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 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
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,, 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 and I think you’ll find the benefits like I have. Thank you.
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