Jim Hitt, CEO of American IRA-A National Self-Directed IRA Provider, Answers A Frequently Asked Question…Is Retiring Through Rental Real Estate Wise?

Jim Hitt, CEO of American IRA-A National Self-Directed IRA Provider, Answers A Frequently Asked Question…Is Retiring Through Rental Real Estate Wise? Jim Hitt has over 29 years experience investing in real estate and is expertly qualified to field this important question.

Jim Hitt says “Retiring Through Rental Real Estate can be a wise decision if you are careful about your investments. There are some very important things you must do to ensure your success:

  • Do your ‘due diligence’ before you make your purchase
  • Always consult with professionals when putting together a deal
  • Use the real numbers (sometimes people are tempted to use numbers based on the profit they ‘think’ they can make instead of looking at the actual profit the investment is already making)
  • Know your market (many investors make the mistake of buying a property that is listed at a great price only to find out the price they paid is much more than the property is worth in that location).
  • Remember not to cut it too close (A common mistake investors often make is not keeping enough cash in reserve. You have got to keep cash on hand for repairs, months where you have a vacancy, taxes, insurance, and other expenses that may arise.)”

One thing people should keep in mind is that ‘retiring’ through rental real estate may or may not be fully retiring. People need to decide the level of involvement they would like to have in their retirement years with these rental properties. In this light, they can decide to be hands on landlords during their retirement years or they can decide to employ a property manager if they prefer to have a more passive role.

The other thing that people should keep in mind is that there are tremendous benefits to using a self-directed IRA or self-directed 401(k) as the funding source for rental real estate properties. The most significant benefit is tax-free or tax-deferred income streaming into their retirement account.

Jim Hitt concludes “There are far too many benefits and scenarios to include in this press release. Having said that, we are currently offering free 1-on-1 consultations and free educational videos to anyone who would like to learn more about the benefits of investing in rental real estate with self-directed IRAs and self-directed 401(k)s.”

Real Estate IRA Investing Series: Real Estate Investing Using IRAs and Other Techniques

Location:

American IRA Training Center
100 Glendalough Ct.
Suite D-2
Tyrone, GA 30290

Click here to register today!

This series will be offered on the second Tuesday of each month. You can attend one, a few, or all of these meetings and walk away with valuable investment knowledge.

November 13, 2012 December 11, 2012 January 8, 2013
February 12, 2013 March 12, 2013 April 9, 2013
May 14, 2013 June 11, 2013 July 9, 2013
August 13, 2013 September 10, 2013 October 8, 2013

Time: 6:30PM to 8:00PM

Details:

Do you know you can use your self-directed IRA as a source of funds for investing?
Are you tired of the ever tightening regulations when trying to obtain a bank loan?
Right at this moment successful investors are making profits with their self-directed IRA investments-want to join them?
Each investor has their own area of expertise in which they do best-is your IRA a potential source of funds for you?

‘DARE’ to succeed by maximizing your real estate investment funds through utilization of self-directed IRAs. Join us for this information-packed series in which we discuss:

  1. Promissory Notes, Trust Deeds, and Mortgages
  2. Marketing
  3. Getting started: How to Find Investors
  4. Hard Money Lending
  5. Beginner, Intermediate, Advanced, and Creative Transactions
  6. And much more…

You will hear actual case studies of how to invest in real estate. The instructor is Jim Hitt, CEO of America IRA, LLC and Past President of CREIA. Jim has been investing in real estate for over 40 years. Join us as Jim shares his valuable knowledge and experience in this highly information packed investment series.

Cost: $20 per person at the door, FREE if registered in advance!

Click here to register today!

Jim Hitt, CEO of American IRA, A National Self-Directed IRA Provider, Will Be Attending and Speaking At Scott Meyers Self Storage Academy October 25th To October 27th

Jim Hitt, CEO of American IRA, a national self-directed IRA provider, and Sean McKay, Senior Vice President, will be attending and speaking at Scott Meyers Self Storage Academy October 25th through October 27th. Scott Meyers invites everyone to enjoy the silence and the peacefulness of true, passive income in real estate by investing in self storage. Mr. Hitt speaks about how self-directed IRAs can serve as a source of funds for investments of all types, including self storage.

This event is a true testament to the large array of things a person with a self-directed IRA can invest in. Jim Hitt and Sean McKay are looking forward to sharing knowledge about self-directed IRA and self-directed 401(k) investing during this self storage event.

This 3 day event features knowledge sharing during it’s classroom portion, a networking cocktail reception, and a live facility tour.

Jim Hitt says, “As with any investment, I always stress that individuals must do their “due diligence” and consult with professionals to ensure that their interests are protected. While self storage can be lucrative…you have to thoroughly review each deal to make sure there is profit to be made. In all aspects of investing, those that do their homework end up with more wins!”

American IRA, LLC, a National Self-Directed IRA Provider, Announces Joint Webinar with Hanover Companies Featuring Investing with Self-Directed Real Estate IRAs & 401(k)s

American IRA, LLC, a national self-directed IRA provider, announces joint webinars on September 26th with Hanover Companies featuring real estate investing with self-directed real estate IRAs and 401(k)s. Find out how easy it is making the choice to take control of those retirement dollars as one of the nations’ leaders in self-direction, Sean McKay, takes you step by step through the process!

American IRA and Hanover Companies will be presenting educational tools for self-directing and purchasing real estate with a self-directed real estate IRA.

American IRA will educate everyone on opening a self-directed real estate IRA account and everything it entails including:

  • Real estate purchases
  • What to do when there is a shortage of funds
  • Partnering with an IRA
  • Real estate purchases within an LLC
  • And more…

Hanover Companies has structured a real estate investment specifically for the self-directed real estate IRA investor. They will provide educational insights on the process of doing diligence for specific real estate markets, identifying the correct assets, timing the purchase of real estate, how to leverage retirement dollars, and how this can all be done through self-direction.

Click below to sign up for either of these webinars:

September 26th starting at 12:30pm Click here to Register

September 26th starting at 8:00pm Click here to Register

American IRA, LLC, A National Self-Directed IRA Provider, Extends A Huge Thank You To All Who Attended Their Sold-Out August 25th Seminar

American IRA, LLC, a national self-directed IRA provider, extends a huge thank you to all who attended their sold-out August 25th seminar! The event was a success-the room was packed with attendees from Greenville, SC; Charlotte, SC; and Atlanta, GA-read on to see what was covered at this important event.

The American IRA, LLC team couldn’t have been more pleased with the turnout at this event! The team had prepared the most inclusive information packed seminar yet and the crowd did not disappoint! The attendees were engaged throughout the meeting as Sean McKay, Senior Vice President and Jim Hitt, CEO presented information covering these topics:

What is a self-directed retirement account?
Purchasing real estate with a fix and flip option
Purchasing real estate with a buy and hold option
Investing in tax liens and deeds
The brilliance of a plan
Is self-directed IRA investing safe?
How to be a blue collar genius!
How to find investors
Private money
Hard money lender finds no house!
How to find deals
Due diligence in acquisition, real estate, commercial real estate, trust deeds and mortgages, and entities.
The magic of a house
Investing with a Solo 401(k)
What about George?!
Promissory notes, trust deeds and mortgages defined
Trust deed and mortgage investing
SEC investor alerts
Self-directed IRA owned LLC
How to buy with/without cash or credit
Double duty roth
Story of David G.
Raising private capital using unregistered securities
Unrelated business income tax (UBIT)
Non-recourse loans

Attendees at this event said “This seminar had more in-depth information than I have ever heard!”

Jim Hitt extends his appreciation, “Yes, it was an information packed event with many investor secrets revealed. I want to extend my sincere thanks to all who attended and helped this event be a success and I am looking forward to more information packed events such as this one. If you missed the event and would like more information or would like a free consultation, please contact our office 828-257-4949 or sean@americanira.com.”

For those that missed this seminar…the entire event was professionally video taped and will be available by year end through the American IRA website at a great price. Of course, American IRA clients always receive educational materials at discounted rates, so if anyone is thinking about opening an account, this is a great time to get started.

American IRA, LLC CEO, Jim Hitt, Thanks And Congratulates Another Successful Self-Directed IRA Client

American IRA, LLC CEO, Jim Hitt, thanks and congratulates another successful self-directed IRA client. Using self-directed IRAs this investor was able to increase their net worth by $168,000 and their monthly cash flow by $1,550!

American IRA, LLC respects the privacy of their clients; therefore, the name of this successful client will be withheld.

Jim Hitt extends his appreciation and congratulations, “First and foremost, I would like to thank you for allowing us to share your success story. Through hard work and dedication you created income and wealth for you and your family. And, perhaps more importantly I would like to publicly congratulate you on your success!”

So, what is all the fuss about? How did this client achieve such success?

First and foremost this client formed a plan and stuck to it. The plan was to spend 2 hours every single week working investments by studying Zillow, MLS, and county records and through weekend drives looking for ‘for sale’ signs and properties that looked neglected. Neglected properties are usually an indication that the current owner has more on their plate than they can handle and thus they may potentially sell the property at a discounted rate. Secondly and of equal importance, this client kept their eye on their goal at all times; their goal to build enough cash flow so that when they had children, they could ‘stay home with their babies’.

Deal One:

Cash at Closing and Instant Equity

They purchased a 3 bedroom/2 bathroom, 1400 square foot home via a short sale. They borrowed $55,000, incurred $800 in repair costs, and paid $50,000 for the home…this netted them $4,200 in cash at the closing. The market value of the home was $90,000 which netted them $35,000 in instant equity upon closing ($90,000-$55,000).

Monthly Income

The monthly rental income was $875 and their monthly expense were $665 which left them a net monthly income of $210.

Deal Two:

Cash at Closing and Instant Equity

They purchased a 3 bedroom/2.5 bathroom, 1600 square foot home well below market value from a wholesaler who was not aware of the market in that area. They borrowed $66,000, incurred $1,500 in repair costs, and paid $60,000 for the home…this netted them $4,500 in cash at the closing. The market value of the home was $110,000 which netted them $44,000 in instant equity upon closing ($110,000-$66,000).

Monthly Income

The monthly rental income was $1100 and their monthly expense were $655 which left them a net monthly income of $445.

Deal Three:

Instant Equity

They purchased a 3 bedroom/2 bathroom, 1200 square foot home up for bid. There was a lot of competition but they won the bid. They borrowed $56,000, incurred $2,000 in repair costs, and paid $56,000 for the home…this cost them cash out of pocket of $2,000 at the closing. The market value of the home was $90,000 which netted them $34,000 in instant equity upon closing ($90,000-$,56000).

Monthly Income

The monthly rental income was $1,000 and their monthly expense were $503 which left them a net monthly income of $497.

Deal Four:

Instant Equity

They purchased a 3 bedroom/2 bathroom, 1600 square foot home. The home had undesirable tenants and was showing poorly. These investors saw the value and got the deal! They borrowed $65,000, incurred $2,500 in repair costs, and paid $70,000 for the home…this cost them cash out of pocket of $7,500 at the closing. The market value of the home was $120,000 which netted them $55,000 in instant equity upon closing ($120,000-$65,000).

Monthly Income

The monthly rental income was $1,100 and their monthly expense were $702 which left them a net monthly income of $398.

Summary:

These investors netted an amazing monthly cash flow of $1,550 ($210+$445+$497+$398) and instant equity of $168,000 ($35,000+$44,000+$34,000+$55,000). Given that the Social Security Administration says the average monthly social security benefit for a retired worker is about $1,230 per month…it is easy to see that this investor is already ahead of the curve!

Jim Hitt concludes, “These clients did an amazing job. They kept their goal in mind and kept the deals flowing; after all, deal flow is the key to success in real estate.”

About:

American IRA, LLC was established in 2004 by James C. Hitt in Asheville, NC.

The mission of American IRA is to provide the highest level of customer service in the self-directed retirement industry. Mr. Hitt and his team have grown the company to over $250 million in assets under administration by educating the public that their self-directed IRA account can invest in a variety of assets such as real estate, private lending, limited liability companies, precious metals and much more!

As a self-directed IRA administrator they are a neutral third party. They do not make any recommendations to any person or entity associated with investments of any type (including financial representatives, investment promoters or companies, or employees, agents or representatives associated with these firms ). They are not responsible for and are not bound by any statements, representations, warranties or agreements made by any such person or entity and do not provide any recommendation on the quality profitability or reputability of any investment, individual or company. The term “they” refers to American IRA, located in Asheville, NC.

American IRA, LLC Thanks Holly Calabro from the TREIA Publicity Committee for Writing That Great Article about Our Recent Self-directed IRA Real Estate Seminar

American IRA, LLC thanks Holly Calabro from the TREIA Publicity Committee for writing that great article about our recent self-directed IRA real estate seminar. Holly’s enthusiasm is contagious as she talks about the wealth of investment possibilities available when people self-direct their IRAs allowing them to invest in trust deeds and mortgage notes, rental property, condos, raw land, lease options, gold and silver, joint ventures, promissory notes, LLC shares, and tax liens.

Jim Hitt, American IRA CEO, exclaims “I was elated to read Holly’s article and to see her enthusiasm coming through the page! Our goal is to educate people so that they can maximize their investment profits through self-directed IRA investing, and we know we have done our job when we see someone come out of our seminar as excited about the process as Holly is! Thank you, Holly! You wrote a great article and we are glad that you are excited about self-directed IRA real estate investing!”

Holly explains the process brilliantly in her article and she is generating interest as we are seeing blog posts with questions and comments on her article. One question she received is “In the above Holly states, ‘you and your IRA are separate entities. The assets owned by the IRA must be handled as passively as possible. For example, if your IRA owns property, you cannot provide any labor for that residence, act as a realtor, or be a property manager.’

“However, later on we see in David’s example, ‘No earned income to qualify for an IRA? Make yourself the property manager for your own properties, collect a small income, and qualify.’

“Is this permitted or not?

“Also, where can I find more info on tax liens in NC? As I understand it, purchasing a tax lien does not transfer ownership in any way?”

This is an excellent question that often comes up. The distinction here is a property that is owned by an IRA and a property that is owned directly by an individual. It is true that a property owned inside an IRA belongs to the IRA and the IRA account holder cannot provide any labor for that residence, act as a realtor, or be a property manager.

When she goes on to say “No earned income to qualify for an IRA? Make yourself the property manager for your own properties, collect a small income, and qualify.”, she is calling out a distinction here. In this case, she is saying that the individual purchases a property on their own with non-IRA funds because they do not have an IRA established. She is then suggesting that that individual take the money they earn and contribute it to an IRA so that they can use that IRA to purchase future properties.

For those that missed this seminar…the entire event was professionally video taped and will be available by year end through the American IRA website at a great price. Of course, American IRA clients always receive educational materials at discounted rates, so if anyone is thinking about opening an account, this is a great time to get started.

American IRA, LLC-A National Self-Directed IRA Provider, Announces E-Signature Is Now Available For Their Forms

American IRA, LLC-a national self-directed IRA provider, announces e-signature is now available for their forms! Clients may now complete their forms online and sign those forms online via the American IRA website…no need to print, scan or fax!

Jim Hitt says, “We have received overwhelmingly positive feedback about this change. Our clients are thrilled with how easy and quick it is for them to fill out and submit their forms. This change has also greatly improved the turn-a-round time in receiving and completing client requests!”

American IRA has chosen EchoSign as their e-signature provider. Here’s an excerpt from the EchoSign website that explains just a few of the reasons American IRA, LLC has chosen EchoSign:

*Legal, Tested & Trusted: Fully compliant with the Federal ESIGN Act, UETA, and the Electronic Commerce Directive, EchoSign provides protection for both the sender and the signer during the signing process including key authentication and privacy, fraud protection, and consumer disclosure.

*EchoSign is secure: All communications sent through EchoSign are encrypted with full 256-bit SSL security, passwords and sensitive account data are encrypted with RSA keys, and their servers are housed in SAAS 70 Type II secured facilities with full redundancy.

*Best practices and improved performance: Contracts can be signed within minutes.

Jim Hitt interjects, “If e-signature and online forms are not for you, worry not. All our forms can be printed out and completed by hand if you prefer. Just open our form and select the option to download the form for printing. This option is located at the top of each e-signature form.”