investing in real estate with an ira
TRANSCRIPT
![Page 1: Investing in Real Estate with an IRA](https://reader035.vdocuments.us/reader035/viewer/2022070321/558be5aad8b42a653a8b45a9/html5/thumbnails/1.jpg)
Entrust Freedom, LLC
![Page 2: Investing in Real Estate with an IRA](https://reader035.vdocuments.us/reader035/viewer/2022070321/558be5aad8b42a653a8b45a9/html5/thumbnails/2.jpg)
2
• Over $4.5 trillion “LOCKED” in retirement plans
• Most IRAs are managed by banks and investment brokers
and RESTRICTED in what they can invest in
…however IRS regulations allow a much
broader range of investments
Are You Ready to “Unlock Your IRA?”
![Page 3: Investing in Real Estate with an IRA](https://reader035.vdocuments.us/reader035/viewer/2022070321/558be5aad8b42a653a8b45a9/html5/thumbnails/3.jpg)
Why Invest With Your IRA?
The Benefits of Tax Free Investing• Building Wealth• Longer IRA Payouts• Opportunity for 100% Tax Free
3
![Page 4: Investing in Real Estate with an IRA](https://reader035.vdocuments.us/reader035/viewer/2022070321/558be5aad8b42a653a8b45a9/html5/thumbnails/4.jpg)
Prohibited Parties• IRA holder and his/her spouse• Lineal ascendants (parents,
grandparents, etc)• Lineal descendants (children,
grandchildren & their spouses)• Any entity in which any
disqualified parties have 50% or more interest
See IRC 4975 for a complete list of disqualified parties
Prohibited Transactions• Buy, Sell, Lease, Exchange• Receive personal use or
benefit• Extending credit• Furnishing goods/services• Receive any consideration
44
IRA = TRUST
NOT PROHIBITED• Partner on Brand New Deal
• Siblings are OK!
![Page 5: Investing in Real Estate with an IRA](https://reader035.vdocuments.us/reader035/viewer/2022070321/558be5aad8b42a653a8b45a9/html5/thumbnails/5.jpg)
5
Real Estate the #1 Investment
Real Estate is the most common investment in a self-directed IRA
• Single-Family Homes
• Condominiums
• Improved/Unimproved Land
• Commercial Property
• Foreign Property
• Rentals/Rehabs
Other popular options include…
• Mortgages
• Unsecured Notes
• LLCs & LPs
• Futures/Forex/Commodities
• Precious Metals
• Start-Up Companies
• Private Stock
![Page 6: Investing in Real Estate with an IRA](https://reader035.vdocuments.us/reader035/viewer/2022070321/558be5aad8b42a653a8b45a9/html5/thumbnails/6.jpg)
6
How Many Real Estate IRAs Have We Done?
Since October 2010
• Real Estate Purchased: 200 purchases for 11.5M
• LLCs that have Purchased RE: 75 LLCs for 6M
• Real Estate Notes: 60 Notes funded for 3M
Just in SWFL Office
![Page 7: Investing in Real Estate with an IRA](https://reader035.vdocuments.us/reader035/viewer/2022070321/558be5aad8b42a653a8b45a9/html5/thumbnails/7.jpg)
Case Study
Rental Real Estate
![Page 8: Investing in Real Estate with an IRA](https://reader035.vdocuments.us/reader035/viewer/2022070321/558be5aad8b42a653a8b45a9/html5/thumbnails/8.jpg)
88
Dave Purchases Real Estate…
1 2
3
Rita Realtor introduces Dave to self-directed IRAs and he sets up an account
Rita helps Dave identify a great investment property
Dave authorizes Entrust to purchase the property for the IRA
IMPORTANT NOTE
![Page 9: Investing in Real Estate with an IRA](https://reader035.vdocuments.us/reader035/viewer/2022070321/558be5aad8b42a653a8b45a9/html5/thumbnails/9.jpg)
99
Dave Purchases Real Estate…
4 5
6 7
Entrust Wires Money – Rita Realtor gets paid!
Dave’s IRA now owns the property
Dave finds a tenant to lease the unit for $650 a month
All income and expenses flow through the IRA
![Page 10: Investing in Real Estate with an IRA](https://reader035.vdocuments.us/reader035/viewer/2022070321/558be5aad8b42a653a8b45a9/html5/thumbnails/10.jpg)
Introduce Your Clients to Self-Directed IRAs
Most of your clients probably don’t know that they can buy real estate in their IRA or 401k. Below are 4 things you MUST share with your clients to CLOSE MORE DEALS!
1. IRAs CAN Buy & Hold Real Estate
2. Investments only – NO PERSONAL USE!
3. No Self-Dealing
4. All gains are tax-deferred or tax-free!
![Page 11: Investing in Real Estate with an IRA](https://reader035.vdocuments.us/reader035/viewer/2022070321/558be5aad8b42a653a8b45a9/html5/thumbnails/11.jpg)
Informed Buyers equals…
Great referral sources
MORE COMMISSIONS!
Strong repeat buyers
![Page 12: Investing in Real Estate with an IRA](https://reader035.vdocuments.us/reader035/viewer/2022070321/558be5aad8b42a653a8b45a9/html5/thumbnails/12.jpg)
So What is the Next Step? How Do I Get Started?
1. Account application2. Fee disclosure3. IRA Transfer/Rollover form4. Copy of account statement5. Copy of driver’s license
Yes, it’s THAT easy!
12
![Page 13: Investing in Real Estate with an IRA](https://reader035.vdocuments.us/reader035/viewer/2022070321/558be5aad8b42a653a8b45a9/html5/thumbnails/13.jpg)
One Last Thing…1031s are Heating Up!
1. When Is the last time you did a 1031 Exchange?
2. Do you mention them to your clients?
3. Do you know the 5 Easy Steps for 1031Exchange?
13
![Page 14: Investing in Real Estate with an IRA](https://reader035.vdocuments.us/reader035/viewer/2022070321/558be5aad8b42a653a8b45a9/html5/thumbnails/14.jpg)
Real Estate Opportunities in your IRA
14
We are your local leaderin Self-Directed Retirement Plan Administration
A Member of The Entrust Group
Headquarters in SWFL / We work Nationwide
All accounts & transactions processed locally in Fort Myers
Hundreds of CE and educational events annually
![Page 15: Investing in Real Estate with an IRA](https://reader035.vdocuments.us/reader035/viewer/2022070321/558be5aad8b42a653a8b45a9/html5/thumbnails/15.jpg)
15
Entrust Freedom
Interested in learning more?Feel free to call or email me:[email protected]
239-333-1031 x115www.entrustfreedom.com
Use Entrust as a Resource