Today’s REI Classroom Lesson
Jack Shea teaches us about taking control of your IRA and what you can do within your IRA.
REI Classroom Summary
Learn more about the guidelines and benefits of being able to control your IRA.
Listen to this REI Classroom Lesson
Real Estate Investing Classroom Show Transcripts:
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.
Mike: VirtualStaffNow.com is the leading virtual assistant provider for real estate investors. As busy real estate investors, there’s nothing more valuable than our time. And VirtualStaffNow.com not only helps you find the right real estate virtual assistant for your business, they train them on an ongoing basis, manage them daily to make sure they’re staying productive and effective, and in the event they’re not the right fit or need to be replaced, they handle that for you too. Whether you need one or 100 virtual assistants for your team, start the process right now at VirtualStaffNow.com.
Please note the views and opinions expressed by the individuals in this program do not necessarily reflect those of FlipNerd.com or any of its partners, advertisers, or affiliates. Please consult professionals before making any investment or tax decisions, as real estate investment can be risky. Are you a member yet of FlipNerd.com, the hottest real estate investment 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 and your business, and you can start networking with thousands of other investors just like you. Get your free account now at FlipNerd.com.
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 FlipNerd.com/shows or simply search for FlipNerd in the iTunes store.
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.
Mike: VirtualStaffNow.com is the leading virtual assistant provider for real estate investors. As busy real estate investors, there’s nothing more valuable than our time. And VirtualStaffNow.com not only helps you find the right real estate virtual assistant for your business, they train them on an ongoing basis, manage them daily to make sure they’re staying productive and effective, and in the event they’re not the right fit or need to be replaced, they handle that for you too. Whether you need one or 100 virtual assistants for your team, start the process right now at VirtualStaffNow.com.
Please note the views and opinions expressed by the individuals in this program do not necessarily reflect those of FlipNerd.com or any of its partners, advertisers, or affiliates. Please consult professionals before making any investment or tax decisions, as real estate investment can be risky. Are you a member yet of FlipNerd.com, the hottest real estate investment 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 and your business, and you can start networking with thousands of other investors just like you. Get your free account now at FlipNerd.com.
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 FlipNerd.com/shows or simply search for FlipNerd in the iTunes store.
