T here are two typical investor responses to a prolonged bull market on Wall Street: You either dance around the room as you check your stock portfolio each morning and (admit it) throughout the day, or you cradle your head in your hands and wonder when the worm is going to turn. If you’re the latter type, then the odds are good that at some point you’ve wished you could put some of your retirement capital into real estate and, fur- thermore, you’ve probably at least considered setting up a self-directed individ- ual retirement account (IRA) or 401(k) in order to do exactly that. “I’d say that self-directed investors are probably at least 50 percent of our business,” said Return on Rentals co-founder Dallas Hall. Turnkey rentals are ideally suited to the needs of self-directed investors because they can be a fully automated, hands-off investment. This is critical to maintaining the advantages offered by self-directed retirement accounts. “The whole ‘SDIRA Game’ is a game of keep-away from prohibited transac- tions, and turnkey real estate can help the IRA win that game,” observed Kaaren Hall, CEO of uDirect IRA Services, a California-based IRA administrator. “Interactions with real estate in an IRA must be handled by third-party pro- fessionals or you risk losing, conservatively, 50 percent or more of your IRA if the IRS determines you’ve violated any of their rules on handling investments personally in that account,” explained Bryan Ellis, host of the educational podcast “Self Directed Investor Talk.” In the past decade, an increasing number of investors have been willing to take that risk in order to free themselves from the risks associated with con- ventional assets like stocks and bonds. “Since the housing crash and then the financial collapse, we’re seeing more and more of this,” Dallas Hall added. He speculated that people are moving toward self-directed investing precisely because the stock market has been on such a long bull run. “For any cautious, smart investor, it’s a concern that this run has gone on so long. Taking control of their future and investing in assets like real estate is the natural response.”

want to wholesale properties instead,” said Fuller. “These wholesalers can earn a $5,000 assignment fee simply for con- necting the dots. It’s great practice for the future because real estate investors need good sales and negotiation skills and it can set someone with very little capital on a path toward having plenty of it to invest.” The program, which launched this year, has already yielded some big suc- cesses. Hall and Fuller seem barely able to contain their pride as they interrupt each other to relate the story of one of their wholesale students who recently closed on 15 different properties at once. “We don’t even know exactly how he did it, but he found a buyer who had some significant assets that he wanted to allocate to real estate. He found the guy 15 properties, they closed, and it earned our wholesaler $75,000,” Hall said. “That just happened in the last couple months, and he’s one of our first students!” That mindset of keeping everyone involved and invested in the success of Return on Rentals and the associated excitement when any one member of the company succeeds is key to the orga- nization’s ongoing growth and success. “Everyone we work with has seen the long-term vision. No one is taking short- cuts,” Hall said. “The only way to succeed in this business and do high volumes of deals is to put out a good product and stay focused on your goals.” •

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regimented, aggressively transparent, and thoroughly delineated organiza- tion. That creativity recently led to the discovery of an exclusive source of deals for the company and a way to help new- er investors get started in real estate. “When we speak at events, we always are very clear with our clients and potential clients that whether you have two dollars or $2 million, we’re going to

sit down with you and have a consulta- tion so that you leave on a better path than you came on,” said Hall. That de- sire to help all real estate investors has manifested itself in a wholesale train- ing program that uniquely positions trainees to wholesale directly to a major market player from the very outset. “If you are not yet in a position to buy turnkey rental properties, maybe you

Open more opportunities. Close more business.

thinkrealty . com | 27 Call us today 866.973.6278 or visit to learn more. 5 Arch Funding Corp./NMLS ID # 103918. Arizona Mortgage Broker License # 0933148; Oregon Mortgage Lending License Number ML-5475. In California, loans are made under the California Real Estate Law, BRE Corporation License # 01928500. 10.779% APR is based on a $250,000 loan with a term of one year at an interest rate of 7.99% and an origination fee of 1.5%. 6.344% APR is based on a $250,000 loan with a term of three years at an interest rate of 5.35% and an origination fee of 1.5%. Terms may vary based on your particular situation. 5 Arch Funding Corp. makes first lien mortgage loans.

Carole VanSickle Ellis is the editor of Think Realty Magazine. She can be reached at

26 | think realty magazine :: november 2017

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