Hello. In the past year I have learned of a strategy called ROBS (Roll over business startup) to fund a start up business. Basically you create a C-corp and roll over your 401(k) shares into this entity and can use the sell of the stock as capital without paying penalties or taxes. There are some companies out there such as Guidant Financial, Benetrends, and FranFund that can help with this strategy.
I’m curious if anyone has any experience with this strategy in the purchasing a MHP.
Very good question. I am still doing some research on this strategy along with others but it appears that an ROBS is more of a true business setup as opposed to IRA where its just buying the asset.
Can you still write off business expenses, asset depreciation, take a loan out through a IRA controlled property?
One major requirement i do realize from a ROBS is that you have to be a full time employee of your business. Im still researching what the definition of that would be aside from paying yourself a salary. My goal was to own a MHP more on the passive side than involved in the day to day.
Do you have any experience in using an IRA for MHP or any other real estate? Any insight would be helpful. I appreciate your question.
SDIRA’s are passive investment vehicles, and because I prefer to manage my real estate holdings (be involved as needed) I don’t use them - yet. Tax treatment is the same as any other business, with the exception that your earnings grow tax deferred.
It all depends really on what your goals are. There is another post on here “Using self directed IRA for a down payment” that has some good insight.
Yes, I am looking for the same as you, being involved when needed which may or may not violate the rules of passive RE holdings.
Ultimately, passive income is Im looking for but since I’m just starting out I need to be involved in more of a business type setup. Im hoping a ROBS strategy can fulfill that goal.
I am trying to find a way to maximize leverage using my 401(k) in addition to liquid cash to get into the MHP business.
I just read you post here (8days after you made it) and was on the internet researching the exact same thing. I am VERY curious as to anything you have found out because like you I do not want to pay the penalties and what not for using my 401k. I am out here in Katy just a little ways from you. Thank you very much for this post!