However, this only touches on one important aspect of what makes an IRA self directed or not.
There are 2 kinds of IRA’s out there.
- The Plain Vanilla IRA. This is what most IRA’s are, and it’s what both examples above cite. A plain vanilla IRA is held by a financial institution and only permits the account holder (you) to invest in commission-able products like stocks, bonds, mutual funds, CD’s, ETF’s, and annuities.
- A ‘truly’ Self directed IRA will allow you to invest in all these things PLUS allows you to invest in virtually anything the IRS allows. Things like real estate, tax liens, FOREX, notes, mortgages and trust deeds, just to name a few. In other words, it’s like getting all flavors of ice cream along with the sprinkles, whipped cream and even a cherry on top!
Step 1:
First, you need to choose a self directed IRA custodian. Once you’ve identified who your custodian will be, it only takes a few minutes to open a self directed IRA account, most of the process can be handled over the phone or online.
Step 2:
Next you deposit money in your new self directed IRA. You can do this a few different ways. First you can make a contribution. Contributions come from your earned income and you can simply take money from your savings or checking account and deposit it into your new self directed IRA. Second you can roll over an old 401(k) or 403(b) directly into your new self directed IRA. Third, you can transfer assets or cash from an existing IRA at your bank or brokerage to your new self directed IRA. Now that you have an account with money in it, you are ready for the third and final step in our process, to make your first real estate investment.
Step 3:
This is the final step. You make an investment, in this case, a real estate investment. All you need to do is call your custodian and they will assist you with this part of the process. The initiation of the real estate investment process is triggered when a purchase offer is made. In this case it’s not you purchasing the property, it’s your IRA.
When your IRA owns the investment, all the expenses will need to be paid from your IRA. You are not permitted to pay expenses personally. Also, and here’s the best part of all, all income and profits will return to your IRA, tax protected! No income tax, no capital gains tax! How cool is that?!
By following this simple, fun and easy process you will become an expert real estate IRA investor in no time.
- Become a VIP buyer and we will track your preferred buying criteria through our in house ordering system and you’ll get a personal email when we have a property ready for you. These properties are never made available to the public.
- If you’re not a part of our VIP buyer program yet, then as soon as you see a property you like, let us know via email IMMEDIATELY. The first person we hear from is the first person we will get the property to.
IMPORTANT: Our properties sell within hours of hitting the website so it’s critical to understand the program and be ready to make a decision when you see something you love.
Turn-key, cash-flowing real estate investing is the only way to invest. We’ve been helping investors make money, achieve financial freedom, and retire early by focusing exclusively on this kind of investing. Will you be the next investor we help?
- Cash Flow. This is the most important of the two. Most savvy investors are familiar with the comment, “I don’t care what my house is worth or what state the market is in, I still get my cash flow every month and that’s all that matters”. Cash flow investors are the true wealth builders, they understand that appreciate and current market value mean nothing when you’re primarily relying on the monthly passive income for your financial security.
- Appreciation. This is something you shouldn’t focus on in turnkey investing and we know that this statement tends to surprise new investors. Reality is that there are no guarantees that the property will appreciate so it’s better to think of it as the icing on the cake. If your property appreciates, great, but the idea of turnkey investing is to be focused on how the cash flow will achieve your wealth building goals. You should think of appreciation as a bonus at the end of ownership but not the primary reason for investing.
We sell high volume turnkey rentals with very high Cash flow, ROI, and CAP rates. In the markets we invest, a $80K property provides around $800 a month in rent. We are a well known one stop shop for investors who want to buy and hold long term rentals in stable B/C class areas and enjoy huge cash flow!