Retirement Accounts: SDIRA QRP – Qualified Retirement Plans & Free Book

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Update for 2020

Save Money on Taxes – eQRP Changes for 2020 – Extended contribution period

Get the free book on QRPs!

Brace yourself!

I am very against 401Ks because you can only choose from crappy option that have heavy fees.

I don’t really like Self Directed Roths or any tax sheltered retirement accounts either because you are subject to UDFI (more details below) and cannot leverage your investment which is a pillar in real estate investing. If you want to do one here is a big list of them. Knock yourself out but I cashed out mine a while ago because I plan to live off my cashflow and retire well before the Government allows you to tap into your retirement account.

If you have distrust on where this country is going you need to expect that taxes will go up in the future. How else will we pay out for all these bank bailouts and quantitative easing.

Why cash out your retirement and use it to invest

You will pay taxes now or later and you will likely to pay more taxes in the future because you will make more money… so pay it now. Most people think they will be in a lower tax bracket in the future because they plan to downgrade their lifestyle… this is again incorrect money myths that are so prevalent.

By taking you money out early you will incur a 10% penalty but if you understand how you can easily get 20-30%+ returns in real estate a year that 10% penalty is nothing. You can recoup that in 6-18 months.

It’s a no brainer… the numbers don’t lie. Do the math.

But my family will disown me!

Yes taking money out of your retirement account is a sin for most people.

Just make sure you don’t buy jet skis and put it in cash flowing assets like rentals or syndications. Or start a business if your are exceptional at business.

In-Service Withdrawals (401k)

Unless you are age 59.5, fired, die, or leave your current employer you company sponsored/owned 401(k) are stuck where they are.

In-service withdrawals can be made as a hardship withdrawals if the plan allows if there is a “immediate and heavy financial need” per the IRS. Straight forward examples of these are medical care expenses, or educational costs and payments needed to prevent eviction from a principal residence. You just need to be able to explain how you exhausted all other distributions or nontaxable loans under the plan. You can only take our the employee’s elective contributions. The income or the money that you made can’t be taken as a hardship withdrawal. If the plan allows, the employer’s matching and discretionary contributions can be factored into a hardship calculation.

Most withdrawals will have a 10% early withdrawal penalty however, the 10% premature penalty tax can be waved if the in-service withdrawal or hardship distribution is used to cover medical expenses that exceed 7.5% of adjusted gross income (AGI) or if it is used to make a court-ordered payment to a divorced spouse, child or dependent. Other exemptions are defined by the IRS.

Read up on the IRS website, ask your HR department, and make sure you talk to some who gets it.

The Silver Bullet

QRPs or qualified retirement plans (Solo 401ks, checkbook IRAs, etc) are the answer to that person with a bunch of money in their existing 401K or IRA.

It’s pretty typical that someone listens to the Simple Passive Cashflow podcast, signs up for the investor club, and books a free intro call has 200k-600k locked up in garbage retail investments AKA 401K.

Stop whatever you do don’t roll-over an old employers 401K into your current employers 401K. If you have money in your current employers 401K its stuck there. You need to quit your job. Well there is this one obscure tactic if you live in a Red state that could work but for you it’s easier to take a loan from the existing 401K to start investing in hard assets.

Anyway let me know you would like a referral to my checkbook ira contact. And get the free book on QRPs!

Roll-over chart from IRS.

More reason why…

If you are conservatively using prudent leverage and finding decent deals there is no reason you should not be able to retire in 10 years or less and thus negating the very reason for these accounts that you can’t touch till you are old.

When you have money in these accounts it sounds good that you are not taxed on gains but you are restricted from getting a Fannie Mae loan. Using SDIRA’s you have to get second tier financing options because its more risk for the bank, for example, a Roth IRA can buy real estate on leverage, however, will need a non-recourse loan which is often a fraction high-interest rate and lower LTV. No Bueno!

Caveat: If you are late to the game and already have a 401k over $100,000 then you should convert it to a solo401k. At that point, you should think about putting it into a syndication since you are restricted on how you can leverage it.

I work with people to come up with a strategy to withdraw their 401k to minimize taxes. Sometimes we need to get creative with oil & gas investments, land conservation easements, or bonus depreciation.

Let’s say you choose to make an early 401k withdrawal of $100,000. (You personal tax bracket will be different):

  • Federal income tax of 25% = $25,000
  • State income tax of 7% = $7,000
  • Penalty tax of 10% = $10,000

Technically you can get a early withdrawal but withdrawals made under the age of 59½ will not be subject to the 10% early withdrawal tax under any the following circumstances:

  • You pass away and the funds are withdrawn by your chosen beneficiary
  • You become permanently disabled
  • You terminate employment and are at least 55, or 50 if you work for the government
  • You withdraw an amount less than is allowable as a medical expense deduction
  • Your withdrawal is related to a Qualified Domestic Relations Order after a divorce
  • You begin a series of “substantially equal payments
  • You are a qualified military reservist called to active duty

What is the largest source of Revenue for the US IRS?

401K, SDIRA, IRAs, even Roth’s when not if they can change the tax laws. Basically qualified retirement money.

People are not spending it and you can bet the IRS is going to get it.

What is a QRP Retirement Plan? It’s a tax-sheltered investment vehicle that you can invest in pretty much anything where your money grows tax-free but it is intended for retirement and the downside (why I don’t do one personally) is that you can’t touch the money until you are old 🙁

If you have a 401K or Roth or IRA you need to start using a QRPs or qualified retirement plan!

If you are running low on cash because you have been picking up deals left or just broke because you have been listening to mainstream dogma and you have money in your retirement plans this is for you!

Damion Lupo was a previous guest on episode #40

Here is the webinar! Enjoy and send me questions to post the answer below.

If you are late to the game of investing in alternative investments like real estate (imagine that) and already have a large 401K over $100,000 then you should convert it to a Solo401K or Solo401k Roth version. At that point you can slowly take money out to minimize your taxes (not go into the highest tax bracket) and invest in the meantime as you “leak” the money out of the Governments control.

Follow up to Hui Questions for the QRP and other retirement plans

What I personally do

My order of contributing to these (future money) accounts after you take of (today money) regular liquidity. [I suggest per hour Coaching]:

1st QRP – contribute at least until the match.. 100% return

2nd IRA – Flexibility to self-direct

3rd SERP – liability of the employer.. pays out when you leave or after retirement age or a designated age in the future

There are a couple caveats to point out:

  1. When you have money in these accounts it sounds good that you are not taxed on gains but you are restricted from getting a Fannie Mae loan. Using the QRP loans get you the second tier financing options, for example, a Roth IRA can buy real estate on leverage, however, will need a non-recourse loan which is often a fraction high-interest rate and lower LTV. No Bueno!
  2. QRPs like your 401Ks or IRA accounts is pretty much locked up until you are “old”. There are some provisions to get the money out when you are 45 years old but you need to eat today. So I recommend a holistic strategy of blending your investment funding from both QRPs and you regular liquidity. We can likely discuss this in a quick 1-hour coaching call.

Info on using retirement funds for syndication deals:

Question: I am considering investing in a 506c investment on a multifamily property. They are raising a 1 million from investors, then getting a loan and making improvements to the property and repositioning it over 5-7 years. I wanted to use my funds from my SEP IRA which is currently in a qualified intermediary trust. What is the UBIT tax? Will I be subject to that on this deal? Also, should I set up an LLC that then loans the money to their LLC? How can I structure this for tax and liability benefits?

Answer [Note: From CPA and not this is NOT legal or professional advice]: When you invest in a business (syndicate = business) with your IRA, the IRA will be subject to UBIT (unrelated business income tax) and UDFI (unrelated debt-financed income).

For our purposes, UDFI is produced when an IRA uses debt to purchase real estate. Essentially, the portion of the property’s income considered UDFI is based on the percentage of rental income derived from debt.

For example, Property A is purchased for $100,000. You put down 25% of the purchase price as a down payment and finance the remaining 75% with a traditional mortgage from the bank. The property produces $10,000 in net income for the year. $7,500 (75%) of the net income is considered UDFI and is subject to UBIT.

There is a deduction for the first $1,000 of income subject to UBIT. Income subject to UBIT over $1,000 is taxed at trust rates. For 2017, trust tax rates start at 15% and max out at 39.6% after just $12,400 of income subject to UBIT.

UBIT is paid by the IRA account. If for whatever reason UBIT is paid directly by the taxpayer, the amount paid is considered a contribution to the IRA.

Follow up question: Is there any difference in how the UDFI will apply for these:
3) Solo 401K
4) SD IRA (operated as an LLC) so this one is confusing… My LLC owns an LLC (syndication) which owns a property such as 150-unit on 123 main street

Question: I’m trying to decide if one is better than another for tax purposes?

Answer: The solo 401(k) is not subject to UDFI but it subject to UBIT. The IRAs are all subject to UBIT and UDFI. Note that generally the passive income flowing back to you is very low and the, as a result, we don’t see a huge UBIT tax.

Another idea would be to take a debt position (lending) rather than equity. The interest you would receive is free of UBIT and UDFI tax.

(This suggestion of a “debt” position or note investment with the SEP IRA to avoid UBIT and UDFI tax is a creative one… but it’s a very low chance of happening because it’s just too complicated and honestly not worth the effort from the syndicators’ side. It’s a very similar case of to a Tenant-In-Common (TIC) arrangement where an investor has 1031 exchange funds and wants to parlay that money into a syndication. It’s possible but from the syndicator’s perspective a lot of unneeded work when you can just raise the funds the traditional way. Caveat: if you are bringing in a huge amount of money say 50% of the raise then that might tip the scales in your favor)

Ask you can tell this is a really grey area. One CPA mentioned, the answer depends on how you structured the syndication, UBIT may or may not apply for the real estate holding for solo 401k. I would really try to toss the Operation Agreement to your individual CPAs to examine and determine ahead of time as I am not a CPA 😉

Caveat: If you are late to the game and already have a fat 401k then you should convert it to a solo401k. At that point, you should think about putting it into a syndication since you are restricted on how you can leverage it.

So if you are going to have one of these QRP accounts since you have an old 401K or old retirement accounts want to self-direct it in good investments and don’t want to take a huge tax hit right away set up a Solo401k or Checkbook control.

Hey Lane! I asked my CPA [who actually knows what they are doing… let me know if you want a referral] and here is what they said… [my additions]

If you are going into a deal with your Self-Directed IRA, you won’t be able to use passive losses to help offset W2 income or taxes due on early IRA withdrawal. We would rather see you take a withdrawal to invest rather than invest within the IRA.  [If your 401K or IRA has more than 90-120K you may want to keep it or start-up a QRP. At the very lease consider taking out withdrawals slowly as to minimize your AGI creeping up to higher tax brackets] They said the first two years will not be any UDFI as Bonus depreciation will offset it within the IRA.  In the long run, UDFI will become substantial plus the taxes due on retirement withdrawals.  Just pay the tax, either way, the only real present-day penalty is 10%.
Question: Can a Roth IRA be converted directly into a QRP? And if so, can a Roth IRA be converted into a regular IRA first and then immediately converted into a QRP as a way to get around this rule?

Converting Roth IRA into Traditional IRA is called “Recharacterization”. It is not as common as Traditional IRA –> Roth IRA, due to the tax benefit of Roth IRA.

In 2018, as part of the Tax Cut and Jobs Act, recharacterization of Roth IRA conversions from traditional IRAs and qualified plans (e.g., 401(k)) was repealed. As a result, all Roth conversions taking place on or after January 1, 2018 are irrevocable. But recharacterizing Roth contributions is still permitted. For instance, a traditional IRA contribution can be recharacterized to a Roth IRA contribution and vice-versa.

Prior to January 2018, an investor had four available recharacterization options including: (1) traditional IRA contribution to a Roth IRA, (2) Roth IRA contribution to a traditional IRA, (3) conversion of traditional, SEP, or SIMPLE IRA and (4) qualified plan (e.g., 401(k)-to-Roth IRA conversion to a traditional IRA). Under the new rules, the list of options has been reduced.

According to the IRS, a Roth IRA conversion made in 2017 may be recharacterized as a contribution to a traditional IRA if the recharacterization is made by October 15, 2018. A Roth IRA conversion made on or after January 1, 2018, cannot be recharacterized, the IRS says. For details, see “Recharacterizations” in Publication 590-A, “Contributions to Individual Retirement Arrangements (IRAs).”…/roth-recharacterization…

Give me more reasons why I should not use a retirement account?

See how the government took money from Americans in the SECURE Act here.

Action Items:

  1. Get a quick pay per hour coaching call to see how this plays into deals coming up in the Hui Deal Pipe Club.
  2. Get set up here or ask me for a warm email intro.
  3. And get the free book on QRPs!

Here are the podcast notes:

To get to know Damion more go to

I have been having a lot of calls with listeners having exhausted their liquidity and have money in their 401K or IRA’s still in Wall Street Investments.

One of those ways to get the money out is via a QRP or Solo401K.

Today’s guest Damion Lupo with discussing – to get a free copy of his book

I cashed out my 401k because I figured I was going to pay the taxes anyway and my tax load would be a lot higher in the future and I wanted access to my money before retirement age.

Visit – a website dedicated to helping hard-working middle-class people build real estate portfolios.

$26 trillion in retirement plans. You have all sorts of money that can be tapped into, but fear holds you back.

As an investor, Damion has purchased 150 houses in 7 states ($20 million portfolios).

2008: went from $20 million to -$5 million. Had to start all over.

Beyond money, find out your why. Read Simon Sinek “Find Your Why.”

Mission Statement: Free 1 million people from financial bondage.

I.R.S takes 70% of the average person’s money.

The QRP (Qualified Retirement Plan): “The Ferrari of 401(k)’s.”

You probably haven’t heard of QRP as Wall Street tends to control your stuff.

QRP allows you invest in many real estate options (syndications, lands, rentals, apartments, commercial, international deals, HML, etc.).

Total control, fixed fees, endless choices, and FAST with QRP v. Self-Directed IRA. 10X contributions and control with no custodian.

SDIRA will lose 1/3 of profit as UDFI triggered. QRP – Roth has no UDFI – keep 100% profit.

Can keep 401(k) at W-2 and sign up for QRP. Max contribution would be $55,000 in combined plans – $28,000 in the QRP.

QRP can hold other non-real estate investments, such as gold, silver, Cryptocurrency, etc.

Build-in credit line in a QRP. Up to $50K in cash.

Investors, self-employed, and family members are all qualified.

Properties you have or use right now cannot be placed moved in a QRP.

To fund, can rollover any IRA, 401(k), +TSP, 403b, 457.

66% people are worried about not having enough money for retirement.

Transcription on 2020 QRP update video

If you’ve been following my journey, I’ve been selling my initial real property and transitioning into syndication deals lately for more purely passive investing strategy. One critical part of my portfolio is the American Home preservation fund, or what folks in the we call HP for short. George Newberry once apartment owner, operator and mentor to me is now sponsoring the podcasts is private fun, which by the way also accepts non accredited investors cuts the middlemen out and allows you to invest directly with him to fight the mortgage crisis in America. join him by purchasing distressed mortgages while getting a double digit annual return paid monthly. Find something else better out there. Well, let me know. Feel good knowing that you’re helping families stay in their home after buying their underwater note at a huge discount. Invest as low as $100 by going to HP slash investors. And if you want the free birth zone book, please send me an email Lane at Passive cash flow calm

well that’s a light

that this is a special edition save taxes in 2019 this is your guys last chance we’re gonna be doing a special edition with Damon Lupo, the QR p man. And we’re going to discuss in last minute changes in the law right and then some changes that happened kind of like what Congress does the midnight hour right before Christmas in December 2019 and made it effective January 1 Lane This is the biggest overhaul in 13 years since like 2006. So it’s pretty big deal. So Damon was doing handstand push up against the wall and he decided to call me up and we realized that we need to record this for you guys so you guys can hear about this right away. So here we go.

This is a

story about a dude named Lane he moved to the mainland and bought one place to stay. And then one day he went try to rent them out. And then he became one that’s still me.

What’s the big news man? All right, well,

just real quick for people that don’t remember or you’ve never heard of it. Just remember the EQ RP is it’s that checkbook for your retirement money where you can invest quickly, like in these deals that come up where you have a matter of days or weeks, you need to do it fast. This gives you that option. You can use this if you’ve got employees, or you have no employees. I’ll talk about one of the changes in the secure act. That’s what we’re going to talk about that actually impacted the whole employee thing. This one gives you lawsuit protection, which none of the other plans the IRAs and solo plans they don’t have that gives you that $50,000 credit line, which is pretty nice for all sorts of things like education or things you might want to spend some personal money on. And then obviously, you can use this thing with debt. And for a lot of you that’s really important because many of you are investing your IRA money in syndications. And the problem with that is that you’ve got the youbut tax, which is up to 37%. And this is basically if you’ve got a deal where you have money in something that has dead like any of these multifamily deals and your IRA is investing you’ve got a huge tax bill coming good news is AQR peas are exempt from that and we can IRA’s into the GRP. So good news is you’re not stuck unless you don’t do anything. And I’m going to give you a way Atlanta is going to share an opportunity for you guys to get some more information in a couple of minutes. And you guys can fix that problem. We’ll help you fix it.

Yeah, let me kind of repeat what David said in case you guys have been living under a rock the last couple of years, we’ve done several webinars on this, you guys can check that out simple passive cash flow, comm slash q RP also get that free book there too by signing up, but this is the self directed IRA Roth IRA killer right here, you’re able to take your 401k, roll it over into a DRP not pay taxes on it and invest in whatever you’d like syndications rental properties and call it the killers because with investing with a normal self directed Roth IRA, for example, you’re subject to the unified tax which is on the leverage portion and that sort of circumvents this so more information there but for a lot of you guys already have heard about this. This is a new update on some changes.

Yeah. And I think sometimes there’s so many details Tails give you a really simple example, if you have a $50,000 investment in a property and it’s got 70% dead, which is very common and your 50,000 turns into 100,000, when that property sells, you’re gonna have a tax bill probably around 10 or $12,000. Just so you know, that’s what’s coming into your IRA. Any type of IRA, regular deferred or Roth is invested. And if you have that investment using a qualified plan, like EQ RP, that tax bill is zero. So that’s the real numbers 50,000 turns into 100 you’re probably paying around 10 to $12,000 in taxes. So that’s not do that. That’s dumb,

right? Your grandpa was probably using a self directed IRA to invest on the debt side of deals, but I don’t really know too many people in my circles that invest in debt, they want equity and the depreciation with it.

Yeah, mostly investments or people are doing are definitely on the equity side. And there’s only one real smart way to do it, where you’re not paying taxes. So that’s what this is all about. Alright, why don’t we get into the secure act? And basically, there are a number of things that happened here that matter to you. A lot of this stuff had to do with insurance companies, but there’s a few things Things that are really important. The first one that’s huge like right now, let’s say it’s March of 2020. And you realize you made too much money, you realize, oh my gosh, 2019 I made too much money and you got to try to figure out how to save money on taxes. Well, it’s usually too late what Congress did is they said you can set up a qualified plan like the EQ RP all the way to the time you file your taxes. This actually could be all the way till October of 2020. And what that means is you can set up a plan for the previous year and then you can contribute so I’m going to get into an example of what you could do just to understand this is actually a tax planning but accurate like it retroactively you can go all the way backwards to December and have the effective date to save money on last year’s taxes. Even though we’ve already gotten into the new year. Congress also changed the rules around retirement accounts. So a lot of times people had set up solo 401 K’s and they thought that was great, but the problem is now they’re saying if you have part time employees, most people have to be included in a plan so a solo 401k will blow up an EQ RP, on the other hand is actually adaptable. It includes employees. This is huge. So Even if you don’t have employees, you don’t want to plan that gets blown up if you’re investing because you hire a part time person, one of the big strategies for the last 2030 years was something called a stretch IRA. And that basically meant you had as an estate planning thing, you were giving somebody, your IRA, they could take that IRA, and they could spend it the rest of their life. Well, Congress said, No, we don’t like that. That’s kind of not really the purpose of it was, so we’re going to make you take all that money over 10 years. So somebody inherits it, they got to spend it over 10 years, and that allowed Congress to push that money back into the system and start getting taxes as how they paid for the legislation, the unrelated business income tax, which is what we talked about that 37% for leveraged real estate is still exempt in an EQ RP is not exempt in an IRA. So you’re going to be paying that tax, if you have IRAs, in real estate, not going to be paying it with Niki RP and they raised the limits for EQ RP is not where IRAs but they raised the limits. Now it’s 57,000 per year, and if you’re over age 50, it’s 63,500 per year, so a little bit more still 10 times more than IRA and let me give you an example about the big one, the retroactive So let’s just say you made 200,000 bucks in 2019, you’ve used all your deductions and you’re stuck. One of the problems is you don’t get to take advantage of that 20% deduction that Congress gave everybody a couple years ago. And the only way you can do that is if you make under 157,000. So one thing we can do now is we can set up any q RP make it effective December 31, you can contribute 50,000 bucks, and now your income is 150. Well, if it’s 150, then you qualify for that deduction, you get to take another 20% off. So your actual income on the books, your adjusted gross income is like 120,000. That basically means that you’re by doing this strategy, you’re going to save about $20,000 in taxes instantly, just because Congress changed the rules. So this is a really big deal. When you’ve made too much money and you forgot to do this before the end of the year, Congress gave you a big gimme.

And a lot of our guys like the doctors in our group, they’re making about like 350 and above like 400. So that’s kind of another example. Maybe put 50 grand into your tarp to get you from 400 down to 350. I don’t know exactly where The tax levels are but I know above 350, you get absolutely killed above that it’s brutal. And

if you’re married, if you make under 315, you can get that 20% deduction. So like, let’s say you made 400. And you and your spouse each contributed 50. Now you’re under 315. Now you get the 20% deduction, that’s a $60,000 deduction off that 300. So you’re talking about 60 plus 100, that you put in, so you’re talking 160 off of your 400. I mean, at that highest tax bracket, you just saved about $50,000 in taxes by doing this 50 cents on every dollar. It’s massive. It’s I mean, it’s like you got to know about this, if you’re not doing this and you’re making a bunch of money and you’re trying to figure out what to do other than drink heavily. You got to look at this. This is about the only thing you could do retro actively and one of the other questions just to reiterate this, it’s important for people to know anybody who’s qualified if you’re doing deals, if you’re a passive investor in deals if you’re a doctor and you’re investing and you’re self employed as a doctor, I mean if you have an eBay company, like you have an eBay store, even if you’re a W two employee, you have employees yourself, even your grandmother like it It doesn’t matter really what your situation is, there’s a way to utilize this strategy. So it’s not just for some random alien class of people. It’s literally for anybody that wants to not pay as much taxes as they’re paying, right? I think people will say, Well, I’m just a W two worker. I’ve been that way for the last 30 years. We can make this work. Yeah, it we’re in the digital age. And so when somebody says, I don’t have a business, I’m not qualified. I say, well, what’s an eBay store? Like, what does it take to set up an eBay store where you’re, you know, you put some stuff on there. Like there’s a lot of ways we can make it work. Bottom line is if you want to do it, you can do it. only reason you’re not qualified is if you disqualify yourself. And it’s kind of this is probably something you should know about. If you don’t already have the book, we just updated it for 2020 with the new rules, and you can get a copy of it, I will send you a copy if you go to simple passive cash flow, calm forward slash qR P. And there’s a little form there, you can get a copy of the book, we’ll send it out to you and we can talk to you about setting this thing up again, retroactive all the way back to December and that’s part of the rules now. So take advantage of it if you can, and just

the hammer that again before you had to do it all in the same calendar year, right? But now it’s sort of like how you can stop that money into your Roth IRA for the past year again I don’t know why you would want a Roth IRA or IRA in the first place

you don’t know better I mean people that that they simply just that was the best information they had and that was the way you could do it retroactively in in April you said oh, I can get another $5,000 off my income if I put money into an IRA well shoot now you can do 50 plus thousand dollars using this strategy and it used to be you had to do it by by New Year’s Eve now you can do it all the way until October

most of our investors they file extensions because they don’t want to give the IRS another six months to do it and they want to see these changes happen in front of them for the next year to be able to plan so that’s right you can delay all the way to October right not

April yeah all the way till October if you do an extension it’s all the way till October This is a good one to learn about now so you’re not stressing about it for the next 10 months but it’s you got time now because Congress they kind of gave you something instead of just taking things away so it’s great to take advantage of it if you see this you should be looking at it right one

random question while I have you Damon had a guy he’s signing some ppm docs right now he’s using his q RP to invest in a leveraged syndicated And he looked going over the documents and you have to sign whether you’re a natural person or LLC or a trust, how are you setting these up as an LLC or trust,

you have to plan is a retirement savings trust. That’s the technical term for it. Every ppm has slightly different verbiage. Some of them don’t have that term on it. So we have to figure out what makes sense. Oftentimes, it’s the trust because it’s not a typical 401k plan that’s covered under ERISA. So we look at those and that’s part of the service we provide is looking at those documents and making sure that those boxes are checked correctly. It’s typically a trust because sometimes

you could do like a Wyoming LLC, sometimes it’ll be a trust, right? It just depends where they live, or

Yeah, every situation is different. It’s different and so there’s not a one size fits all in terms of what they’re supposed to do. So really, it’s important to make sure that your team is looking at the ppm and then giving you guidance on what to check so that you’re in compliance. All right, well, yeah, this

is meant to be a quick update for you guys. Grab the 2020 edition of the book. It’s simple passive cash flow calm slash key RP and every situation is different. I think a situation that does come up a lot is somebody reads that dang purple book Rich Dad Poor Dad book, they realize they have half a million or $2 million in their silly 401k. And they realize they’re not going to be able to retire because it’s not cashflow base investing, and they need to get the money out of it. Well, instead of blowing up their adjusted gross income and taking it all out in one year or five years, the cure P is a good option for that to get it out onto the battlefield, but not pay that UDF tax and not have it show up as income right away.

Yeah, one bonus, I’ll give you guys too. If you want to reach out and get the book and reach out to us, there’s a way for you to get your money out of your 401k at any age without paying any of that 10% penalty. So we can help you do that. If you want to take some of it out. There’s some taxes involved like normal, but normally, if you’re 4050 years old, you got that 10% penalty, and we can actually delete that and get rid of it completely. So kind of a nice little bonus. What’s kind of the mechanism for that? Well, that’s part of the surprise laners in the space be using that the Roth mechanism, doing some conversions and then the rules around when you can take Roth money out. That’s one of the strategies that we give people It’s just it’s available with every EQ RP that set up you have the ability to pull your money out no penalty I got it got

it get the book guys talk to real people stop just listening to podcasts even listen to podcasts for more than two years and haven’t done anything. Get off podcasts and talk to real people. All right Damon we’ll see you in LA coming up and here’s the 2020 bucks you guys later

thanks you guys

this website offers very general information concerning real estate for investment purposes every investor situation is unique always seek the services of licensed third party appraisers inspectors verify the value and condition of any property you intend to purchase. Use the services of professional title and escrow companies and licensed tax investment and or legal adviser before relying on any information contained here information is not guaranteed as an every investment there is risk. The content found here is just my opinion and things change and I reserve the right to change my mind. Above all else, do your own analysis and think for yourself because it In the end, you’re the only person who is going to look out for your best interests.

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