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Should You Buy Property With Your Retirement Funds?
MY FRIEND DID, AND HE DOUBLED HIS MONEY!
Here’s a secret informed investors know but the average guy doesn’t: You can legally invest your Roth IRA and/or 401(k) retirement savings in multifamily properties! It can also be an awesome way to beef up your account balance AND save on taxes. One of my investor friends (I’ll call him John) did this 10 years ago. He used his IRA to work with us and buy a 168-unit apartment community here in the heartland. Then, this year, he decided to retire and get out of the investment game.
IRAs and 401(k)s over the years. In fact, I’d say about 40% of our investors use at least SOME of their IRA money to invest in apartment properties. Why so many? Well, once you know it’s an option, it just makes sense. If you’re over 40, your biggest pile of money is probably sitting in a retirement account with Fidelity Investments, Vanguard, or another company like that. Why wouldn’t you use that money to get great returns in a conservative multifamily property investment, especially when it’s so easy? Generally speaking, all you need to do to invest with your retirement is go through a paperwork exercise. Then, you can transfer as much of the money in your account as you want (it’s not all or nothing) to a company called an IRA custodian. When I say a custodian, I mean a business that acts as the go-between for your IRA money and your real estate investment. They’ll make sure you follow all the IRS rules and regulations. I personally keep my IRA money with Midland Trust (MidlandTrust.com). If you want to try them out, they’ll make investing your biggest pile of money in multifamily real estate easy — and you can actually get through to them with a phone call! I like to use my IRA money this way because it lets me invest sooner than I could if I were socking it away in a savings account or money market account. Plus, all of my distributions are tax- deferred. Then, when I sell my IRA properties, I get those BIG distributions tax-deferred as well. But I
won’t pretend investing your IRA in a multifamily property is 100% sunshine and roses.
There are two big downsides you need to think about: fees and paperwork. Most custodial companies will charge you about $500–$1,000 per year to manage your investments, and they’ll also send you a form every year you need to fill out to report the value of your IRA to the IRS. Still, this type of investing is pretty darn easy, and a lot of beginning investors don’t even know they can do it. So, help me out and spread the word! The more people know about their options, the better. *Disclaimer: I’m not a financial advisor, and I kept things pretty simple here, so you should take this article with a grain of salt. Talk to your financial advisor, lawyer, or accountant before investing to determine what’s best for you. –Darin Garman
About 40% of our investors use at least SOME of their IRA money to invest in apartment properties.
After 10 years of hanging on to that multifamily property, he sold it. And guess what? That sale DOUBLED the money in his retirement account! Even better, all of the profit he made and all of his distributions are tax-deferred. Of course, this isn’t something that happens to every investor. Doubling your money in 10 years is pretty dang impressive! But I’ve helped a lot of guys and gals find success investing their Roth
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GIVES A GLIMPSE INTO THE NEAR FUTURE ‘When Machines Become Customers’
Artificial intelligence (AI) is everywhere, and it’s not going away any time soon. And while no one can stop how soon it will enter the customer market, you can prepare for it. In the new book “When Machines Become Customers” by Mark Raskino and Don Scheibenreif, the inevitability of AI shoppers becomes apparent, but what does this actually look like? Raskino and Scheibenreif describe AI-enabled customers as technology that shops for us and will overtake the decision-making process when purchasing products or services.
In this surprising book, the writers describe three phases regarding the evolution of machine customers. Currently, we’re at “base zero,” where tech can inform us when an inventory of a specific product is low. We can see early-AI customers in companies like Amazon, where Alexa can purchase an item or its Dash Smart Shelf can sense when an item needs to be replenished and reorders for you. So, what are phases one, two, and three? Phase one involves machines being able to purchase items for a customer, but only from a single manufacturer or product type. Some examples are printers that reorder ink when it senses levels are low or coffee machines that purchase more pods when stock runs out. Phase two expands when smart assistants become widespread and can make knowledgeable purchasing decisions. The machine’s intelligence has increased, and it will be able to shop for various products from a range of companies. Suddenly the work of
choosing what products to buy is being moved from the customer to the machine. Machines will decide what items to purchase based on factual information alone, such as best value and healthier ingredients. Finally, phase three involves the machine customer becoming completely autonomous. The AI customer can predict the need for an item, replenish with the best product available, and complete the purchase with zero human interference. This new feature can benefit small-business owners by taking over the time-consuming task of calculating inventory, identifying customer preferences, and purchasing stock. While this may seem like a distant reality, it’s closer than you think. This shift in customer demographics requires an all-new approach to marketing and operations that you should be ready to tackle. Read more about how your business can better prepare for machine customers in this outstanding book.
ALWAYS Ask This Question Before Investing
THE ANSWER SHOULD MAKE YOUR DECISION FOR YOU!
When you’re considering investing with an individual, company, etc., you need to ask the right questions. Above all, you need to ask what I call simply “The Question.” It’s a big one!
“Have you ever lost money in any of the investments you have been involved in?”
If their answer is “NO,” then you need to run away from this investment (or the person working on the investment) as fast as you can. A “NO” answer tells you one of two things:
money, and a few lost more money than I would care to admit. So, my answer to The Question is an absolute “YES.” And that’s the answer you want to hear.
1. They are lying — simple as that. 2. They do not have enough experience.
When you begin a relationship with someone, especially an investment relationship, everything needs to be transparent. If your partner won’t give you the facts, they’re wasting your time, and that spells trouble with a capital T. So, make sure you ask me and any other investor you’re considering working with The Question. I am always happy to personally discuss our exciting investment projects — and even talk about the stinkers. Just call or send an email.
Anyone who invests in real estate as their primary business has had investment losses because not EVERY investment works out. It’s impossible for every investment to work out. Even investors considered the best at what they do know this to be the case. They’ve all lost money on something. The best way to have a great (but not perfect) track record is to learn from the bad experiences so you don’t repeat them. Plus, a lot of money can be made from lessons learned.
Providing great investments with great transparency, even in this economy ...
–Darin
A very high percentage of my real estate property investments have worked out extremely well, but I admit I’ve had some stinkers! Some of those stinkers lost
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SUDOKU
hanged
This Guy C the Way Yo
u Eat!
‘The Fathe r
Meet Otto, of Sliced B
SOLUTION
read’
Without Otto Rohwedder, every time you wanted to make toast or a sandwich, the process would take a few extra seconds. Why? Well, you couldn’t just grab a perfect slice of bread from your bread bag — you’d need to cut it yourself!
T SALES
APARTMEN
ESS
AND SUCC
Most people alive today don’t remember a time before pre-sliced bread, but we might still be living in it if not for Otto. He was born right here in Iowa in 1880, but he didn’t set out to be an inventor. In fact, before he created the first-ever bread slicer, he was in the jewelry business. Otto moved to St. Joseph, Missouri, in 1900 and opened three jewelry stores. He sold necklaces, bracelets, and rings for more than a decade. Then, in 1912, inspiration struck! Seemingly out of the blue (perhaps while buttering his hand-sliced toast), Otto realized that with a little ingenuity, he could improve the way we eat bread. The road to success was rocky. Otto’s first few designs only worked on paper. He sold his jewelry companies in 1916 to fund his invention, but local bakers scoffed at his idea, and staleness plagued every loaf he sliced. In 1917, he finally found a factory to manufacture his slicer — but it caught fire, and his first machine and its blueprints went up in the blaze! All in all, it took Otto 16 years to get his bread-slicing machine to market, but he never gave up. He developed a prototype that sliced and wrapped loaves to keep them fresh, and in 1928, a Missouri baking company called Chillicothe Baking Co. agreed to test it out. The convenient machine was such a hit that within two years, families all over the country could buy pre-sliced Wonder Bread. The phrase “the best thing since sliced bread” wouldn’t exist without Otto’s entrepreneurial spirit. Next time you grab a loaf of Sara Lee or Dave’s Killer Bread at the grocery store, say a little thank you to one of our favorite Iowans, “The Father of Sliced Bread!”
6 UNITS MARION S O L D!! ON MARKET 7 DAYS …
100+ UNITS UNDER CONTRACT!
4 UNITS – SOLD! IN DAYS … NO LISTING AGREEMENT!!
CONTACT DARIN TODAY AT 319-350-5378 FOR MORE INFORMATION ON THESE LISTINGS!
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HEARTLAND INVESTMENT COMPANIES
PRST STD US POSTAGE PAID BOISE, ID PERMIT 411
Darin Garman: Heartland’s Most Trusted Multi-Family Investment Advisor 2505 Silver Oak Trail Marion, IA 52302 DarinGarman.com 319-350-5378
INSIDE Page 1 A Little-Known Way to Double Your Retirement Money Page 2 Get Ready for AI Customers The Question You Should ALWAYS Ask Before Investing Page 3 Wait … A Jeweler Invented Sliced Bread? Apartment Sales and Success Page 4 Become a Kid Again With ‘LEGO Masters’
Get Your Brick On
‘LEGO MASTERS’ WILL PLEASE ALL AGES
Most of us fondly remember letting our imaginations run wild with LEGO blocks as a kid. But it turns out some people never outgrow that fun. A community of high-level adult LEGO builders can construct astounding creations. And in the competition show “LEGO Masters,” they compete spectacularly to determine who is the best of the best. “LEGO Masters” follows a format similar to most reality competition shows. Teams of two compete every week in a new challenge. The team that does the worst goes home, while the others advance closer to the title of LEGO
“LEGO.”) But while they have every size and shape they could ever want, the challenges are no cakewalk. The builders must create structures that move, incorporate water, or hold enormous weight. Amy and Jamie give tips while the builders work and judge the teams on creativity, function, and storytelling. Unsurprisingly, at least one team disappoints most weeks, but many builds are incredibly impressive. You’ll be shocked to learn how much is possible with six-studded bricks! Arnett is a great host who is equally impressed with the contestants’ abilities and willing to inject some levity into the proceedings. His comedic bits keep the show moving, and he’s passionate about the different builds. He also has a destructive streak. Several challenges include builders creating masterpieces for Arnett to blow up, sledgehammer, or try to break with weights. Kids, in particular, will enjoy seeing the pieces go flying. “LEGO Masters” will entertain kids, teens, and adults with laughs, competition, and some education. However, there may be one downside to watching with your children: They might ask you to buy a lot more LEGO. But that, too, presents a new opportunity to bond and spend time together as a family. Even if you don’t win any prizes, making your own creations can be just as fun as watching the pros. As Will Arnett regularly instructs contestants, “Get your brick on!”
Master. Jamie Berard and Amy Corbett, two “master builders” who design kits for LEGO, judge the contestants. Meanwhile, actor and comedian Will Arnett covers hosting duties. Contestants have access to 3 million LEGO in the studio. (Fun fact: “LEGO” is the plural of
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