Self-Directed IRAs and Real Estate Part 2 of 2

Self-Directed IRA, Real Estate IRA InvestingIn part 1 of this article, we talked about the steps realtors can take to attract Self-Directed IRA investors as clients. In part 2, we are going to speak about making it grow.

Once you are familiar with Self-Directed IRAs and you have perfected your follow-up process, you are in a position to run some unique advertising that is sure to generate a bunch of new clients. You simply run ads that say that you are a realtor who services Self-Directed IRA investors. I can tell you from experience that many Self-Directed IRA clients are wishing they had a realtor who actually understood the Self-Directed IRA investing process.

Keep in mind that current Self-Directed IRA investors are not your only source. When you are familiar with Self-Directed IRAs, you will be in a position to educate investors about a source of funds that they may not have previously considered. There is a wealth of investors out there that have money sitting idle in retirement accounts and our experience has shown that they are very happy to learn they have more funds available to invest with than they realized. We can also help you with this. If you have someone you have introduced to Self-Directed IRAs and you want them to have someone in the industry to talk to, we will be glad to discuss Self-Directed IRAs with them. We offer free consultations and can speak to them about their specific situation and how Self-Directed IRAs will work within that situation.

One word of caution, if you follow all these steps, you may find that you are too busy to service all of your clients…if you find this to be the case, remember that putting a plan into action to address your client’s needs quickly is the key to retaining them. There is nothing investors hate more than losing a deal because a realtor was too busy to get them to the deal before someone else did. This may mean hiring a secretary to handle the day to day of your office while you are out showing homes. I can’t speak to your specific situation since some of you may be independent, some of you may work in large offices with many agents, some of you hold a realtor designation, and some of you may hold a brokers designation. The important thing is to form a plan in advance so that you can implement it quickly when you need to.




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Self-Directed IRAs and Real Estate Part 1 of 2

Self-Directed IRA, Real Estate InvestingOur CEO and Senior Vice President are also avid real estate investors. Their experience has proven invaluable in servicing our clients most especially in relation to real estate closings. What you may not realize is that our client base consists largely of people who are using their Self-Directed IRAs to invest in real estate. This is a win-win for both our clients and the realtors who are servicing those clients.

Even more promising for both groups is that the real estate market is perfect for investors. Prices are still relatively low and there is a surplus of homes available. So, realtors may be wondering how they can benefit from the Self-Directed IRA/Real Estate boom. The answer is simple…any one can benefit from this boom. Whether you are an investor or a realtor, there is plenty of opportunity to increase your wealth. In part 1 of this article, we will speak to realtors about what they can do to obtain new clients and generate more income by working with Self-Directed IRA investors.

The first and most important thing is to get educated about Self-Directed IRAs. Listen, before you think this is a sales pitch, hear me out. Self-Directed IRA investors have something very important, money. They have the funds to close the deals. Consider that for a moment and you will realize that means, in many cases, financing will not be a factor. As you know, financing often results in road blocks along the way that can prevent you from closing the deal and collecting your commission. The other thing that many Self-Directed IRA investors have is experience. They are familiar with the real estate process which lessens the chance of a delayed and/or failed closing due to a buyer’s inexperience. Self-Directed IRA investors are also great repeat clients. They buy numerous properties and the better their success, the more they buy.

Okay, so now you can see those commissions stacking up…right? So, back to the first step, get educated about Self-Directed IRAs so that you can attract Self-Directed IRA investors as clients. The more familiar you are with the process, the smoother the process will go and that will result in repeat clients and referrals. You are welcome to visit our website and watch any of our free educational webinars, to view our website content, and to request any of our free Self-Directed IRA guides to assist you in getting educated about Self-Directed IRAs.

The second step is to work on your follow-up process. Self-Directed IRA investors like their realtors to have their eyes wide open for any new real estate that fits what they are looking for. If you know what your client is looking for and you are on top of it so that you get them to the deals first, you will have a winning relationship with that client.

That’s it, it really is that simple…educate yourself about Self-Directed IRAs and deliver excellent follow-up.

Up next…please watch the next issue for Part 2 of this article.




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Self-Directed IRA Due Diligence

Self-Directed IRA Due Diligence When Investing With a Self-directed IRA and/or Self-directed 401(k)– Where do I Start?

With a self-directed IRA and/or a self-directed 401(k) you are always hearing that you must do your ‘self-directed IRA due diligence’. At American IRA, we discovered that many clients did not know how to do their ‘due diligence’.  While we cannot give investment advice at American IRA, we can offer a detailed summary of ‘due diligence’ items that our clients can use as a guide. This list gives our clients a healthy starting point that they can use during discussions with their professionals. In this article we share with you ‘due diligence’ items related to real estate acquisitions. As every investment is different, you should consult with your professionals about whether there are ‘due diligence’ items you need to consider in addition to what we share in this article.

Self-Directed IRA Due Diligence – Real Estate Acquisition – The Basics

These are the basics that you look at if you’re buying any property whether you are buying it with your real estate self-directed IRA or self-directed 401(k) or whether you are buying it outside of your IRA. These are some items you absolutely must look at:

  • Location – is the real estate located in a desirable location?
  • Financing – you want to make sure you get the type of financing you need, whether it’s owner or bank.
  • Property values and comps – you absolutely ‘must’ obtain these so you are educated about what you are purchasing and what its true value is in the market place.
  • Homeowner’s association rules and fees – it is critical that you know these in advance. Did you realize that some homeowner’s association rules actually ‘prohibit’ you from renting or leasing the home?
  • Property liability insurance – make sure the real estate is insurable and find out how much that insurance costs. There are some wonderful homes that are sold cheap and would make great vacation rentals in places such as Florida…but they are either uninsurable or the insurance premiums are so high that their current owners are selling.
  • Title insurance and title issues – always make sure a title search is done on the real estate before you purchase it and always follow-up by protecting yourself with title insurance.
  • Surveys – it is critical to obtain a survey to make sure the real estate you are purchasing as well as the land it is situated on is free from encumbrances.
  • Property condition – a home inspection is a great way to properly assess the condition of the real estate.
  • Rental values – check the rental values in the area to make sure that you can obtain enough in rent to cover all your expenses and still make a profit.

Self-Directed IRA Due Diligence – Real Estate Acquisition – The Don’ts

When investing in real estate via your real estate self-directed IRA or self-directed 401(k), it is critical to avoid some common mistakes.

  • Do not trust the seller’s numbers.
  • Do not take too long to decide. Good deals do not last.
  • Do not trust appraisals unless you ordered it, paid for it, and gave the appraiser instructions.
  • Do not fudge, play with or use ‘hope that this will happen with’ the numbers.Do not underestimate the time to flip.
    • I hope that I can rent it for $1,100. You need to know that you can rent it for $1,100. If you don’t know, use $1,000. Use the number that you know.
  • Do not overestimate the rental market
  • Do not underestimate the repairs.
  • Do not underestimate the “as is” value.

 Self-Directed IRA Due Diligence – Real Estate Acquisition – Key Thoughts

Here are some final thoughts to keep in mind when investing in real estate:

  • Do good deals.
  • Follow through and deliver as agreed to with whatever person you’re dealing with.
  • Use professionals. Many times you think ‘I don’t need that professional’. Trust me when I tell you that I have seen many things that had a professional been involved, they would not have the problems they have.
  • Stay on top of the numbers/bookkeeping.
  • Do not cut corners. I have been punished every single time I’ve cut a corner. The corner-cutting gods come down with lightning bolts and they strike.
  • As soon as you think you are smarter than everyone else, you will find out “The Hard Way” that you’re not.
  • Slow and steady beats fast and sloppy – ALWAYS!
  • Have a plan and work your plan.
  • Do not get tangled up in the bigger better deal mentality.
  • You’ve got to be prepared to walk away at any point in time that the deal does not match up to what you want or what you believe is in your best interest.


The self-directed IRA due diligence items listed, the examples, and the references in this article are merely examples. This is not an all-inclusive list of what you need to include in your real estate investment portfolio; this is absolutely for illustration purposes only.

American IRA, LLC does not give investment advice.  We do offer guidance as to the rules and regulations related to their self-directed accounts and the benefits of different account types so that our clients can take that information to their professionals to discuss the ramifications of various decisions on their individual situation.

For more information, or to explore your options, call American IRA today at 866-7500-IRA(472). We look forward to working with you.


Real Estate IRA Investing

If you haven’t recently considered real estate IRA investing, it may be time to give this critical asset class a second look via a self-directed IRA account with American IRA. The 20th century witnessed a truly colossal climb in property values — so much so, in fact, that many continued to call for further increases stretching well into the 21st century.

With real estate at the heart of the recession that hit in the late 2000s however, new opportunities arose. As with nearly any downturn in tangible assets, what some commentators have deemed an ideal purchasing environment has presented itself for individuals interested in taking advantage of market conditions.

Real estate IRA investing is now picking up in intensity, especially with recent increases in market interest rates. Federal Reserve Chairman Benjamin Bernanke has hinted at tapering off the quantitative easing program that has maintained historically low lending rates, adding to the desire to quickly lock in deals to receive the most value for the money.

While self-directed real estate IRA investing frequently offers the potential for sizable returns in nearly any market, the combination of lower property values and interest rates has increased this potential considerably. Investors who are interested in purchasing a vacation home to use during their retirement or perhaps those looking to increase their self-directed IRA’s portfolio should closely watch these developments as they unfold.

If real estate IRA investing seems to be an insurmountable goal for your IRA due to a lack of funds, self-directed IRAs actually offer a great deal of both lending and borrowing options. As a result, your IRA can borrow money to purchase real estate on a non-recourse basis. You therefore have the opportunity to invest in a much wider variety of assets.

If you would like to be able to benefit from self-directed real estate IRA investing, now is a great time to open or transfer a self-directed IRA account with American IRA! We make the process simple so you can start growing your retirement fund as soon as possible.

If you have any questions about opening a new account, contact us at 1-866-7500-IRA(472) or If you’d like to transfer your existing portfolio, contact us at 1-866-7500-IRA(472) or


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