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In order to increase the return on your IRA account you must have immediate access to your funds. You form the trust described in the “Map to Your Gold Mine”. Your trustee signs checks for your loans, options, or contract deposits. You do not need the approval of your custodian, although you are required to have an account with the custodian. At your direction, they invest your funds into your trust which is in your corner bank. Now you are able to take advantage of many of the opportunities for loans, options, or purchases that investors come across on a routine basis.
Many investors achieve returns of 50% to 200% per year. Buying realtor’s commissions is one of the many techniques you can use to double your IRA account. I offered a friend, who was a realtor $2800 for her commission of $3500 that was due in 4 to 6 weeks. That is 25% profit and if you could do that six times a year that would be 150%. She thought that was fair offer. As a broker, I have been solicited by two national companies that buy real estate commissions. They find there is a lucrative market there. They tell me that they have a 90% repeat business from the same realtors. I think everyone knows some realtors and with the recent market problems many are possible sellers. What if the sale doesn’t close? How do you secure the loan? What type of contract do you use? These are solvable problems that you can perfect. There are notes, contracts, liens, signed checks, and other commercially common documents to resolve this. Holding children in bondage until paid is not recommend, as they might not be redeemed.
My name is Charles Hayes and I’ve been a full time real estate investor for 12 years. For the first 3 or 4 years I was buying, selling and renting houses and I thought I was doing great. I had little money in my retirement account and I was buying and selling pretty aggressively. I went to a seminar with a friend and that’s how I met Jack shea. And in that seminar I heard some things that really changed my mind about some of the things that I was doing. Much of it was working but some of it wasn’t. In the sense I wasnt as profitable as I wanted to be. The first thing I learned was I learned more about Lease Options and powerful tool that they can be for an investor. And Jack has a great program for Lease Option which I use a lot always. And it works very very well. And then I learned more from Jack about using the ROTH-IRA particularly about using Options in the ROTH. It’s not terribly complicated but it is specific and you need an expert on your side who has thoroughly vetted the paperwork, who understands the process, whose there for you when you need some help. And he’s been that to me and to many other students. And I highly recommend that you check out his stuff. It’s well worth what you pay. It’s worth a lot more than what you’ll pay. It’s a great deal compared to what other people charge. So I recommend him highly.
LEASE OPTIONS ARE BEST IN DOWN MARKETS
By Jack Shea
Real estate and business cycles repeat themselves. There have been 20 business cycles
in the past 100 years. The downside recessions averaged 14 months long. The upside
recoveries averaged almost four years. The current 2012 down market may last several
years. Problems with oversupply, difficult financing and a declining economy present a
dim view and possibly a grand investment opportunity. (National Bureau of Economic
Research)
Lease options offer the best tool for controlling property with a minimum investment
and less risk in a declining market. They deliver tax benefits and the ability to do a
1031 tax-free exchange with the gain, without ever owning the property. Experienced
investors use the option to maximize profits tax-free, especially in this chaotic investment
environment. The power and leverage of options are widely used in the business and
financial world. They have also been misused and are a contributing factor to the 2008
Wall Street collapse.
Why are options a favored technique? They are not well understood in the market by
investors, owners, realtors, attorneys or escrow agents. There are few books or courses
that cover advanced application of options in buying or selling. A working knowledge of
the legal and tax implications of options will empower the user to acquire real property,
personal property (mobile homes, vehicles, etc.), notes and other rights with personal,
business or IRA funds.
The option buyer pays a fee for the right to purchase at a set price some time in the
future. This unilateral contract allows him to buy or not, an unusual but enforceable legal
concept. An option is personal property, but can be exchanged tax-free. It can control all
of the profit in a transaction. It can be invisible, portable, private and not attachable.
If a property drastically declines in value, the option can be abandoned at a minimum
loss. The real cost of funds in option transactions is usually lower than market rates, a
considerable benefit.
A special agreement is required to capture all the tax and ownership benefits of a
lease purchase. Additional documents, such as escrow instructions, deeds, notes and
mortgages are also executed to protect all parties equally.
A different approach is used for tenants who desire a rent-to-own lease. Due to the
possibility of a lease option tenant being considered having a title interest in the property,
a Contract for Option is used. This avoids having to foreclose a non-paying tenant.
Several other profitable applications of options will be discussed in detail. The most
important of these is the use of options to multiply IRA accounts. Fourteen different
strategies will be covered. The control and purchase of notes using options is another
available technique.
Read more articles at IRA-401kcheckbookcontrol.com or at JackSheaRealEstate.com
A SREIA sponsored Seminar –Tampa, FL
How to use options and trusts to maximize profits in this uncertain market. Proven forms and contracts provided. Take advantage of lowest
prices and highest rents in many years.
Presented by Jack Shea, Investor and Author
9:00 a.m. to 5:00 p.m.
Registration begins 8:00 a.m.
Only if pre-registered, $155 per person
Day of event at the door on a space available basis, $170
Includes Book and forms CD with all forms (175 pgs)
Join us at the Self Directed Investors Conference on March 8 in Las Vegas.
Presented by The Entrust Group, the industry leader of administrative services for self-directed retirement plans, this one day education-packed event will provide informative insights from today’s top industry professionals. They will discuss timely alternative investments and strategies in the areas of real estate, precious metals and life settlements.
Jack Shea of Key Capital Corporation is proud to be a sponsor at this must attend conference for current and future investors.
We invite you to attend as our guest. You’ll receive an exclusive discount on the conference ticket, as well as:
• Full day of education on self-directed IRAs and alternative investing
• “How to Make Money in Alternative Investments” book
• Networking session with like-minded investors
• Access to vendor tables hosting a variety of information and education
• Continental breakfast
• Lunch complete with a networking hour
*In order to be eligible for this exclusive ticket price, please enter KC2 into the discount code area.
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