All Forum Posts by: Daniel Dietz

Make sure to take a look at the PPP, Payroll Protection Plan to see if that is better than the UI. My banker is telling my that 'owners draws' count like what I take for my 'day job' that is a multi member LLC. Not sure if it would apply to you or not.

Does anyone have any insight as to when we own properties in a 3 member LLC? I am guessing it is the LLC that would be eligable since it has it's own EIN#, not EACH of the landlord/owners?

Thanks, Dan Dietz

@Carl Fischer or @Brian Eastman,

IF the ROTH IRA is not a rollover from a regular IRA, 1) would it be possible to take the contribution/basis portion out of the ROTH IRA without penatly/taxes and then reinvest then into the ROTH SOLO401K as a new contribution? 2) IF that is possible, what are the pros or cons?

Thanks, Dan Dietz

Thanks for the feedback guys, good point from each of you. 

Dan Dietz

I am wondering if any of the Professionals here have had experience, or an opinion, on if a Buy/Sell Agreement can be used for Valuation on a SOLO401K ROTH Conversion?

@George Blower @Brian Eastman @Carl Fischer @Dmitriy Fomichenko

Thanks, Dan Dietz

@Maria Frant we find that we can do most non-recourse loans for 40% down and about 1% higher rate than what we can get with commercial portfolio loans. Reserves have not seemed to be a problem, but if I remember right when we set it up we could use our 'regular' IRAs that we have for other investing towards that reserves (I think because we could roll it over to the self directed IF needed for repairs etc...).

As far as comparing it to stocks, we find that we can get 12-15% returns all day long in out SDIRAs and SOLO401Ks when leveraged. I trust our boots on the ground investments that we can see right in our community way more than a REIT invested elsewhere. I think during dips in the economy that actual real estate is MUCH less likely to have downturns if done right.

Dan Dietz

What @Brian Eastman said :-)

The other things to think about is 'where is your assets at'? Meaning like in my case, probably 90% of my assets were ALREADY in Retirement Accounts when I started investing in real estate, so it was natural to use them, and get better returns and more diversification that way too.

One other though is IF you are doing this for the very long run, a property within a ROTH retirement account can earn you tax free income for life. So that might mean even if that ROTH account had say a 12% return over the years and a more highly leveraged 'cash' account got a 16% return, after you pay taxes on that cash account the returns might be pretty similar.

Just depends on goals.

Dan Dietz

Exactly as @Brian Eastman says.

An example might be if you have 4 properties and you sell a property in the SDIRA and have 100K sitting there that you might now use for 6 months or a year, and along with 30K equity in each of the other properties. I think it would be worth the effort to 'transfer' that 100K out of that SDRIA into say just a normal IRA in your own name. When you find a new place to purchase just 'transfer' it back over to the SDIRA.

That would greatly reduce what a complainant might think they could get in a law suit.

Dan Dietz

@E.S. Burrell we (two partners, two handymen and office manager) use Toggl App to track time. It works great and after getting things set up right we can keep track by; task, entity, and property.

Meaning if we want to see all time put in on property A, including turns, housecalls, lease writing and lawn care we can do that. All time on lawn care for ALL properties we can do that. All time on office tasks NOT related to a particlular property we can do that, etc....

Thanks for the response @Adam Rasmussen. That is what I suspected.

IF I sold doing a "Seller Financed Note" of say 175K after a down payment of say just 25K, and then payments that kept my AGI under 100K, I assume the "value of the note" would not count in the current years income, since it has not "been collected" yet?

Thanks again, and I hope others might get a few ideas from this too.

Dan Dietz