Creating Your Own Private Bank

IRA Money

MONEY!

Understand how to use private IRA money and create a win/win situation

Why would you use IRA money instead of banks?

Banks have a limit

Quicker/easier processing

Less paperwork

More flexibility

Less fees

How to create your own private bank

Learn how Self Directed IRAs work Equity Trust (www.trustetc.com)

Network and find people who have SDIRAs

Educate people about SDIRAs

From vacant lot to new home

•Borrow $30K at 8 percent for 8 years

•$425 monthly payment

•Rent/Sell $650 per month

•$225 monthly cashflow

•$400 house rent/payment

•$250 lot rent

•$3,000 annual lot rent

•$2,100 net profit ($3K x 70%)

•$2,100 at 8 CAP =

•$26,250 value added

•Problem• Need $200K cash to purchase $1M community

•Solution• Use SDIRA in the form of a second mortgage

• 1st mortgage = $800K (bank)

• 2nd mortgage = $200K (IRA)

Property Acquisition Using IRA Money

Some Now, More Later!!

•6% interest only payments ($12K annually)

•25% equity (future growth)

Why would an investor be interested in this deal?

•Personally guarantee 2nd mortgage

•Create an option to purchase property at $1M

• Use trust to form the option

• 75% trust ownership = you

• 25% trust ownership = investor IRA

Mechanics of the Deal

•Sell property for $2M in 8 years

•A job well done• $750K (75% of equity increase)

• Principal pay down on $800K 1st mortgage

•Now that’s what I’m talking about• $250K (25% of equity increase)

• $96K interest earned in 8 years

Show Me the Money!