Here’s a GREAT case study that will show you just what’s possible with a little bit of creative thinking, some great real estate deals and a little bit of capital.  I’m Bryan Ellis.  This is Episode #238 of Self Directed Investor Talk… ---- Hello, Self Directed Investor Nation!  Welcome to the podcast of record for savvy, self-directed investors like you, where we show you how to DECLARE INDEPENDENCE from Wall Street and build wealth for generations! My friends, I had a really enjoyable consultation with one of your fellow listeners today, and while I’m not going to share his name to maintain his privacy, I think the other details of his circumstance will be very, very instructional to you, so we’re going to dig into that in today’s episode. But first… don’t forget:  Fund and Grow.  Fund and Grow.  Fund and Grow.  Those are the guys who are essentially – not exactly, but in effect – able to get you a CREDIT CARD at a zero percent interest rate, and a limit of up to $250,000.  That’s not exactly what they’re doing, but it’s pretty close. They’ve got a great FREE WEBINAR up at SDITalk.com/credit that you should check out… you’ll see what they do, and your mind will be blown… that is, if no-interest financing of up to $250,000 interests you.  Check them out at SDITalk.com/credit… Ok, today I had a call with one of your fellow members of SDI Nation.  His name’s not actually Rick, but I’ll call him Rick for simplicity.  All the other details I’ll share are correct. Rick is conventionally employed and has a 401k worth about $500,000.  He turns 59 ½ in March, and at that time, he can transfer as much of that money out of his 401k as he wants.  His money is currently in the stock market but he’s very ready to get off of that train. Oh… and one other important fact.  Rick and his wife own, outside of their retirement accounts, 5 turnkey rental properties spread across 2 different states.  He likes the concept of turnkey rental property investing, but he’s been stung a bit by the company he’s worked with, because 2 of the 5 properties have been – shall I say – an unfortunate experience for Rick. Nevertheless, he’s gotten enough of a taste of the good side of that asset class that he wants to do more.  That’s what we discussed today. Rick told me he wants to roll his 401k over into a self-directed IRA and buy more turnkey houses.  And there was the first place we were able to optimize his plan.  With a tiny bit of effort, Rick will be able to qualify to have a self-directed 401k rather than a self-directed IRA.  Why does that matter?  Two reasons:  First, the IRS is far more forgiving if you commit a booboo in a 401k versus an IRA.  And Second… and this is the big one for Rick… he’s thinking about leveraging his savings in order to buy MORE properties than he has cash to buy.  Bottom line on this is if he does so in an IRA, he’ll have to pay income taxes every year – regardless of withdrawals.  But if he does the same deal in every way, but with a self-directed 401k instead, then that tax liability simply disappears.  So right there, he’s going to save a big chunk of cash. Next, we have to figure out what to do to generate income for Rick… and income is what he’s after, specifically. I mentioned to him some of the work we do with turnkey rental properties down in Birmingham, Alabama, where it’s rather common for our clients to pay only $55,000 for a newly renovated property that yields a reliable – and government-guaranteed - $750 per month rental income.  In these properties, it’s a rather frequent occurrence for clients to NET 8 to 10% after ALL expenses… including a nice-sized rainy-day fund for those “just in case” kinds of situations. We envisioned a simple scenario in which Rick deployed his retirement funds into a collection of such properties. Bottom line:  Rick ends up with a net cash flow of, conservatively, $40,000 to $50,000 per year, immediately. And remember – he doesn’t have to do any of the dirty work.  He’s not a land