Trust Deed IRA Investing One of the greatest tools available to investors today is the ability to earn tax free, passive income utilizing self-directed IRAs and alternative investments. It just so happens that Trust Deed Investments are becoming one of the most popular investment vehicles and are eligible for self-directed IRA investments. If the thought of investing in real estate interests you, but you don’t want the hassles of dealing with tenants and repairs, then perhaps investing your retirement funds in trust deeds or mortgage notes may be something to consider. Using a self-directed IRA to invest in trust deeds or mortgage notes can be an attractive option because it allows the ability to earn tax free, passive income in a secured lending arrangement. A trust deed or mortgage note is a financial agreement between a borrower and private investor in which the promissory note is backed by a deed of trust recorded on the property. The borrower executes a note payable to the IRA owner and promises to pay a certain interest rate on the loaned money, plus repay the principal amount within a specific time frame. The monthly income from these payments may generate a higher-yielding return to your IRA in the form of monthly income. In the event the borrower defaults on their loan obligations, the IRA receives claim to the property once the property goes through foreclosure. Many real estate experts agree that now is a great time to consider investing in real estate. With the current state of the mortgage industry, foreclosure and short sale opportunities are readily available and may provide excellent opportunities for private lenders.

What is a Self-Directed IRA? The term "self-directed" simply means that you, as an individual, have complete control over selecting and directing your own individual retirement account or 401k investments. Once established, your account can buy real estate, notes, limited partnerships, commercial paper and many other types of assets. With a self-directed individual retirement account or real estate IRA, you make all of the decisions regarding your investments.

Financial Advisor Testimonials “Today, we are seeing First Trust Deeds with LTVs between 50 and 60 percent, meaning the property in question would have to drop in value by half (from today’s prices) for there to be risk due to the value. That is a level of decline which has almost never occurred in history.” (William Jordan, William Jordan Associates) “Private Trust Deeds (Deeds of Trust) can provide high monthly income plus investment protection based on the value of the underlying real estate. Trust Deeds can be used as investments for IRAs and qualified retirement plans, which is a great way to build your wealth on a tax deferred (traditional IRA) or tax free basis (Roth IRA). They can generate high monthly income during retirement. You could use the extra income they generate to spend, invest, pay bills, or buy more insurance protection.” (Jerry Lucas, Advisor Financial Services (LLC)) “Investing in discounted real estate notes is by far the best investment vehicle in today’s residential real estate marketplace.” (John T. Reed, Real Estate Investment guru, www.johntreed.com)

What is a Self-Directed IRA? (cont’) The self-directed IRA custodian or administrator completes the documents required to establish your account and purchase your investment(s). With the great tax advantages provided by all individual retirement accounts and 401K’s, as well as the wider range of possible investments of a self-directed IRA or real estate IRA, you can potentially build wealth and secure your future much more effectively than through traditional retirement plans.

Are There Different Tax Rules for Self-Directed IRAs? The unique thing with IRAs and 401K’s are the tax advantages. Most contributions are either tax deductible as is the case of a Traditional IRA or 401K, or the distributions are tax free as in the case of a Roth IRA or Roth 401K. There are no unique rules for self-direction.

Our Individual Trust Deeds offer excellent investment opportunities for self-directed IRA's. Self-directed IRA’s generally refers to an IRA provider that allows an IRA owner some degree of control over their investment decisions. Common IRA providers include uDirect IRA, Pensco Trust, and other firms. Below is an explanation on how to invest in our Individual Trust Deeds using your self-directed IRA:

Verify that your IRA provider meets any investor suitability requirements.

Fill out the appropriate “authorization to invest” form(s) from your IRA provider.

Contact Summerlin Asset Management, LLC at (949) 225-4471 to help answer any questions you may have and complete the investment process.

Now that you know about Trust Deed Investing, the only question is whether you're going to invest from savings or from your retirement account. Using your IRA is always an attractive option because it creates an opportunity to grow your retirement savings in a tax-sheltered environment. If you don't already have a self-directed IRA, feel free to call our office for directions on how to get started. While Summerlin Asset Management is not directly affiliated with any self-directed IRA custodians or account providers, our group can point you in the right direction.

SUMMERLIN ASSET MANAGEMENT, LLC www.InvestInSam.com

CALIFORNIA OFFICE 18101 Von Karman Avenue, 3rd Floor Irvine, CA 92612 Office: (949) 225-4471 Fax: (949) 225-4472 katherine@summerlinam.com CORPORATE OFFICE 1845 McCulloch Blvd., Suite A-15 Lake Havasu City, AZ 86403 Office: (928) 854-7747 Fax: (928) 854-7059 shannon@summerlinam.com

Yield Comparisons Investment Choices CD Rates: 1 Year 0.15% to 1.15% 3 Year 0.5% to 1.5% 5 Year 1% to 1.8%%

Treasury Rates: 2 Year 0.27% 5 Year 0.82% 10 Year 1.89%

Dow Jones Industrial: 5 Year 1.03% 10 Year 1.93%

SAM 1st Trust Deed Notes: 1 to 3 Years 9.00% to 12.00% Paid Monthly(1)

(1) Yields vary by investment and are documented on all notes and deeds prior to investing.