a business in real estate? Like property management or short term rental.

I see people doing similar strategy here in the Bay Area where price and appreciation is higher. You don't even have to flip the house, just buy into the up and coming B-/C+ area and wait for appreciation 2+ years to capture those $250/500k gain.

Of course you somehow have to identify the areas but at least in the Bay Area, it's more obvious where the older neighborhoods are gentrified with tech workers.

Thank you @Terence W. @Jonathan Pflueger from the feedback so far I felt what I have in mind might be more on the lifestyle purchase side rather than investment returns. That might be ok too but it'll cost me unless I buy right.

@Arlen Chou I got what you said about doing this while you can take that lifestyle. But I'm more in your stage now already have Bay Area property but want to move up so I figure could I try to acquire property in a good area from pocket listing or wholesalers and add value to the house. I totally underestimate the "flip" and in my mind it was more "remodel" which isn't realistic. Also thought of other ways to add value with less living impact such as extensions or ADU (for short term rentals). But all that said seems like I'm not doing it for investment.

I talked with Aaron before. He’s good, told me what I needed to know as a beginner trying to buy a turnkey. I ended up using someone else as the rate is cheaper.

I'm interested in buying Bay Area property off market to rehab but then live in it for a couple years to capture tax advantage with the gain when I sell, then repeat. I'm looking at Peninsula Area such as San Mateo, Redwood Shores, Foster City. Assuming I bring the fund to acquire and refi in 6 months.

Does this even make sense and what's your thoughts on that?

Hi Lana, hopefully filing tax jointly would allow you to do what you want if you can proof the hours you put into your real estate business. Check with your CPA as others said. But what you can definitely start doing now is to keep all your activity history tracked. For example you can keep track of your schedule as calendar events, keep emails organized and should be coming from your name, perhaps when you talk RE with your spouse, you can take note of the topics as well, ideally make this more formal like you run a business and you’ll have a much easier time seeing if you can justify the hours need to claim RE professional status.