In this video segment, John Bowens breaks down how wholesale investing and real estate option investing work with a self-directed IRA.
Download our Real Estate Guide to learn more about investing with your self-directed IRA:
If you have a smaller amount of money in an IRA, or if you have a new IRA that you recently started contributing to, these two types of real estate investments may be a way for you to grow your IRA in a shorter period of time.
John uses real-life client stories and case studies to show how these two real estate investments work with a self-directed account.
Equity Trust Company is a directed custodian and does not provide tax, legal or investment advice. Any information communicated by Equity Trust Company is for educational purposes only, and should not be construed as tax, legal or investment advice. Whenever making an investment or financial decision, please consult with your tax attorney or financial professional….(read more)
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About 5 minutes into this video you use a hypothetical example of a small IRA ($6,000 or so) to be used for wholesaling purposes by having the IRA write a $500 check as earnest money for a real estate purchase contract in the amount of $50,000. The Roth IRA account lacks sufficient funds to close the sale, yet the buyer is representing that funds are available to close by virtue of having Equity Trust execute the purchase contract. Wouldn't this make Equity Trust a party to "fraud in the inducement" on this deal?
How much of the $18,000 was spent on the legal costs of this deal? It costs money to transfer property and it is transferred twice in this deal. The simple math does not take into account all the potential headaches involved and the real potential to lose money rather than this overly simplified representation. My opinion…
How many wholesale transaction can be done in a fiscal year??
At what age can the (cesa) be pulled out for the kids??
GREAT STUFF!