All Forum Posts by: Stephen Sawrie

@Mark Nolan thanks.  and I apologize, I forgot I asked a similar question last month.  thanks for the list.

not sure if this is the appropriate forum, so I also posted on one other forum.  here goes:

SD-IRA, checkbook control (LLC). want to purchase multiplex for 290k but finance around 30-40%. I am told that the loan to the LLC must be non-recourse. is this correct? uDirect supplied me with a list of lenders that they know who make non-recourse loans.

questions:

1. does this sound correct?

2. anyone out there have any experience with lenders making non-recourse loans in this situation?

thanks in advance

SD-IRA, checkbook control (LLC). want to purchase multiplex for 290k but finance around 30-40%. I am told that the loan to the LLC must be non-recourse. is this correct? uDirect supplied me with a list of lenders that they know who make non-recourse loans.

questions:

1.  does this sound correct?

2.  anyone out there have any experience with lenders making non-recourse loans in this situation?

thanks in advance

Forget becoming a real estate agent. Irrelevant. The keys to wealth at your age are debt reduction while living well below your means. Trim away as much fat as possible (like trading down in automobile if at all possible), stop dumping money into the 401k for a while, and try combining your desires to buy your own place and invest in real estate by "house hacking," where you live in one of the units of a multiplex while renting the others. Great place to start. Obviously, make sure this first investment is a good deal. To determine this, first read Brandon Turners "Book on Rental Property Investing" and listen to the BP podcasts. They are great resources. Basically, become singularly focused on that first piece of property. Take additional savings and any cash flow from this first piece of property and start looking for the next investment...and so on and so forth. In general, STAY AWAY FROM THE HIGH CONSUMER LIFESTYLE! It will sink you. For this I suggest reading "The Millionaire Next Door" cover to cover. Then read "The Richest Man in Babylon." Apply these general principles to your initial real estate investing career (and wealth accumulation in general) and you will be on your way. My $0.02

thanks to all.  this forum is ridiculously helpful.

ok, one final question. if the property is being financed and the downpayment comes from a SDIRA with checkbook control (LLC), to whom is the bank lending?

@Daniel Dietz

from my perspective it does seem smarter to take advantage of these record low interest rates.  also, paying 100% cash completely removes one of the wealth generating variables in buy and hold, am I right?

see, this is where I start questioning myself, because that logic just makes too much sense.

@Mark Nolan

@Daniel Dietz

@Chris Jackson

thank you all for your replies.  as usual, my questions are very basic, so I appreciate your patience.  basically, I have a lump sum of money that sits in a newly minted SDIRA (checkbook control) that I plan on re-investing in real estate.  this is something I have done with post-tax monies but am no turning my attention to retirement.

so my questions are as follows:

1.  can I finance properties with money from my SDIRA.  I think from earlier posts that the answer is yes, but @Chris Jackson gives me pause.  would you mind elaborating?

2.  in the opinion of others with more experience than me in this type of situation, is this wise?  in other words, would it be better to pay cash for 4 properties now and continue to buy with cash flow as it comes in, or would it be smarter to finance 8 (or any number larger than 4 from my prior question) and allow the cash flow to pay them off.  I would be putting these properties on 10 year notes.

thanks in advance, and I apologize if this is not the correct forum for the question.

Is this possible?

Costel A. I am just a few weeks ahead of you in your thought process. However, I have spent a great deal of time reading information on this forum and elsewhere about the self-directed IRA and solo 401K. For me the self-directed IRA seems to be the best way to go. Also, read about "checkbook control." This can be done with an LLC owned by the self-directed IRA. As mentioned by others, there are strict rules and regulations, but this absolutely allows you to do what you want as stipulated in your initial post while avoiding the tax and penalty hit. It does not take much time and the cost is minimal compared to simply taking it out with taxes and penalties. I have chosen to go with uDirect as the custodian for the self-directed IRA, and a gentleman by the name of Mat Sorenson for the LLC. He has a book and several videos with plenty of information. Hope this helps.