- June 7, 2018 at 3:23 am #200262
My son owns a consulting business managing Extended Stay Motels. The majority owner wants to sell the property. A minority owner and my son want to buy the property. They have to come up with 1.1 mil cash or alternate financing to buy out the majority owner. They would take over the current 7mil loan on the property. The property in Jacksonville Fl. has been doing well. Would I/We be able to form a C Corp. and I use my Rollover 401 in the amount of 110,000. I live in the Houston area so I could not work 1,000 hours at the facility.June 7, 2018 at 3:35 am #201636
I’m happy to help. First, it’s important to keep in mind the risk using retirement assets as investment in a business. Although your rate of return may potentially be higher than that of an average stock mutual fund, the risk is also higher. If you use a Rollover for Business Startups (ROBS), remember this is not a loan; it’s a use of your own assets. If you’re not able to work any hours at the new property, this may disqualify you from using the ROBS in this case. Your best bet now is to get a free consultation with a ROBS expert to help determine if a ROBS is best for you.