Category Archives: Self directed IRA

How to invest in real estate with a self directed IRA

The Roth IRA is the best gift our government has given us, but most real estate investors are not fully using it because they think it can only be used for investing in stocks, bonds and mutual funds.

Enjoy this video on investing in real estate with self directed IRAs by Jim Ingersoll

Click here for video on self directed IRAs with Jim  Ingersoll

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How to invest in real estate with retirement accounts, Health Savings and ESA

Here is a free training webinar on using real estate to invest in health savings, retirement and educational savings.  The key to each is investing with a self directed IRA so you can move beyond traditional stocks, bonds and mutual funds and then combine with all the powerful real estate investing strategies such as wholesaling, subject to, fix and flip, private lending and more.  Enjoy this free training with Jim Ingersoll and Quincy Long.

magnify cash flow

Click this image below to go direct to the webinar on our YouTube Channel and watch it now.

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Wealth buliding 101

By Jim Ingersoll

Wealth Building 101

 

According to the Federal Reserve, families’ median net worth has fallen dramatically.  This resulted from unemployment, unstable stock market, etc.  What can you do about increasing your income and net worth this year?

Chances are that your goals for this year include getting rid of debt, increasing your income and preparing for your future.

“There has never been a better day than today to prepare for your future,” Jim Ingersoll.

What strategies can you use to achieve your financial goals and build wealth this year?

 1.    Roll into a Self-directed IRA and add rocket fuel to your retirement

Are you ready to take control of your own retirement future?  Are you ready to begin to diversify your investments beyond the traditional stocks, bonds and mutual funds?  If you answered yes to these qualification questions then you are a prime candidate to add rocket fuel to your retirement by utilizing a self-directed IRA.  Now is the perfect time to diversify and become free the chains created by being forced to invest only in stocks, bonds and mutual funds.   It is estimated that only two percent of the total assets in IRA’s are held in a self-directed IRA.

“The self-directed IRA is the best kept retirement secret in America.”  Jim Ingersoll

The Self-directed IRA is perfect for the investor who is prepared to make their own investments outside the arena of stocks, bonds, CD’s and mutual funds.  With a self-directed IRA you can invest in real estate assets, notes, deeds of trust and mortgages as well as other investment classifications such as foreign currency, oil, gas, gold, silver and tax lien certificates.  The bottom line is that you are not limited to just the traditional stocks, bonds, mutual funds and Certificates of Deposits.

Want more info on self directed IRAs? Follow this link: Investing with a self directed IRA

2. Invest in rental property

Prices of houses are cheap and rents are up!  These market conditions make it an outstanding time to buy and hold real estate rentals.  There are a variety of investment possibilities when buying rentals including commercial, multi-family and single family homes.

Warren Buffett “If I had a way of buying a couple hundred thousand single-family homes… I would load up on them.” He went on to make more remarks concerning low interest rates, low prices and valid points regarding why he likes single family homes. For all these remarks I do applaud Mr. Buffett. He has an accurate picture of the housing market as an overall investment platform. He also remarked that, “single family homes are cheap now.”

I will agree with Warren Buffett that today’s real estate market is the best market opportunity of our generation.  History will soon reveal that more real estate wealth will be made now than anytime in recent history.

More info on buying rental property: Investing in real estate rental property

What is holding you back from investing in rental property?  If you said, tenants, then this 3rd wealth building opportunity is perfect for you.

 

3.    Wealth building without tenants, toilets or time

If you are a true investor and have the funds to invest but truly want to be passive and allow your money to work for you then you are the perfect candidate for joint venture real estate investing.  Your investment funds can joint venture with an experienced real estate entrepreneur and you can create great returns and cash flow.

Discounted Real Estate

 In today’s real estate market a good Entrepreneur should be able to find and acquire houses at a 40% discount price point. What that means is that the purchase price and all the necessary repairs together will not exceed sixty percent of the value of the house.

Wealth building case study using real estate

Purchase price of house: $50,000
Necessary repairs to house: $10,000
Value of house after repairs: $100,000

 

The total investment is $60,000 and the house is worth $100,000 which equates to a 40 percent discount on the overall value. Looking at it the other way, the $60,000 investment has $40,000 of built in equity upon purchase of this property.

 

Monthly Income Stream

 In my market here in Richmond, VA, a house like this one will be a typical 3 bedroom, 2 bath house in a county suburb working class neighborhood. This house in Richmond will rent for $900 per month creating a nice Monthly Income Stream for the joint venture investment. The primary on-going expenses associated with holding real estate are taxes and insurance. In Richmond, the taxes and insurance combined will be about $150 per month for the house in this example, which leaves $750 net for the on-going monthly income stream for the joint venture.

 

The $60,000 investment has now been used to pick up $40,000 of gross equity and a $750 monthly income stream. I hope you are wondering how this gets applied back to the members of the joint venture because the answer is that the Investor and Real Estate Entrepreneur come to terms. For the sake of simplicity, let’s assume that the two joint venture members agree to a 50/50 split in this venture.

With a 50/50 split, the $750 monthly income stream is split so that both members receive $375 each month; along with this monthly dividend style income stream both members will also share the upside equity at some point in the future.

 

Overall Earnings

Let’s make one last assumption to show how the ultimate return can be easily calculated for both members of this joint venture. Let’s assume that both members hold onto this investment property for five years and then sell it for $100,000, which is today’s value of the house. What are the earnings on this joint venture?

 

Investor Earnings
$375 per month for 60 months: $22,500
Upside equity split of the total $40,000: $20,000
Total return over the five years: $42,500
Total investment made: $60,000
Annualized return on investment: 14.16%

 

This is an example of a win-win transaction for an Investor that can joint venture with a sharp real estate Entrepreneur.  The Investor invested $60,000 and received earnings of $42,500, which is an annualized return of 14.16%.

 

The key is to joint venture with the right Entrepreneur who can do all of the work while keeping your investment safe, returns high and the investor does not have to deal with tenants, toilets or commit any of his personal time.

More info on joint venture real estate investing: Joint venture real estate investing

 

What is holding you back from creating or rebuilding your wealth using these 3 tops strategies? Leave comments or questions and I will be happy to respond.

 

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Mastermind with Jim Ingersoll real estate and investing training

Over the past couple weeks I have received inquiries from people wanting the information on my Mastermind Meetings…. Thank You!

I don’t push the coaching or masterminds, but I do love watching investors work directly with me and begin to experience the success that comes with it!

My Mastermind is a nice mix of folks who want to invest passively, folks who want to invest actively and some of us who like to do both 🙂

We focus intensely of eliminating bank financing, structuring joint ventures that work for everyone involved and

building long-term cash flow and equity by investing into real estate assets.  I have accumulated quite a few testimonials and such but will only share a couple of them today:

“Hello Jim
Just wanted to let you know we signed a contract for $206,000 this afternoon.  That gave us a $37,728 profit.  We owe a great deal to you.  Jim, you provided me with the direction and network that we put into action, resulting in a tremendous success!    I am very fortunate to have made your acquaintance to which I say THANK YOU.”  Chris

Hi Jim

We are putting in offers on two rental properties today! Getting this party started!

Thanks! Barb & Kevin

I have also enjoyed watching some young people in there 20’s get started.  They are succeeding and learning to buy houses without banks in the best market of our lifetime.  Personally, I wish I was in my 20’s and could start in a market like this one.  Like my friend David Phelps says “I could start over today and rebuild my entire portfolio in less than 5 years in today’s market.”

IF you are interested in joining our private Mastermind Group, please EMAIL me so I can send you the information you need to attend next weeks meeting with me. 

Email:    Jim@investingnownetwork.com or jimingersoll@verizon.net

Next week we have a 3 hour session planned.  Every meeting is part networking with like-minded investors and partly direct teaching from me.  I will be sharing case studies on joint-ventures, houses bought without banks for both flips and for long-term rentals as well as the documentation packages that support the entire joint venture.

Don’t delay, this is a private group that is growing fast, if you have interest please email me now

jim@investingnownetwork.com or jimingersoll@verizon.net

I included both emails since I have had some recent challenges with my emails.

Thanks and to your SUCCESS!

Jim

 

 

 

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Buy and Hold Rental Properties with a Joint Venture

In my book, “cash Flow Now,”  I capture a number of income streams that are possible when investing in real estate.  My favorite long-term investment is to simply buy and hold single family homes and enjoy the positive monthly cash flow. 

The question is, how can you buy and hold investment real estate without needing cash, credit or a bank mortgage? 

One solution is to establish funding lines and joint venture with self-directed IRA’s accounts.  This joint venture works great for the account holder and for the active real estate investor.  Both parties in this investment make great returns.

The self-directed IRA is perfect for a savvy investor who wants to make his/her own investments outside of the traditional stocks, bonds and mutual funds because it offers the account holder many alternate investment options.

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Everyone knows that real estate is on-sale across America and that plenty of fantastic deals are available in all markets and in all asset classes. The good news is that with a self-directed IRA it is easy to invest in real estate. Even better news is that a self-directed IRA can be passively invested into real estate without the account holder needing to deal with any tenants or toilets.

“The Self-Directed IRA is the best kept financial secret in America”  Jim Ingersoll

Joint Venture Investing

Joint Venture IRA Investing in real estate works extremely well when a self-directed IRA account works directly with a real estate catalyst. The real estate catalyst is an experienced investor who does all of the work and the self-directed IRA funds the investment and shares the upside return on investment. Both parties in the transaction are critical to the overall success and return on investment.

The Real Estate Catalyst will identify the real estate opportunity, negotiate the price and complete the acquisition using the funds from the self-directed IRA. Once the acquisition is completed, the real estate Catalyst will then be responsible for managing construction and renovations, if required. Once the renovation is complete the Catalyst is responsible for managing the property, along with all the tenants and everything that goes along with property management. Essentially the Catalyst does all of the work and is the active member of the joint venture. The Self-directed IRA infuses the capital by funding the venture, but remains completely passive and does no work.

Discounted Real Estate

In today’s real estate market a good Catalyst should be able to find and acquire houses at a 30% discount price point. What that means is that the purchase price and all the necessary repairs together will not exceed sixty percent of the value of the house.

Here is an example:

Purchase price of house: $50,000
Necessary repairs to house: $20,000
Value of house after repairs: $100,000

The total investment is $70,000 and the house is worth $100,000 which equates to a 30 percent discount on the overall value.

Looking at it the other way, the $70,000 investment has $30,000 of built in equity upon purchase of this property.

Monthly Income Stream

In my market here in Richmond, VA, a house like this one will be a typical 3 bedroom, 2 bath house in a county suburb working class neighborhood. This house in Richmond will rent for $900 per month creating a nice Monthly Income Stream for the joint venture investment. The primary on-going expenses associated with holding real estate are taxes and insurance. In Richmond, the taxes and insurance combined will be about $150 per month for the house in this example which leaves $750 net for the on-going monthly income stream for the joint venture.

The $70,000 investment has now been used to pick up $30,000 of gross equity and a $750 monthly income stream. I hope you are wondering how this gets applied back to the members of the joint venture because the answer is that the Self-Directed IRA and Real Estate Catalyst come to terms. For the sake of simplicity, let’s assume that the two joint venture members agree to a 50/50 split in this venture.

With a 50/50 split, the $750 monthly income stream is split so that both members receive $375 each month; along with this monthly dividend style income stream both members will also share the upside equity at some point in the future.

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Overall Earnings

Let’s make one last assumption to show how the ultimate return can be easily calculated for both members of this joint venture. Let’s assume that both members hold onto this investment property for five years and then sell it for $100,000 which is today’s value of the house. What did both members earn on this joint venture?

SELF-DIRECTED IRA EARNINGS
$375 per month for 60 months: $22,500
Upside equity split of the total $40,000: $20,000
Total return over the five years: $42,500
Total investment made: $70,000
Annualized return on investment: 14.16%

REAL ESTATE CATALYST
$375 per month for 60 months: $22,500
Upside equity split of the total $40,000: $30,000
Total return over the five years: $42,500
Total investment made: $0
Annualized return on investment: Infinite

This is an example of a win-win transaction for an IRA that can joint venture with a sharp real estate catalyst. The real estate catalyst can invest without needing a traditional bank mortgage to buy real estate and will earn $42,500 which is an infinite return since he/she made no capital investment. The IRA invested $70,000 and received dividend type earnings of $42,500 which is an annualized return of 14.16%.

The self-directed IRA is the perfect vehicle for capitalizing in today’s real estate opportunities.

The key is to joint venture with the right catalyst who can do all of the work while keeping your investment safe and returns high.

Would you be interested in making investments like this one?

Make this year the year you commit to learn real estate investing without using banks for your financing!

What is holding you back? Leave comments or questions and I will be happy to respond.

Jim Ingersoll

Author, Entrepreneur, Coach

www.investingnownetwork.com

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The Best Kept IRA Secret… Revealed

By Jim Ingersoll

Are you ready to take control of your own retirement future? Are you ready to begin to diversify your investments beyond the traditional stocks, bonds and mutual funds? Do you have what it takes to invest how, where and when you want? If you answered yes to these qualification questions, then you are a prime candidate to add rocket fuel to your retirement by utilizing a self‐directed IRA in 2012.

It is estimated that only two percent of the total assets in IRAs are held in a self-­directed IRA. The self-­directed IRA is a well-­kept secret and we are ready to reveal the powerful investment opportunities that await the savvy retirement investor.

Self-Directed IRA

The Self‐directed IRA is perfect for the investor who is prepared to make his/her own investments outside the arena of stocks, bonds, CDs and mutual funds. The types of investments that are possible with a self‐directed IRA extend to the following:

Real Estate – Residential single family, multi-family, mobiles on land, commercial property and raw land

Notes, Deeds of Trust and mortgages – secured with real estate, unsecured, automobiles, etc.

Foreign currency – investing in the exchange rate between the US and other currencies

Oil and Gas – Production, royalties, mineral rights, etc.

Precious metals including gold and silver – Hedge against all political, social and other influences

Private and Public Stock – Venture capital type investments

Tax lien certificates – Investing in tax delinquent real estate

Many other alternate investments – If you are ready to jump-start your retirement and give it new life for 2012, then you will want to consider jumping into some alternate investments that are not tied to the traditional stock market. There are a lot of great opportunities in each of these alternate investment classes. For instance, if you can learn to invest in real estate and mortgages, you can find investments that are returning 6–15% annually.

Prohibited Transactions for Self-Directed IRAs

There are some prohibited transactions associated with a self-directed IRA and I will highlight a few of the big ones for you:

• Collectibles such as stamps, antiques and rugs
• Life insurance
• Alcoholic beverages
• Lend money to yourself (IRA holder)
• Profit from investments must go back to IRA account
• Transactions with disqualified people including: Self, Spouse, Parents, Children

Both a traditional and Roth IRA can be self-­directed. The traditional approach for an IRA will have a custodian control your retirement account with services they sell which are typically stocks, bonds and mutual fund type products. However, with a truly self‐directed IRA custodian you are the one in control of your retirement account and you are responsible for making your own investments.

A self‐directed IRA is easy to establish and roll funds into. Once your account is established, the custodian takes the role of account administrator and will help direct your investment transactions. They will direct the paperwork and documentation as well as provide guidance to help you not make a prohibited
transaction along the way.

Investment Control

The account owner is the one who makes every single investment decision and ultimately determines how, where and when to invest the retirement funds. Now that the best kept IRA secret has been revealed, you are free to begin investing in any of the asset classes that you choose. You should choose your investment wisely based upon your knowledge and the risk you are willing to take with your retirement funds.

The good news is that there are plenty of great investment options that exceed the scope of traditional stocks, bonds, mutual funds and CDs. If you have the investing knowledge you may want to invest in oil by buying production, mineral rights or on a royalty interest. Maybe you are ready to invest in a precious metal such as gold or silver or maybe you are like me and ready to capitalize on the greatest transfer of real estate wealth of our generation.

The good news is that all of these investment options are available through a self-directed IRA.

Compound Interest

Are you ready to take charge of your own retirement for 2012? Now is the time to get yourself ready to take control of your own retirement investing. Albert Einstein said, “The most powerful force in the universe is compound interest.” When Einstein makes statements like that, we need to listen.

Let me show you the difference between a 5% return, 10% return and 15% return starting with a $100,000 balance and investing for 20 years:

$100,000 with a 5% return for 20 years will grow to $271,264.32

$100,000 with a 10% return for 20 years will grow to $732,808.95

$100,000 with a 15% return for 20 years will grow to $1,971,555.75

Now is the perfect time to plan your future and determine what rate of return you need to meet your
retirement investing goals.

One way to take full control of your own retirement investing is to roll funds into a self-directed IRA using the investment of your choice as the vehicle to achieve your personal goals.

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The Inherited Stretch IRA for future generations to live tax free

We’ve been talking about setting up your
life for a secured retirement and passive
returns protected from taxes and inflation,
giving you and your family peace of mind.

What if I told you that you could pass your
wealth on to your heirs….your children or
grandchildren, nieces or nephews, 100% tax
free and allow them to also take
distributions tax free throughout their
lifetime?

It’s true and one aspect of the Roth IRA
that very few understand. And of those who
do, they have no idea how to use real estate
to create and maintain the capital and grow
it so that the legacy can be passed on from
generation to generation.

My daughter has specific challenges due to
health issues and will never be independent
and self-sufficient. I opened her Roth IRA
at age 6 (we’ll show you how you can do
that) and have been growing it tax-deferred
for over 12 years now with an average
compounded return of over 18% per year. Her
Roth doubles every 4 years and NO TAXES will
ever come out! This is critical!

What if I need to fast-track a Roth IRA for a
young person like my daughter and have it
available for her to take tax-free
distributions BEFORE the usual age of
distribution of 59 and ½?

There is a way and it has to do with the
beneficiary designation from another
person’s IRA.

This one strategy is worth potentially
hundreds of thousands to a million or more
dollars to a young person today. And this
generation, our children and grandchildren,
will be the ones paying the debt that our
government, our generation, has created.

What better gift to give a child or
grandchild than a head start with a tax-free
account that he or she can also learn to
compound and maintain over his or her
lifetime while taking distributions out 100%
tax free!

Do you comprehend that last statement? If
not, go back and read it again. Don’t miss
the point!!

 

Yes, there is hope for a brighter
tomorrow………….but you have to take
action NOW!

 

May the future be bright!

Invest and Retire Tax Free

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How to explode a small Roth IRA account with real estate

One of the questions that is often posed to
to me is :

“How can I expect to retire with Roth
IRA investments if I can only contribute
$5,000 per year?”

Great question!

The key is all in the structure of the deals!
And learning how to develop your own small
group of financial friends within your own
investing group.

This is the answer!  It’s not about making
risky investments or speculating on future
appreciation…not at all!

It’s about building solid and secured
investment strategies within a group of
people of whom each has a different goal –
passive, active, older, younger, more time,
less time – you see, we’re all different
and that’s what creates the synergy and
opportunity.

Ready to learn more about investing in real estate with self directed IRA’s, check this link to read more:

Investing in real estate with retirement accounts
It is very common to leverage a $100 Roth IRA
investment into a $5,000 return in a matter
of weeks – that’s right – not a
misprint – a $100 Roth IRA investment into
$5,000 in just weeks!  And we can do it over
and over again.

It’s all about the market
and the opportunities.

You can easily explode your IRA using a combination

of real estate options and wholesaling.

 

There is no faster way to add instant rocket fuel to your IRA!

 

Learn to invest in the greatest transfer of real estate wealth of our generation and you will succeed massively!

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Choosing your real estate friends and Partners wisely

Investing in real estate is a team sport.

The best opportunities and
best deals are not listed on some exchange
board or found through mutual funds, private
or publicly traded investment trusts.

I recommend investing in only secured
real estate investments – where your
capital is secured by a specific property
that you can control (you can have control
whether you are an active or passive investor
– the important part is the control).

Passive Investor

you have capital to invest but you don’t want to do the ‘heavy
lifting.’ Good news!

Because of the lack
of conventional financing today, your capital
can be invested with low risk into secured
real estate transactions right in your own
local market – or any market that you
desire. Secured by 1st lien mortgage
positions – with returns 3-4 times what the
banks are paying.

And as a “lender,” you don’t have to deal with tenants or
contractors.

You make your money by being “the bank.”

Active Investor or Catalyst 

You’ve got time or knowledge or
both. You know how to find the good deals
and manage them. You just need capital.
Good news!

Your passive friends in the
paragraph above are looking for you! And
unlike a bank, they don’t change names
every two years!

All that’s missing is how to put Passive
and Active together  and that is the key to a great joint venture.

It combines the best of both worlds of a passive investor with money and

the skills of a great catalyst/active real estate investor.

When combined these forces create awesome returns for each other!

What is holding you back?  What is missing?  Leave me a comment and share this posting with your facebook, twitter, linked in and Pinterest friends!

 

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