All Forum Posts by: Jeff Wallace

thanks for the info Dmitriy

@Mike Moles 

I haven't investigated the "solo 401k". I definitely will.

@Michael O'Byrne  

after more reading and looking at the difficulty of getting the proceeds out of my C-corp (paying ss, medicare, etc on salary or paying double tax on dividends) i might just take the penalty and tax hit up front and keep the rentals in an LLC ... in the long run i think i can make up the initial loss with smart buys and good rental income.

@Michael O'Byrne 

Thank You.  That is exactly the type of info i'm looking for.  I'm sure we are both dealing with the same accounting firm....  I had no idea coporate liability insurance would be so high.  Hopefully, It will be a bit less for me as I plan to buy and hold a few as opposed to flipping.  I planned to take the tax and penalty hit and proceed anyway... so, I guess I can handle a ton of fees and expenses associated with the BORSA before it reaches the point of taxes and a 10% penalty... I just don't want to go through the trouble and expense of setting everything up only to find out that it is almost impossible to follow all of the guidlines... From my research, it seems like "discrimination" is the biggest hurdle for the true small business using the ROBS/BORSA, since they have to provide the same 401k options to all employees.... luckily, I don't plan on having any employees.

Can you explain further.... What if the c corp had expenses that reduced income to zero? (Paid all profit to me as salary)

Any Feedback is appreciated

The first step ... is to take the first step.  A former coworker and I used to discuss real estate every day.  We both had the desire to start a real estate business and would discuss the pros and cons of different strategies.  He would come in to the office many mornings and tell me about a webinar he watched.... seven years later he still hasnt pulled the trigger.... and I still hear about the latest webinar/strategy...

Jump in with both feet and don't stop kicking until you reach land... 

I just stumbled upon this discussion after posting a similar question ...

@Steven Hamilton II 

I am planning to resign from my job at the end of the year. I have a 401k that I would like to use to purchase a few rental properties.  The ROBS seems like it would work well to help me accomplish this.... Or another similar version called a BORSA I found at a local accounting firm.  

If I follow the guidelines and stay within the IRS rules, what potential negatives do you foresee?

Thanks Amanda, I'm happy I found the site...I'm already reading lots of good questions and thoughtful answers.

Hello,

I just found/joined BP and can't wait to interact with like minded/ more experienced investors.  I have been a landlord for a few years and just started "Flipping" this year. I look forward to passive real estate income replacing my salary so I can say goodbye to the old J-O-B 

I would like to hear feedback from anyone who has successfully used a Rollover as Business Startup (ROBS) or a Business Owners Retirement Savings Account (BORSA) to use assets in a 401k to fund investment real estate purchases. Has it been a positive experience or overly cumbersome? I am aware of the potential to roll assets in to a self directed IRA, however that option doesn't appeal to me since I wouldn't be able to use the rent income until 59.5 (my goal is to resign from my current job and would like the income to replace my salary). Thanks, jeff