Today’s REI Classroom Lesson

Today, H. Quincy Long discusses various strategies that you can utilize if you’re looking to invest your IRA with $10k or less.

REI Classroom Summary

From joint ventures to options, there are ways to invest with your IRA without having a huge budget.

Listen to this REI Classroom Lesson

Real Estate Investing Classroom Show Transcripts:

Mike: Welcome back to the 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.
H. Quincy: Hi. My name is H. Quincy Long. I’m president and founder of Quest IRA, Inc. and we provide self-directed IRAs. Today on the REI Classroom we’re going to be talking about how to invest your IRA for $10,000 or less, which is a topic that we get a lot of questions on here at Quest IRA.
Mike: This REI Classroom real estate lesson is sponsored by, FlipNerd’s private investor coaching program and your blueprint to investing success.
H. Quincy: One way to do that is by doing wholesaling. That is to say, you simply get a contract not in your name but rather in the name of your IRA or other account and then you assign that contract to another person for a fee. I personally am not a real big fan of wholesaling in your IRA because it looks more like an excess contribution and has some other issues with it. But, some people do do that.
The second thing you can do to do this is to get options. When you have an option on a piece of property, you don’t own that piece of property. You merely have a right to acquire it under certain terms and conditions for a certain amount of time. Options are very flexible. If you have an option you can exercise that option if you want to, but you could also assign it to a third party for a fee provided it’s an assignable option. Or, you can release the option to the current owner of the property in exchange for a cancellation fee. I can give lots of examples, but in the short time we have I think we’re going to have to just leave it to your imagination there.
The next thing you can do is buy property subject to debt. Of course, if you’re going to a commercial lender, and there are some commercial lenders that will loan money to IRAs, you’re going to have to put a substantial down payment on the property. However, if you think about it, there’s always seller financing. Sometimes there’s zero money down, so that’s an option. Additionally, there are financial friends. If they know you’re a professional at making investments, they may very well be willing to finance you with little or nothing down.
The next thing you can do is joint ventures. This is probably my favorite technique of all the ones I’m going to mention today, is joint venturing. When I say that, you can joint venture in a lot of different ways. One client we had, had an opportunity to loan $55,000 to somebody with 2 points and 12% interest. What he did is he went ahead and put $500 into the deal and he kept the 2 points. He had his friends chip in the rest of the $55,000. So $54,500 was funded by other people who were just pleased as heck to get 12% interest. He put in his $500 which collected of course the 12% interest, plus he got the 2 points or $1100 up front. That’s just one example.
Another thing you can do is you can do what I like to say is to sell the difference in yield that you can get a note at and what you can sell it for. Let me give you a perfect example of this. I had a note that I bought and the note was $21,500. I bought the note for $19,000. The note had a surface interest rate of 7.75%, but my yield on the note was 12.2925% because of the discount that I bought the note at.
So what I did then is I sold the note at a 9% yield. I could sell that any number of ways, but I sold the whole note and made a profit equal to the difference between the 12.2925% yield and a yield of 9%. I also offered the opportunity to buy part of the note at a yield of 9% and I would keep the differential. Or, I also did not but could have offered to sell the first few payments to raise the money necessary to purchase the note and kept the back end of the note. That’s selling a partial. Those are opportunities.
Another deal that I did was to do a wrap around note where I was able to find the financing for a property in exchange for the ability to buy half of the wrap around second note on the property. You can joint venture in very creative ways including just property. While somebody else puts up the property you put up the deal, and you can split it unequally as long as you’re not a disqualified person.
Those are just some of the many ways that you can invest with $10,000 or less. I encourage you to come to the Quest IRA, Inc. website at and learn more. I look forward to seeing you in another broadcast of the REI Classroom. Thank you.
Mike: Are you looking to change your life through real estate investing? If you’re interested in either getting started or taking your business to the next level, please check out FlipNerd’s private program at This is the most robust real estate investor coaching, networking, and mastermind on the planet and designed for your success.
If you’re ready to roll up your sleeves, ready to take personal responsibility for your own success, and ready to dive into a world class instructional coaching program that provides you step-by-step instruction to help you achieve financial freedom then you should apply today. Spaces are limited and candidates are only considered after an application and interview process. Our 12 month investor program is unparalleled. Think you might be a fit? Learn more today at
Please note, the views and opinions expressed by the individuals in this program do not necessarily reflect those of or any of its partners, advertisers, or affiliates. Please consult professionals before making any investment or tax decisions as real estate investing can be risky.
Are you a member yet of, the hottest real estate investing social community online? If not, you can join for free in less than 30 seconds and get access to hundreds of off-market deals, vendors in your market to help you in your business, and you can start networking with thousands of other investors just like you. Get your free account now at
Please check out the FlipNerd family of real estate investing shows where you can access hundreds of expert interviews, quick tips, and lessons from leaders across the real estate investing industry. They’re available at, or simply search for FlipNerd in the iTunes store.