All Forum Posts by: Sean Calvillo

Thanks for info @Greg Dickerson.

I will consult a tax attorney. Logically I want to protect the Solo401K Retirement Plan trust entity with the larger pool of retirement assets from the risks associated with individual properties which is why I was thinking of creating property specific LLCs but good advice to verify that assumption.

Is there any specific threshold where non private financing becomes a viable option? I guess based on your info for cheaper properties, I may need to buy outright.

Hello,

I want to invest retirement funds for down payments on CT multi-famiIy homes (and single family if finances make sense) for the purpose of passive rental income. I plan on also using non-recourse financing so I can scale the business quicker.

I have a general purpose single member LLC that has business income. I just created a solo401k plan and trust with CheckBook control off of it so I can roll over some of my retirement funds. I created the solo410k with Nabers Group and am in the process of opening a Non-Roth and Roth associated checking accounts with Solera Bank and then will roll over the funds to those accounts so I am ready to transact.

I am thinking of starting with 250k to hopefully cover the down payment on 2 places and then see where I can go from there. There is also the potential of partner investors using retirement or non retirement assets to scale even faster.

I also have an interested construction laborer/GC that I trust and have worked with a long time. He is worried about his retirement and is interested in recurring returns. Maybe he takes an ownership % in specific properties in return for doing up front and maintenance work or maybe I incentivize him via fees to his “management company” since I have to remain passive.

Next I guess i need to find target properties and in parallel line up a financing source.

One specific question I have is once a property is identified how should I create the property specific LLCs that will be owned by the Solo401k? I have read the debates about to LLC or not to LLC and am convinced that because I am using retirement funds, my overall risk profile and wanting to set the business up to scale that I am going to bare the extra cost of LLCs from the start. Are these straight forward to set up? Nabers Group offers packages to do it themselves or provides self help info. Do I need to go with that or do I need a lawyer to structure all the real estate specific LLCs. Again some may be just me and some may have partners.

Open to all thoughts about my plan.

Thanks!