All Forum Posts by: Victor Hoffman

@Kevin Ivey Yeah, I'm learning some of this as I go and Bigger Pockets is teaching me a lot. You are correct as I understand the Self-Directed IRA... you definitely don't have direct access to the funds. There is the Solo 401k...but you can only take a loan out against that ($50k). I suppose a ROBS (Rollover as a business startup) could work to kick off a flipping business, But as @Brian Eastman mentioned in the first response to my post, for starting out into real estate the start up cost don't really warrant setting up a ROBS.   Thanks for the information, feedback!  It really helps to bound ideas off the wall here!  

@Account Closedthank you and I should have mentioned that I’m not eligible for the rule of 55.  But maybe your post will help someone else!  You have to turn 55 in the same calendar year as you,lose/quit the job. I was laid off as part of a group layoff 3 weeks before the end of the year….so I missed it by 3 weeks.  Definitely was frustrated to find this out!!   That said I’m still planning to take the approach you have!!!  

Thank you!  This is great information.  The Solo 401(k) actually sounds like a better option.  I currently am a customer of Fidelity.  However, it seems their Solo 401(k) does not allow for loans and I'm guessing real estate investing is going to be impossible with them outside of REITS and real estate funds.   The idea of flipping houses is appealing to me.  However, I'd like to get my real estate legs under me before I head down that path....but the information regarding ROBS might come in helpful if I head down that path.  

Sounds like if Fidelity doesn't offer loans out of their Solo 401K plan....I may just need to roll a portion or all of my IRA into a Solo 401k with another company.

I've always been interested in real estate. But, found myself in a sales career that I was pretty good at and did alright. At 55 Years old I have a seven figure IRA. However, I ended up being laid off as part of a buyout and consolidation process....I worked for the acquired company in an industry that's on a down trend.

I'm looking at this as an opportunity to start over and be my own boss.  I have no interest in trying to learn a new corporate culture in a W-2 job if possible.  I took a little time off and enjoyed my severance package and got my Real Estate License...well passed my pre-licensing.  California is a bit behind so application is being processed and I hope to be able to schedule my test soon.  I intend to get my MLO as well.

I fully understand that "jumping into" real estate sales will be a process. However, since I don't have direct access to my IRA yet...is there a way that I can leverage that money to get into real estate investing? I've heard some talk about self-directed IRAs and buying investment properties. However, it seems like this might eliminate some tax benefits to real estate...though I suppose the IRA would offer some tax benefits.

Finally, I do need some sort of income now. So, I may have to tap into my IRA some to keep the bills paid as I start my real estate sales career...hopefully the tax write offs help offset the 10% penalty.

I'm new to Bigger Pockets...but have been listening and am inspired daily.  But, some brainstorming on how to leverage money that incurs a 10% penalty if I access it now would be helpful.

Thoughts?