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How To Invest In Multi-Family with Your 401(k)  |  SDITalk.com #305

How To Invest In Multi-Family with Your 401(k) | SDITalk.com #305

FromSelf Directed Investor Talk: Alternative Asset Investing through Self-Directed IRA's & Solo 401k's


How To Invest In Multi-Family with Your 401(k) | SDITalk.com #305

FromSelf Directed Investor Talk: Alternative Asset Investing through Self-Directed IRA's & Solo 401k's

ratings:
Length:
8 minutes
Released:
Aug 6, 2018
Format:
Podcast episode

Description

You’ve found a great multi-family deal, but it’s going to take some cash. You have some cash in your 401(k). How do you put them together for a glorious result? I’ll tell you right now. I’m Bryan Ellis. This is episode #305 of America’s Largest, Fastest-growing podcast for self-directed investors…-----Hello, Self-Directed Investors coast to coast and all across the fruited plane! Welcome to Self-Directed Investor Talk, the show of record for savvy self-directed investors like YOU, where each weekday, I help you to FIND, UNDERSTAND and PROFIT from exceptional alternative investment opportunities and strategies.Happy Q&A day, my friends! I always enjoy Q&A day here on SDI Talk – which happens every 5th episode. If you’d like to submit a question for Q&A day, the best way to do that is to email me directly at feedback@SDITalk.com with your question… I look forward to hearing from you!Today’s question comes from Riley Lange from Colorado Spring, Colorado. He asks: “What’s the process for rolling your corporate 401(k) over into a multifamily property as a passive investor?” Riley, that’s a great question, and in answering it, I’ve got to encourage you to visit today’s show page at SDITalk.com/305 to refer to the additional resources I’ll reference.So Riley, if you’re using an existing 401(k) to fund this investment, the process you’re going to want to take will look something like this:First, select the right type of self-directed account. Even if you already have a self-directed IRA or other account, take the time to reconfirm this, because in many cases – and the type of investment you’re proposing is DEFINITELY one of them – the distinction among the different types of accounts can have HUGE… I mean truly HUGE ramifications on the complexity and profitability of the investment. Yes… the ACCOUNT TYPE you select – like Traditional IRA vs Roth IRA vs SEP IRA vs Solo 401(k), etc. – can mean you actually make substantially MORE or LESS money, so take this seriously. Fortunately for you, SDI Society offers a very powerful and very concise training on this topic, which, while it is not a free training, I have taken the liberty of providing a way for you SDI Talk listeners to access it for free for a VERY limited time if you go over to SDITalk.com/bestaccount. So after you pick the right account type, the second step is to pick a great custodian or account provider. This too is a big topic. Speak with friends and colleagues about who they use. Get some first-hand referrals if possible. That’s always the best way. If you need a great starting point, over on today’s show page at SDITalk.com/305, I’ve provided the official SDI Society list of self-directed IRA custodians and other account providers… that’s a GREAT place to start.Third, transfer your money directly from your existing 401(k) to your new account. The IRA company or account provider can guide you on how to do this.Fourth, assuming you have done proper due diligence on this investment – which is a huge, massive topic unto itself – then you’re ready to direct your custodian to make the investment. Now most of the time, larger multifamily projects will actually not technically be a real estate purchase. Instead, larger properties are usually held within a partnership or other business entity, and you – or your self-directed account, in this case – will instead be purchasing a portion of the partnership which owns the real estate. The broader point here is to make sure that you fully understand how the transaction is structured before you jump in, because there’s a wide array of options here and some are more advantageous to you than others.So however the transaction is structured, you’ll see to it that the necessary money is transferred from your account to either the investment operator or – more ideally – to a third-party escrow service, and that you receive the proper documents to serve as your account’s indicia of ownership.At that point, your self-directed retirement account
Released:
Aug 6, 2018
Format:
Podcast episode

Titles in the series (100)

Do you INSTINCTIVELY KNOW that Wall Street doesn't have your best interests at heart, and that there's a better way to grow and protect your money to build wealth for generations? Then this is the alternative investments show for you. Self Directed Investor Talk is America's ONLY Podcast exclusively for Self Directed Investors (whether using a Self Directed IRA, Solo 401k, or non-retirement accounts) who trust themselves more than they trust Wall Street. You'll get innovative investment strategies, deadly accurate market analysis, and uniquely vetted profitable investment opportunities that conventional financial advisers don't even know about. You'll receive a powerful new episode every day of the week... and each episode is 10 minutes or less! Check it out right now! See acast.com/privacy for privacy and opt-out information.