STRATEGY
NETWORK
How to PayYourself Now and PayYourself Later with Partnering
BUILDING WEALTH—AND YOUR NETWORK—WITH PARTNERSHIPS
by Sarah Shellam
hen you think about creating wealth, you’re often thinking
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about your future. Questions like “how can I retire comfortably?” and “what investments will help me reach my goals?” may float around in your head. A common thought would be to shovel a bunch of money away in a savings account or use some funds to invest in the stock market, but what if there was a way to create a comfort- able bucket of money for retirement while also putting money in your pocket now? Self-Directed IRA invest- ing strategies could be the answer. A Self-Directed IRA is a special type of retirement account that allows the account holder to invest beyond traditional public assets, opening the door to the world of alternative asset classes such as real estate, private entities, notes, land, oil and gas, and much more. On top of the ability to diversify your investment portfolio with Self-Di- rected IRAs, these accounts offer many other benefits like reducing taxes and providing possibilities for creative investing. This makes Self-Directed IRAs the perfect vehi- cle for creatively building wealth for not only the future, but today, too! As a real estate investor, these accounts can be especially powerful, as they allow the possibility to utilize
one of the most lucrative and creative investment strategies: partnering.
The beauty of partnering is that it allows multiple buckets of money to get involved and grow at the same time. For example, a self-directed Roth IRA can partner with another self-directed Roth IRA in order to pool a larger sum of money together for a deal, and each account would receive some of the profit. Similarly, this can be done between self-direct- ed accounts and personal funds, too. In this strategy, all parties have a vested percentage of ownership in the deal. When doing this, the percent-
WHAT IS PARTNERING? One of the great features of
self-directed IRAs is that they don’t have to be used solely on their own. Self-directed IRAs can work togeth- er by using a beneficial strategy called partnering. This term is used when one entity (or more) and an IRA come together to put up the funds for an investment.
48 | think realty magazine :: january – february 2022
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