All Forum Posts by: Jeff Piscioniere

@Jeremiah J Rosa this is EXACTLY what I’m looking to do! I’m just looking for a chunk of cash out of my 401k to invest with and view as an open line that I pay back and keep using as it grows.

Just wondering how an agreement might be worded in an instance where I might be taking money each month to pay back myself where a partner might just let it sit in the property's bank account? Wondering if you or someone might understand that from an LLC operating agreement and/or tax standpoint?

Thank you!

@George Blower I had some more time to think over my post and while I definitely valued and found interesting the input, I think I got side tracked from my original question.

If we’ve established an understanding of using a 401(k) for a real estate investment, the real thing I’m curious to understand is how a partnership can be structured in such a way where one of the partners, such as myself, is using their 401(k) but the other partner or partners are just using regular funding which they already have and may not necessarily need or want reimbursement? And as I said, if I desire to be paid back from the partnership with cash flow while others may not be looking to get paid back, how might the legal wording of that best be made?

@George Blower I see. So you’re saying $50,000/year followed by 12month waiting period?

@George Blower so I believe I can only take a single loan at a time. What if I pay off a$20,000 loan in say 6 months? When can I take another loan once I’m at a zero balance?

@George Blower outstanding input! Thank you! So regarding the $50,000 loan and not being able to take another loan for 12months once paid back, what if I were to only take $20,000 or less? What happens once it’s paid back? Is there a specific waiting period?

Thank you again.

@Thomas Harr why not tap the equity with a refi or Heloc in the future and combine it with cashflow to move on to another deal? Thinking towards your future, a greater number of cash-flowing doors is where I’d personally like to be myself. Good luck!

My next investment purchase will use a 401(k) loan from myself or my wife’s account. I want to structure it in a way so that we are paid back so that the loan balance can be reduced quickly. The point of this is to simply have the funds back so that we can move onto our next investment. The target property almost definitely has to be a value add minimally distressed property that can be refinanced after repairs, or a straight up fix and flip.

Where I am confused is to how to best word a partnership agreement to be reimbursed and how that would affect my cost basis in relation to my partners?

In full disclosure, I have no intention of charging my partners interest since the 401(k) interest will be paid back to us ourselves only (no need to justify charging interest to counter the bank interest we’d be paying had it been a traditional bank loan).

Thank you in advance. 

@Ryan Moyer what I was referring to regarding better returns in other areas would be such as buy and hold rentals in your local area vs VR remotely. This is the case where I am where buy and hold rentals makes more sense for me now.

My next property purchase will use a 401K loan from myself or my wife’s account. I want to structure it in such a way that we are paid back so that the loan balance can be reduced quickly. The point of this is to simple have the funds back to move onto the next deal. The target property almost definitely has to be a value add minimally distressed property that can be refinanced after repairs, or just a fix and flip.

Where I’m confused is to best word a partnership agreement to be reimbursed and how that would affect my cost basis in comparison with my partners?

In full disclosure, I have no intention of charging my partners interest since the 401K loan interest is being paid back to ourselves only (no need to justify loan interest reimbursement that I would be paying a bank had it been a different loan).

Thank you in advance.

@Ryan Moyer is there a specific reason you have to have a 4-5 bedroom? Why not get your feet wet with something smaller like a 1-3 bedroom? As you said, prices have indeed skyrocketed which has been a blessing for the equity us owners now hold, but why lock up so much of your investment dollars if you could be earning better in a different genre of REI?

Whatever you decide, good luck! You’ll never be disappointed by The Smokies!