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Website design By BotEap.comHarness the power of investing in real estate and alternative assets in an IRA to earn tax-free or tax-deferred earnings for the rest of your life!
Website design By BotEap.comAfter successfully completing a real estate transaction, have you ever wished that a portion of the proceeds didn’t have to go back to the IRS to pay taxes? Have you ever dreamed of how many more real estate transactions you could do or how many more properties you could buy if the proceeds were not shared with the government due to taxes?
Website design By BotEap.comWell, dream no more. Obtaining tax-free or tax-deferred benefits on real estate and investing in alternative assets is a reality.
Website design By BotEap.comGovernment-sponsored retirement plans, like IRAs and 401(k)s, allow you to invest in almost anything (including real estate), not just stocks, bonds, and mutual funds. And all the benefits those plans provide—tax deductions and tax-free earnings—apply to any investment you choose, including real estate.
Website design By BotEap.comThe power of tax-deferred and tax-free earnings
Website design By BotEap.com“The most powerful force on Earth is compound interest.” -Albert Einstein
Website design By BotEap.comOne of the best features of an IRA is that it allows Americans to enjoy the true power of tax-deferred compound interest. Compound interest occurs when interest is earned on a principal amount along with any accrued interest on that amount. In other words, you are earning interest not only on the amount of your original investment, but also on the interest earned on the original amount.
Website design By BotEap.comCompound interest can happen with any investment you make, but the “true” power of compound interest comes when you invest in a tax-deferred setting, like an IRA.
Website design By BotEap.comBy taking advantage of an IRA’s tax-deferred status, you don’t have to pay taxes immediately on your earnings (such as the sale of property or rent collected). So you can enjoy the power to compound ALL of your earnings, not just what’s left after taxes.
Website design By BotEap.comNow apply those benefits to your investment in real estate or alternative assets. Tax-deferred earnings on your real estate transactions allow for greater flexibility to make further investments, or simply sit back and watch the value of your real estate investment grow, without worrying about taxes.
Website design By BotEap.comThis is serious?
Website design By BotEap.comMost investors don’t know this opportunity exists because most IRA custodians don’t offer truly self-directed IRAs that allow Americans to invest in real estate and other non-traditional investments.
Website design By BotEap.comOften when you ask a custodian/trustee, “Can I invest in real estate with an IRA?” they’ll say, I’ve never heard of that” or “No, you can’t do that.” What they really mean is that you can’t do this at their company because they only offer stocks, mutual funds, bonds, or CD products.
Website design By BotEap.comOnly a truly self-directed IRA custodian like Equity Trust Company (www.trustetc.com) will allow you to invest in all forms of real estate or any other investment not prohibited by the Internal Revenue Service.
Website design By BotEap.comIs this legit?
Website design By BotEap.comIt sure is. For more than 33 years, through the management of $2 billion in IRA assets, Equity Trust has helped clients grow their financial wealth by investing in a variety of opportunities, from real estate and private investments to stocks and bonds in self-directed IRAs and small business retirement plans.
Website design By BotEap.comIRS Publication 590 (dealing with IRAs) states which investments are prohibited; These investments include fine art, stamps, rugs, antiques, and gems. All other investments, including stocks, bonds, mutual funds, real estate, mortgages, and private placements, are perfectly acceptable as long as IRS rules governing retirement plans are followed (for IRS Publication 590, visit [http://www.trustetc.com/links/irspubs.html]).
Website design By BotEap.comStarting
Website design By BotEap.com“Is it hard to do?” is a common question about investing in real estate with a self-directed IRA. It’s really simple and it’s very similar to how you currently invest in real estate. The following five steps demonstrate how easy it is to invest in real estate, or just about anything else, with a self-directed IRA.
Website design By BotEap.com1) Establish an account with a self-directed IRA custodian.
First, you need to establish an account with a self-directed IRA custodian, and Equity Trust Company is your best option. To learn more about why Equity Trust is the right choice for your self-directed IRA needs, visit http://www.trustetc.com. Website design By BotEap.comSetting up an IRA with Equity Trust typically takes just a few minutes to complete a simple application and submit (or fax) it to our office. Website design By BotEap.com2) Fund your account.
You then need to fund the account, and this is as easy as opening a self-directed IRA. There are two ways to fund your account. Website design By BotEap.com• Presentations
You can contribute to your account via check or wire transfer, and contribution limits range from $4,000 to $50,000 depending on the account you choose. Website design By BotEap.com• Transfer/transfer Website design By BotEap.comIn most cases, if you have an existing retirement plan, such as an IRA, 401k, or 403b, these funds can be rolled over to a self-directed IRA, allowing you to invest in a real estate IRA. Website design By BotEap.com3) Investment found: You are ready to go!
Now that you have your account established, funded, and have identified a real estate investment, you are ready to make an investment. Website design By BotEap.comMaking a real estate investment with your IRA is easy if you remember a few simple rules. First, fill out a Direction of Investment (DOI) form. A DOI tells the custodian where and how to remit funds from your Self-Directed IRA for the purchase of real property. Website design By BotEap.comInformation contained in the DOI includes property address, cost, financing instructions (check/transfer), etc. In addition to the DOI, the custodian will need accompanying investment documents to ensure proper title to the investment. Website design By BotEap.com4) Ensuring Proper Title – You and your IRA are not the same.
One of the most common mistakes (and cause of delays) in IRA real estate investing is when the property is mistitled. Frequently, the IRA owner will incorrectly put his or her personal name on the title to the property. Website design By BotEap.comRemember that you and your IRA are two separate entities, and as such, the property must be titled to your IRA and not to you personally. Website design By BotEap.com• The correct title for an IRA investment in real estate (or other assets) is: Website design By BotEap.comEquity Trust Company custodian FBO (for the benefit of) YOUR NAME IRA Website design By BotEap.com5) What happens after your IRA owns the property?
Now that your IRA has purchased the property, you need to remember two things: Website design By BotEap.com• Expenses: Any expenses associated with the property (maintenance, improvements, property taxes, condominium association, general bills, etc.) must come from the IRA. Website design By BotEap.com• Cash Flow/Proceeds: All net proceeds must return to the IRA, which means that all income (rent) and proceeds (sale of property) are deposited back into your IRA account, tax free! Website design By BotEap.comThat’s it, it’s as simple as 1-2-3. In a very short time you can be investing in real estate and other alternative assets and receive income tax-free or tax-deferred for the rest of your life. Website design By BotEap.comDon’t delay in opening an account. Every day that passes is one day less that your investment can benefit from the most powerful force on Earth (at least according to Einstein), compound interest.
First, you need to establish an account with a self-directed IRA custodian, and Equity Trust Company is your best option. To learn more about why Equity Trust is the right choice for your self-directed IRA needs, visit http://www.trustetc.com. Website design By BotEap.comSetting up an IRA with Equity Trust typically takes just a few minutes to complete a simple application and submit (or fax) it to our office. Website design By BotEap.com2) Fund your account.
You then need to fund the account, and this is as easy as opening a self-directed IRA. There are two ways to fund your account. Website design By BotEap.com• Presentations
You can contribute to your account via check or wire transfer, and contribution limits range from $4,000 to $50,000 depending on the account you choose. Website design By BotEap.com• Transfer/transfer Website design By BotEap.comIn most cases, if you have an existing retirement plan, such as an IRA, 401k, or 403b, these funds can be rolled over to a self-directed IRA, allowing you to invest in a real estate IRA. Website design By BotEap.com3) Investment found: You are ready to go!
Now that you have your account established, funded, and have identified a real estate investment, you are ready to make an investment. Website design By BotEap.comMaking a real estate investment with your IRA is easy if you remember a few simple rules. First, fill out a Direction of Investment (DOI) form. A DOI tells the custodian where and how to remit funds from your Self-Directed IRA for the purchase of real property. Website design By BotEap.comInformation contained in the DOI includes property address, cost, financing instructions (check/transfer), etc. In addition to the DOI, the custodian will need accompanying investment documents to ensure proper title to the investment. Website design By BotEap.com4) Ensuring Proper Title – You and your IRA are not the same.
One of the most common mistakes (and cause of delays) in IRA real estate investing is when the property is mistitled. Frequently, the IRA owner will incorrectly put his or her personal name on the title to the property. Website design By BotEap.comRemember that you and your IRA are two separate entities, and as such, the property must be titled to your IRA and not to you personally. Website design By BotEap.com• The correct title for an IRA investment in real estate (or other assets) is: Website design By BotEap.comEquity Trust Company custodian FBO (for the benefit of) YOUR NAME IRA Website design By BotEap.com5) What happens after your IRA owns the property?
Now that your IRA has purchased the property, you need to remember two things: Website design By BotEap.com• Expenses: Any expenses associated with the property (maintenance, improvements, property taxes, condominium association, general bills, etc.) must come from the IRA. Website design By BotEap.com• Cash Flow/Proceeds: All net proceeds must return to the IRA, which means that all income (rent) and proceeds (sale of property) are deposited back into your IRA account, tax free! Website design By BotEap.comThat’s it, it’s as simple as 1-2-3. In a very short time you can be investing in real estate and other alternative assets and receive income tax-free or tax-deferred for the rest of your life. Website design By BotEap.comDon’t delay in opening an account. Every day that passes is one day less that your investment can benefit from the most powerful force on Earth (at least according to Einstein), compound interest.
