I didn’t forget. I still have my notes from the intensive in May and wanted to get them out to you before I published my next podcast. The NRU Intensive in Austin, TX was a two day FREE learning event for NRU members and their guests but you must have a ticket to attend. They hold these intensives about every 2-3 months in Austin and there is always one going on somewhere in the country. If you are interested in attending any of them, just ask me to send you a ticket and I will get one for you. The content you receive is worth millions, the ticket to the 2-day event is worth over $3500 and you can get in free as my guest.

At the local Intensive in May, I saw Curtis De Young of American Pension Services and Isaac Spencer of Jean Paul & Associates speak. Curtis spoke about using retirement plans to invest in real estate and Isaac talked about how to do a Subject-To Deal. Since it’s best to receive this information first hand at the event, I will only give you a brief overview of both strategies and recommend you purchase the materials on the subject from LearnREI.net or attend an Intensive yourself..

Part 1: Retiring with Real Estate

Currently there are 3.7 trillion dollars in IRA’s. 8 billion dollars are available per week in 401k’s. The average IRA has 30-50 thousand dollars in it. Since real estate is one of the few investments that you can purchase that goes up in value and you can insure from hazards, it is one of the best investment vehicles you can use and purchase with a Self-directed IRA. You can invest in residential, commercial, rental properties, raw land, short sales, real estate options, real estate loans, foreclosures, tax liens, fix and flips, and mortgage notes all inside an IRA and have it be protected from taxes and the government.

There are several rules that go along with an IRA. You can’t take out the money until you are 59.5 years old. If you do, there is a 10% tax penalty. Profits are taxed. In Self-Directed Roth IRA’s you control the risks and returns, all profits after 5.5 years and at 59.5 yrs of age is tax free. The initial investment can be taken out any year before and after that and your retirement plan can hire you for a salary at any age to work for it .

There are 7 steps to using your retirement plan to invest in real estate.

1. Rollover your old 401(k)s and IRA’s to a Self-Directed IRA.
2. Fill it up as much as possible through contributions, income from investments, profits from the sale of investments, etc..
3. Invest in what you know. In this case if you are wanting to be a real estate investor like me, it is important to focus on a specific investing strategy. Invest using that strategy.
4. Become an Expert. It’s important to find out all the rules around the retirement plan you are doing. How do you list beneficiaries? Do you know where your forms are? Are you maximizing contributions?
5. Build it Faster & Stronger. Invest together! You can combine several IRA’s to go in on deals! Set them up for family members. Buy bigger and make more profits.
6. Do More with what you have. Build a group of professionals around you that are experts in their field. You will need a financial planner, accountant, title insurance company, attorney, real estate broker, education, and a self directed retirement plan administrator.
7. Maintain it. Never pay capital gains and tax gains. Use 60 day rollovers.

The main reason to use a self-directed IRA versus a traditional 401(k) or regular IRA is that you have control of it and who cares more about your money than you do? If you are learning real estate investing and have the education (through LearnREI.net), have the right retirement plan administrator (American Pension Services), and the right team around you, you can grow your investments much faster and stronger than any stock broker can. There were so many details discussed that are not included here. Like I said before, it’s best if you can get the information first hand at one of these intensives.

Curtis De Young travels all over the country speaking about this and offers this information for FREE!! to NRU members and their guests. If interested in hearing him live, contact me for a ticket. If you are in Austin, TX and would like to join our investors group, we meet every Thursday at 7 PM currently at the Holiday Inn Aboretum between 183 & Capital of Texas. Just sign in as guest of Flower De Raadt and you are in!

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