How to Buy a U.S. Post Office, A Home Depot Or an Apartment Building With Your IRA

 

By:  Darin Garman, CCIM

       Apartment And Investment Specialist

      
Over the last few years, Americans have struggled to recover from the devastation of their IRA and 401(k) stock portfolios.

 

"Steady the course" and "Ride it out" are Wall Street's mantras to get people to keep their dwindling retirement assets in commission-generating stocks.

But not all of them are buying it.

After decades of a monopolistic stranglehold by Wall Street, a handful of non-Wall Street companies have emerged to offer alternatives to standard Wall Street products. This competition
truly benefits you, the consumer, by offering a wide range of investment options that can often be safer and more lucrative than stocks, bonds, and mutual funds.

Though more and more people are becoming aware of the fact that there are alternatives to typical IRAs or 401(k)s, the information readily available about all of the alternative
retirement plans (Self-Directed IRAs, Check Book Control Self-Directed IRAs, SEPs, etc.) is often disparate and overwhelming. No wonder Americans are confused and opt not to change anything.

A lack of knowledge regarding your retirement options can add years to your time on the job and result in many missed opportunities. But it doesn't have to be that way. A moment taken to understand your retirement plan options can lead to a lifetime of financial security.

What Are Your Alternatives?

To put it simply: You can invest in products other than stocks, bonds, and mutual funds with your retirement plan. These "alternative" investment products include, but are not limited to, real estate, tax liens, and even businesses. But ... to be allowed to invest in these investment products, your retirement plan must be "Self-Directed."

Anybody can have a Self-Directed retirement plan. These plans are not limited to certain people or business owners or the self-employed. You can have a Self-Directed plan.

There are several types of Self-Directed retirement plans, and some innovative companies are busy creating a host of even more variations that appeal to people who want to diversify their IRA portfolios beyond Wall Street. Depending on the type of plan you choose, you will be able to invest in different things. Each offers certain advantages.

Let's take a look at just one of them.

The Self-Directed Real Estate Investment IRA

This is one of the newest and most innovative individual retirement vehicles available today.

The Self-Directed Real Estate IRA is designed for those interested in investing a part of their IRA into great investment real estate, such as commercial investment real estate.  It is really just a matter of transferring the money from your current IRA account, into a Self-Directed account, then, into the real estate investment.

Of course, all of the profits from that real estate investment including cash flow and appreciation are tax free!

This plan is well suited for people who want to own investment real estate but do not want to be involved in any of the typical management or maintenance headaches associated with that real estate.  It is also a plan well suited for those that want to diversify their IRA investments OR convert cash flows and equity profits to tax free income.

For example.  I recently put together a Real Estate Investment Fund.  This Fund raised approximately $2,000,000 to invest in real estate.  Out of the $2,000,000 I had 6 investors contribute $50,000 - $100,000 each – from their IRA!  Now, their IRA owns over $4,000,000 in great commercial investment real estate and as I mentioned before, gets all of the profits of that real estate tax free!

How do you set up a Self Directed IRA to invest in real estate?

It is pretty easy.  It is really a matter of deciding how much of your IRA you want to invest in great commercial investment real estate projects and filling out paperwork.

I have a FREE IRA Kit to get you started and also provide more information.  Just email me at darin_garman@msn.com and request the FREE IRA Investment Kit By Typing in the Subject Line of Your Email ‘IRA Kit’ (no quotes)  and I will send it right out to you, OR, you can call me anytime at #319-350-5378 and leave me a message on my voicemail, requesting the FREE IRA Investment Kit.  Please leave your contact information so we get it sent to the right place. 

OK – Think about this…

It could even buy a U.S. Post Office building...Or A Nice Apartment Property...

Buying a U.S. Post Office

A U.S. Post Office building, depending on location and size, is an affordable, conservative investment. It can provide 4 percent to 8 percent annual cash on cash, plus appreciation on the
property. For example, there is a U.S. Post Office for sale at $65,000 that generates $600 in monthly rents.

Of course, there are much larger Post Offices with much higher rents and asking prices. But let's take a look at how the Self Directed IRA Process Would Work.

With our assistance you form a Self Directed IRA that pays $65,000 cash for the Post Office building. The taxes are $1,950 annually (at 3 percent) and the insurance is $650 (at 1 percent.
The Post Office pays everything else: utilities, maintenance and repairs, etc.

Annual Rent: $7,200.00 ($600 monthly)
Annual Expenses: $2,600.00

Net Cash Flow: $4,600.00 ($383.33 monthly)

Yield, cash on cash: 7.08 percent

Return on Investment (ROI): 12.08 percent (assumes 5 percent appreciation)

And over the years, your rental income will increase, leading to greater monthly cash flow in addition to continuing appreciation.

If you stack up this conservative investment with the U.S. Government as a tenant against most Wall Street products, you can see it does quite well.

Just One of Many New Alternatives for Your Retirement Savings ...

I hope I have helped to shed some light on the exciting range of new commercial investment real estate retirement products available to you. Remember, there are several types of Self-Directed plans. Depending on your personal goals and situation, one will be exactly right for you.

Best,

Darin Garman, CCIM

Apartment and Investment

Property Specialist

PS.  Remember, For Your FREE IRA Investment Kit email me at darin_garman@msn.com and type ‘IRA KIT’ in the subject line.  I will send your kit to you asap! 

| Back To Top | Home | Apartment Property Buyer Info | Apartment Property Seller Info |
| Commercial/Investment Property Buyers Info | Commercial/Investment Property Sellers Info |
| Realty Listing | Report | Client Remarks | Contact Me |