All Forum Posts by: Kevin Kaczmarek

you are both correct. 99% of our business is originating and then brokering the note to investors and entities. At one point we developed a model to split the note in half and have us carry 50% and an investor buy 50% but it was our understanding from CPA's and counsel that if we did that we would be selling a security. When I heard people carrying back 20% today it made me wonder if there was a certain percentage that falls in the security category.

You both made excellent suggestions. Bill I am going to formulate the model and get a ruling on it, and we are going to look into creating two notes to achieve the same thing. Essentially when we carry back say 20% of a note, we are taking a junior position to the 80% and the purchaser of the property is making 2 separate payments correct?

Bill,

Thanks for the response. I am wondering this model as a means of carrying back cash flow for our business, and allowing us to sell the 80% portion to individuals at a lower price point because we hold 20% on it. We would take a subordinate position on the asset and would only sell the 80% to an individual or an entity. I would not be pooling investors on a note.

Let me know if you know of any attorneys that specialize in this that I can run this past. I have interviewed several attorneys in the past few months and none have impressed me with their knowledge on land contract notes.

Realtyman,

The SOLO ROTH 401k can be the best program for investing in real estate in a tax-free environment. With real estate held in a self directed IRA or 401k you get asset protection, liability protection and Uncle sam protection. There really isn't a better environment to create wealth!

I used to play the game a ton when I just started out. Get the computer version if you can. It will allow you to play so many more games in a short period of time. It does teach basic investing lessons that repetition drives home. After a while it will become boring and trivial and at that point, there is nothing left to do but play the real game in life.

If I buy a property, sell it on terms and decide to sell the note 100% I know I am selling an asset. If I hold back say 20% of that same note, is that considered a security? I heard the idea this morning and the first thing I thought is this is a security. Thoughts?

His personality is so magnetic, he is unable to carry credit cards.

He is the life of parties he has never attended

Ana, that is fantastic to hear! Congratulations to you and your husband. I love how it was something you both built the portfolio together. You should blog on here about the journey. I am sure its a fascinating story!

Do you do less than 200 transactions per month?

If so, look into Huntington Bank for their Free Checking. There seemed to be a ton of fee free transactions for individuals and small businesses.

Mark,

For me from emailing in the paperwork to getting the account setup and available for use took 3 days and I did not utilize their "Express Service" for an additional $50.00.

If you were rolling funds over to ANY Solo 401k or Self Directed IRA custodian you are at the mercy of the fund advisor that the money is coming from. Some are quick and easy, while others are like pulling teeth getting your money over there.

I think Eric makes a great point. If you are just starting out, go with someone that will put some "restrictions" ie, will watch over your account while it grows. Then after you get a good handle on Solo 401k accounts, you can decide if you want checkbook control and more freedom.

I personally like having an active third party custodian watching over my accounts. Self Directed IRA and Solo 401k's are becoming more and more popular, and its my personal opinion is these accounts are going to come under greater scrutiny in the coming years. For some small fees, I would rather have someone double-checking my work.