All Forum Posts by: Edward Onofrio

Thanks, George. I'm sure the IRS would not be happy if I was splitting cash flow with an individual who did not have a financial stake in the process.

Brian, thank you for taking the time to help me. I now have a plan if an opportunity presents itself.

Once again, great information, Brian. My source just said that if she is on the deed, ownership is determined by the money invested by each party. My work around to help her gain a financial interest would be to take out a loan from my solo 401K  and let her use that money for her financial stake. Theoretically, I could provide her enough money to gain a 50% stake in the property. She's not really interested in doing it this way; I'm just thinking about ways to make it work if an opportunity presents. Many thanks for your kind assistance. Ed

That's great information Dmitriy. I've been following your work for some time. That is precisely what I'm doing on other deals. She just wants one or two properties and then she's done. It's been a dream of hers for some time. Unfortunately, I wouldn't have enough money to fund the whole deal. She wants to buy and hold for cash flow. With two loans going, I would think it would be difficult for one to find a cash flow deal that can support two loans. Many thanks for your help. Ed

Brian, thanks for your input. After double-checking with the original source, I found your statement to be true. Let me ask a follow-up. I am under the impression that I cannot use my 401K money in the scenario: I have the money and my friend has the knowledge and know-how to work the deal properly and do all the follow through. She has no money. I placed such a high value on her work that I am willing to go 50/50 on the deed with her. I have been informed that this would not be allowed by the IRS. Correct?

With solo 401K money, I have been told that if I want to purchase a property with another individual and have both of us on the deed, each of us must invest the same amount of money. Is that correct?