1 SELF-DIRECTED REAL ESTATE DEALS. THE SELF DIRECTED IRA Using an investment tool called a...

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SELF-DIRECTED REAL ESTATE DEALS

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THE SELF DIRECTED IRA

Using an investment tool called a “Self-Directed IRA,” you can move beyond stocks, bonds, and mutual funds and create a portfolio that truly works for you.

Self-Directed Real Estate Deals

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The US Social Security Administration defines Financial Security as:

$3k per month at the age of 65

APPROXIMATELY ONLY 5% OF AMERICANS ACHIEVE THIS, AND ARE ABLE TO TRULY RETIRE.

FINANCIAL SECURITY

5% Self-Directed Real Estate Deals

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Positive cash flow is tax-free or tax-

deferred

No time limit for holding property

IRA can borrow money

(leveraging your

investment)

Rapidly compounding ROI (due to

tax-sheltered status)

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ADVANTAGES OF REAL ESTATE WITHIN YOUR IRA

No Capital gains - Profits are tax-free

or tax- deferred

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FUNDING STRUCTURES

OUTRIGHT


1 Property may be purchased 100% free and clear using funds directly from your IRA.

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• An IRA owner may choose to partner their IRA with their own personal funds or another person, entity or IRA; even with “disqualified persons.”

• The IRA owns a percentage of the property.

FUNDING STRUCTURES

PARTNERING


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FUNDING STRUCTURES


LEVERAGING3 AKA Debt Financing

• An IRA may take on a loan (mortgage/deed of trust)

• Must be a non-recourse loan

• Typically for income producing properties with 35 to 45% down

• Leveraged portion of the investment may be subject to UBIT (Unrelated Business Income Tax)

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INVESTMENT OPTIONS

Subject To’s

Raw Land

Seller- Carrybacks

Farm Land

Mortgages

Deeds of Trust

REITS

Foreign Real Estate

Wholesaling


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BUYING YOUR FIRST PROPERTY

Ensure Correct Title of Your IRA Investment

Request Funds to

Purchase IRA Investment

Your Administrator Remits Funds and Retains

Records

Maintain Your IRA

Investment

Sell Your IRA Investment

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IRA TITLING


Remember you and your IRA are two separate

entities, and as such, the property needs to be titled

in the name of the IRA.

Titling is the name, or “title”, that is used to reference your IRA. It is important to reflect

your IRA as purchaser on investment documents,

rather than your personal name.

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For example, if your IRA is with iPlan Group and your name is John Smith, then the buyer in the contract would read:

iPlan Group, Agent For Custodian, FBO John Smith IRA

IRA TITLING


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THE POWER OF COMPOUNDING INTEREST


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THE PRIVATE IRA BANK CONCEPT

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By working with a Self-Directed IRA lender, you may tap into hidden wealth by creating an individualized loan; you work with the lender directly to determine the terms of the loan, interest rate, security etc.

THE PRIVATE IRA BANK CONCEPT

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LOAN AMOUNT TERM

COLLATERAL

THE FOUR PARTS OF A MORTGAGE

INTEREST RATE

The Private IRA Bank Concept

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EXAMPLE

• (insert name)

• (insert location)

• 55 & 53 Years old

• 10 Years from retirement

• $350K in Retirement accounts

• Inexperienced in managing investments

• DO NOT want an active role


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Current Principal $350,000

Annual Addition $13,000

Years to Grow 10

Interest Rate 9%

$1,026,085 FOR RETIREMENT!

EXAMPLE


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$1,026,085 at Retirement

9% = $92,347 Annually

$7,695 a month income(without even touching the principal)

EXAMPLE


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EXAMPLE


Mortgage = Trust Deed

They became THE BANK6-18 Month Mortgages = Trust

Deeds

Loan Amount Term Interest Rate Collateral

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STEP ONE

Establish Credibility, Learn to Self-Direct First Hand

Move an old IRA or 401(k) into a Self-Directed Account

Complete your first deal Get potential investors excited by showing them the highlights of your

deal.


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STEP TWO

Find an Investor or investment Partner

Friends


Associates Business acquaintanc

es

Relatives not related through lineal

descent

Real estate investor

meetings & networking

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STEP THREE

Negotiate a Deal

Find an investme

nt property


Present the deal to

potential investors

Offer an attractive rate of return and

explain how the investment is secured (first lien position)

Highlight tax-deferred or tax-free

growth using IRA

Point out reduction in ROI

when using money outside

of an IRA

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STEP FOUR

Get Your Deal Funded

Instruct your investor to

establish a Self-Directed IRA

with iPlan Group

iPlan Group works with your investor

to move their existing IRA funds into their new IRA

Determine the terms of the

loan and create a Promissory

Note & Mortgage/Deed

of Trust


Submit Promissory Note Investment

Authorization Form

along with a copy of the note

documents to iPlan Group

iPlan Group funds your loan from the Self-Directed IRA

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SELF-DIRECTED IRA BASICS

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TAX-DEFERRED TAX-FREE

Traditional IRA Roth

SEP IRA CESA

SIMPLE IRA HSA

Individual 401(k) Individual 401(k)

ACCOUNT OPTIONS

Self-Directed IRA Basics

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FUNDING OPTIONS

• Transfer

• Direct Rollover

• Distribution Rollover

• Conversion Contribution

• Regular Contribution

• QUADRO

• Inherited Account


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COLLECTIBLES

Artwork Coins

RugsAlcoholic Beverages and certain other tangible personal property

Antiques Life insurance

Metals Subchapter S-Corporations

Gems Stamps

“The IRS does not review or approve investments. The IRS does not advise people on how to invest in their IRAs.” – IRS Publication 3125

PROHIBITED INVESTMENTS


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PROHIBITED TRANSACTIONS

Generally, a prohibited transaction is any improper use of your IRA account by you, your beneficiary, or any disqualified person, such as:

Borrowing money from

your IRA


Selling property to

your IRA

Receiving unreasonable

compensation for managing it

Using it as security for a loan

Buying property for personal use

(present or future)

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DISQUALIFIED INDIVIDUALS

The IRA holder and his or her

spouse

The IRA holder’s lineal

descendants, ascendants and their spouses

Fiduciaries (Investment advisers and managers)

Any corporation, partnership,

trust, or estate in which the IRA holder has a 50

percent or greater interest

Anyone providing services to the IRA, such as the trustee or custodian


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Matthew TillackiPlan Group

Sales Manager

855-604-7526 ext. 7004

[email protected] a Free IRA Strategy Session:

www.iplangroup.com/strategy

THANK YOU FOR ATTENDING OUR PRESENTATION

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