How to Take Personal Control of Your IRA Account

Mike: Welcome back to the Flipnerd.com REI Classroom, where experts from across the real estate investing industry teach you quick lessons to take your business to the next level. And now, let’s meet today’s expert host.

Jack: I’m Jack Shea again. I will talk to you about how to take personal control of your IRA funds.

Mike: This REI Classroom real estate lesson is sponsored by VirtualStaffNow.com

Jack: The future can be uncertain for much of America, but people who have an IRA account can invest either a Roth or a regular tax-free or not. But I suggest that real estate investors take control of their IRA funds. You can do that with investing in a separate trust that your custodian buys the beneficial interest of that trust and the funds go into your corner bank and you have a checkbook and you can make deals on nights and weekends without the cost or delay of going through the custodian.

So this trust is a hybrid trust. You can own real estate or personal property. You get a taxpayer ID number and open a bank account. And you have another person, an unrelated, independent person signs your checks that keep the taxpayer relieved or remote from handling the funds.

So the IRA custodian starts this trust, grant or [Inaudible 00:01:57] trust. And they look it over, they approve it, and then they will fund your funds that they hold and buy the beneficial interest of the trust. So thousands of people are able to do this and you name a Pacific Growth Trust or whatever you want to name the trust and your trustee. And they can buy real estate, they can buy notes, they can loan money, they can buy tax returns, all kinds of higher leverage, higher yield investments that can get that IRA performing better, especially if you’re in the real estate or note business that you see opportunities every day that you can take advantage of if you can make the deal at the moment.

So I encourage people to get started with this. If you don’t have an IRA or it’s not self-directed, it may be in the stock or bonds or something, you can cash part of that in or all of it. An independent custodian, which are many coast to coast, that are okay with this trust and approve it. I’ve been using it since ’03. I’ve been using it for 12 years or more, and so have other people.

The taxpayer, that’s you, is the director of this trust. So nothing happens unless the taxpayer decides to buy something or directs the trustee to buy a note or make a loan to do whatever. You run the operation and they only do what they are told. There’s reinvestment, the velocity of your money is greatly improved. And one other big benefit is that the rent payments and note payments and flip proceeds, $20, $30, $40,000, go in your corner bank. They don’t go back through the custodian and you are able to put that money back on the street faster and faster and up your yield.

I have many friends, if you look on my website, JackSheaRealEstate.com, are making 50-150% and some people are doubling their IRA every year with non-performing notes. So the fact that all these revenues go into your corner bank and your custodian makes your annual tax report, I typically pay $300 a year for their services and you don’t have to go through them and send contracts. And there are some LLCs that use this. But this trust has no public record. There are no annual fees. There are no annual reports. There’s no registered agent. I mean, it’s light years better than whatever else you may. So think it over and get your IRA funds working hard for yourself. Thank you.

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