All Forum Posts by: Loren Whitney

Mark Nugent If you already have the capital to invest personally, why not utilize a portion of your tax-advantaged 401k funds for RE if you feel strongly about it? The others bring up good points about tax benefits for personally held RE but sounds like you've already set aside some money in your 401k. I'd suggest doing the math and calculate which tax benefit scenario makes sense for you because everyone's scenario is different. By the story you told in your initial post, I'd guess your tax scenario is different from most full-time RE investors. BTW, congrats on the duplex. Hope the closing goes smoothly.

If you're a wholesaler, serving the North Denver Metro area (Westminster, Louisville, Lafayette, etc.), I'll like to connect and get on your list. Thanks!

Just PM'd you Bill.

Michael O'Byrne Not to mention the IRS field service advisory from 2008 expressed concern about it being "possibility illegal" in their conclusion. Keep in mind that's the IRS talking. Deriving a self-benefit through entity manipulation goes beyond my risk tolerance in my opinion but then again, I'm not a CPA or an attorney.

Katherine Celona What you're talking about would be construed as an arrangement in the eyes of the IRS. To be conservative, you're best to avoid any direct or indirect transactions across the table from disqualified persons.

Love the video.

I agree with Jeff on the direct purchase method. Your partner can still utilize an LLC if that's to his advantage but your 401k can avoid UBIT if you're not doing flips regularly. While it's still a grey area, continuous flips can be construed as an operating business and therefore put you right back in the UBTI boat.

@Dmitriy Fomichenko

Do you have an opinion on ROBS Dmitriy?

First and foremost, I would suggest speaking with a tax attorney and a good advisor. Your foundation will be the most important part of your investments going forward. Best of luck.

@Phil Pustejovsky

Nice summary Phil!

Not all SDIRA providers dislike solo 401k structures. Some of us offer them as well as IRAs and other plans.

@Account Closed

You'd be fine lending from the plan but educate yourself on 'disqualfied persons'. Certain parties cannot engage the retirement plan across the table in transactions or services. These persons' include yourself, wife, direct lineal family members (up and down the tree), and businesses owned*/controlled* by those individuals. Make sense?