All Forum Posts by: Matthew Schwenke

@Brian Eastman

About $10k in the Roth IRA and another $6k in a 457b from my last employer (which I think I can roll over into a Roth if i pay taxes on it?). I will also add in this years contribution, too. I do think long term that the combination of stability and returns on real estate make it a great choice once I have a little more working capital to invest. Also, glad to hear that at least a portion of the normal deductions still apply. Thanks. That's really helpful information.

Thank you all for the quick responses. The self-redirected Roth IRA sounds like a good alternative except for the contribution limits. From what I understand, it seems like it would take a long time to build up enough capital to purchase a property without leverage and leveraging within an IRA is subject to UBIT (plus it sounds like you can't use depreciation when a property is owned within an IRA).

If those are all true, do you think a self-directed Roth IRA is worth pursuing for REI?

I'm a full-time employee with no recent self-employment income. My employer does not offer any retirement benefits and I will be in this job for several years. I already have a Roth IRA with stocks, and I know there's no good way to transfer that money out. So, I was planning on continuing to fund that for stocks/bonds and opening a Solo 401k for REI, but it appears as though the funds must come from self-employment income.

Can I contribute with my W-2 income?

Am I understanding the regulations correctly and is there an exception since I have no retirement account options through my job?

Any other suggestions of what to do?

@Nick G. and @Jeff Greenberg, yes, that Meetup this past Thursday was underwhelming with the moderator not even attending. I'm looking forward to the upcoming meeting at Mimi's. And JG, I'll PM you the link to the slack group.

@James Wise, Thanks! Happy I decided to jump in and start contributing.

@Cornelius Charles, that's great! I'm glad to hear that deals like that still exist here in southern California

@Jo-Ann Lapin, I think those are great ideas. I'll be attending my local Ventura County REIA this Thursday. Also, joined a investment club on Slack for out-of-state investors to share ideas and stay motivated. As on these forums, the people in the investment club have shared a lot of their experiences, which has been really helpful.

@Robert Ellis, I've looked at several other markets, including many in the Midwest and I think the numbers there in Columbus look good on paper. My dad's family is from Athens and I have multiple family members who have gone to OSU, so my familiarity with the area also has helped steer me your way.

This sounds like a good idea to me, too. I'm also looking out of state. Want to focus on a particular area, southern Ohio is at the top of my list right now, so I can develop a core group of contacts who are local and can be the boots on the ground. Looking for a good local partner who can help oversee small scale rehabs of older, urban multi families that will have solid cash flow when they are eventually rented out. I'll message you @Tony Xu to get the link.

I have been interested in investing in real estate since before college, back in 2008. I wish I had the financial capability to invest at that time as you put it when "anyone's deadbeat cat" could make money in real estate. Unfortunately, I cannot travel in time nor change market conditions. So, I am left with either choosing to wait and see if prices come down at some time in the future (which means I may be waiting forever). Or, look for good deals where ever they may exist right now and start developing equity and cash flow. This is why I am now looking out of state as well as locally for deals that makes financial sense. If no such deals exist in the entire United States, the rest of the world is also an option. My approach is to focus on the solution, not the problem.