global publishing – creating wealth through education and ... · 08.08.2017 · invest $100,000...
TRANSCRIPT
Do I need an
attorney?
Deed must be
recorded
No transfer tax
Should my home be
in one?
What about
Homestead
Exemption?
Can the Bank call
the loan?
Garn St. Germain
Depository Institution
Act of 1982
What if I get a
bank loan?
Who pays taxes?
Who is trustee?
Who is the
beneficiary?
Would LLC work
instead?
I’ll send you the links to
download all these power
points
Common IRA Questions
• Why use an IRA?
• Why a Roth?
Invest $100,000 A Year For 10 Years At
15% Outside Your IRA
100k 10 yrs $437,196
100k 9 yrs $376,780
100k 8 yrs $334,732
100k 7 yrs $279,892
100k 6 yrs $241,263
100k 5 yrs $207,983
100k 4 yrs $179,312
100k 3 yrs $154, 812
100k 2 yrs $133,332
100k 1 yrs $115,000
$2,460,302
Now Invest The Same Money From
Your IRA And Pay No Taxes Along
The Way
After 10 Years The Same
Investment Is Worth?
How Do I Set Up An IRA?
Phone (800) 320-5950
www.questira.com
Can I use my existing
IRA?
Yes!
Common IRA Questions
Who can qualify for a
Roth?
Anyone!
Common IRA Questions
Why isn’t my profit
considered a contribution?
Because you don’t cut a
check to your IRA
Common IRA Questions
How much profit can my
IRA make?
Unlimited!
Common IRA Questions
Lease Optioned To Owner Occupant
Paid $25,000 Repairs $3,000 ARV $75,000
Lease Optioned To Owner Occupant
$69,900 As is
$3,000 Down
$900 Rent
$280 monthly association dues
Net Rent $620 x 12 =
$7,440 yearly net
Let’s Check The Annual Rate of Return
$25,000 Price
-$3,000 Down
-$900 Rent
$21,100
$7,440 = 35% ROI
on a $21,000 investment
Cash investment
from my IRA
My IRA Borrowed $30,000 From A Private
Lender at 7% - 5 yr. amortization =
$594.04 per month
$30,000 loan proceeds
-$21,100 cash returned
$8,900 excess cash
Tax Free
Cash Generated Now
$8,900 From loan
$3,900 From tenant
$12,800 Total cash
But Ron!My IRA doesn’t have
$30,000 in it!
Then close the purchase and loan at
the same time like any other deal.
Must be Non-recourse
Paid $13,200
Repairs Needed $20,000
ARV $69,900
Lease Optioned To Investor
Lease Optioned To An Investor
$39,000 As Is
$2,000 Down
$600 Rent
(Net $450=$5,400)
Let’s Check The Annual
Rate Of Return
$13,200 Price
- $2,600 Collected
$10,800 Cash Invested
$5,400= 50% Annual ROI
On $10,800 investmentTax Free
But Wait, There’s More!
He’s been in the house
50 months x $600 =
$30,000 in rent.
I only paid $13,200
for the house!
…and he still
owes me
$37,000
I Don’t Know How
to Calculate the ROI…
But I Think It’s Good –
And Tax FREE
The Rate Of Return Is
But Ron!This ties up my cash
So call a friend to lend
$20,000 on a first mortgage at
7% for 5 years $396.02 month
Now You Have
$9,200 Net From Loan
$2,600 From Buyer
$54 Monthly Positive Cash Flow
$0 Balance in 5 Years
$0 Repairs to do
No delays – short sales - banks –
rehabs – contractors… Taxes
Or Capital Tied Up In Real Estate
$11,800 Cash Now
But Ron,
That Will Trigger
U - B - I – T(Unrelated Business Income Tax)
Since your IRA borrowed money.
Not NecessarilyIn 2010, a new rule stated…
If the debt is paid
off a year before the
sale there is no
UBIT
The
Goose
Lives
What Would You Have
Collected By
Wholesaling The House?
Can My IRA Rehab
Houses?
Yes, as long as the
money comes from and
returns to your IRA, even
if from a private loan.
Caution
You cannot personally
benefit from any transaction
your IRA does. No tricks to
bypass the rules.
What about owner financing
and “Subject To” deals?
Yep! You can do them all in
your IRA
But… Remember
Any deal that comes with debt or
incurs debt after purchase will be
subject to
UBITUnrelated Business Income Tax
That means you are subject
to income tax on the
profit…unless
The debt is paid off for at
least a year prior to the sale.
What about Lease Option
and ACTS deals?
Great in IRA! No debt so
no UBIT!
But…
Your IRA Takes Subject To Or
Buys With Lease Option
You Lease
From SellerYou Lease Option
To Buyer
Value $350,000 $369,000 Sales Price
Loan $295,000 $319,000 Due Your IRA
Pmt $1,582 $2,500 Rent/Pmt
Cash $0 $50,000 Down
Your IRA Just Made
$50,000 In A Few Days
Tax Free
Plus It’ll Make $1,018 A
Month For Years
($2,500 - $1,582 = $1,018)
Tax Free
Then When You Do Get Cashed Out. You Get To Keep All The Cash Above The Loan Payoff
Inside your IRA
Tax Free
At the end of 10 years the
$295k loan has been paid
down to $220k which is
your payoff.
So your back end profit is:
$369,000 Sale Price
-$50,000 Original Down
$319,000 Balance Owed Your IRA
-$220,000 Your Payoff
$99,000 Net Cash To Your IRA
10 Year Profit Recap
• $50,000 Original Down
• $122,160 Monthly Cash Flow (10 years)
• $99,000 Back end cash
$273,660 Net Profit in Your IRA
Before Taxes
No Tax if you Lease
Option from Seller
On a house your IRA got for free with only $55,000 equity.
• No Money
• No Credit
• No Risk
• No Repair
• No Banks
• No Realtors
• No Short Sales
Whether You Sell O/F Or
Lease Option All
Responsibility For 100% Of
The Repairs Is Passed On To
The Buyer And Taxes And
Insurance Are Escrowed By
The Underlying Lender
That My Friend, Is
Called Leverage. Try
That On Wall Street.
What if you had
20 of these?
Forget Social Security
The Best Way To Predict Your
Future Is To Create It.
But Ron!
What if I don’t know
how to do this
real estate stuff?
If you never do a
deal in your IRA
Tax Free is still
better than taxes
If you want to learn
how to do these deals
without using your IRA’s
money, your money
or your credit… go to
RonLeGrand.com/Quick
and get in our next class.
How do I go about
buying in my IRA?
Common IRA Questions
Steps To Use
Your IRA To Buy
1. Set up an IRA
2. Form an LLC with your IRA as the
owner and a non-related party as the
manager and have some funds
transferred to it from your IRA
If You’re Not Taking Title
ACTS and Sandwich L/O
3. Put a property under contract with
the LLC as buyer. Your manager should
sign as manager.
4. Find a buyer for the house and get a
contract signed from your LLC to
buyer. The deposit must go in the LLC.
5. Have an attorney close and
deposit the proceeds in the LLC.
Manager signs all docs.
You cannot be personally compensated
in any way from an IRA deal.
Caution
You cannot contribute any money into the
deal or sign on any loans for it, nor can
any of your linear family or your spouses.
Caution
If your IRA doesn’t have the money
to buy and fix, it can borrow from a
private lender but…
You Cannot Guarantee The Loan
Rehab Deals
Use a Land Trust with your IRA’s
LLC as beneficiary.
All money comes from and goes to
the LLC.
Taking Title
Cash – Subject To – Owner Financing
Why a Land Trust?
• All eggs aren’t in one basket. One
house, one trust.
• Keeps LLC name off public records.
• Limits risks.
How To Title
Personal Property Like
• Stocks
• Bonds
• Vehicles
Personal Property Trust.
On Gold Club Site
RonsGoldClub.com
How To Take Title To
Income Streams
• Wraparound Mortgage/AITD
• Land Contracts
• Private Loans
• Unsecured Loans
• Tax Liens
Paper Trust
How many deals can
my IRA do a year?
Unlimited!
Common IRA Questions
Is there a limit on my
profit?
No!
Common IRA Questions
What can my IRA buy?
Anything considered an
investment except…
Common IRA Questions
Prohibited InvestmentsYou Can Not Invest In Collectables
• Artwork
• Rugs
• Antiques
• Metals
• Gems
• Stamps
• Alcoholic Beverages
Common IRA Questions
Can I deed a house I
own to my IRA?
Absolutely Not
Common IRA Questions
Can my children and
grandchildren have an IRA?
How can I put my children and or
grandchildren through college for
free?
Set Up A
For Each Of Your Children (Or Any Child)
Under 18
Then do one or more deals for your
child in their CESA. Several CESAs
can partner on one deal.
Now your child’s CESA has the money for
• Books
• Tuition
• Travel
• Uniforms
• Computers
All educational expenses from birth to age 30
Common IRA Questions
How can I help my
parents create a
retirement income when
they’re in their 70’s?
What’s the
age limit?No, there is
not one with a
ROTH IRA
Will my
parents need
earned income?
Do I need to
discuss this with
my CPA?
Common IRA Questions
Can I use my 401K?
It depends!
Common IRA Questions
Can I hold property
long term in my IRA?
Yes!
What Should I Do With
The Cash In My IRA?1. Buy short-term properties
2. Buy defaulted paper (ugly)
3. Buy tax liens
4. Make equity loans
5. Anything that can get you a high rate
of return safely
Stocks – Mutual Funds
Coming Soon
Flip Wall Street
Set it and forget it stock
investing that gives you
the gains with none of
the losses.
Go to
RonLeGrand.com/WallStreet
And get registered for a
45 minute online training
FREE
Let’s Say You Buy
$1,000,000
In Real Estate With A
$100,000 Down Payment (10%)
Will The Real Estate Go Up In
Value Over A Ten Year Period
The Same Amount With Or
Without Your $100,000 Down
Payment?
Can We All Buy $1,000,000 In
Real Estate Without Using
Our Money?
If you invest $100,000 one time
and leave it out for 10 years in
any of the investments we
discussed except real estate:
7%
$172,000
15%
$444,000
20%
$725,000
What Did We Just Learn?
IF YOU TIE UP THE
$100K IN REAL ESTATE
LONG TERM YOU JUST
TOOK A $725,000
SEMINAR
But Ron!Where am I going to get a
20% yield?
That’s a passive yield. Active RE
investors who are properly
trained can get many times that
both inside and outside your IRA.
What Should I Do With
The Cash In My IRA?1. Buy short-term properties
2. Buy defaulted paper (ugly)
3. Buy tax liens
4. Make equity loans
5. Anything that can get you a high rate
of return safely
Stocks – Mutual Funds
Question?
Should I Transfer My
Traditional IRA To A ROTH
and Pay The Taxes This
Year?
What will you do with this
money once it’s transferred?
Do you think your taxes will go
up or down in the future?
Answer This
Would You Rather Pay Taxes
On The Seed Or The Crop?
You may transfer any part
of your Traditional to a
ROTH.
There is no penalty except
taxes.
Remember
I’ll send you the link to
download all PowerPoints
for your review.
If you’d like a 30-minute planning
session to discuss doubling or tripling
your business this year, go to
IRA.RonsPlanningSession.com
Last Chance to
Apply For a
30 Minute Planning
Session atIRA.RonsPlanningSession.com