logging in or signing up Maximize Your IRA AngelaPhebus Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 49 Category: Education License: All Rights Reserved Like it (0) Dislike it (0) Added: January 18, 2011 This Presentation is Public Favorites: 0 Presentation Description No description available. Comments Posting comment... Premium member Presentation Transcript Slide 1: How to Invest with Your IRA and Maximize your Return Slide 2: Offer Educational Programs to Increase Visibility of our Different Lines of Business This presentation is not an attempt to offer legal or tax or investment advice. The contents of this workshop are purely information and education and we do not advocate individual investments. Any person considering investments in, or changes to an IRA should obtain advice from independent legal, tax, investment and real estate professionals. I’m not an accountant or financial planner but I do want to give you some great information about how you grow your IRA or even increase your returns over what you’d get on your savings or CD. Slide 3: WHAT DO WE KNOW ABOUT IRAs? Common IRA terms… “Traditional IRA” “SEP IRA” “Roth IRA” Slide 4: WHAT DO WE KNOW ABOUT IRAs? Common IRA terms… “Traditional IRA” “SEP IRA” “Roth IRA” “Common” IRA Custodians Scottrade Schwab Fidelity ING Direct Slide 5: WHAT DO WE KNOW ABOUT IRAs? Common IRA terms… “Traditional IRA” “SEP IRA” “Roth IRA” “Common” IRA Custodians Scottrade Schwab Fidelity ING Direct These custodians give you a choice of 3 – 7 funds to invest in which offer a limited range of earning opportunity Slide 6: WHAT DO WE KNOW ABOUT IRAs? Common IRA terms… “Traditional IRA” “SEP IRA” “Roth IRA” “Common” IRA Custodians Scottrade Schwab Fidelity ING Direct So, how can increase my earnings through IRA investing…. Slide 7: WHAT DO WE KNOW ABOUT IRAs? Common IRA terms… “Traditional IRA” “SEP IRA” “Roth IRA” “Common” IRA Custodians Scottrade Schwab Fidelity ING Direct So, how can increase my earnings through IRA investing…. BY USING “SELF-DIRECTED” IRAs Slide 8: WHAT DO WE KNOW ABOUT IRAs? Common IRA terms… “Traditional IRA” “SEP IRA” “Roth IRA” “Common” IRA Custodians Scottrade Schwab Fidelity ING Direct So, how can increase my earnings through IRA investing…. BY USING “SELF-DIRECTED” IRAs You still have a “Traditional IRA” “SEP IRA” “Roth IRA” Slide 9: WHAT DO WE KNOW ABOUT IRAs? Common IRA terms… “Traditional IRA” “SEP IRA” “Roth IRA” “Common” IRA Custodians Scottrade Schwab Fidelity ING Direct So, how can increase my earnings through IRA investing…. BY USING “SELF-DIRECTED” IRAs You still have a “Traditional IRA” “SEP IRA” “Roth IRA” And you have this IRA in a “self-directed” plan Slide 10: WHAT DO WE KNOW ABOUT IRAs? Common IRA terms… “Traditional IRA” “SEP IRA” “Roth IRA” “Common” IRA Custodians Scottrade Schwab Fidelity ING Direct So, how can increase my earnings through IRA investing…. BY USING “SELF-DIRECTED” IRAs You still have a “Traditional IRA” “SEP IRA” “Roth IRA” And you have this IRA in a “self-directed” plan IMPORTANT: It’s unlikely you can use these custodians…they typically do not offer self-directed plans Too expensive and too much work for them to administer Slide 11: Is this true?.... …..”my brother/son/attorney told me this is illegal!” The IRS guidelines related to self-directed IRAs are clearly outlined on the IRS website http://www.irs.gov/retirement /article/0,,id=111413,00.html#14 Slide 12: There ARE restrictions in a self-directed IRA…. On this page of the website, it clearly outlines the prohibited transactions Slide 13: And there are LOTS of resources to help teach you more… This website charges $599 to teach realtors how to help their customers use their IRAs to buy more real estate! Slide 14: What are some examples of how I can invest my IRA? These are just SOME of the ways you can use a self-directed IRA… Buy a piece of property to rehab and rent Buy a piece of property to rehab and sell Buy equipment for lease Invest in mortgage notes Slide 15: What are some examples of how I can invest my IRA? These are just SOME of the ways you can use a self-directed IRA… Buy a piece of property to rehab and rent Buy a piece of property to rehab and sell Buy equipment for lease Invest in mortgage notes You CAN NOT ---buy a personal home —buy a vacation home --do transactions between “restricted parties” Slide 16: Buy Property to Rehab and Rent Buy a rental house with your self-directed IRA $30K Slide 17: Buy Property to Rehab and Rent Buy a rental house with your self-directed IRA $30K Pay for Rehab with your IRA $10K Slide 18: Buy Property to Rehab and Rent Buy a rental house with your self-directed IRA $30K Pay for Rehab with your IRA $10K $40K invested Slide 19: Buy Property to Rehab and Rent Buy a rental house with your self-directed IRA $30K Pay for Rehab with your IRA $10K $40K invested Rent the house for $550 a month $550 X 12 = $6,600 Slide 20: Buy Property to Rehab and Rent Buy a rental house with your self-directed IRA $30K Pay for Rehab with your IRA $10K $40K invested Rent the house for $550 a month $550 X 12 = $6,600 Spend $500 a year on maintenance Slide 21: Buy Property to Rehab and Rent Buy a rental house with your self-directed IRA $30K Pay for Rehab with your IRA $10K $40K invested Rent the house for $550 a month $550 X 12 = $6,600 Spend $500 a year on maintenance Pay $500 a year for taxes Slide 22: Buy Property to Rehab and Rent Buy a rental house with your self-directed IRA $30K Pay for Rehab with your IRA $10K $40K invested Rent the house for $550 a month $550 X 12 = $6,600 Spend $500 a year on maintenance Pay $500 a year for taxes Pay $500 a year for insurance Slide 23: Buy Property to Rehab and Rent Buy a rental house with your self-directed IRA $30K Pay for Rehab with your IRA $10K $40K invested Rent the house for $550 a month $550 X 12 = $6,600 Spend $500 a year on maintenance Pay $500 a year for taxes Pay $500 a year for insurance Net Earned = $5,100 Slide 24: Buy Property to Rehab and Rent Buy a rental house with your self-directed IRA $30K Pay for Rehab with your IRA $10K $40K invested Rent the house for $550 a month $550 X 12 = $6,600 Spend $500 a year on maintenance Pay $500 a year for taxes Pay $500 a year for insurance $5,100 earned on $40k invested = 12.75% return Net Earned = $5,100 Slide 25: Pros and Cons of Rental House Will likely have vacancy at some point in time which will lower your return Rehab costs could be higher than expected (IMPORTANT: you cannot do ANY of the rehab yourself if you fund the project with your IRA) Maintenance could be higher than expected (IMPORTANT: you cannot do ANY of the maintenance yourself if you fund the project with your IRA) Dealing with bad tenants (damages, unpaid rent, etc.) Can interfere / interrupt day-to-day life Slide 26: Buy Property to Rehab and Sell Buy a rental house with your self-directed IRA $30K Slide 27: Buy Property to Rehab and Sell Buy a rental house with your self-directed IRA $30K Pay for Rehab with your IRA $15K Slide 28: Buy Property to Rehab and Sell Buy a rental house with your self-directed IRA $30K Pay for Rehab with your IRA $15K $45K invested Slide 29: Buy Property to Rehab and Sell Buy a rental house with your self-directed IRA $30K Pay for Rehab with your IRA $15K $45K invested Sell the House for $58k Slide 30: Buy Property to Rehab and Sell Buy a rental house with your self-directed IRA $30K Pay for Rehab with your IRA $15K $45K invested Sell the House for $58k Pay realtor fee (5-7%) $2,900 plus utilities for a year $500 Slide 31: Buy Property to Rehab and Sell Buy a rental house with your self-directed IRA $30K Pay for Rehab with your IRA $15K $45K invested Sell the House for $58k Pay realtor fee (5-7%) $2,900 plus utilities for a year $500 Pay $500 a year for taxes Slide 32: Buy Property to Rehab and Sell Buy a rental house with your self-directed IRA $30K Pay for Rehab with your IRA $15K $45K invested Sell the House for $58k Pay realtor fee (5-7%) $2,900 plus utilities for a year $500 Pay $500 a year for taxes Pay $500 a year for insurance Slide 33: Buy Property to Rehab and Sell Buy a rental house with your self-directed IRA $30K Pay for Rehab with your IRA $15K $45K invested Sell the House for $58k Pay realtor fee (5-7%) $2,900 plus utilities for a year $500 Pay $500 a year for taxes Pay $500 a year for insurance Net Earned = $8,600 Slide 34: Buy Property to Rehab and Sell Buy a rental house with your self-directed IRA $30K Pay for Rehab with your IRA $15K $45K invested Sell the House for $58k Pay realtor fee (5-7%) $2,900 plus utilities for a year $500 Pay $500 a year for taxes Pay $500 a year for insurance $8,600 earned on $45k invested = 19.11% return Net Earned = $8,600 Slide 35: Pros and Cons of Rehabbing to Sell Could sell for more than shown in the example (also could be less) Average time on market is 12 months – could be more, could be less Rehab costs could be higher than expected (IMPORTANT: you cannot do ANY of the rehab yourself if you fund the project with your IRA) Managing an empty house (vandalism risk, etc.) Could be frustrating if you’re not experienced in rehabbing homes Angela Phebus, www.HigherRateInfo.com, angela@montereypropertiesllc.om, (812) 716-2188 Slide 36: Buy Equipment to Lease Buy 10 hot dog carts $3,000 X 10 = $30,000 Slide 37: Buy Equipment to Lease Buy 10 hot dog carts $3,000 X 10 = $30,000 $30K invested Slide 38: Buy Equipment to Lease Buy 10 hot dog carts $3,000 X 10 = $30,000 Lease carts for $87.50 per cart per month for 5 years $30K invested Slide 39: Buy Equipment to Lease Buy 10 hot dog carts $3,000 X 10 = $30,000 Lease carts for $87.50 per cart per month for 5 years $30K invested $87.50 month x 10 carts = $875/month payment Slide 40: Buy Equipment to Lease Buy 10 hot dog carts $3,000 X 10 = $30,000 Lease carts for $87.50 per cart per month for 5 years $30K invested $87.50 month x 10 carts = $875/month payment X 12 months in a year X 5 years Equals Slide 41: Buy Equipment to Lease Buy 10 hot dog carts $3,000 X 10 = $30,000 Lease carts for $87.50 per cart per month for 5 years $30K invested $87.50 month x 10 carts = $875/month payment X 12 months in a year X 5 years Equals $52,500 total paid back to you at the end of the term Slide 42: Buy Equipment to Lease Buy 10 hot dog carts $3,000 X 10 = $30,000 Lease carts for $87.50 per cart per month for 5 years $30K invested Net Earned (annually) = $4,500 $87.50 month x 10 carts = $875/month payment X 12 months in a year X 5 years Equals $52,500 total paid back to you at the end of the term Slide 43: Buy Equipment to Lease Buy 10 hot dog carts $3,000 X 10 = $30,000 Lease carts for $87.50 per cart per month for 5 years $30K invested $4,500 earned on $30k invested = 15% return Net Earned (annually) = $4,500 $87.50 month x 10 carts = $875/month payment X 12 months in a year X 5 years Equals $52,500 total paid back to you at the end of the term Slide 44: Pros and Cons of Equipment Leasing Finding someone who has a specific equipment need – could be easy, could be hard Being confident in their business plan (are hot dog carts a good business?) Being confident in their ability and willingness to repay Low maintenance (if you have a good person leasing the equipment from you —you don’t have to do day-to-day work like you would with a rental) High maintenance (could be high maintenance if the hot dog business goes under and they cannot pay you back) Slide 45: Invest in Mortgage Notes Partner with a property investor to provide financing for a piece of real estate Slide 46: Invest in Mortgage Notes Partner with a property investor to provide financing for a piece of real estate $50K invested Slide 47: Invest in Mortgage Notes Partner with a property investor to provide financing for a piece of real estate $50K invested Real Estate investor uses those funds to purchase and rehab a home (you hold the mortgage and are the lienholder on the fire/hazard policy) Slide 48: Invest in Mortgage Notes Partner with a property investor to provide financing for a piece of real estate $50K invested Real Estate investor uses those funds to purchase and rehab a home (you hold the mortgage and are the lienholder on the fire/hazard policy) You receive a payment as agreed with the investor (typically for interest only payment) – in this case, if the interest rate is 12%, you’d earn $500 a month in interest Slide 49: Invest in Mortgage Notes Partner with a property investor to provide financing for a piece of real estate $50K invested Real Estate investor uses those funds to purchase and rehab a home (you hold the mortgage and are the lienholder on the fire/hazard policy) You receive a payment as agreed with the investor (typically for interest only payment) – in this case, if the interest rate is 12%, you’d earn $500 a month in interest When the house sells (usually 18-36 months), you receive your original balance ($50K) back in full Slide 50: Invest in Mortgage Notes Partner with a property investor to provide financing for a piece of real estate $50K invested Net Earned = $6,000 Real Estate investor uses those funds to purchase and rehab a home (you hold the mortgage and are the lienholder on the fire/hazard policy) You receive a payment as agreed with the investor (typically for interest only payment) – in this case, if the interest rate is 12%, you’d earn $500 a month in interest When the house sells (usually 18-36 months), you receive your original balance ($50K) back in full Slide 51: Invest in Mortgage Notes Partner with a property investor to provide financing for a piece of real estate $50K invested $6,000 earned on $50k invested = 12% return Net Earned = $6,000 Real Estate investor uses those funds to purchase and rehab a home (you hold the mortgage and are the lienholder on the fire/hazard policy) You receive a payment as agreed with the investor (typically for interest only payment) – in this case, if the interest rate is 12%, you’d earn $500 a month in interest When the house sells (usually 18-36 months), you receive your original balance ($50K) back in full Slide 52: Pros and Cons of Investing in Mortgage Notes Finding someone who has experience in real estate investing Finding someone who understands the paperwork/reporting involved in mortgage notes Being confident in the business plan Holding the mortgage – you can foreclose if you are not paid (would you rather have a house or a hot dog cart?) Slide 53: Where Do I Start? These are five leading custodians of IRAs. You can choose from these or other providers as well. Slide 54: How Do I Learn More? There are ample educational resources. Buy a book through Amazon.com, your favorite bookstore or at the local library. Discuss your options with a trusted advisor Go a meeting at a local real estate investment club. As the club president or leader to introduce you to others who use their IRA to invest. Talk to them at length about their experience. Slide 55: How Do I Learn More? There are ample educational resources. Buy a book through Amazon.com, your favorite bookstore or at the local library. Discuss your options with a trusted advisor Go a meeting at a local real estate investment club. As the club president or leader to introduce you to others who use their IRA to invest. Talk to them at length about their experience. Call me, I’d be glad to answer any questions you have! 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Maximize Your IRA AngelaPhebus Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 49 Category: Education License: All Rights Reserved Like it (0) Dislike it (0) Added: January 18, 2011 This Presentation is Public Favorites: 0 Presentation Description No description available. Comments Posting comment... Premium member Presentation Transcript Slide 1: How to Invest with Your IRA and Maximize your Return Slide 2: Offer Educational Programs to Increase Visibility of our Different Lines of Business This presentation is not an attempt to offer legal or tax or investment advice. The contents of this workshop are purely information and education and we do not advocate individual investments. Any person considering investments in, or changes to an IRA should obtain advice from independent legal, tax, investment and real estate professionals. I’m not an accountant or financial planner but I do want to give you some great information about how you grow your IRA or even increase your returns over what you’d get on your savings or CD. Slide 3: WHAT DO WE KNOW ABOUT IRAs? Common IRA terms… “Traditional IRA” “SEP IRA” “Roth IRA” Slide 4: WHAT DO WE KNOW ABOUT IRAs? Common IRA terms… “Traditional IRA” “SEP IRA” “Roth IRA” “Common” IRA Custodians Scottrade Schwab Fidelity ING Direct Slide 5: WHAT DO WE KNOW ABOUT IRAs? Common IRA terms… “Traditional IRA” “SEP IRA” “Roth IRA” “Common” IRA Custodians Scottrade Schwab Fidelity ING Direct These custodians give you a choice of 3 – 7 funds to invest in which offer a limited range of earning opportunity Slide 6: WHAT DO WE KNOW ABOUT IRAs? Common IRA terms… “Traditional IRA” “SEP IRA” “Roth IRA” “Common” IRA Custodians Scottrade Schwab Fidelity ING Direct So, how can increase my earnings through IRA investing…. Slide 7: WHAT DO WE KNOW ABOUT IRAs? Common IRA terms… “Traditional IRA” “SEP IRA” “Roth IRA” “Common” IRA Custodians Scottrade Schwab Fidelity ING Direct So, how can increase my earnings through IRA investing…. BY USING “SELF-DIRECTED” IRAs Slide 8: WHAT DO WE KNOW ABOUT IRAs? Common IRA terms… “Traditional IRA” “SEP IRA” “Roth IRA” “Common” IRA Custodians Scottrade Schwab Fidelity ING Direct So, how can increase my earnings through IRA investing…. BY USING “SELF-DIRECTED” IRAs You still have a “Traditional IRA” “SEP IRA” “Roth IRA” Slide 9: WHAT DO WE KNOW ABOUT IRAs? Common IRA terms… “Traditional IRA” “SEP IRA” “Roth IRA” “Common” IRA Custodians Scottrade Schwab Fidelity ING Direct So, how can increase my earnings through IRA investing…. BY USING “SELF-DIRECTED” IRAs You still have a “Traditional IRA” “SEP IRA” “Roth IRA” And you have this IRA in a “self-directed” plan Slide 10: WHAT DO WE KNOW ABOUT IRAs? Common IRA terms… “Traditional IRA” “SEP IRA” “Roth IRA” “Common” IRA Custodians Scottrade Schwab Fidelity ING Direct So, how can increase my earnings through IRA investing…. BY USING “SELF-DIRECTED” IRAs You still have a “Traditional IRA” “SEP IRA” “Roth IRA” And you have this IRA in a “self-directed” plan IMPORTANT: It’s unlikely you can use these custodians…they typically do not offer self-directed plans Too expensive and too much work for them to administer Slide 11: Is this true?.... …..”my brother/son/attorney told me this is illegal!” The IRS guidelines related to self-directed IRAs are clearly outlined on the IRS website http://www.irs.gov/retirement /article/0,,id=111413,00.html#14 Slide 12: There ARE restrictions in a self-directed IRA…. On this page of the website, it clearly outlines the prohibited transactions Slide 13: And there are LOTS of resources to help teach you more… This website charges $599 to teach realtors how to help their customers use their IRAs to buy more real estate! Slide 14: What are some examples of how I can invest my IRA? These are just SOME of the ways you can use a self-directed IRA… Buy a piece of property to rehab and rent Buy a piece of property to rehab and sell Buy equipment for lease Invest in mortgage notes Slide 15: What are some examples of how I can invest my IRA? These are just SOME of the ways you can use a self-directed IRA… Buy a piece of property to rehab and rent Buy a piece of property to rehab and sell Buy equipment for lease Invest in mortgage notes You CAN NOT ---buy a personal home —buy a vacation home --do transactions between “restricted parties” Slide 16: Buy Property to Rehab and Rent Buy a rental house with your self-directed IRA $30K Slide 17: Buy Property to Rehab and Rent Buy a rental house with your self-directed IRA $30K Pay for Rehab with your IRA $10K Slide 18: Buy Property to Rehab and Rent Buy a rental house with your self-directed IRA $30K Pay for Rehab with your IRA $10K $40K invested Slide 19: Buy Property to Rehab and Rent Buy a rental house with your self-directed IRA $30K Pay for Rehab with your IRA $10K $40K invested Rent the house for $550 a month $550 X 12 = $6,600 Slide 20: Buy Property to Rehab and Rent Buy a rental house with your self-directed IRA $30K Pay for Rehab with your IRA $10K $40K invested Rent the house for $550 a month $550 X 12 = $6,600 Spend $500 a year on maintenance Slide 21: Buy Property to Rehab and Rent Buy a rental house with your self-directed IRA $30K Pay for Rehab with your IRA $10K $40K invested Rent the house for $550 a month $550 X 12 = $6,600 Spend $500 a year on maintenance Pay $500 a year for taxes Slide 22: Buy Property to Rehab and Rent Buy a rental house with your self-directed IRA $30K Pay for Rehab with your IRA $10K $40K invested Rent the house for $550 a month $550 X 12 = $6,600 Spend $500 a year on maintenance Pay $500 a year for taxes Pay $500 a year for insurance Slide 23: Buy Property to Rehab and Rent Buy a rental house with your self-directed IRA $30K Pay for Rehab with your IRA $10K $40K invested Rent the house for $550 a month $550 X 12 = $6,600 Spend $500 a year on maintenance Pay $500 a year for taxes Pay $500 a year for insurance Net Earned = $5,100 Slide 24: Buy Property to Rehab and Rent Buy a rental house with your self-directed IRA $30K Pay for Rehab with your IRA $10K $40K invested Rent the house for $550 a month $550 X 12 = $6,600 Spend $500 a year on maintenance Pay $500 a year for taxes Pay $500 a year for insurance $5,100 earned on $40k invested = 12.75% return Net Earned = $5,100 Slide 25: Pros and Cons of Rental House Will likely have vacancy at some point in time which will lower your return Rehab costs could be higher than expected (IMPORTANT: you cannot do ANY of the rehab yourself if you fund the project with your IRA) Maintenance could be higher than expected (IMPORTANT: you cannot do ANY of the maintenance yourself if you fund the project with your IRA) Dealing with bad tenants (damages, unpaid rent, etc.) Can interfere / interrupt day-to-day life Slide 26: Buy Property to Rehab and Sell Buy a rental house with your self-directed IRA $30K Slide 27: Buy Property to Rehab and Sell Buy a rental house with your self-directed IRA $30K Pay for Rehab with your IRA $15K Slide 28: Buy Property to Rehab and Sell Buy a rental house with your self-directed IRA $30K Pay for Rehab with your IRA $15K $45K invested Slide 29: Buy Property to Rehab and Sell Buy a rental house with your self-directed IRA $30K Pay for Rehab with your IRA $15K $45K invested Sell the House for $58k Slide 30: Buy Property to Rehab and Sell Buy a rental house with your self-directed IRA $30K Pay for Rehab with your IRA $15K $45K invested Sell the House for $58k Pay realtor fee (5-7%) $2,900 plus utilities for a year $500 Slide 31: Buy Property to Rehab and Sell Buy a rental house with your self-directed IRA $30K Pay for Rehab with your IRA $15K $45K invested Sell the House for $58k Pay realtor fee (5-7%) $2,900 plus utilities for a year $500 Pay $500 a year for taxes Slide 32: Buy Property to Rehab and Sell Buy a rental house with your self-directed IRA $30K Pay for Rehab with your IRA $15K $45K invested Sell the House for $58k Pay realtor fee (5-7%) $2,900 plus utilities for a year $500 Pay $500 a year for taxes Pay $500 a year for insurance Slide 33: Buy Property to Rehab and Sell Buy a rental house with your self-directed IRA $30K Pay for Rehab with your IRA $15K $45K invested Sell the House for $58k Pay realtor fee (5-7%) $2,900 plus utilities for a year $500 Pay $500 a year for taxes Pay $500 a year for insurance Net Earned = $8,600 Slide 34: Buy Property to Rehab and Sell Buy a rental house with your self-directed IRA $30K Pay for Rehab with your IRA $15K $45K invested Sell the House for $58k Pay realtor fee (5-7%) $2,900 plus utilities for a year $500 Pay $500 a year for taxes Pay $500 a year for insurance $8,600 earned on $45k invested = 19.11% return Net Earned = $8,600 Slide 35: Pros and Cons of Rehabbing to Sell Could sell for more than shown in the example (also could be less) Average time on market is 12 months – could be more, could be less Rehab costs could be higher than expected (IMPORTANT: you cannot do ANY of the rehab yourself if you fund the project with your IRA) Managing an empty house (vandalism risk, etc.) Could be frustrating if you’re not experienced in rehabbing homes Angela Phebus, www.HigherRateInfo.com, angela@montereypropertiesllc.om, (812) 716-2188 Slide 36: Buy Equipment to Lease Buy 10 hot dog carts $3,000 X 10 = $30,000 Slide 37: Buy Equipment to Lease Buy 10 hot dog carts $3,000 X 10 = $30,000 $30K invested Slide 38: Buy Equipment to Lease Buy 10 hot dog carts $3,000 X 10 = $30,000 Lease carts for $87.50 per cart per month for 5 years $30K invested Slide 39: Buy Equipment to Lease Buy 10 hot dog carts $3,000 X 10 = $30,000 Lease carts for $87.50 per cart per month for 5 years $30K invested $87.50 month x 10 carts = $875/month payment Slide 40: Buy Equipment to Lease Buy 10 hot dog carts $3,000 X 10 = $30,000 Lease carts for $87.50 per cart per month for 5 years $30K invested $87.50 month x 10 carts = $875/month payment X 12 months in a year X 5 years Equals Slide 41: Buy Equipment to Lease Buy 10 hot dog carts $3,000 X 10 = $30,000 Lease carts for $87.50 per cart per month for 5 years $30K invested $87.50 month x 10 carts = $875/month payment X 12 months in a year X 5 years Equals $52,500 total paid back to you at the end of the term Slide 42: Buy Equipment to Lease Buy 10 hot dog carts $3,000 X 10 = $30,000 Lease carts for $87.50 per cart per month for 5 years $30K invested Net Earned (annually) = $4,500 $87.50 month x 10 carts = $875/month payment X 12 months in a year X 5 years Equals $52,500 total paid back to you at the end of the term Slide 43: Buy Equipment to Lease Buy 10 hot dog carts $3,000 X 10 = $30,000 Lease carts for $87.50 per cart per month for 5 years $30K invested $4,500 earned on $30k invested = 15% return Net Earned (annually) = $4,500 $87.50 month x 10 carts = $875/month payment X 12 months in a year X 5 years Equals $52,500 total paid back to you at the end of the term Slide 44: Pros and Cons of Equipment Leasing Finding someone who has a specific equipment need – could be easy, could be hard Being confident in their business plan (are hot dog carts a good business?) Being confident in their ability and willingness to repay Low maintenance (if you have a good person leasing the equipment from you —you don’t have to do day-to-day work like you would with a rental) High maintenance (could be high maintenance if the hot dog business goes under and they cannot pay you back) Slide 45: Invest in Mortgage Notes Partner with a property investor to provide financing for a piece of real estate Slide 46: Invest in Mortgage Notes Partner with a property investor to provide financing for a piece of real estate $50K invested Slide 47: Invest in Mortgage Notes Partner with a property investor to provide financing for a piece of real estate $50K invested Real Estate investor uses those funds to purchase and rehab a home (you hold the mortgage and are the lienholder on the fire/hazard policy) Slide 48: Invest in Mortgage Notes Partner with a property investor to provide financing for a piece of real estate $50K invested Real Estate investor uses those funds to purchase and rehab a home (you hold the mortgage and are the lienholder on the fire/hazard policy) You receive a payment as agreed with the investor (typically for interest only payment) – in this case, if the interest rate is 12%, you’d earn $500 a month in interest Slide 49: Invest in Mortgage Notes Partner with a property investor to provide financing for a piece of real estate $50K invested Real Estate investor uses those funds to purchase and rehab a home (you hold the mortgage and are the lienholder on the fire/hazard policy) You receive a payment as agreed with the investor (typically for interest only payment) – in this case, if the interest rate is 12%, you’d earn $500 a month in interest When the house sells (usually 18-36 months), you receive your original balance ($50K) back in full Slide 50: Invest in Mortgage Notes Partner with a property investor to provide financing for a piece of real estate $50K invested Net Earned = $6,000 Real Estate investor uses those funds to purchase and rehab a home (you hold the mortgage and are the lienholder on the fire/hazard policy) You receive a payment as agreed with the investor (typically for interest only payment) – in this case, if the interest rate is 12%, you’d earn $500 a month in interest When the house sells (usually 18-36 months), you receive your original balance ($50K) back in full Slide 51: Invest in Mortgage Notes Partner with a property investor to provide financing for a piece of real estate $50K invested $6,000 earned on $50k invested = 12% return Net Earned = $6,000 Real Estate investor uses those funds to purchase and rehab a home (you hold the mortgage and are the lienholder on the fire/hazard policy) You receive a payment as agreed with the investor (typically for interest only payment) – in this case, if the interest rate is 12%, you’d earn $500 a month in interest When the house sells (usually 18-36 months), you receive your original balance ($50K) back in full Slide 52: Pros and Cons of Investing in Mortgage Notes Finding someone who has experience in real estate investing Finding someone who understands the paperwork/reporting involved in mortgage notes Being confident in the business plan Holding the mortgage – you can foreclose if you are not paid (would you rather have a house or a hot dog cart?) Slide 53: Where Do I Start? These are five leading custodians of IRAs. You can choose from these or other providers as well. Slide 54: How Do I Learn More? There are ample educational resources. Buy a book through Amazon.com, your favorite bookstore or at the local library. Discuss your options with a trusted advisor Go a meeting at a local real estate investment club. As the club president or leader to introduce you to others who use their IRA to invest. Talk to them at length about their experience. Slide 55: How Do I Learn More? There are ample educational resources. Buy a book through Amazon.com, your favorite bookstore or at the local library. Discuss your options with a trusted advisor Go a meeting at a local real estate investment club. As the club president or leader to introduce you to others who use their IRA to invest. Talk to them at length about their experience. Call me, I’d be glad to answer any questions you have!