New Investor seeks advice...

General Real Estate Investing
1

Greetings,

I am a new investor and was wondering what anyone has to say about the guru’s statements that anyone can “Earn Up to $100,000 Extra This Year Investing in Real Estate!” or,
Wealth Without Risk: How to Build a Million Dollar Net Worth in Five Years or Less - Working From Your Home!

Does anyone have any good advise how they got started?

I am in No. California and it is a little hard to find reasonable priced homes to flip for a profit.

Thanks,

Doug

2

Welcome, Doug
Give it a few months or so and you’ll be able to take your pick of California properties. Of course, there are other markets going well right now throughout the country. Find a good mentor/partner to teach you the ropes, clean up your credit profile and have all your little duckies in a row after you’ve paid for the privilege of having a good mentor by understanding that half a loaf fills the belly much better than 100% of no loaf…Lust make sure you have a NDA for every transaction to insulate yourself from unscrupulous investors. Hope this helps.
Regards,
Dave

3

Thanks for the reply!

I take it “NDA” is a business atterney? What does it stand for exactly.

Thanks, Doug

4

I’m sorry, an NDA is Non Disclosure Agreement or a Non-Circumvent agreement. Whatever you choose to call it, it contractually prevents the investor from hamstring you and going behind your back to take the deal and no pay to you. Unfortunate it’s needed, but these ain’t the good old days.
Regards,
Dave

5

Thanks a lot Dave!

I have another question for anyone.

I have a little retirement money that I can access from my old job now that I am no longer working for them. I could take out a loan of up to half and pay that back with no penalties or taxes. Or I could withdraw the whole amount for 10% penalty and taxes at the end of the year. My question is, if I withdraw it all to use in my business, is there a way to avoid most of the taxes thru a tax shelter because of investing it in my business? I figure I could pay off my CC’s and pay about the same from interest rates/10% penalty payment.

Thanks for any advise or info!

Douglas Foote

6

Or you can let your assets stay in your IRA and use them to invest in real estate tax free. That is what I would do. Why pull the funds out for a penalty and then invest for future taxable gains?

To answer your question there is no way to deduct the funds from an IRA and avoid the penalties that I know of. If your funds are in a traditional IRA consider rolling them over to a Roth.