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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!