Learn how to safely use your retirement account assets when investing in real estate or syndications. I will also new opportunities under the CARES act to access up to 200k per person, tax-free, from their retirement account. This event will open you eyes to tapping into your accounts in ways most people have never thought possible.
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ABOUT CLINT COONS
Clint Coons, Esq. is one of the founding partners of Anderson Law Group, Clint has grown his legal and tax firm to over 400 employees by assisting real estate investors with creating and implementing solid entity structuring plans. His success in these regards is in large part due to his personal investing experience. A successful attorney, real estate investor, and speaker, Clint has used his innovative and dynamic strategies coupled with knowledge borne from experience to help thousands of people save millions of dollars and build real wealth.
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The information provided in this video should not be construed or relied on as legal advice for any specific fact or circumstance. Its content was prepared by Anderson Business Advisors with its main office at 3225 McLeod Drive Suite 100 Las Vegas, Nevada 89121. This video is designed for entertainment and information purposes only. Viewing this video does not create an attorney-client relationship with Anderson Business Advisors or any of its lawyers. You should not act or rely on any of the information contained herein without seeking professional legal advice….(read more)
LEARN MORE ABOUT: IRA Accounts
TRANSFER IRA TO GOLD: Gold IRA Account
TRANSFER IRA TO SILVER: Silver IRA Account
REVEALED: Best Gold Backed IRA
Investing in real estate is a popular way to diversify an investment portfolio and potentially earn high returns. For those who have a self-directed IRA or a solo 401k, real estate can be an attractive investment option. These retirement accounts allow individuals to take control of their investment decisions and make alternative investments such as real estate.
When it comes to investing in real estate through a self-directed IRA or solo 401k, there are several strategies that can be employed to maximize returns and minimize risks. Here are some key strategies to consider:
1. Buy and hold: One of the most common real estate investment strategies is the buy and hold approach. This involves purchasing a property with the intention of holding onto it for an extended period of time, typically more than five years. This strategy can be particularly attractive for those looking for long-term appreciation and rental income.
2. Fix and flip: Another strategy that is popular among real estate investors is the fix and flip approach. This involves purchasing a property that requires renovation or repair, making the necessary improvements, and then selling it quickly for a profit. While fix and flip can be a high-risk strategy, it can also offer high returns if done successfully.
3. Rental properties: Investing in rental properties can provide a steady stream of income through rental payments. This strategy can be particularly attractive for those looking for passive income during retirement. Rental properties can include single-family homes, multi-family units, or commercial properties.
4. Real estate crowdfunding: Real estate crowdfunding platforms allow investors to pool their money together to invest in real estate projects. This can be a way to access real estate investments with lower minimum investment amounts and diversify across multiple properties.
5. Private lending: Another strategy for investing in real estate is through private lending. This involves lending money to real estate investors or developers in exchange for interest payments. Private lending can offer fixed returns and can be a more passive way to invest in real estate.
When investing in real estate through a self-directed IRA or solo 401k, it is important to be aware of the rules and regulations governing these accounts. For example, there are restrictions on who you can transact with (e.g. family members) and how the property can be used (e.g. personal use is prohibited). It is important to work with a knowledgeable financial advisor or tax professional to ensure compliance with the rules and maximize the benefits of investing in real estate through these retirement accounts.
In conclusion, investing in real estate through a self-directed IRA or solo 401k can be a lucrative way to build wealth for retirement. By employing sound investment strategies and adhering to the rules and regulations governing these accounts, investors can potentially earn high returns and diversify their investment portfolio with real estate.
In the last part of the video I describe how you can put up to 57k into a ROTH on an annual basis. I indicated you must roll the funds out of the SOLO 401k on an annual basis and into a ROTH IRA for the strategy to work. After the event, I was contacted by a participant, Chris, who informed me the rollover does not have to go to an outside ROTH IRA. He explained the IRS permits a participant to roll directly into the ROTH portion of the SOLO 401k. I wanted to post this to correct my statement wherein I said you must roll into a ROTH IRA. The correct answer is you can keep the money within the SOLO 401k. Always learning and thank you to Chris for correcting my statement.
I know this is an older video, but I have a question! I am planning to transfer my old employer 401k into a solo 401k that is under my LLC. Now, for real estate investing is it that the solo 401k IS the buyer of the property, using the transferred money in the account. OR do i have to set up another LLC, then have my solok invest in the new LLC and that LLC is the one that will go out and buy the property. Basically, can I invest in real estate directly with my solo 401k or is there an extra step to make. Looking for a basic step by step from solo 401k being created to having keys in hand for the rental property. Really having a heard time getting this explanation from folks in a clear way. Thank you!!
Clint, thanks for this video. You mentioned that you can keep money for investment in a Wyoming LLC and then pull it out when you need the funds. How does this work? Is this an interest bearing account? Some folks I talk to in this current economy are worried about parking a lot of cash in banks as there is not enough FDIC insurance to cover deposits in the event of a bank run, and the other worries about the so-called "bail-in" of banks. Can you provide insight and strategies of where you recommend a safe place to store funds we might need to invest? Thank you!
Hey Clint. Does my active business have to make a certain number of profits to qualify for a self-directed Solo 401k? If in the future my business stops making profits would I have to close the self-directed Solo 401k? Thanks.
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Clint, here is what I do not understand about maximizing contribution to Roths. If someone were to chose to contribute to a Roth, that person must have extra money to pay the corresponding taxes. In your example with the solo 401k backdoor, 57k were transferred out to the Roth. But you never say anything about the fact that taxes were paid and how much. For example, to have 57k after tax, in a 20% bracket, someone must have had about 71250 in pre tax money. So, instead of contributing 57k in that particular year in a Roth and paying 14250 in taxes to do it, why not contribute 57k in a solo 401k pre-tax and the rest of 14250 (that he avoided to be payed in taxes) to be put it in a brokerage account where a decent average 7% return can be obtained and yes, pay long or short term capital gains taxes when ready to be pulled out. And when I say ready to pull out, I mean puling out the compounded 14250 at an opportunity to buy real estate, pooling with the 57k in the solo 401k. It might mean an extra property bought, or one larger. And by the way, in a partnership with the solo k, will there be depreciation and all other deductions for passive income for the percentage of the 14250 compound contribution? I am not clear on that, but probably so. Or maybe in a down year, the person cannot fully contribute the 57k, the 14250 compound could be used to come up with the difference. I understand the advantage of not paying taxes, but isn't it possible that more money in the beginning may result in more properties to be bought in time, 20% more and that fact more than pays the taxes owed in the end in retirement? So bottom line which is better in the above example: A: 20% more means to generate income, income that is to be taxed (and here I am disregarding the fact that more income may generate compound effects), or B: less income by about 20%, but that income will be free of taxes?
You are saying: if one has 57k IRS limit to contribute, make that contribution in Roth. You seem to omit the fact that additional tax money are needed to do it and you seem to disregard the lost opportunity cost corresponding to the taxes paid. The way I see it, only when one has yearly (paper) losses (like ones from rentals) to offset the 57k income, contributions to Roth vs pre tax are preferable. Now, yes, in retirement there is the required minimum distributions disadvantage of pre-tax contributions, but I am sure there could be a way around that too.
Clint, I know this was a year ago, however I have a question regarding the improvement of an investment property purchased with the solo 401. I'm a contractor so I know im disqualified from doing the work. I have subs that I hire out for jobs of mine who are given a 1099 at years end. Would they be able to do the work since they technically are not my employees even though i use them all the time? Great videos too, thanks!
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In the state of fla. Property is being taken ,change of paper work how is this prevented other than n checking site frequently. This has happened to many in fla. Thx
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How does one secure property from being stolen other than, many in state of fla. Are dealing w such!!!
loud and clear
Great content. Keep it coming !
Clint, can you open a Solo 401K if you also have a full time job?
Hi Clint, can you talk about what is the best retirement account for Tax sale investors? we buy land under the company name and resale or wholesale it within 30 to 60 days sometimes up to a year. a lot of my co-investors do this in their ROTH IRA but you mentioned in another video that you do not recommend that because it can be subjected to UBTI taxes. Please advise. Thanks
You should definitely do a video on asset protection for trucking company To y
Great content! Thank you
Under typical rental property ownership, we take annual depreciation and have to do a 1031 to avoid depreciation recovery. How are depreciation and 1031 handled for properties owned by Solo401k or SDIRA?
Awesome video! Very detail, clear explanations…but I'm a bit confused. Most of the video was spent explaining benefits of Solo 401K and why it's better than SDIRA. I was sold! Then in the last 5 min, you said we should consider rolling all of solo 401k into a Roth IRA every year….why??? This a complete change in strategy…. what am I missing?
So much gems in this video man! Love this channel. The question about the rolling of the covid 100k back into a solo 401k was missed. I believe the original account would be from an employer 401k not an IRA. I would love to know the answer to this also.
I also would like to know if after rolling the after tax dollars from the solo 401k into the IRA for years can you then decide to roll it back into a 401K later after stacking the cash?
Can you pull $100K out of a self directed qualified ira as a loan under the Cares Act?
If you set up your Solo401k through your C-Corp, and you chose to contribute to your Roth 401k portion, and your employee after tax portion bucket up to “59,000/year”-ish, then when your Solo 401k account invests in real estate, are all the proceeds you make (interest, appreciation, dividends, cash flow) returned to your account as “non-taxable”?
have to watch this like 3x lol. saving for later date again.
Yes
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