All Forum Posts by: Mark S.

@Phillip Rosin, lots of options. 

If you want to start with a completely clean debt slate, then maybe you pay off all the debt, are forced to save a little bit more first for REI, and then jump in.

If you want to go the semi debt pay down route, you then have a choice:

The car loan is smaller, has a higher interest rate, and larger payment. One could argue to pay this off first (your auto loan interest rate seems very high for someone with excellent credit). This would free up (slightly) more monthly cash and would (slightly) help your DTI, although DTI help here vs student loan payoff is negligible.

The student loan is with you forever regardless, so one could make an argument for paying that off first even though the monthly payment is less, interest rate is less (are you able to deduct your student loan interest in your particular situation - if so, your effective interest rate is even less!), etc.

If you want to maximize every dollar that you have, can keep your expenses low like you mentioned, and want your money to start working for you as efficiently as possible, maybe you just continue to make the payments and carry the debt while simultaneously investing in real estate      

At the end of the day, you need to do what makes you comfortable and allows you to sleep at night   

Make sure you understand prohibited transactions, as your post implies you're hands on with your properties. If that's the case, the SD IRA route may not be for you.

@Sarah Jones, I’ve had pretty good luck with Mid South Home Buyers (MSHB).  They have a waitlist, but generally worth it.  

@Natelya G., I use IRA Services Trust Company (ISTC). They've been pretty good so far. I also like that they've been around a while.

I think the ongoing fees are fair, but they do seem to have a lot of nickel and dime fees for every little thing. Other custodians seem to charge higher ongoing fees and not so many nickel and dime fees.  

I am a passive investor and use my account to own international agricultural real estate investments that pay annual profit distributions to my account.  Since the initial transaction and annual profit reinvestments are the only activity in my account, their fee structure works well for me.  

If I was going to be more active, had multiple transactions per month going in/out of the account, etc., I’d probably look elsewhere.  

Scott, do you have any investments at all?  How will this affect your current savings rate?   I want to say yes, but if you’ve not started investing (not necessarily real estate, just stock market) and you’re 30, you really need to use your income to propel that forward.  If you’ve been investing since your 20s and your 40% savings rate includes money saved AND invested, and that 40% won’t change much as a result of the purchase/financed payment, I say go for it. 

@Hai Loc

Thanks for replying. Just don't understand why he wouldn't do LLC since the GP opens themself up to personal liability with this structure and that was what they were trying to avoid in the first place.

why don’t you call them and ask?

NOOOOOICE!  Merry Christmas! @David Hutson

 Yes it is

@Nic S., it is what it is, but I assumed no favors for anyone and fair is fair.  This one will put me at 4 with them.  How many you got?