Financing Property? Try a Solo 401(k)

By Jordan Sheppherd

Life Settlements in a Retirement Account? Think Again.

We at CheckBook IRA want to wish all of you a very Happy Thanksgiving and hoping that you surround yourself with family or loved ones. This is the time of year when we take stock in our investment performance and pat ourselves on the back or give ourselves a kick in the pants.

Retirement accounts are becoming a major source of security for our financial future and because of this more people want to take as much control as possible over these accounts. That is where we come in. You have as much control as you want, but you can enlist the help of a professional advisor whenever you so desire.

I asked one of our very successful affiliates what they tell their clients to help them secure financial security:

  1. Stay true to your goals.If you’re invested for the long term, don’t sell off at the first sign of a downturn—maybe that’s the time to invest more.
  1. Realize what is fake news and what is real news.Too often, people read articles on the Internet written by fear mongers who have sold an investment short and are trying to drive price down. In other words, vet your source or sources of information.
  1. Invest in what you know.If you’re going to invest in Bitcoin, become a student of cryptocurrency. Don’t be afraid to look at your past career to see how you can invest in your expertise.
  1. Don’t be afraid to use a financial advisor.Good advisers relish the thought of their clients using checkbook-controlled retirement accounts, for it leads to all kinds of alternative investments and helps them show their value to the client. They can also help shuffle through the fake news and suspect investments.
  1. Invest with a worst-case scenario – WHAT IS THE WORST THAT CAN HAPPEN.That is one of the reasons I like real estate, for if everything goes into a kerfuffle, I always will have some place to live in or a income producing rental. I have enough stock certificates that are only good for starting a campfire.

We don’t invest to lose money, but to build our financial future and the best way to do that is to have a complete plan. Remember that the greater reward the greater risk.

All in all, the above are a few nuggets that I hope you can use.

Finally, we would like to wish you and your family a very joyous and profitable holiday season.


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  1. mickey

    If an IRA owned “C” corp leverages a property, will that “C” corp still pay UDFI tax IN ADDITION to the regular corp income tax rate…………….or does the payment of regular corp income tax eliminate the UDFI tax?

    • Jordan Sheppherd

      Hi Mickey,

      Good question. Because the C-Corp files its own tax return and pays its own taxes, UDFI would not apply to the C-Corp. The Corp would file and pay its taxes, and any dividends would come back to the IRA tax-free.

      You do have to worry about UDFI flowing through an entity if it’s a flow-through entity like a partnership or a single-member LLC. The C-Corp estops the UDFI from flowing through, because the C-Corp pay its own tax. Hope that helps.

  2. Gregg Karas

    Great article as always Jordan. Non-Recourse loans are not easy to find. I did eventually use NASB which has worked out well, however if you have any other lenders you are aware of that offer these loans at a reasonable rate please do advise.