Investing in Commercial Real Estate With Your Self-Directed IRA
By
I had a real estate investing student call me earlier this week who was tearing
up the commercial real estate market and pursuing deals in three states. He was a real estate agent and a rehabber and he’d made a lot of progress using his market knowledge and marketing systems to get some great deals. However, this experienced investor was stuck – stumped – due to some of the changes in the lending industry right now. He was having trouble getting a loan.
He already had five loans in his personal name and his line of credit was 
maxed out. His cash was tied up in deals and he was turning his houses into rentals instead of sales because he wanted to wait for the real estate market to turn around.
So, we decided to harness his know-how and strap it to some cash-and-credit partners who would LOVE to be working with a guy who
was out doing profitable deals in today’s marketplace.
In my call with this student, we spent about an hour going through these techniques. Now I’m going to share the highlights here with our blog readers. Feel free to ask questions.
This will be a multi-part series.
Here are the main sections I’ll be covering in the series.
1) Investing with YOUR Self-Directed Individual Retirement Account (IRA) – Being a cash investor in someone else’s deals
2) Finding a Self-Directed Custodian to Help You Invest in Real Estate With Your Retirement Account – This will help you invest your Roth Funds or Help your private cash investors use their IRA money to fund your deals.
3) How to Attract Private Money Partners Who Want to Invest In Your Deals With Their Retirement Account
4) Finding Credit Partners Who Will Sign On Loans With You – Use the bank’s money and Other People’s credit.
If there’s something missing from this list that YOU want to know about, please make sure to let us know in the comments and we’ll try to add it in for you.
12 Comments
January 8th, 2009 at 7:45 pm
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January 12th, 2009 at 5:44 pm
Hey, great stuff on self-directed IRA’s. I am the owner of Entrust Northeast located in Verona, NJ. We are administrators of self-directed IRA’s and we are part of The Entrust Group. TEG is the oldest and largest administrator of self-directed retirement plans in the country.
I’d be happy to act as a resource for you if you’d like.
You can also follow my blog at http://www.entrustnortheast.blogspot.com all about self-directed IRA’s and wealth building for retirement.
January 16th, 2009 at 7:51 pm
Hi Les,
Please share a little bit about your investment program.
Jaime – Thanks for your comments on the IRA series. We’re always looking for other custodians. What do you feel are the top 2-3 things that make your company a good choice for people who are looking to get a self-directed IRA set up?
Emily
January 19th, 2009 at 10:46 pm
Hi Emily. One of the top reasons clients come to us is that we have a network of independently owned and operated offices throughout the country – 35 now, I think. That means that someone can actually visit our offices if they wish and get to know us.
Also, we are big on educating clients about self-direction and what it can mean to them. We don’t sell, promote or endorse any investments so we are unbiased. Our main goal is to help clients build wealth for retirement.
In general, we are pretty conservative when interpreting the IRS regulations in order to protect our clients plans.
Please feel free to contact me directly for more information.
January 26th, 2009 at 7:42 pm
Hi Jaime, that’s great information.
I agree that it’s really important for real estate investors (and others who would turn to others for advice on financial planning and investments) to make sure that their advisers are UNBIASED. It’s easy to find SALESMEN to advise you on which stocks and insurance policies to buy.
It’s important to recognize that these folks may have a conflict of interest when it comes to giving you the right advice for you, and steering you in the direction that most benefits them (the one where they get the biggest commission.)
It’s good to know that your company, Entrust Northeast, does not operate on that basis.
Thanks for making yourself available as a resource to our readers.
Emily
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November 7th, 2009 at 11:45 am
Rob,
Saw you speak a year ago. You were great and easy on the eyes
Any chance you will be speaking again soon?