Weekly Wealth Tactic 2

by Ed Barriskill (co-founder, 37th Parallel Properties)

In 1979 the government gave the common investor a wonderful gift, allowing us to use our retirement funds in Self Directed IRA’s. This program allows for investments in many types of real estate including: Single family houses (1 to 4 units), commercial real estate (e.g. retail centers, business office complexes, hotels, industrial), and other types of real estate assets.

Most stock brokers and financial counselors know about this “gift” but are reluctant to tell us about it, primarily because if we knew about Self Directed IRA’s, we would purchase less stocks and mutual funds from them! Despite this calculated silence, more and more investors have discovered the Self Directed IRA Program and are using it to improve their financial future.

Once you learn about all the options you have available by means of the Self Directed IRA Program, you will see the world open up to you for more varied investments. Kathy and I have used our Self Directed IRA to become partners in the Hilton Hotel in Lake Granbury, Texas and the Marriott Courtyard Hotel in New Braunfels, Texas. From what we’ve seen happening to the stock market these past few years, Kathy and I are very pleased we have chosen to invest in these two hotels.

How does this work? You hire a Custodian to set up your Self Directed IRA and act as your representative.   Once you have identified a great opportunity, the custodian will make certain the investment vehicle you have selected is an approved investment (according by the IRS), and that you have all the proper documents completed.

During escrow you will have sold your stock or mutual funds (tax free) and transferred those funds to your Custodian, which then go into your Self Directed IRA  for safe keeping (you should avoid receiving these funds directly.)   Once all the proper documents are completed, the Custodian (with your authorization) will wire the funds to the title company for closing. Once escrow closes and the investment starts paying “cash flow” this money will go directly back into your IRA account you set up with your Custodian, tax free.

37th Parallel Properties can refer you to one or two companies that have performed this service for our clients. These self directed companies will help you fill out the paperwork line by line; it is not difficult. Companies that provide these services do charge a fee to set up the account (approximately $50.00 to 75.00) and they charge quarterly fees of approximately $30.00 to $40.00 per $100,000 of invested capital, but these charges are minimal in comparison to the benefits you can obtain over time.

I have used a Self Directed IRA many times for my own investments. Additionally, Chad and I have helped others discover what a valuable “gift” the government has given us.  We have many investors that have used their IRA Retirement funds to become partners in our:  Preferred 10/10 Program, our Direct Program and our Promissory Notes Program.

We have even had  investors use their Self Directed IRA’s to invest  in our  Multi-Family Apartment Program, These savvy individuals have used their retirement money well before retirement to invest in exciting properties as Brazos Point Apartments (134 units) and our newest project Hunters Point Apartments (112 units).  We are confident they will enjoy significant acceleration in their retirement funds as a result of these investments.

By learning more about the Self Directed IRA Program you will have many more options available to accelerate and control your retirement future.

In our teachings at 37th Parallel Properties, we often say that “Knowledge is Power”, but this is only true only when it is coupled with Action. Chad, Dan, Rick and I are here to give you our well over combined 50 years of experience and knowledge so you can take advantage of the program and enhance your financial situation. With our support, guidance and mentorship we will provide you with the tools, strategies and tactics you need to obtain financial freedom in the future for you and your family.

Look at the Self Directed IRA Program as a tool to accelerate your financial future.  With good, stable, secure investments over the years, your financial future could be very secure & optimistic!

37^th Parallel can help you determine if a self directed IRA is right for you and what options you have by leveraging this investment type, please Contact Us today!