Today’s REI Classroom Lesson
Jack Shea talks to us today about how to utilize our IRA by forming a trust that allows you to have the control.
REI Classroom Summary
By having checkbook control of your IRA funds, Jack Shea tells us more about the benefits, including minimal risk, high returns, privacy, and control.
Listen to this REI Classroom Lesson
Real Estate Investing Classroom Show Transcripts:
Announcer: 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: Hi, my name is Jack Shea. I’m a long time real estate investor for 30 years in houses, notes, personal property, mobile homes, items like that. It’s been good to me and in the past business in the Air Force, but real estate has really been my main, full-time business for 30 years.
Announcer: This REI classroom real estate lesson is sponsored by virtualstaffnow.com.
Jack: Today I’d like to talk to you about an IRA checkbook trust. And this is how you can invest your IRA funds from your corner bank and have your custodian move your funds to the corner bank and you have checkbook control if you get a taxpayer ID number and open a bank account. It’s a hybrid trust that’s irrevocable means that hybrid can take both real estate and notes and personal property and all kinds of other things.
Once you have your money transferred to the bank account you have your trustee close by and if you’re out on an evening or a Saturday afternoon, you can make a deal right there. You don’t have to go suffer the delay or the expense of sending the contract to the custodian for approval. You can make the deal right then. Your IRA custodian is the beneficiary of that trust and you’re a trustee. But you’re the director. You’re down below the radar and nothing happens unless you have it happen.
This ability to keep your funds busy and another major advantage is that all your rents, note payments, flip profits go into your corner bank and they can be reinvested rapidly so the velocity of your funds is increased. I have on my website, jackshearealestate.com, our testimonials from people doubling their IRA and many are earning 50 to 150% returns by keeping after it and able to make investments very rapidly.
There are no public records of what property or notes that are held in this trust. That’s not recorded in the court house. The investments are under the name of the Sierra Growth Trust and so on, trustee, so it’s very private, very safe. Typically, we pay the custodian a one-time annual fee that’s typically $300. They once a year ask you for the value of your trust, the cash, notes, real estate, whatever and they report that on their report to the IRS. The custodian does their duties, but there are not charges for the value of your account or the total value of notes, things like that. And there’s not a transaction fee.
Dozens of custodians coast to coast are okay with this trust. I’ve been using it since 2003 and you can do the same. I do as many different types of investments you can use, but options are probably the most powerful as far as high leverage and minimum risk. So if you can use a few hundred or thousand dollars of your IRA funds to option a property or option notes and somebody sell a contract or close on it, that’s a high use. You can also put real estate, put a contract on a property with your IRA funds and sell the contract. That operates about the same as an option, 60-day close and in the meantime you can find an investor to sell that contract.
There are car paper, car notes, mobile home notes, tax returns, there’s sandwich leasing you can do. I buy receivables from tradesmen so many different high-yield, safe investments that you can make with your IRA funds and reach it. By doing that, have your IRA, whether it’s a Roth or regular, provide you with a more safe and secure retirement. Some more details on my website at jackshearealestate.com and I think you’ll find the benefits like I have. Thank you.
Announcer: Virtualstaffnow.com is the leading virtual system 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 are not the right fit or need to be replaced, they handle that for you too. Whether you need 1 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 investing can be risky.
Are you a member yet of FlipNerd.com, 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 with 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 we host four great ongoing shows at FlipNerd.com/shows. Or simply search for FlipNerd.com in the iTunes store.
Jack: Hi, my name is Jack Shea. I’m a long time real estate investor for 30 years in houses, notes, personal property, mobile homes, items like that. It’s been good to me and in the past business in the Air Force, but real estate has really been my main, full-time business for 30 years.
Announcer: This REI classroom real estate lesson is sponsored by virtualstaffnow.com.
Jack: Today I’d like to talk to you about an IRA checkbook trust. And this is how you can invest your IRA funds from your corner bank and have your custodian move your funds to the corner bank and you have checkbook control if you get a taxpayer ID number and open a bank account. It’s a hybrid trust that’s irrevocable means that hybrid can take both real estate and notes and personal property and all kinds of other things.
Once you have your money transferred to the bank account you have your trustee close by and if you’re out on an evening or a Saturday afternoon, you can make a deal right there. You don’t have to go suffer the delay or the expense of sending the contract to the custodian for approval. You can make the deal right then. Your IRA custodian is the beneficiary of that trust and you’re a trustee. But you’re the director. You’re down below the radar and nothing happens unless you have it happen.
This ability to keep your funds busy and another major advantage is that all your rents, note payments, flip profits go into your corner bank and they can be reinvested rapidly so the velocity of your funds is increased. I have on my website, jackshearealestate.com, our testimonials from people doubling their IRA and many are earning 50 to 150% returns by keeping after it and able to make investments very rapidly.
There are no public records of what property or notes that are held in this trust. That’s not recorded in the court house. The investments are under the name of the Sierra Growth Trust and so on, trustee, so it’s very private, very safe. Typically, we pay the custodian a one-time annual fee that’s typically $300. They once a year ask you for the value of your trust, the cash, notes, real estate, whatever and they report that on their report to the IRS. The custodian does their duties, but there are not charges for the value of your account or the total value of notes, things like that. And there’s not a transaction fee.
Dozens of custodians coast to coast are okay with this trust. I’ve been using it since 2003 and you can do the same. I do as many different types of investments you can use, but options are probably the most powerful as far as high leverage and minimum risk. So if you can use a few hundred or thousand dollars of your IRA funds to option a property or option notes and somebody sell a contract or close on it, that’s a high use. You can also put real estate, put a contract on a property with your IRA funds and sell the contract. That operates about the same as an option, 60-day close and in the meantime you can find an investor to sell that contract.
There are car paper, car notes, mobile home notes, tax returns, there’s sandwich leasing you can do. I buy receivables from tradesmen so many different high-yield, safe investments that you can make with your IRA funds and reach it. By doing that, have your IRA, whether it’s a Roth or regular, provide you with a more safe and secure retirement. Some more details on my website at jackshearealestate.com and I think you’ll find the benefits like I have. Thank you.
Announcer: Virtualstaffnow.com is the leading virtual system 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 are not the right fit or need to be replaced, they handle that for you too. Whether you need 1 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 investing can be risky.
Are you a member yet of FlipNerd.com, 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 with 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 we host four great ongoing shows at FlipNerd.com/shows. Or simply search for FlipNerd.com in the iTunes store.
