investing in real estate with an ira

Entrust Freedom, LLC

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?”

Why Invest With Your IRA?

The Benefits of Tax Free Investing• Building Wealth• Longer IRA Payouts• Opportunity for 100% Tax Free

3

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!

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

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

Case Study

Rental Real Estate

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

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

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!

Informed Buyers equals…

Great referral sources

MORE COMMISSIONS!

Strong repeat buyers

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

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

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

15

Entrust Freedom

Interested in learning more?Feel free to call or email me:theresa@entrustfreedom.com

239-333-1031 x115www.entrustfreedom.com

Use Entrust as a Resource