Patrick Hagen has worked in the self-

directed retirement industry since 2005.

Prior to becoming the Regional Business

Development Manager for The Entrust

Group, Patrick served as the Director of

Financial Educational Services for an

Entrust office in Louisville, CO.

Patrick is extremely well versed in self-

directed retirement plans and enjoys

using his extensive, hands-on experience

in the field to help investors understand

their retirement plan investment options

and the corresponding IRC rules and

regulations. Patrick has taught continuing

education courses and given live

presentations to investors, CPAs,

attorneys and financial planners

throughout the country.

———————————————————————

The Boston Real Estate Investors

Association is open to real estate investors

of all experience levels who want to meet

and continuously learn from other investors

and real estate professionals. Each meeting

features knowledgeable speakers to guide

members through new and relevant topics

relating to the many aspects of Real Estate

Investment. Past events have covered Why

invest in Real Estate?, Foreclosures, Self-

directed IRA’s, 1031 Exchanges, and Creative

Tax Strategies.

Meeting AGENDA

3 Ways Real Estate

Experts Get Duped

by Security Installers

Squeeze

Real Estate & IRA

Basics of Self-

Directed IRAs and

Purchasing Rental

Property with

Retirement Funds

1

2

3

4-5

The Home Depot

Fuel Program Flyer

6

OfficeDepotMax

Benefit Overview

7

Vendor benefits 8

A Monthly Insight Into Boston Real Estate Investors Association

September 2016

The Hilton

Dedham

25 Allied Dr.

Dedham,

MA 02026

(781) 329-7900

How To Invest Tax-Free

With Your IRA 25 Allied Drive (East Street exit off Rt. 128), Dedham, MA Tuesday, September 6, 2016

It’s an opportunity to network with

others who share similar goals &

needs, to learn about unique & hot

properties, to find ways of obtaining &

utilizing different sources of capital,

and so much more!

1 www.BostonRealEstateInvestorsAssociation.com

3 Ways Real Estate Experts Get Duped by Security Installers

As a real estate professional, you know how important security is. It doesn’t matter if you manage or own one property or one hundred. You want to keep your property vandalism free, your windows intact, and your pipes working. You may have contacted a traditional alarm company, or read an article about what alarm installers want you to know. Afterward, you may have thought security didn’t fit your needs. Installers may want to think that you need to conform to their systems- systems that require long-term contracts, phone lines, and hardwired equipment. What use do you have for those, when you’re planning to sell your units, rent out to tenants, and don’t want to subscribe to long-term utilities?

But here’s what installers don’t want you to know: you don’t need any of those things. You don’t even need the installers. Wireless security alarms make keeping your property safe easy.

1. You don’t need a landline or internet

Installers may tell you that you need a hardline connection to use monitoring service. This old idea may still hold true for some security alarms. But you don’t need a landline to have a home security system or to have it monitored. Wireless home security, like SimpliSafe, let’s you use a cellular connection to connect to professional monitoring service. This means you don’t need any services installed, or have to get a long term utility contract. Using a cellular connection is great for those who need to protect a property they don’t live in, or only need to protect for a short period of time. Not requiring an external connection, like a land line, also saves you money. SimpliSafe includes the cost of the cellular connection in the price of the monitoring service. You’re not paying for two services and do not need to worry about setting up this connection on your own.

2. Installation Can Be Quick and You Can Do It Yourself

Alarm Installers want to believe that you need them. They want to you to think it’s too complicated, that it requires an “expert”, that it will take up 8 hours. They don’t want you to know that

there’s an easier way. And there is an easier way.

You can install your own alarm. And it doesn’t take 8 hours. Most people can install a wireless alarm system, like SimpliSafe, in under an hour. And that hour is on your own time. No installation fees, no appointments to schedule, no waiting around for a serviceman who never shows up. You have a lot on your plate- an installation appointment shouldn’t be one of them.

Wireless security alarms don’t need the complicated, expensive, property damaging wiring through your walls. Instead, these systems communicate using unique frequencies and arrive pre-programmed. All you need to do is select where the sensors should be placed, and then stick or screw each into the wall.

3. Security is Simple

Positioning themselves as experts, alarm installers want you to think you’ll be confused. But security, whether it’s for your house, business, or investment property can be easy. You should be able to completely understand your system. It should be user-friendly, as should your professional monitoring agreement. SimpliSafe makes it easy to be in control of your alarm system, customizing it to meet your needs. You can easily move it from property to property, and activate the service when you need. There are no monthly contracts, so you control when you have a property monitored. If you sell the house, you can take the system with you, and suspend the service until you install it in the next property. You can also sell the system to the new home owner. With SimpliSafe, you even have a 60-Day Money Back Guarantee, so if it doesn’t work for you, you can return it for a full refund. Security should give you flexibility, comfort, and control. You should never feel confined, tricked or confused by your home security.

Home security is a great tool for real estate professionals, property managers and homeowners alike. When you start researching security, it may seem like it doesn’t fit your needs. But not all security locks you in or requires a lot of you. If you talk to an installer, and they tell you what you “need to know”, just remember- there’s a lot they’re not saying.

2 www.BostonRealEstateInvestorsAssociation.com

3

Real estate has become an increasingly popular investment for a growing number of Americans, due in large part to the consistent property appreciation and rental income that it promises.

Many people do not realize that they can invest their retirement in real estate; as a result, they purchase real estate without reaping the tax benefits of a 401k or IRA.

With a self-directed IRA, you can invest your retirement plan in real estate with several significant advantages, enumerated below.

Delayed taxes on investment gains

When you invest in real estate outside of a retirement plan, you owe tax right away on your rental income. When you sell the property for a gain, you’ll also owe taxes on your gain even if you plan on reinvesting that money in other real estate investments. An IRA delays taxes on your real estate income as long as you keep the money in your retirement account. This can help you earn a higher after-tax-return on your real estate portfolio.

Tax-free growth through a Roth IRA

If you invest through a Roth IRA, your investment earnings are tax-free when you take a withdrawal after the age of 59 1/2. By investing in real estate with a Roth IRA, you will not have to pay taxes on your rental income, your capital appreciation, or your gains from selling a property. In exchange, you do not receive a tax deduction for your contributions to the Roth IRA like you would with a Traditional IRA. However, with a large real estate investment, the tax-free growth offered on a Roth IRA may be a better incentive than the initial tax savings on a Traditional IRA because gains in a Traditional IRA are taxable when you start to make withdrawals during retirement.

Leveraged growth

When you invest in real estate, you do not have to pay off the entire purchase at once. You may choose to pay off a portion of the cost and then take out a mortgage for the rest. As such, you can leverage your money through borrowing to earn a higher return. For example, if you put down $100,000 to buy a $250,000 property, your rental income will be coming out of an asset worth $250,000. Even when you take into account the borrowing costs, your return should be higher than if you had just bought an asset worth $100,000– and even better, that higher return is growing tax deferred in your IRA.

Upon purchasing real estate with a mortgage in your IRA, the mortgage can’t be titled in your name; instead,

it must be titled in the name of your IRA. Furthermore, it must be a non-recourse loan which means the loan is only backed by the value of the real estate that it’s paying for. Therefore, if you default on the loan, the lender is able to seize the property, but your other assets or personal credit score won’t be affected. Thus, while a non-recourse loan may charge a higher interest rate than regular mortgages, it also enables you to better protect your finances.

Protection against inflation and market volatility

The real estate market tends to be more stable than the stock market, as the real estate market lacks the same daily volatility of stocks. As a result, many view investment in real estate as a less stressful and lower-risk opportunity to invest retirement savings. Furthermore, real estate returns historically outpace inflation, allowing your retirement spending power to grow.

Rental income

When you purchase real estate property, you can rent it out for steady rental income. This rental income can then be used to pay off the mortgage and other expenses on your investment property, meaning you just need to come up with the down payment. Any extra rental income can stay in your IRA, where it will grow tax-deferred, and can be used for future investments. When you retire, you may continue to receive rental income to supplement your other savings.

A chance to pay for your dream retirement home

Do you have a dream retirement home in mind? Then your IRA can help you finance that dream. By purchasing retirement property through an IRA, you can use the property’s rental income to pay off the mortgage, as the IRA tax savings will allow you to do so quickly and effectively. When you’re ready to retire, you can withdraw the property title from your IRA and then move into your new home.

If you wait until you are at least 59 ½ to take the property out of your IRA, you’ll avoid the 10% early withdrawal penalty. In addition, you can’t live on the property while it’s still owned by your IRA, as this can lead to tax problems; however, nothing’s stopping you from driving by and seeing your future home, knowing that it’s steadily being paid off with your rental income.

If you’re going to invest in real estate, why not invest with all the possible tax benefits? By using your IRA benefits to their fullest, you can make real estate a more effective part of your retirement plan.

http://www.BostonRealEstateInvestorsAssociation.com ;

Real Estate & IRA

www.BostonRealEstateInvestorsAssociation.com

Basics of Self-Directed IRAs and Purchasing Rental

Property with Retirement Funds

What is a Self-Directed IRA?

A self-directed IRA is an individual retirement account

that gives you complete control over your investment

choices. Unlike other IRAs, you’re not limited to stocks,

bonds, or mutual funds. This means you can take

advantage of investing in alternative assets - such as

real estate, limited partnerships, and gold - with your

self-directed retirement account. If you already have a

Traditional or Roth IRA, you can transfer or rollover the

funds to a self-directed plan with no penalties. You do

not need to sell any of the assets that you currently

own. Additionally, if you have an IRA or funds in a

dormant 401(k) account, you can easily transfer the

funds to a self-directed account and begin expanding

your investment options. Individual retirement

accounts offer tax advantages that can help make your

retirement dreams a reality. Let’s look at the top

benefits of a self-directed IRA:

Increase the potential for growth

Opening a self-directed retirement account gives

you the freedom to invest in almost any type of

asset - meaning you have more flexibility in the

amount of risk you take on and more potential

for a higher rate of return.

Take control of your own financial future

Put your knowledge and expertise of a particular

industry or niche to good use. Make investment

decisions based on what you know and

understand to grow your retirement savings.

Protect your wealth against economic

fluctuations

The ability to diversify your portfolio by investing

in alternative assets such as real estate and

precious metals can act as a hedge against

market fluctuations and volatility.

Grow your savings in a tax-advantaged account

Investing over time in a self-directed IRA that

allows for tax-deferred or tax-free growth can

significantly affect future wealth positively.

Investing in alternative assets like real estate with your

self-directed IRA isn’t too different from a regular real

estate purchase. However, there are important rules

and process that you must follow to do it right. Self-

directed IRAs that focus heavily on real estate

investments are often referred to as "Real Estate IRAs."

With a Real Estate IRA, your retirement funds can invest

in all kinds of real estate and real estate-related assets.

To help our readers understand the Real Estate IRA

purchase process, let’s take a look at an exclusive case

study about an Entrust client, Maria. She is interested in

using her retirement funds in her self-directed IRA, to

purchase real estate.

Maria has $250,000 in a Traditional IRA at a bank. For

some time, her real estate agent, Bob Realtor, has been

telling her about the benefits of owning real estate in a

self-directed IRA. She is interested, but is not familiar

with the investment process. The bank that is her IRA

custodian does not allow real estate investments in an

IRA.

Getting Started

Bob Realtor puts Maria in contact with a trained

professional in an Entrust office. The Entrust

representative walks Maria through the process step-by

-step:

1. Maria starts by reading materials in The Entrust

Group’s online Learning Center. These explain the

IRS rules she must follow. She reads about

prohibited transactions and how to do due

diligence on a potential transaction.

4

Did you know you can invest in real estate and pay little or no taxes? Real estate can be purchased and held within your tax

deferred IRA or 401(k). Instead of sharing your profits with Uncle Sam; keep that money invested and working for you. By

deferring (and in some cases eliminating) taxes and capital gains on each deal, you can build your nest egg more efficiently.

www.BostonRealEstateInvestorsAssociation.com

2. Maria opens a self-directed Traditional IRA at

Entrust. She:

a. Fills out an application and fee schedule and

sends both to her representative,

b. Completes a transfer form to move her IRA

balance from the bank, her current custodian,

to Entrust and provides an account statement

from the bank.

3. Entrust opens the account and initiates the

transfer from her previous custodian. While the

funds arrive at Entrust, Maria and Bob Realtor

look at a number of properties that would qualify

as IRA investments. One of them is for sale at

$179,500, which fits her budget.

Maria is Ready to Invest

The money has arrived at Entrust and Maria has

selected a property. There are several ways Maria can

fund the purchase: direct purchase, partnering,

leveraging, or through a limited liability partnership.

Maria chooses to make an all-cash offer (direct

purchase) contingent on inspections and clearances.

1. The offer is made in the name of her IRA and is

titled in the name of the IRA. In Maria’s case, the

purchase agreement reads: The Entrust Group,

Inc. For Benefit of Maria IRA #12345.

2. The offer is accepted and Bob Realtor chooses a

title company to open escrow.

3. Maria completes an Entrust Buy Direction Letter,

instructing Entrust to wire $10,000 to the title

company as an earnest money deposit, and an

additional $500 for the inspection and other

expenses.

a. The purchase contract is included with the Buy

Direction Letter.

4. Maria reads and approves all documents that Bob

Realtor, and the title company send to her to makes

sure everything is correct. Only then will Entrust

sign the documents on behalf of her IRA.

a. Maria does not sign the documents because

Entrust is the signatory on all documents on

behalf of her self-directed Traditional IRA.

Closing Escrow

The property has passed all the inspections to Maria’s

satisfaction and she is ready to conclude the purchase.

Once Entrust receives all the required documentation

for the purchase, Entrust wires $169,500 from her

account to escrow in accordance with the closing

statement, which includes all closing costs.

Maria’s IRA now owns the property. The deed reads

“The Entrust Group, Inc. FBO Maria IRA #12345.”

Rental Income, Expenses and the Road Ahead

After interviewing potential tenants, she selects one,

and they come to terms on a rental agreement. The

rental agreement is signed by Entrust for the benefit of

Maria’s IRA. In the future, all rental payments are made

payable to “The Entrust Group Inc., FBO Maria IRA

#12345.”

Maria watches her Real Estate IRA grow as the rent

checks keep coming in. The best part is the taxes on the

earnings are deferred. Eventually, Maria has enough

profit to purchase a second property with her IRA! She’s

always on the lookout for new deals that can help her

save for a comfortable retirement. Self-directed IRAs

can be an extremely rewarding way to earn healthy

returns by investing in one-of-a-kind projects that truly

matter to the investor. Retirement is all about pursuing

lifelong passions and turning dreams into reality.

Making the right investment in unique people, deals,

and companies can be a very rewarding part of that

process. Retirement really can be a dream come true

when investors listen to what the heart truly wants, and

support the people and causes that they truly care

about using a self-directed IRA.

Please contact our Regional Business Development

Manager, Patrick Hagen by phone at (636) 577-5100 or

email phagen@theentrustgroup.com if you have any

questions, or would like more information about self-

directed IRAs and Real Estate IRAs.

5

Interested in purchasing real estate but don’t feel

that you have the money? Well do you have an

IRA or 401(k)? Ever considered using those funds

to invest in real estate tax free? Many investors

don’t realize that their tax deferred retirement

funds can be used to purchase and hold

investment real estate. They can! Join us on

Tuesday September 6th to learn how you can

unlock your IRA and put those funds towards

your next investment property.

www.BostonRealEstateInvestorsAssociation.com

3

Succeeding in business is about smart relationships. That’s why we created the Office Depot OfficeMax National REIA Program, a program which, as a member, you are entitled to! Participating in the program provides you with great savings, award winning customer service, and the ability to shop the way you like (online, by phone, or in-store). The Office Depot OfficeMax National REIA program is a smart way of taking care of your business. A portion of the savings you receive when you purchase your business supplies from Office Depot OfficeMax is given back to the association to help fund the activities that support and benefit you as a member.

Benefits of the Program:

Save up to 65% on 1500+ items that businesses purchase most often, including extensive discounts on national brand ink & toner. Save up to 15% off just about everything Office Depot stocks in stores and the Business Solutions Division annual catalog. Ability to Customize your Core Supply List for the products and services you use most Free Next Day Delivery on orders over $50.00* Product offerings for supplies outside of everyday office supplies such as Cleaning, Breakroom, Fur-niture, Technology, and Copy and Print. Dedicated Account Manager (carey.rhyne@officedepot.com) 855-337-6811 Ext. 12716

Here’s how it works:

Go to National REIA’s website and print out your Store Purchasing Card to use in any Office Depot or Office Max retail store. Our Copy & Print desk will laminate this for you FREE. This card is the only thing you need to receive the discounts in-store. Go to National REIA’s member benefits page and click on the Office Depot OfficeMax Customized Online Portal and shop online for delivery of your supplies.

Special Pricing on Copy & Print

2.5¢ Black & White copies 22¢ Color copies 40% off Finishing Services - including laminating, binding, paper upgrades etc.

National REIA members receive Free next business-day delivery for orders over $50. Orders under $50, you pay $5.95 shipping, for orders under $25 you pay $7.95 for next business-day delivery. Phone in your supply order by 5 pm or fax it by 3 pm and receive next business-day delivery, FREE! (Most furniture, some technology, oversized items and special order items are excluded.)

7 www.BostonRealEstateInvestorsAssociation.com

Vendor Benefits

Reasons Why You Should Become a Boston REIA Vendor

Vendor Members have access to a fast growing membership of individuals focused on investing in real estate. This is a built-in audience of people that have a need for your services. Besides the obvious benefit of reducing your cost to reach this pre-qualified group, you may participate in defined marketing and networking opportunities.

Take full advantage of the opportunity to promote your product and/or service by prominently displaying your company’s promotional materials and information at our monthly meetings.

Consistent exposure to our members on a continual basis through our newsletter.

Vendor Member recognition in our newsletter and

website.

An exceptional value in display advertising.

For more information regarding the Boston REIA V e n d o r P r o g r a m s c o n t a c t : BostonREIA@gmail.com

Local Vendors CLICK ON IMAGES FOR MORE INFORMATION

8 www.BostonRealEstateInvestorsAssociation.com