All Forum Posts by: Kevin Moen

@Tyson Dierschke

If its from a previous job, you can most likely roll it into a self directed account. If you can self direct it, you can invest it in a note to earn 10% - 12% yield, tax free. That note would be secured by real estate and in my opinion is much safer than a stock, or risky bond. You just want to be sure to buy a note with equity, and the risk is greatly reduced. I buy and sell notes and can help you with this if you would like to learn more. What is securing your retirement account? 

Can you refinance your home, or is this one you are looking to buy? That is how I have dropped PMI on three properties now. It all comes down to the numbers, but I personally prefer notes and real estate over 401(k) investments. I can get much better returns, with safer assets.

Can you self direct your 401(k), then invest in a real estate based asset and use the profits to pay your PMI? That is another option to consider, but may be more risk than its worth if you are new to the game.

Kevin

If you want to buy real estate with a Self Directed IRA, I can help you out. I buy and sell notes properties with seller financing. I can get you a turn key rental, your SD IRA would make the down payment, and my company would carry a note on the property. That way you do not need any additional financing or a loan. PM me if you would like to talk in greater detail.

Kevin

When you utilize a self directed account you choose how and where to invest your money. I prefer buying notes and real estate over stocks. I cannot do that through my 401(k), so I have a self directed IRA to make what I consider better investments.

Please contact me for more detailed information. This property has great cash flow, and was recently remodeled with an effective year of 2012! 

@Bill Gulley thanks for the clarification. I must have misinterpreted your tone; I felt you were suggesting we were just looking to push all liability to our investors leaving them with no safety net in the case of default, unless we saw fit to foreclose. 

I also don't broker notes, I sell partials from notes I hold, and utilize my own funds for most all my investments, having recently opened up to outside investors for acquisition. 

Since it sounds like you have a lot of experience in the area, what are the most common mistakes you see note brokers or professionals making? We created our own risk mitigation table to anticipate and mitigate as much risk as possible for ourselves and our investors.

 Not sure why so cynical, Billy. The investor has the right to initiate foreclosure. That is their safety net, and they invest with equity in the deal for their protection. Our agreement makes it clear they have all the rights we have during the period they are receiving payments, until received in full. It makes no sense for me to screw an investor, or create a situation where they are not profitable, or in a position to mitigate risk. This is too small an industry, and reputation is highly valuable.

 Billy, we do not guarantee anything. We cover the potential risk with our partial buyer, but are not liable for payments due from the borrower. However, our best practices are to ensure our investor receives their payment, and if we are in a default situation we may choose to foreclose on the borrower so that our investor gets their capital and anticipated return, and we still effectively monetize the back end of the note. 

We do not service our notes, so we would be retaining control over servicing. We do get our capital back when selling the partial, and being invested in the back end also makes us invested in the deal till the end. 

Kevin

Once you have the ability to self direct your retirement funds, you can use them for many investments as long as you heed the prohibited transactions list. I am looking into investing in notes with my retirement funds, as they provide a great cash flow with much less liability and risk than a rental. Keep in mind if you purchase property through your SDIRA you must keep fairly hands off, and all funds related to the property must go through your retirement account. 

@Justin Windham

Thank you for the clarification, that makes much more sense since I was basing my thinking off inquiries related to my 401(k).