All Forum Posts by: Jon Saddler

@Brian Eastman and @Dmitriy Fomichenko, this is very helpful - thank you both!

Can you elaborate on this? Is it correct to say that there's a way to leverage the 20% down (funds from a Solo 401K) and have recourse go to the property manager instead of myself? I think I'm misunderstanding.

this is helpful – I think a syndication would make the most sense with the limited capital I have at this point. 

If there was a way for me to pursue this route at some point, at this size of an investment, would I be able to partner with others and somehow structure the loan to be non-recourse for my own involvement?

---

My understanding is that the only alternative at this point to use this money would be a self-directed IRA, but I understand this comes with an array of additional restrictions and fees...definitely interested in your thoughts on whether it would still be a viable alternative to get the experience with syndications and the retirement portfolio growth I'm looking for.

@Brian Eastmanthanks for your response. Completely understand that all income from something like this would remain tax-sheltered and not accessible for the personal income goals – my hope was that if the Solo 401K multifamily were to happen, it would be an opportunity to learn from a seasoned investor what right looks like while simultaneously building my retirement portfolio. The hope would be to then use that experience to set up a separate multifamily investment sometime next year using non-tax-sheltered funds and begin my passive income stream that way.

To your point about self-employment, if I were to create an LLC for the existing properties I own, would I be allowed to start at least with the rollover, even if the LLC income wouldn't be enough to make significant contributions to the Solo 401K? Would that at least allow me to rollover my TSP balance and leverage that tax-sheltered money in a syndication (with proceeds remaining tax-sheltered and inaccessible)?

For my existing properties, one is managed and income is completely passive, while the other is one that I manage myself. Would there be a way to make that qualify if I set up the LLC?

Hi All! Interested in the community's thoughts on one possible game plan for investing in my first multifamily:

I currently own two single family rentals, and my goal is to grow my portfolio to eventually replace my income with passive income. I believe multifamily investing is a better way to scale efficiently as opposed to continuing to purchase individual single family deals.

I have around $140K in my government TSP (I'm no longer a government employee and have a separate retirement account now). What advice (and pitfalls) do you have about rolling this over into a Solo 401K to then partner with more experienced multifamily investors to gain experience in multifamily in preparation for doing a deal of my own?

1) Goal would be to roll this over in the next month, and find a multifamily deal before the end of 2022. I'd like to then potentially do a subsequent multifamily deal sometime in 2023 using the lessons learned in this experience and other funding sources.

2) I do not currently have an LLC created for my current single family properties, and presume this would be a prerequisite to anything else before I can create the Solo 401K

3) Does anyone have any experience doing this or something similar? Any issues partnering with others from a Solo 401K?

I appreciate any thoughts you have!

-Jon