podcast question from episode 35 --Jordan Goodman

[PTM]

new podcast listener here.  just devoured like 10 episodes on a 5 hr drive over the weekend.  But last one I heard was intriguing.  The guest, Jordan Goodman, specifically mentioned a crowdfunding platform I had never heard of before.  Maybe its because he is more of a salesman than WCI, it sounded pretty good...perhaps too good.  He seemed to insinuate that returns were in the neighborhood of 8% and guaranteed.  I find that hard to believe and I think he misrepresented the facts, as there are no guaranteed returns.  Anyone have experience with this platform?  Anyone else hear his pitch the way I heard it?

He also talks about using a HELOC to pay off your mortgage in 5-7 years, and recommends some company with a fake-sounding name to help you.  Now, in the podcast, his explanation seems to hold up to scrutiny from Jim...but still sounds kinda phony.  Anyone here actually done anything like this?  I am paying very aggressively towards my mortgage with extra principle payments so I am starting to wonder if this tactic may be worth a closer look.

[The White Coat Investor]

I don't find 8% particularly hard to believe, but he did downplay the risks quite a bit. You can follow along with my crowdfunded investments if you like. Here's my latest:

https://www.whitecoatinvestor.com/how-we-invest-in-real-estate/

I got criticism for "being a salesman" for that post, but if you compare it to how Jordan talks on podcasts, that accusation is laughable.

There's a new post coming up soon about the whole HELOC/mortgage payoff thing. Suffice to say it was dramatically oversold, but there may be some benefit there.

[PTM]

I read that post a few weeks back, and read the comments.  You're far from a salesman.  I see it as well within your mission to be a "guinea pig" for us readers and trying out all the different platforms, and then writing about which you think is best from a standpoint of experience.  The fact that you didn't commit >25k to each is absurd...

so about that platform: anything special about it compared to the others you've tried?

lastly--and possibly most importantly--what to do about taxes?  Income from hard money loans is taxed unfavorably.  I know its possible to fund these within an IRA, but is it possible to do that thru the "backdoor?"

 

[The White Coat Investor]

PTM wrote:

I read that post a few weeks back, and read the comments.  You’re far from a salesman.  I see it as well within your mission to be a “guinea pig” for us readers and trying out all the different platforms, and then writing about which you think is best from a standpoint of experience.  The fact that you didn’t commit >25k to each is absurd…

so about that platform: anything special about it compared to the others you’ve tried?

lastly–and possibly most importantly–what to do about taxes?  Income from hard money loans is taxed unfavorably.  I know its possible to fund these within an IRA, but is it possible to do that thru the “backdoor?”

 

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I haven't tried that one nor do I have an affiliate deal with it. I couldn't tell you a thing about it. Not sure why you'd pick that one over 100+ others though just because Jordan has an affiliate relationship with it.

You can do these with self-directed IRAs (and Roth IRAs) but I wouldn't do that until you were through the "guinea pig" stage and were sure what you wanted to do. As far as doing your backdoor Roth IRA at a self-directed IRA provider, I would probably avoid that. Do it at Vanguard or similar and then just do transfers from the Vanguard Roth IRA into the self-directed IRA.