Stocks, bonds, and mutual funds are the usual financial investments prospects for Individual retirement accounts or IRAs. But, investing it in real estate syndication can also be a good option to diversify your portfolio. It is important to note that the IRA should be self-directed for you to be able to use it for real estate investment.
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In this Highlights episode, we look back at our conversations with Chris Tanner of the New Direction Trust company and Scott Maurer of Advanta IRA. Chris shares the workflow for using Self Directed IRA funds in real estate syndication while Scott explains why investing your IRA funds in real estate is a great alternative to stocks and mutual funds. This show will answer any queries about self-directed IRA in real estate syndication so tune in!
Key Points From This Episode:
- Chris shares his immense experience in the field of Self Directed IRA.
- What is the difference between Roth IRA and Solo 401(k)?
- Should inexperienced investors hire a custodian for their 401(K)?
- How to effectively communicate with investors who are planning on investing their IRA funds in real estate syndication
- Prohibiting rules for using IRA funds that syndicators should be aware of
- What is the biggest mistake that syndicators make while raising funds from IRAs?
- What is the benefit of investing in real estate from your IRA?
- What is the best way to find folks who are interested in investing their IRA funds in real estate?
- What is the total quantum of funds held with the IRA? And, what percentage of these funds are invested in real estate?
- How to educate individuals about the benefits of investing their IRA funds in real estate
- What are some common questions that investors ask real estate syndicators before investing in their IRA fund?
- Should you seek advice from your CPA before investing your IRA funds in real estate
“In general, IRAs are available. They (investors) can self-direct those.” — Chris Tanner
“One of the things we look for is that we don’t want too much concentration of retirement funds from one person and a business. So, there’s a 50% rule which means you cannot have one investor with retirement funds owning 50% of the business. That will disqualify him.” — Chris Tanner
“For a lot of people who use their IRA to invest in real estate, simply the IRA provides them with another bag of money to use.” — Scott Maurer
“So, knowing that it is possible, knowing that there is no tax consequence, it is ultimately up to your investor to decide if this (investing IRA) is something they want to do.” — Scott Maurer
Links Mentioned in Today’s Episode:
About Chris Tanner
Chris Tanner is the Business Development Manager at New Direction Trust Company. He has assisted thousands of individuals and business owners to establish self-directed retirement accounts, and we have extensive experience facilitating real estate syndications. He has personally used self-directed retirement plans since 2006 (Roth IRA and Solo 401K) so he is not just an employee, he also has real-world experience when it comes to educating people on self-directing their retirement funds.
About Scott Maurer
Scott holds the distinct designation of Certified IRA Services Professional (CISP) and leads engaging seminars and webinars designed to educate the public on the intricacies of self-directed IRAs. Scott is experienced with many different investment types and their unique processes. Scott is a licensed attorney and graduate of the University of Florida Law School.
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