Dmitriy Fomichenko’s area of expertise is a little different than the more traditional real estate investors we’ve covered before. He’s a man of many talents, but his truly remarkable expertise is in using self-directed accounts, such as self-directed IRAs (SDIRAs) and Solo 401(k)s, specifically as a real estate investment vehicles. Dmitriy’s unique knowledge and methods are worth noting for any real estate investor wanting to expand their possibilities and portfolios.
Dmitriy started his career as a financial planner, diving into REI himself in 2000. He’s a licensed Real Estate Broker in California, though he owns property in multiple states.
By day, Dmitriy runs his financial advising firm, Sense Financial. He advises REIs about their options, particularly with the under-appreciated Solo-K and other self-directed accounts, including their Roth variants. He’s helped hundreds of investors during his career.
Since making decisions about which account is best for an individual investor is personal, advisors like Dmitriy can help explain options. Unlike traditional retirement accounts, Dmitriy specializes in those with checkbook control, a feature that allows you to make nontraditional investments. When self-directing, you’re no longer confined to the products offered by your financial institution/custodian. As long as you avoid prohibited transactions, these accounts help protect real estate assets and diversify your retirement funds into nearly anything: cryptocurrency, commodities, you name it.
Dmitriy stopped by the Royal Legal Solutions soundstage to chat with our founder and lead attorney Scott Royal Smith about two deals: one great, one poor, but each involving a note and a self-directed 401(k). It’s a rare Best Deals-Worst Deals mashup. We loved hearing Dmitriy share why he loves the Solo 401(k), how he made these investments work for him, and how others can use this vehicle for real estate investing too.
Dmitriy was also humble enough to tell us exactly how he wiped out: “I failed to do my due diligence.” Fortunately, this setback was a springboard into better investing because he chose to learn from his mistake. Check out Episode 8 of The Real Estate Nerds Podcast to hear Dmitriy’s story and some of his sought-after expertise for free. It’s one of our favorites, and highly informative.
Dmitriy’s advice to investors is to learn what you can about all of your options, including his specialty, self-directed retirement accounts. Even non-investors can benefit from self-directed accounts for a better retirement savings vehicle with tax advantages. You can also learn from his own investing story. “While I ended up winning,” Dmitriy explains about his two notes, “What I want investors to take away from this story is that you’ve got to do your due diligence.” Perhaps it’s this cautious approach and humility that keeps Dmitriy a success. Thanks for joining us, and please feel free to reach out if you’d like to learn more about a particular investor in future versions of this column.
Scott Royal Smith is an asset protection attorney and long-time real estate investor. He's on a mission to help fellow investors free their time, protect their assets, and create lasting wealth.
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