Archive for the ‘Answer Questions Investors Will Be Asking!’ Category

How Roth IRAs can Invest in Real Estate

Tuesday, January 13th, 2009

I do not have all the answers on how you can use a Roth Ira to invest in real estate but you can go to Entrust Arizona.com. This group of people agree to work with and will give you all the real answers and details on IRAs.  I am  just making an  attempt to explain what I understand about it.  A company like Entrust  is a record-keeping services for clients who choose to self-direct their IRA accounts and take advantage of investing in nontraditional assets.

With Roth IRAs which are self-directed you can actually invest in real estate, in (LLC’s) limited liability corporations, limited liability partnerships, partnerships and joint ventures, and much much more. In real estate you can actually invest in apartment complexes, raw land or  undeveloped land, co-ops, commercial real estate properties, and even in condominiums.  Click on this link and go to Entrusts of Arizona page on real estate.

An LLC is a legal organization that provides the tax advantages of  a partnership while limiting the legal liability of the individual partners in the same way a corporation does.

Purchasing nontraditional assets with a self-directed IRA can help you diversify your investments, which may guard your retirement portfolio against economic changes. Investing in an LLC is just one of the many options available with your self-directed IRA.

These are some of the comments why people use self-directed IRAs when the economy changes you can put it in what you choose like a real estate development that is guaranteeing you double your money in one to two years. I do not want anyone taking all their retirement portfolio and putting it in one thing; that’s not what I’m asking you to do,  I’m asking people to take a portion and invest it in my land development.

When you are raising money and asking people to use their 401(k)s or retirement plans from a job they do not have any more,  they can move that all into a self-directed Roth Ira and put it into real estate projects or the LLC.  Bass Country Estates  LLC will be doing a real estate project so you have double the protection of your money.  How can I give double your money back?  Because,  I am not paying high interest every month like most projects.  When you have cash the developers  understand by getting your project as quickly as possible they will get paid right away; therefore  their pay is not prolonged.   I have used private money before and things seem to move a lot quicker on all ends of a project.

With private money and cash you can close on the land in 10 days because most of the due diligence has been done: but you really would double-check everything. The engineer is ready to draw on this development, we have the companies lined up to do the sewer system approved by the state within 30 days or less. The owner of the land, which has owned it for over 70 years, knows all the local builders, developers and engineers, and even some of the judges, which all help us in moving projects like this forward quickly.

The one developer next-door sold his development out in six months. Most of the homes, in that development are 10,000  sq ft or larger.  I also understand we have more Lots and more acreage,   as breathtaking of a spot on this lake.  Plus we have that special arrangement that no other developer in the area has that will be a great marketing benefit.

Click on this link to find out why self-directed Roth IRAs work

How does the Money get Handled

Saturday, January 10th, 2009

I know most people will ask: How will you deal with the money? I’ll cover this in many ways today.  It will most likely go into an escrow account for the LLC, and a small portion about $250,000 would go to a checking account. Once all the funds are in an escrow account, and all the legal documents have been drawn up, the LLC will close on the property and at that point all liens would be placed against the property for each investor.  All the details will actually be defined in the memorandum that each investor will get.

 

The LLC  will also put all the sales of the lots into an escrow account. Every time that escrow account reaches a certain amount each investor would get a fourth of the total amount of their return. So as the development progress and sales happen investors would get returns each time the second escrow account reaches a set amount. Again more of the details of this are set forth in the memorandum that each investor will get & sign before they invest in this LLC.

I’ve talked about 401(k)s and Roth IRA’s that are self-directed, anyone can have a self-directed Roth IRA, there are companies like Entrust and others around the country that handle these accounts. That is what makes it a legal retirement fund because Ira account managers manage your money as you instruct them to, and what to invest in. I am not a financial adviser so I do not know all the laws, there are many types of Roth IRA’s , but the only one is a self-directed Ira that you can invest in real estate and other investments.  You need to talk to a  financial planner that can help you set up a self-directed Roth IRA. Then the IRA could invest in this development and double its money in two years or less.

All the details will be in the memorandum that serious investors will get a copy of once the LLC has all its funds to move forward. So if you download the investment summary it’s a brief overview of the plan. Right now I don’t know how many people would trust the stock market, and the next question is why would they trust me. The only way I would feel good about this is because through private money I can give liens on a land and secure your funds to double your investment.

In any investment there is really no security except the stock certificate or the knowledge of your return. By doing it this way,  giving you liens, on the property equal to double your investment, and as you get paid back you will release a certain portion of liens for each payment you receive. So if I replaced everybody’s investment within a year and then pay them the double their investment the second year everyone would be very happy, because I don’t know anyone that is willing to give this type of return on an investment.