045: Self-Direct IRA to Create Real Estate Fortune and Empire

Do you store your wealth in IRAs? Did you know that you can use that money to invest in real estate? Want to learn all about private money in the self-directed space? If you need cash, you need to go where the money is available to create long-term wealth.

Today, my guest is Edwin Kelly, founder and CEO of Specialized IRA Services and Specialized Trust Company, which provide self-directed retirement accounts. Edwin describes how to create a fortune and build a real estate empire using your or someone else’s IRA.

Topics on Today’s Episode:

• In 2017, $24.7 trillion was inside retirement accounts, and in 2018, it was $25.3 trillion; number increases because of new flow of funds into retirement plans
• Self-Directed: You have a retirement account that allows you to invest in anything that the government allows you to invest in
• $500 billion in retirement accounts is self-directed; small amount because most people are not aware of what they can do with their money - options are available
• 172 million Americans have retirement accounts, but only 1% has money set aside that they can actually invest; self-directing changes it from 1% to 70%
• $1 trillion is expected to come into self-directed accounts in the next decade; people will be looking for investment opportunities that appeal to them
• Stock market does not generate predictable and consistent income, but real estate is an alternative and the Holy Grail to make such income
• People look for alternatives; view stock market as not viable standalone option
• 5 in 100 Americans were financially secure by age 65; 95% failed to create financial wealth or security
• Investment uncertainty, fees, volatility, and taxes affect wealth creation
• Record lows follow record highs in the stock market; people become emotional and don’t understand the market or make rational decisions - buy high, sell low
• Create Wealth: Eliminate taxes, fees, commissions, and uncertainty
• Is using IRA funds for real estate investments illegal or not? IRS sets restrictions
• Incorporate private money as part of investment portfolio and capital structure
• 3 Steps to Success: Open an account, deposit money in the account, and direct money into an investment

Links and Resources Mentioned:

• Specialized IRA Services
• A Foolish Take: What goes down must come up for the market
• IRS IRA FAQs
• Merrill Lynch
• Edward Jones
• Chase

 

Quotes:

“If you’re looking to raise money, you’ve got to go where the money is.” Edwin Kelly

“Self-directed is where you have a retirement account (that) allows you to invest in anything that the government allows you to invest in.” Edwin Kelly

“Most Americans don’t have a lot of discretionary income or money sitting around.” Edwin Kelly

“People just don’t trust the stock market because they don’t understand it.” Corey Peterson

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Text the word MONEY to 408-500-1127 to get my free private money program and credibility kit for single family.