REAL ESTATE & RETIREMENT
THINK REALTY NEWS
REAL ESTATE IRAS
This Month: Think Realty National Conference & Expo in Dallas | February 24-25
T his month at the Think Realty Conference & Expo in Dallas, Think Realty is focusing on business efficiency. Our theme, “Think Time,” drives to the heart of the idea that you can elevate your real estate ventures by leveraging time-saving tools and resources that will help you maximize your returns while re- claiming that most valuable of assets, time. You'll also learn about self-directed IRAs, alternative investment opportunities, tax sale properties, getting your credit score healthy, and more! On Saturday, February 24th, the event will feature eight educational breakout sessions, a local market discussion, invaluable networking opportunities, more than 40 exhibi- tors, and featured presentations from select keynote speakers. Sunday, February 25, will highlight Think Realty’s coaching team, with multiple educational training sessions as well as two workshop intensives hosted by Think Realty sponsors. Grab your tickets today, as this event will sell out. Learn more about our February event at https://thinkrealty.com/events/dallas. Invest in yourself by putting all our 2018 events (see right) on your calendar! • Think Realty Radio Hits the Airwaves O n the first day of 2018, Think Realty Radio went live on Wall Street Radio. The national talk radio show is hosted by Think Realty coach Abhi Golhar, an experienced real estate investor quickly on his way to becoming one of the forefront voices in real estate. Golhar covers topics such as foundations for success, long-term real estate market predictions, fix-and-flip strategies, and more with industry leaders and active investors at all levels.
REAL ESTATE IRA: A self-directed individual retirement account holding real estate investments. These accounts can hold almost any alternative asset, but investors who focus on real estate often refer to them as real estate IRAs instead of simply self-directed IRAs.
February 24-25, 2018 | The Westin Galleria Dallas
The Two Sides of Real Estate IRAs KNOW THE OPTIONS (AND PITFALLS) FOR REAL ESTATE AND RETIREMENT.
April 14-15, 2018 | The Marriott Inner Harbor at Camden Yards
by Mike Ventry
July 14-15, 2018 | The Marriott Irvine Spectrum
A
s an individual retirement account (IRA) administrator,
side and a lending side. The buying side is pretty familiar. People use the money in their IRA to purchase a property, fix it up, and then rent it out or sell it. The IRA funds the investment and then collects the rent or the returns from the sale. The other side of things, the lending side, is a little less well-known. It is definitely a less exciting process than fixing-and-flipping. When you make a real estate loan using your IRA, you loan an amount of money to someone who, in return, uses a piece of real estate as collateral on that loan. The borrower pays you back with interest based on the formal loan agreement. There are some small, education-based pitfalls on either side of this equation. On the buying side, investors often forget that their IRA owns the property, not them. The IRS forbids them to pay for anything directly and from working on the proper- ty. The IRA must pay all expenses on that
investment because it is the IRA’s invest- ment. Fail that, and you have committed a prohibited transaction, for which the fines and penalties are severe. On the lending side, the biggest pitfall seems to be that investors forget not every loan goes as planned. Most know how to foreclose, of course, but they often leave out language dealing with how they will handle prepayment and late payments. If you do not add in the right types of fees for these issues, you could end up not making the returns you were planning. Real estate is one of the best invest- ment vehicles out there for self-directed investors. For the best results, be sure you know all the angles and that you are abiding by all IRS rules. •
I see a lot of people switching over to self-directed IRA accounts to invest in real estate with their retirement capital. This has been happening in rising volumes thanks to the general public’s wider knowledge of and exposure to real estate investing these days. By the time an independent, creative investor with a traditional retirement account managed by a financial advisor has watched a few television shows and maybe done a little research, it’s not uncommon for them to make the switch with full confidence that they can handle their retirement investments as well or better than the person previously in charge. They’re almost always right about this, but that does not mean that they automatically know everything. Many investors do not realize there are two sides to real estate IRAs: a buying
September 22-23, 2018 | The Westin Buckhead Atlanta
DID YOU KNOW? Investor-Level Think Realty members receive free or discounted access to national and regional networking, learning, and deal-making events as part of their membership privileges. Learn more at https://thinkrealty.com/membership. and advanced investors.” Eddie Wilson, president of Think Realty, added, “Our national magazine, conferences, and website content are all designed to educate real estate investors. Think Realty Radio is an additional layer that will support investors with relatable guest interviews and expert personalities.” •
“Think Realty and I share a passion for educating real estate investors and help- ing them to succeed in the industry,” said Golhar. “The show includes the latest in- dustry trends and will inform, encourage, and inspire novice
Mike Ventry is a self-directed IRA admin- istrator with Advanta IRA. He may be reached at mventry@advantaira.com.
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