All Forum Posts by: Daria B.

@Kevin Crowell I too am a Note investor. :-) @Scott Carson is a great go to for Notes and can probably give you some advise where to start. I don't know anyone else on the forum to recommend. So far I've connected mostly with buy and hold investors before I ventured into Notes.

Good Luck....

 Hi Daniel,

Sorry it's been a while that I could circle back to this post.

Using the @ sign and the ? mark will pull up the individuals that have already posted in the thread. If  you use the @ and the beginning letters or just the @ (wait for the list) then you can choose who you wish to tag. I believe this only works for those you are colleagues with. Depends on the device you are using as I have an iPhone, iPad, Mac, and a Surface and at times experience different results. Sometimes the iPhone doesn't work at all in the app so I use the browser, to which it may or may not yield the correct response. LOL

 Yes, I think so.

 I'm not sure we're getting the answer. I am now assuming that as long at the 59 1/2 has been reached and the account has been open for at least 5 years (and 1 day..maybe) that "ANY" earnings up to that point would not be a penalty when withdrawn. In my simple example, the $5,610 in earnings I can withdraw and there would be no penalty.

 Hi Sandy,

Welcome to BP.

It may be terminology and how used that could be causing confusion.

I rolled my traditional ROTH I had with an all-fund company into one that allows for RE investments. I am with Midland IRA who currently is now also the custodian of the account so they do that and the administration of it.

I invest in Notes and do not have what is called "checkbook" control. All companies do not offer this option and those that do, give this ability to the owner of the account so they can write checks against the IRA/ROTH money. But you need to be careful what you are doing in writing these checks out and to whom. I've found that I don't really want it or need to do this since Midland IRA is very receptive to my RE investment requests when I need money sent to the parties for which I am purchasing Notes. They are very expedient and so far have turned around the money going out within 24 hours, if not less time.

Regarding the LLC, that would need to be answered by someone more versed in using and LLC with a self-directed IRA/ROTH. I know some people have one set up and tied or linked to the SDIRA somehow. My account is in my name and all transactions are FBO (for the benefit of) when I sign any paperwork. It's FBO my account that is in my name. I would assume that somehow with the LLC in play, the transactions are written in a way that the LLC name is the "benefit of".

If you call around to some other SDRIA companies they can explain their fees and what this all means regarding what they allow in their business practices.

Because Quest also mentioned "prohibited transaction", I would think she would have explained what she meant a little more to make it clear to you for your intentions of use and why it would be prohibited. To touch a little on that subject, I recently asked a question since I am looking at lending my money to other investors for their projects (ie flipping, rehabbing). I wanted to partner up with someone to purchase a property so it would be 50/50 (he pays cash and I pay cash to purchase), then I wanted to "loan" the money I have in my SDIRA to the LLC we would have set up to do the flip. I'll stop there because that is considered a "prohibited transaction". I cannot personally be part of a venture having money in (cash or some other form of $) and then utilize my own SDIRA to also participate in the project. Hope that makes sense and is only one example and is from my own personal experience....

Good Luck...

There doesn't seem to be that much of a spread between rates. Why not do the 30 @ 5% to lock that in rather than messing with an adjustable. Also, doing closing costs (initial) twice and spending more to refinance the ARM after 5yr.

@James Wise may be able to give some direction. I "think" he's a broker in the area.

@Jim P. you have quite a bit going on and perhaps you want to not rely on Turbo Tax or any other non professional software to sort out complex tax. Consulting a CPA can help you immensely. But if you need to use this then maybe @Dmitriy Fomichenko can help with the 401 questions and @Steven Hamilton II can help with the CPA reporting side. Good Luck...

 And that's "any" earnings as long as the "account" is older than 5 years?

Ok I got that thanks.

What of the earnings, when can they be withdrawn without penalties?