All Forum Posts by: Suzette Murray

Hi @Saad Khan,

Can you provide the address for this property?

Thank you!

Hi @Megan Ducat do you already have a buyer?

Hi Tyler,

It is important to know where you stand on your ability to follow through and actually close on an offer, this means having your financing in place BEFORE you place the offer. 

It is customary for the proof of financing to be submitted with your offer, especially in a competitive market. Seller's will take your offer more seriously when knowing you have been pre-qualified to make that purchase. 

You may lose out on a deal just because you don't have your financing in order. It's best to get pre-qualified, then begin viewing properties based on how much you can truly afford. This method will keep your search within your means and ensure a successful closing.

Best of luck to you!

@Justin Windham Thank you, your reply is exactly what I needed and has been very helpful!!

@Justin Windham Oh great point, that the retirement account can not be the employer! 

What are the consequences if the Solo 401K is set up and used for a few years and the participant does lose the self employment status? Not that that was the intention when initially setting up, but trying to understand what happens with the account in the event it does happen?

@Brian Eastman

Another question for you Brian... what happens if a person that currently qualifies as self employed, not related to real estate, opens a Solo 401K with their previous employers 401K plan, does some real estate transactions, maybe has 1 or 2 properties that are held as rental properties in their portfolio, then a few years down the line, does not have that initial self employed job? 

Is it safe to assume that the rental income or income from previous flips done using the Solo 401K money, now constitutes still being self employed for the purpose of maintaining the Solo 401K?

@Brian Eastman

Thank you for the information! 

This would be just a non-related partner that is not in the disqualified party category. 

Question: 

Can a partner, using their own personal funds, who is on title as tenants in common with a partner that used SDIRA money to fund a rental property, manage and maintain the property for a fee? (Partner is licensed & qualified to do so)

I know it is considered a prohibited transaction for someone using their Self Directed IRA to manage, but unclear whether this rule applies to a partner that used their own Non Self Directed IRA funds.

I'd appreciate any advice from anyone that has knowledge in this area!

~Suzette

Hi Hector,

In my experience as a property manager in So Cal, the owner is the one who owns the home, is on title and is the one that typically pays the HOA. Some HOA's have the ability to let the Tenant identify themselves as the person residing in the property and they must register with the HOA in order to acquire the key/s for the common area, such as the pool, clubhouse etc...

Your rent fee would still be market value and in calculating your cash flow you would take into account PITI (Principal, Interest, Taxes, Insurance) HOA and PMI if applicable. The HOA would not be expected from the tenant in addition to the monthly rent payment.

The owner is usually the member, not the tenant. It is important that an owner share with the tenant the HOA documents such as the CC&R's and rules before they move in and sign a document that it was received by the tenant. The rule and regulations must be a condition of the rental agreement since the Landlord would be held accountable for the renters infractions. A renter would communicate through the landlord any requests to the HOA. It would be advisable for the landlord to provide a copy of the rental agreement to to ensure compliance with the HOA's standards and for the purpose of emergency contact. Keep in mind the Board may demand termination of a tenant with multiple rule violations.

I hope this helps!

~Suzette

Hi!

I'm trying to locate that podcast that Beau is referring to, where the gentleman uses his Self Directed IRA to purchase properties for him as well as his children... Can anyone help direct me to that podcast?

Thanks in advance!

Suzette