All Forum Posts by: Jesse Hargrove

@Sandy Uhlmann  Thanks for the information. I will call my SDIRA this week. This site is great for reaching out to other investors. 

@Brian Eastman the note would be to a person that has a good business idea.  They are not family

I am trying to think of a way to get this business started.  In the end I might be a partner in the business. I am getting the feeling that I might be a disqualified party. 

Thank you for your input  

Is it possible to lend out of my self directed IRA through a NOTE to someone starting a business. There would be no real estate involved.

@Ryan Dalton You are right on with your post. These leverage posts leave out a important figure. That is the CapEx. Sure if you never have to fix anything on your properties. The figures might look better. The housing market goes up and goes down. Just look at what happened in 2007 and 2008

I would like to hear from someone that was leveraged to the hilt during that time frame. You need to keep your dept under control. There were millions of foreclosures during that time. Why you might ask. Because many people were in over there heads. Take your 100.000 property, if the market drops 20 percent. It is worth 80,000 then say your tenants trash your place and stop paying. Where is your cash flow then. The main goal is to pay off your buildings as soon as you can. Then the cash  flow is pure. I understand if you need financing to purchase a property. But I would say be careful with leverage it can bite you if you are not careful. 

I am not a CPA but borrowing on your 401k is one way to get your down payment for real estate.

My question is when you pay back your loan, are you doing it with taxed income. And when you take it out in retirement you will pay tax again, This sounds like paying tax on the money twice.

I would like to hear anyone's opinion on this issue.

A self directed IRA is the way to go for real estate investing. I have done this and wish I had saved more in my younger years.

Thanks Justin for your input. If I am understanding this right a solo 401k is allowed to invest 53,000.00 per year. It must come from self employment income. 

My thoughts are if you are in your fifties and have been a good little do be. Saving money in your 401k every year. Most investors are directed into stocks or mutual funds. They are counting on wall street to make them money. Some times they do and some times you loose 40% of your entire life savings. Either way it is numbers on a sheet of paper. And you have little control of your investment.

What we are talking about here is taking control of our financial life. When I found out about self directed IRA It was an easy decision for me. I own properties now that are cash flowing back into my IRA I am responsible for my retirement. Yes there are IRS rules that you need to live with. If you are using non recourse loans to finance your deals the rates are a little higher. 5 % or so, I am a little older and in 1986 when I purchased my first home after saving 20% for my down payment the interest was 11.875 and I could only dream of the days of 6% interest rates like my parents paid.

I am not doing million dollar deals. But in can touch my properties and they will never be worthless.

People are always going to need a place to live and my IRA has helped me invest in quality rental property. Sorry for going on. The bottom line for me is I have been an investor for many years.

I have moved out of the stock market and in to real estate. I should have made the move years ago.

I like BP and enjoy the posts it is always a learning experience. I would like to hear a podcast on solo 401K this is new information to me. Good luck to all the investors on BP 

Welcome to BP. I am not an expert but if you intend to use leverage you might want to look into a solo 401k if possible. I believe there will be an ubit tax on the profit that comes from the leveraged percentage if it is an IRA. I started investing few years ago there are so many things to learn. BP is the best source of information I have found.

Good Luck

I HAVE SELF DIRECTED IRA ACCOUNTS INVESTED IN RENTALS. I WAS READING AMANDA HANN'S BOOK THAT IF YOU ARE USING LOANS TO FINANCE YOUR PROPERTY. YOU WOULD BE BETTER OFF WITH A SOLO 401K INSTEAD OF AN IRA DUE TO THE UBIT TAX. THAT I WILL PAY IF I USE A NON RECOURSE LOAN TO PURCHASE MY NEXT PROPERTY. I WISH I KNEW THAT. ITS A LITTLE BIT OFF SUBJECT BUT THOUGHT I WOULD THROW IT OUT THERE.