real estate in your ira

Self Directed IRAsSelf Directed IRAsThe Real Estate IRA The Real Estate IRA

RevolutionRevolution

Keith MarshKeith MarshKey Accounts ManagerKey Accounts Manager

s.laeng@trustetc.com | 888.382.4727 x317

What is a Self-Directed IRA?

• An Individual Retirement Account (or IRA) is a personal savings account that provides Tax-Deferred or Tax-Free savings.

• A self-directed IRA is any type of IRA that allows you to invest in assets other than just stocks, mutual funds and CDs.

• Most brokerage firms and banks don’t offer this service because they do not have a financial incentive to do so.

How does an IRA benefit me?

• Tax-free or tax-deferred growth

• Power of compounding interest

• Huge tax deductions

• Protects your hard earned assets

• Essential estate planning tool

What Can I Invest in?

• Stocks, Bonds, Mutual Funds• Raw land• Single family homes/Condos• Apartments/duplexes• Commercial property• Equipment Leasing• Real Estate Notes / Mortgages• Tax Liens• Foreign Currency

• You are only limited by your• Own Creativity

Profit

Buying Real Estate = PROFIT

s.laeng@trustetc.com | 888.382.4727 x317

s.laeng@trustetc.com | 888.382.4727 x317

s.laeng@trustetc.com | 888.382.4727 x317

Two Investment Paths

• Active

– Invest directly in the asset of your choice (real estate, tax liens, equipment)

• Passive

– Loan your investment funds to another party to invest

• TURN-KEY

– allows you to have your cake & eat it too (Property Acquisition, Property Financing & Closing, Property Rehabilitation, & Property Management)

Active Investment Path Example

Passive Investment Path Example

s.laeng@trustetc.com | 888.382.4727 x317

How Do I Buy Real Estate in My IRA?

1.Outright

2.Partner

3.Non Recourse Loan

s.laeng@trustetc.com | 888.382.4727 x317

Outright Real Estate Purchase

$50,000$20,000$12,240$21,840$76,840FDIC:

INVESTMENT: $30,000$35,000

Partnering Real Estate Purchase

%

UNDIVIDED INTEREST

Partner

Key Concept

Remember your IRA is a Separate Entity from yourself

s.laeng@trustetc.com | 888.382.4727 x317

Your Personal Funds Your IRA Funds

These Separate Funds Cannot Be Co-mingled

Selling Property from Your IRA

s.laeng@trustetc.com | 888.382.4727 x317

s.laeng@trustetc.com | 888.382.4727 x317

1. Self Deal

2. Prohibited Transactions

3. Collateralize Your IRA

What Can’t You Do?

Protect

Taxes and Nest Egg Building

Taxes Federal State & City FICA TotalEmployee W-2 39% 10% 7.65% 56.7%Self Employed 39% 10% 15.30% 64.3%Interest 39% 10% 49%LT Cap Gains 20% 2% 22%Corporate 39% 2-10% 41-49%Passive 39% 10% 49%Trust 35% 10% 45%TIRA, 401(k), SEP, Simple*

39% 10% 49%

Roth IRA & Roth 401(k) 0% 0% 0.0%* Tax Deferred

Protect

How Do you put money in the account?

1. Contribution

2. Rollover

3. Transfer

4. Conversion

5. All of the above

Protect

Equity Trust Company Custodian FBO Insert your name here IRA

You Just Did it!

Which IRA is right for me?

• If you want a Deduction…• A Traditional IRA• A SEP• A SIMPLE• A 401(k)• HSA

• If you want tax free income…• A Roth IRA• A Roth 401(k) *$16,500 Roth Component• HSA• CESA

The Equity Trust Company Difference

• Financial Strength and Longevity

– Proven customer service– IRS-approved custodian– Regulated State Bank and State Trust Chartered– Founded 1974– Over $10 billion in assets under custody– Over 130,000 clients– Rated A+ by the Better Business Bureau– FDIC-insured accounts up to $250,000

Thank You for Attending!!

Keith MarshKey Accounts Manager

888-382-4727 ext 416

k.marsh@trustetc.com

Referral Code 2016

All Inclusive Fee ScheduleAll Inclusive Fee Schedule Account Opening ChecklistAccount Opening Checklist

Original, Singed Application

Original, Signed Account Transfer From (IRA to IRA ONLY)* Your current custodian may require a Medallion Signature Guarantee

Copy of most recent statement

Copy of Driver’s License

Gold Level Service Application