60 pippa.io <![CDATA[Self Directed Investor Talk: Alternative Asset Investing through Self-Directed IRA's & Solo 401k's]]> https://SelfDirected.org/investor-talk en Copyright (c) 2017 SDIIP Trust. This show provides educational content only and is not intended as legal, professional or financial advice for any particular situation. generationalwealth,realestateinvesting,realestateira,selfdirectedinvesting,selfdirectedira Bryan Ellis - SelfDirected.org yes Bryan Ellis info+5a429c25968b52d22587f54a@mg.pippa.io episodic https://assets.pippa.io/shows/5a429c25968b52d22587f54a/1515979127746-723cb2c659144825e5aa2eb436e9402f.jpeg https://SelfDirected.org/investor-talk <![CDATA[Self Directed Investor Talk: Alternative Asset Investing through Self-Directed IRA's & Solo 401k's]]> https://feed.pippa.io/public/shows/self-directed-investor-talk What is the mysterious QRP? | SDITalk.com #307 What is the mysterious QRP? | SDITalk.com #307 Fri, 10 Aug 2018 13:06:16 GMT 4:26 5b6d8dc9595c41972ef16043 no https://SDITalk.com/307 full 307 What is the mysterious QRP? And how is it different from the self-directed 401(k)? I’m Bryan Ellis. I’ll give you the answer right now in Episode #307 of America’s largest, fastest growing podcast for self-directed investors


----


Hello, self-directed investor nation, all across the fruited plane! Welcome to the show of record for savvy self-directed investors like you, where in each episode, I help you to find, understand and profit from exceptional alternative investment opportunities and strategies.


Earlier this week I was having a conversation with a colleague who heads a really cool group of dentists and doctors who mastermind together to build great investment portfolios. He told me that several of his members reached out to him because they’d heard about something called a QRP that was clearly superior to a self-directed IRA, and maybe even better than a self-directed 401(k) as well.


Whatever it was, it generated a lot of excitement. The propaganda that my colleague’s clients heard suggested rather heavily, but maybe only indirectly, that this mysterious new financial tool was a different sort of animal… distinct from self-directed IRA’s, distinct from self-directed 401(k)’s… a different animal entirely.


My colleague asked me about it, and wanted to know what I thought about it. It immediately struck a strange tone with me, because the acronym QRP is not well known in the world at large, but is extremely well known in the retirement industry. It stands for Qualified Retirement Plan.


In a generic sense, a qualified retirement plan isn’t actually an account type… it’s a broad category of account types that includes other categories like “defined benefit” plans and “defined contribution” plans. So QRP is a known quantity to people in the retirement industry.


But the way it was described to my colleague… and indeed, the marketing propaganda that support this particular offer, try very hard to maintain an air of mystery about the QRP and to suggest that it is something totally unique and distinct. It claims some wonderful features, such as:


·      Very high contribution limits

·      Very favorable tax treatment of debt-financed investments, which is a big problem area for IRA’s

·      Near instant access to a $50,000 loan from the account at any time

·      Checkbook control of the funds in the account

·      No income limits

·      And a few other things


Really attractive features, to be sure. But those features make it sound strikingly like something you and I know very well… the solo 401(k). But was it actually something different? Why was this promoter calling it a QRP? Had he stumbled onto a wonderful tool about which I was not aware?


Well, no. It was exactly as I thought.


The “dirty little secret” of the promoter who pushes QRP’s is simply using the term QRP to refer to self-directed 401(k) plans. That’s kind of misleading because 401(k)’s are only one of a large number of types of qualified retirement plans, but hey… whatever, you know?


So to you, my dear friends in SDI nation… allow me to tell you with the utmost clarity: As has already begun to happen, you’re going to see more and more people marketing solo 401(k)’s, because it turns out that you don’t really have to have any particular licensing to do so. And some of them are going to be creative in their marketing and will call their product by a different name like QRP.


I guess I don’t blame them. It’s different than the typical name “solo” or “self-directed” 401k… and being an unusual acronym, QRP sounds mysterious.


But don’t let yourself be distracted. I can tell you now with astoundingly high confidence that anytime you hear about a self-directed account that offers that collection of features, it’s nearly certain that what you’re dealing with is a solo 401(k), no matter what else it’s being called.


My friends… invest wisely today and live well forever.

]]>
What is the mysterious QRP? And how is it different from the self-directed 401(k)? I’m Bryan Ellis. I’ll give you the answer right now in Episode #307 of America’s largest, fastest growing podcast for self-directed investors


----


Hello, self-directed investor nation, all across the fruited plane! Welcome to the show of record for savvy self-directed investors like you, where in each episode, I help you to find, understand and profit from exceptional alternative investment opportunities and strategies.


Earlier this week I was having a conversation with a colleague who heads a really cool group of dentists and doctors who mastermind together to build great investment portfolios. He told me that several of his members reached out to him because they’d heard about something called a QRP that was clearly superior to a self-directed IRA, and maybe even better than a self-directed 401(k) as well.


Whatever it was, it generated a lot of excitement. The propaganda that my colleague’s clients heard suggested rather heavily, but maybe only indirectly, that this mysterious new financial tool was a different sort of animal… distinct from self-directed IRA’s, distinct from self-directed 401(k)’s… a different animal entirely.


My colleague asked me about it, and wanted to know what I thought about it. It immediately struck a strange tone with me, because the acronym QRP is not well known in the world at large, but is extremely well known in the retirement industry. It stands for Qualified Retirement Plan.


In a generic sense, a qualified retirement plan isn’t actually an account type… it’s a broad category of account types that includes other categories like “defined benefit” plans and “defined contribution” plans. So QRP is a known quantity to people in the retirement industry.


But the way it was described to my colleague… and indeed, the marketing propaganda that support this particular offer, try very hard to maintain an air of mystery about the QRP and to suggest that it is something totally unique and distinct. It claims some wonderful features, such as:


·      Very high contribution limits

·      Very favorable tax treatment of debt-financed investments, which is a big problem area for IRA’s

·      Near instant access to a $50,000 loan from the account at any time

·      Checkbook control of the funds in the account

·      No income limits

·      And a few other things


Really attractive features, to be sure. But those features make it sound strikingly like something you and I know very well… the solo 401(k). But was it actually something different? Why was this promoter calling it a QRP? Had he stumbled onto a wonderful tool about which I was not aware?


Well, no. It was exactly as I thought.


The “dirty little secret” of the promoter who pushes QRP’s is simply using the term QRP to refer to self-directed 401(k) plans. That’s kind of misleading because 401(k)’s are only one of a large number of types of qualified retirement plans, but hey… whatever, you know?


So to you, my dear friends in SDI nation… allow me to tell you with the utmost clarity: As has already begun to happen, you’re going to see more and more people marketing solo 401(k)’s, because it turns out that you don’t really have to have any particular licensing to do so. And some of them are going to be creative in their marketing and will call their product by a different name like QRP.


I guess I don’t blame them. It’s different than the typical name “solo” or “self-directed” 401k… and being an unusual acronym, QRP sounds mysterious.


But don’t let yourself be distracted. I can tell you now with astoundingly high confidence that anytime you hear about a self-directed account that offers that collection of features, it’s nearly certain that what you’re dealing with is a solo 401(k), no matter what else it’s being called.


My friends… invest wisely today and live well forever.

]]>
When is your IRA or 401(k) NOT Tax-Favored? | SDITalk.com #306 When is your IRA or 401(k) NOT Tax-Favored? | SDITalk.com #306 Tue, 07 Aug 2018 13:45:33 GMT 6:58 5b69a27efc00205f4063ebf4 no https://SDITalk.com/306 full 306 REGISTER FOR THE FREE WEBINAR HERE


When is the profit in your self-directed IRA or 401(k) NOT shielded from taxes? It may happen       far more frequently than you think. I’m Bryan Ellis. This is episode #306 of America’s largest, fastest-growing podcast for self-directed investors.


----


Hello, Self-Directed Investors all across the fruited plane! Welcome to Self-Directed Investor Talk, the show of record for savvy, self-directed investors like you, where in each episode, I help you to find, understand and profit from exceptional alternative investment opportunities and strategies.


Lately there’s been a lot of news about Apple computer, as it’s stock has gone high enough to make the company worth more than a Trillion dollars, the first company to have achieved that lofty level. And there’s constantly news about AMAZON, as that stock has continued to zoom upwards in a meteoric fashion. But did you know that REAL ESTATE beats STOCKS… pretty easily… as a retirement investment… and I can prove that to you conclusively? In fact, I invite you to allow me to present the hard evidence to you that the core retirement investment strategy that Wall Street has taught all of us is fundamentally unwise and unsafe. And I’ll show you how to use real estate to get MUCH BETTER RESULTS. I’ll do that by way of a special FREE webinar for which there are still a few openings available. It’s called Real Estate Beats Stocks… EASILY, and you can register for it at no charge by visiting today’s show page… SDITalk.com/306SDITalk.com/306 and click the link that says “Register For The Free Webinar Here”. But don’t delay… it’s coming up very soon and seats are filling up fast, so to get FREE access, go to SDITalk.com/306 now.


Hey… did you know that not all of the income you make in your self-directed IRA or 401(k) is inherently protected from taxes? That’s right. The distinction lies in the fact that, from the IRS’ point of view, there are two TYPES of income: EARNED income and UNEARNED income. We’ll call them ACTIVE and PASSIVE income, as I think those are more descriptive.


Oh yes… one more thing before we look at the distinctions…


I’d like to offer a sincere THANK YOU to an iTunes listeners who uses the handle Jaywk007. He gave this show a 5-star rating and a really nice review that says “I just started listening to Bryan’s podcast and so far I think it’s awesome… I wish I had found it a long time ago!” Thank you, Jay… I really appreciate that!


And for your entertainment, folks… in tomorrow’s exciting episode, I’ll read to you a recent 0-star review I received. This show has 471 ratings on iTunes right now, which is HUGE… and of those, 450 of them are 5-star. But hey… some people can’t take the heat, and I’ll share one of them with you tomorrow to give you a nice chuckle.


Ok… active income and passive income. That’s a massive, crucial distinction, and here’s the reason why:

When your retirement account generates what’s called PASSIVE income… things like profits from the sale of stock or income from rental properties or interest from a CD… that kind of income is exactly what your retirement accounts was designed for, and consequently, that kind of income – passive income – is where the tax benefits come into play which you BELIEVE to be fundamentally associated with your IRA or 401(k).


But as it turns out, there’s nothing fundamental about those tax benefits. Because if another type of income – called ACTIVE income – is generated in your IRA or 401(k), then look out, because you’ve got a rude awakening headed your way, that rude awakening being, of course, that IRA’s and 401(k)’s do nothing to help your tax situation when the money in question is EARNED or ACTIVE income.


What is active income? According to a definition offered by our pals over at the IRS, It can be one of two different things, and both are pretty simple. First is active income happens whenever you work for someone and they pay you. Easy-peasy. Second is when you own a business or a farm which pays you.


So how does this relate to your IRA or 401(k)?


One very common example of unexpected EARNED income in an IRA or 401(k) is through flipping real estate. Whether you think of real estate flipping as a business or not… it is. And as such, the IRS tends to see the income generated from real estate flipping as ACTIVE or EARNED income if you do more than 2 or 3 of them per year in a retirement account.


That’s not specific to real estate. If you’re actively buying and reselling just about any type of asset… apparently with the exclusion of publicly traded stocks… that will be considered a business that you’re operating through your retirement account, and will, as such, be taxable.


There’s at least one other way to generate income in an IRA that has to do with taking on debt in an IRA, but we’ll look at that another day.


Now a quick note of distinction: You hear me regularly address the issue of “prohibited transactions”… a class of compliance errors that, when committed within your self-directed IRA, renders the thing totally destroyed and, quite probably, slashed in value by 40-60% or more. Those are things like allowing your IRA to buy assets from you personally, etc.


But I want to make it clear to you that performing activities in your IRA that generate ACTIVE income is NOT the same as a prohibited transaction. ACTIVE, or EARNED, income is TAXABLE in your IRA or 401(k)… but it’s not a compliance problem… it’s NOT prohibited.


In fact, it can sometimes be a useful thing to take the hit on those taxes just so you can blow up the size of your retirement account more quickly. But we’ll look at that another day, too.


Folks, thanks for listening. If you’re learning something, please stop by iTunes and give us a nice rating and review. And if you have a suggestion for a topic you’d like me to address, drop a note to me at feedback@sditalk.com.


My friends, invest wisely today and live well forever!

]]>
REGISTER FOR THE FREE WEBINAR HERE


When is the profit in your self-directed IRA or 401(k) NOT shielded from taxes? It may happen       far more frequently than you think. I’m Bryan Ellis. This is episode #306 of America’s largest, fastest-growing podcast for self-directed investors.


----


Hello, Self-Directed Investors all across the fruited plane! Welcome to Self-Directed Investor Talk, the show of record for savvy, self-directed investors like you, where in each episode, I help you to find, understand and profit from exceptional alternative investment opportunities and strategies.


Lately there’s been a lot of news about Apple computer, as it’s stock has gone high enough to make the company worth more than a Trillion dollars, the first company to have achieved that lofty level. And there’s constantly news about AMAZON, as that stock has continued to zoom upwards in a meteoric fashion. But did you know that REAL ESTATE beats STOCKS… pretty easily… as a retirement investment… and I can prove that to you conclusively? In fact, I invite you to allow me to present the hard evidence to you that the core retirement investment strategy that Wall Street has taught all of us is fundamentally unwise and unsafe. And I’ll show you how to use real estate to get MUCH BETTER RESULTS. I’ll do that by way of a special FREE webinar for which there are still a few openings available. It’s called Real Estate Beats Stocks… EASILY, and you can register for it at no charge by visiting today’s show page… SDITalk.com/306SDITalk.com/306 and click the link that says “Register For The Free Webinar Here”. But don’t delay… it’s coming up very soon and seats are filling up fast, so to get FREE access, go to SDITalk.com/306 now.


Hey… did you know that not all of the income you make in your self-directed IRA or 401(k) is inherently protected from taxes? That’s right. The distinction lies in the fact that, from the IRS’ point of view, there are two TYPES of income: EARNED income and UNEARNED income. We’ll call them ACTIVE and PASSIVE income, as I think those are more descriptive.


Oh yes… one more thing before we look at the distinctions…


I’d like to offer a sincere THANK YOU to an iTunes listeners who uses the handle Jaywk007. He gave this show a 5-star rating and a really nice review that says “I just started listening to Bryan’s podcast and so far I think it’s awesome… I wish I had found it a long time ago!” Thank you, Jay… I really appreciate that!


And for your entertainment, folks… in tomorrow’s exciting episode, I’ll read to you a recent 0-star review I received. This show has 471 ratings on iTunes right now, which is HUGE… and of those, 450 of them are 5-star. But hey… some people can’t take the heat, and I’ll share one of them with you tomorrow to give you a nice chuckle.


Ok… active income and passive income. That’s a massive, crucial distinction, and here’s the reason why:

When your retirement account generates what’s called PASSIVE income… things like profits from the sale of stock or income from rental properties or interest from a CD… that kind of income is exactly what your retirement accounts was designed for, and consequently, that kind of income – passive income – is where the tax benefits come into play which you BELIEVE to be fundamentally associated with your IRA or 401(k).


But as it turns out, there’s nothing fundamental about those tax benefits. Because if another type of income – called ACTIVE income – is generated in your IRA or 401(k), then look out, because you’ve got a rude awakening headed your way, that rude awakening being, of course, that IRA’s and 401(k)’s do nothing to help your tax situation when the money in question is EARNED or ACTIVE income.


What is active income? According to a definition offered by our pals over at the IRS, It can be one of two different things, and both are pretty simple. First is active income happens whenever you work for someone and they pay you. Easy-peasy. Second is when you own a business or a farm which pays you.


So how does this relate to your IRA or 401(k)?


One very common example of unexpected EARNED income in an IRA or 401(k) is through flipping real estate. Whether you think of real estate flipping as a business or not… it is. And as such, the IRS tends to see the income generated from real estate flipping as ACTIVE or EARNED income if you do more than 2 or 3 of them per year in a retirement account.


That’s not specific to real estate. If you’re actively buying and reselling just about any type of asset… apparently with the exclusion of publicly traded stocks… that will be considered a business that you’re operating through your retirement account, and will, as such, be taxable.


There’s at least one other way to generate income in an IRA that has to do with taking on debt in an IRA, but we’ll look at that another day.


Now a quick note of distinction: You hear me regularly address the issue of “prohibited transactions”… a class of compliance errors that, when committed within your self-directed IRA, renders the thing totally destroyed and, quite probably, slashed in value by 40-60% or more. Those are things like allowing your IRA to buy assets from you personally, etc.


But I want to make it clear to you that performing activities in your IRA that generate ACTIVE income is NOT the same as a prohibited transaction. ACTIVE, or EARNED, income is TAXABLE in your IRA or 401(k)… but it’s not a compliance problem… it’s NOT prohibited.


In fact, it can sometimes be a useful thing to take the hit on those taxes just so you can blow up the size of your retirement account more quickly. But we’ll look at that another day, too.


Folks, thanks for listening. If you’re learning something, please stop by iTunes and give us a nice rating and review. And if you have a suggestion for a topic you’d like me to address, drop a note to me at feedback@sditalk.com.


My friends, invest wisely today and live well forever!

]]>
How To Invest In Multi-Family with Your 401(k) | SDITalk.com #305 How To Invest In Multi-Family with Your 401(k) | SDITalk.com #305 Mon, 06 Aug 2018 13:41:08 GMT 7:52 5b684ff5af23053674eec5aa no https://SDITalk.com/305 full 305 You’ve found a great multi-family deal, but it’s going to take some cash. You have some cash in your 401(k). How do you put them together for a glorious result? I’ll tell you right now. I’m Bryan Ellis. This is episode #305 of America’s Largest, Fastest-growing podcast for self-directed investors…


-----


Hello, Self-Directed Investors coast to coast and all across the fruited plane! Welcome to Self-Directed Investor Talk, the show of record for savvy self-directed investors like YOU, where each weekday, I help you to FIND, UNDERSTAND and PROFIT from exceptional alternative investment opportunities and strategies.


Happy Q&A day, my friends! I always enjoy Q&A day here on SDI Talk – which happens every 5th episode. If you’d like to submit a question for Q&A day, the best way to do that is to email me directly at feedback@SDITalk.com with your question… I look forward to hearing from you!


Today’s question comes from Riley Lange from Colorado Spring, Colorado. He asks: “What’s the process for rolling your corporate 401(k) over into a multifamily property as a passive investor?” Riley, that’s a great question, and in answering it, I’ve got to encourage you to visit today’s show page at SDITalk.com/305 to refer to the additional resources I’ll reference.


So Riley, if you’re using an existing 401(k) to fund this investment, the process you’re going to want to take will look something like this:


First, select the right type of self-directed account. Even if you already have a self-directed IRA or other account, take the time to reconfirm this, because in many cases – and the type of investment you’re proposing is DEFINITELY one of them – the distinction among the different types of accounts can have HUGE… I mean truly HUGE ramifications on the complexity and profitability of the investment. Yes… the ACCOUNT TYPE you select – like Traditional IRA vs Roth IRA vs SEP IRA vs Solo 401(k), etc. – can mean you actually make substantially MORE or LESS money, so take this seriously. Fortunately for you, SDI Society offers a very powerful and very concise training on this topic, which, while it is not a free training, I have taken the liberty of providing a way for you SDI Talk listeners to access it for free for a VERY limited time if you go over to SDITalk.com/bestaccount.


So after you pick the right account type, the second step is to pick a great custodian or account provider. This too is a big topic. Speak with friends and colleagues about who they use. Get some first-hand referrals if possible. That’s always the best way. If you need a great starting point, over on today’s show page at SDITalk.com/305, I’ve provided the official SDI Society list of self-directed IRA custodians and other account providers… that’s a GREAT place to start.


Third, transfer your money directly from your existing 401(k) to your new account. The IRA company or account provider can guide you on how to do this.


Fourth, assuming you have done proper due diligence on this investment – which is a huge, massive topic unto itself – then you’re ready to direct your custodian to make the investment. Now most of the time, larger multifamily projects will actually not technically be a real estate purchase. Instead, larger properties are usually held within a partnership or other business entity, and you – or your self-directed account, in this case – will instead be purchasing a portion of the partnership which owns the real estate. The broader point here is to make sure that you fully understand how the transaction is structured before you jump in, because there’s a wide array of options here and some are more advantageous to you than others.


So however the transaction is structured, you’ll see to it that the necessary money is transferred from your account to either the investment operator or – more ideally – to a third-party escrow service, and that you receive the proper documents to serve as your account’s indicia of ownership.


At that point, your self-directed retirement account actually owns the investment. Any income that’s generated will be paid to and necessarily owned by your retirement account. And when the time comes for you to sell that investment, all of the proceeds of sale will go back into your retirement account… and that’s REALLY when you get to experience the utter beauty of tax-free investing.


But I do have a word of warning for you: Remember that with pass-through entities, like partnerships and most LLC’s – which is the likely way that your investment will be structured by the investment provider – with entities like that where the tax liability passes directly through to the owners rather than being paid at the entity level, that means that to the extent that the entity generates EARNED income or uses debt financing, your self-directed IRA or solo 401(k) may be liable for payment of current-year income taxes! Yes, I know that those are tax-free entities… but that doesn’t mean that every type of transaction is tax-free. For example, if the investment fund uses leverage – also known as debt – to finance a portion of the transaction, then there’s very likely to be a current-year tax liability for self-directed IRA’s. Similarly, if any of the income generated is “active” income rather than “passive” income – more technically, if any of it is considered to be “unrelated business taxable income” – then your account will owe a current-year tax liability on any income generated from that as well.


Again, Riley, and all of SDI Nation, the one thing that could affect that issue the most is the TYPE of account you select on the front end. It’s really that critical. Be sure to check out SDITalk.com/bestaccount for more about that so you don’t find yourself with a tax bill you weren’t expecting.


And that, my friends, is how one rolls over their corporate 401(k) to invest into a multi-family property.

If you have any further questions or comments, be sure to drop me a line to feedback@SDITalk.com – I’ll be happy to help you out.


In parting, my friends, I have a favor to ask of you: If you’re learning from SDITalk, I ask you to become a subscriber to the show now. Just stop by SDITalk.com to enter your name & email… and that’s all it takes!


My friends… invest wisely today and live well forever!

]]>
You’ve found a great multi-family deal, but it’s going to take some cash. You have some cash in your 401(k). How do you put them together for a glorious result? I’ll tell you right now. I’m Bryan Ellis. This is episode #305 of America’s Largest, Fastest-growing podcast for self-directed investors…


-----


Hello, Self-Directed Investors coast to coast and all across the fruited plane! Welcome to Self-Directed Investor Talk, the show of record for savvy self-directed investors like YOU, where each weekday, I help you to FIND, UNDERSTAND and PROFIT from exceptional alternative investment opportunities and strategies.


Happy Q&A day, my friends! I always enjoy Q&A day here on SDI Talk – which happens every 5th episode. If you’d like to submit a question for Q&A day, the best way to do that is to email me directly at feedback@SDITalk.com with your question… I look forward to hearing from you!


Today’s question comes from Riley Lange from Colorado Spring, Colorado. He asks: “What’s the process for rolling your corporate 401(k) over into a multifamily property as a passive investor?” Riley, that’s a great question, and in answering it, I’ve got to encourage you to visit today’s show page at SDITalk.com/305 to refer to the additional resources I’ll reference.


So Riley, if you’re using an existing 401(k) to fund this investment, the process you’re going to want to take will look something like this:


First, select the right type of self-directed account. Even if you already have a self-directed IRA or other account, take the time to reconfirm this, because in many cases – and the type of investment you’re proposing is DEFINITELY one of them – the distinction among the different types of accounts can have HUGE… I mean truly HUGE ramifications on the complexity and profitability of the investment. Yes… the ACCOUNT TYPE you select – like Traditional IRA vs Roth IRA vs SEP IRA vs Solo 401(k), etc. – can mean you actually make substantially MORE or LESS money, so take this seriously. Fortunately for you, SDI Society offers a very powerful and very concise training on this topic, which, while it is not a free training, I have taken the liberty of providing a way for you SDI Talk listeners to access it for free for a VERY limited time if you go over to SDITalk.com/bestaccount.


So after you pick the right account type, the second step is to pick a great custodian or account provider. This too is a big topic. Speak with friends and colleagues about who they use. Get some first-hand referrals if possible. That’s always the best way. If you need a great starting point, over on today’s show page at SDITalk.com/305, I’ve provided the official SDI Society list of self-directed IRA custodians and other account providers… that’s a GREAT place to start.


Third, transfer your money directly from your existing 401(k) to your new account. The IRA company or account provider can guide you on how to do this.


Fourth, assuming you have done proper due diligence on this investment – which is a huge, massive topic unto itself – then you’re ready to direct your custodian to make the investment. Now most of the time, larger multifamily projects will actually not technically be a real estate purchase. Instead, larger properties are usually held within a partnership or other business entity, and you – or your self-directed account, in this case – will instead be purchasing a portion of the partnership which owns the real estate. The broader point here is to make sure that you fully understand how the transaction is structured before you jump in, because there’s a wide array of options here and some are more advantageous to you than others.


So however the transaction is structured, you’ll see to it that the necessary money is transferred from your account to either the investment operator or – more ideally – to a third-party escrow service, and that you receive the proper documents to serve as your account’s indicia of ownership.


At that point, your self-directed retirement account actually owns the investment. Any income that’s generated will be paid to and necessarily owned by your retirement account. And when the time comes for you to sell that investment, all of the proceeds of sale will go back into your retirement account… and that’s REALLY when you get to experience the utter beauty of tax-free investing.


But I do have a word of warning for you: Remember that with pass-through entities, like partnerships and most LLC’s – which is the likely way that your investment will be structured by the investment provider – with entities like that where the tax liability passes directly through to the owners rather than being paid at the entity level, that means that to the extent that the entity generates EARNED income or uses debt financing, your self-directed IRA or solo 401(k) may be liable for payment of current-year income taxes! Yes, I know that those are tax-free entities… but that doesn’t mean that every type of transaction is tax-free. For example, if the investment fund uses leverage – also known as debt – to finance a portion of the transaction, then there’s very likely to be a current-year tax liability for self-directed IRA’s. Similarly, if any of the income generated is “active” income rather than “passive” income – more technically, if any of it is considered to be “unrelated business taxable income” – then your account will owe a current-year tax liability on any income generated from that as well.


Again, Riley, and all of SDI Nation, the one thing that could affect that issue the most is the TYPE of account you select on the front end. It’s really that critical. Be sure to check out SDITalk.com/bestaccount for more about that so you don’t find yourself with a tax bill you weren’t expecting.


And that, my friends, is how one rolls over their corporate 401(k) to invest into a multi-family property.

If you have any further questions or comments, be sure to drop me a line to feedback@SDITalk.com – I’ll be happy to help you out.


In parting, my friends, I have a favor to ask of you: If you’re learning from SDITalk, I ask you to become a subscriber to the show now. Just stop by SDITalk.com to enter your name & email… and that’s all it takes!


My friends… invest wisely today and live well forever!

]]>
ATTENTION High-Income Earners -- Rejoice | SDITalk.com #303 ATTENTION High-Income Earners -- Rejoice | SDITalk.com #303 Wed, 01 Aug 2018 17:54:21 GMT 6:44 5b61f3cc1c6ba7cf6092840a no https://SDITalk.com/303 full 303 High income earners, rejoice! The IRS announces that I was right... I'll tell you more right now in episode #303 of America's largest, fastest-growing show for self-directed investors...


-----


Hello, Self-Directed Investor Nation! This is Self-Directed Investor Talk, the SHOW OF RECORD for savvy, self-directed investors like you, where each day, I help you to find, understand and profit from exceptional investment opportunities and strategies.


Today, we focus on the STRATEGY side of the equation, but first...


I'd like to extend a huge thank-you again to you folks for continuing to totally BLOW UP our download numbers for this show in the last couple of days since we've gone back on the air... you people are amazing and I'm so grateful! In particular, I'd like to thank all of you who were so kind as to leave me some wonderful 5-star reviews over on iTunes even since we took our hiatus from broadcasting last year. One such kind 5-star review on iTunes came from NateKG who said "I am a full-time day trader getting into the markets after a long career of driving trucks. After searching for some advice on self-directed 401k's, I came across SDI. "WOW", I thought after the first two episodes. This guy's got some valuable information. Everything I was looking for! I highly recommend you listen to Bryan's show all the way from the start. You will be glad (and wealthier) you did!"


Thank you, NateKG... I appreciate that so very much! And if you, my dear listener, feel so inclined, I'd be ever so grateful if you'd consider following in the wise ways of NateKG and stopping by iTunes to give us a rating and review... I'd really really appreciate it!


Ok, onward...


So, my friends... chances are good you're familiar with this thing known as the Roth IRA. It's the newer version of the IRA that allows you to make deposits on an after-tax basis, but all withdrawals of profit you make during retirement are totally TAX-FREE! It's really amazing, to be frank... it really does totally eliminate taxes on your profits.


BUT... there's a downside to it, and that is that there are income limits for making a contribution. Once your income goes above a certain level... not terribly high, starting around $120,000, then your ability to contribute to a Roth is limited and is soon wholly eliminated based on your income.


Well... that's a problem, because the tax advantages of the Roth IRA are just astounding. So somewhere along the way, somebody hatched an idea called the "Backdoor Roth IRA" which would give high-income earners an indirect, back-door kind of way to put money in a Roth IRA. The idea is actually pretty simple:


Instead of contributing to a Roth IRA, what you could do instead was to contribute to a Traditional IRA – which does NOT prevent high income earners from making contributions, as long as they don't take a tax deduction for it... and then just convert that Traditional IRA to a Roth IRA!


The net effect is that you end up with exactly the same thing: A Roth IRA with the amount of money that you would have otherwise contributed... all the same tax benefits and all the same everything applies thereafter, just as if you'd contributed the money directly to a Roth IRA in the first place.


Pretty cool, right? 


Yeah, definitely... now this strategy isn't new. In fact, I told you about it on this very show in January of 2017. You can find that episode linked on today's show page, which is SDITalk.com/303. But the sticking point, which I mentioned in that episode, is that a lot of people have been concerned that the IRS would see this as some sort of a skirting of the rules, and take action against anybody using this strategy.


But there's a problem. That problem is called the "Step Transaction Doctrine", which is a fancy way of saying that if you use a combination of rules as a series of steps to circumvent some other rule, then you're breaking the original rule. The point here being, of course, that a lot of folks out there in the tax and legal community were pulling out their hair over fears that the IRS would drop the hammer and say that using the Backdoor Roth IRA was a violation of the Step Transaction Doctrine and would cause tax problems for anyone who used it.


I never believed that. Here's what I told you about that back in January of last year about that very thing:


My gut sense here as a non-lawyer who is wholly unqualified to give legal advice is that it's wildly improbable that the IRS would pursue that path.


So I'm on record telling you that that particular hubub was probably more of a hysteria than a legitimate issue, and well folks, time has proven me right, yet again, as the feds have issued a clarification in the form of a footnote in a congressional conference committee report says, “Although an individual with AGI exceeding certain limits is not permitted to contribute directly to a Roth IRA, the individual can make a contribution to a traditional IRA and convert the traditional IRA to a Roth IRA.”


Well, folks... it doesn't get a lot more clear than that. Very black and white. But then they went a step further, when Donald Kieffer Jr., a tax law specialist with the IRS’s Tax-Exempt and Government Entities Division made this comment on July 10th Tax Talk Today webcast. He said: “I think the IRS’s only caution would be whenever we see words like ‘back door’ or ‘workaround’ or other step transactions that are putatively enabling a way to get around limits - especially statutory contribution limits - you generally find the IRS is not happy and prepared to challenge those,” Kieffer said. “But in this one that we’re talking about, it’s allowed under the law.”


That's pretty blatant, I think you'll agree... and it's great news. So all you high income earners... rejoice! It looks like you can use the backdoor Roth IRA to your heart's content.


Ok folks, that's all I've got for you today. Remember to check out our sponsor, the SDI Academy, if you'd like to learn the ACTUAL TRUTH of what your self-directed IRA and 401(k) are really all about... and how to use them without causing yourself real heartache. You can learn more over at SDITalk.com/academy.


My friends... I'll be back with you tomorrow, same bat-time, same bat-channel... and in the mean time, invest wisely today and live well forever!

]]>
High income earners, rejoice! The IRS announces that I was right... I'll tell you more right now in episode #303 of America's largest, fastest-growing show for self-directed investors...


-----


Hello, Self-Directed Investor Nation! This is Self-Directed Investor Talk, the SHOW OF RECORD for savvy, self-directed investors like you, where each day, I help you to find, understand and profit from exceptional investment opportunities and strategies.


Today, we focus on the STRATEGY side of the equation, but first...


I'd like to extend a huge thank-you again to you folks for continuing to totally BLOW UP our download numbers for this show in the last couple of days since we've gone back on the air... you people are amazing and I'm so grateful! In particular, I'd like to thank all of you who were so kind as to leave me some wonderful 5-star reviews over on iTunes even since we took our hiatus from broadcasting last year. One such kind 5-star review on iTunes came from NateKG who said "I am a full-time day trader getting into the markets after a long career of driving trucks. After searching for some advice on self-directed 401k's, I came across SDI. "WOW", I thought after the first two episodes. This guy's got some valuable information. Everything I was looking for! I highly recommend you listen to Bryan's show all the way from the start. You will be glad (and wealthier) you did!"


Thank you, NateKG... I appreciate that so very much! And if you, my dear listener, feel so inclined, I'd be ever so grateful if you'd consider following in the wise ways of NateKG and stopping by iTunes to give us a rating and review... I'd really really appreciate it!


Ok, onward...


So, my friends... chances are good you're familiar with this thing known as the Roth IRA. It's the newer version of the IRA that allows you to make deposits on an after-tax basis, but all withdrawals of profit you make during retirement are totally TAX-FREE! It's really amazing, to be frank... it really does totally eliminate taxes on your profits.


BUT... there's a downside to it, and that is that there are income limits for making a contribution. Once your income goes above a certain level... not terribly high, starting around $120,000, then your ability to contribute to a Roth is limited and is soon wholly eliminated based on your income.


Well... that's a problem, because the tax advantages of the Roth IRA are just astounding. So somewhere along the way, somebody hatched an idea called the "Backdoor Roth IRA" which would give high-income earners an indirect, back-door kind of way to put money in a Roth IRA. The idea is actually pretty simple:


Instead of contributing to a Roth IRA, what you could do instead was to contribute to a Traditional IRA – which does NOT prevent high income earners from making contributions, as long as they don't take a tax deduction for it... and then just convert that Traditional IRA to a Roth IRA!


The net effect is that you end up with exactly the same thing: A Roth IRA with the amount of money that you would have otherwise contributed... all the same tax benefits and all the same everything applies thereafter, just as if you'd contributed the money directly to a Roth IRA in the first place.


Pretty cool, right? 


Yeah, definitely... now this strategy isn't new. In fact, I told you about it on this very show in January of 2017. You can find that episode linked on today's show page, which is SDITalk.com/303. But the sticking point, which I mentioned in that episode, is that a lot of people have been concerned that the IRS would see this as some sort of a skirting of the rules, and take action against anybody using this strategy.


But there's a problem. That problem is called the "Step Transaction Doctrine", which is a fancy way of saying that if you use a combination of rules as a series of steps to circumvent some other rule, then you're breaking the original rule. The point here being, of course, that a lot of folks out there in the tax and legal community were pulling out their hair over fears that the IRS would drop the hammer and say that using the Backdoor Roth IRA was a violation of the Step Transaction Doctrine and would cause tax problems for anyone who used it.


I never believed that. Here's what I told you about that back in January of last year about that very thing:


My gut sense here as a non-lawyer who is wholly unqualified to give legal advice is that it's wildly improbable that the IRS would pursue that path.


So I'm on record telling you that that particular hubub was probably more of a hysteria than a legitimate issue, and well folks, time has proven me right, yet again, as the feds have issued a clarification in the form of a footnote in a congressional conference committee report says, “Although an individual with AGI exceeding certain limits is not permitted to contribute directly to a Roth IRA, the individual can make a contribution to a traditional IRA and convert the traditional IRA to a Roth IRA.”


Well, folks... it doesn't get a lot more clear than that. Very black and white. But then they went a step further, when Donald Kieffer Jr., a tax law specialist with the IRS’s Tax-Exempt and Government Entities Division made this comment on July 10th Tax Talk Today webcast. He said: “I think the IRS’s only caution would be whenever we see words like ‘back door’ or ‘workaround’ or other step transactions that are putatively enabling a way to get around limits - especially statutory contribution limits - you generally find the IRS is not happy and prepared to challenge those,” Kieffer said. “But in this one that we’re talking about, it’s allowed under the law.”


That's pretty blatant, I think you'll agree... and it's great news. So all you high income earners... rejoice! It looks like you can use the backdoor Roth IRA to your heart's content.


Ok folks, that's all I've got for you today. Remember to check out our sponsor, the SDI Academy, if you'd like to learn the ACTUAL TRUTH of what your self-directed IRA and 401(k) are really all about... and how to use them without causing yourself real heartache. You can learn more over at SDITalk.com/academy.


My friends... I'll be back with you tomorrow, same bat-time, same bat-channel... and in the mean time, invest wisely today and live well forever!

]]>
a DIRTY SECRET About Turnkey Rentals | Episode #302 a DIRTY SECRET About Turnkey Rentals | Episode #302 Tue, 31 Jul 2018 15:28:58 GMT 10:06 5b60803a4c43ac1347a3f143 no https://SDITalk.com/302 full 302 The last decade’s hottest investment strategy among individual real estate investors is dying a very rapid death. Find out what it is… and why it’s dying right now. I’m Bryan Ellis.  You’re listening to Episode #302 of the largest, fastest-growing self-directed investor podcast in America…


-----


Hello, Self-Directed Investor Nation! Welcome to Self-Directed Investor Talk, the SHOW OF RECORD for savvy self-directed investors like YOU! 


Before we get into the thick of things today, I’ve got to ask you: do you THINK you really know the fundamentals of self-directed IRA’s? Do you really? Well if you DON’T know those fundamentals, you’re in luck. And if you think you DO know them… you may be having even BETTER luck. That’s because for a very brief time, you can receive FREE access to a very highly regarded $297 training program called the SDI Wealth Guide to Self-Directed IRA Fundamentals, available now at SDITalk.com/fundamentals. That video-based training is available to you right now… and in it, you’ll receive the unexpected… but TOTALLY accurate… answers to questions like: What is a self-directed IRA? What kind of self-directed IRA’s are available? What’s the best type for YOU? And are there any self-directed investing alternatives that are SUPERIOR to the IRA? So check it out now, because your status as a listener to SDI Talk gets you something very special: FREE access to this training – normally priced at $297 – just by visiting SDITalk.com/fundamentals.


Ok, my friends, this is episode #302, so all of the links and resources I mention in today’s show can be found, very conveniently, by visiting SDITalk.com/302. But I’d like to take about 20 seconds to express to you something kind of personal but very important, and that is that…


I have a sincere thank you for you people. As you know, I’ve been on hiatus from doing this show for some time. To be honest, I’ve been struggling with some pretty severe personal challenges, and my mind wasn’t where it needed to be to give you folks what you deserve in this show. But yesterday, the time had come to begin this show anew, and that’s why I want to thank you:  Yesterday, this show got HUGE download numbers, even though it was the first episode I’ve published in 6 months, and even though I did nothing to promote it. Still, you people downloaded this show en masse… and I’m so very sincerely, sincerely grateful to you. Thank you from the bottom of my heart.


Ok, let’s do this.


In the last decade, there’s been a dramatic rise in something known as “turnkey rental property investments”. This is a type of rental property investing made for people who want the money, but not the time commitments, of rental ownership.


The way it works is simple: If you buy a turnkey rental property, you’re buying more than just a rental property.  You’re buying the property itself, sure… but that property has already been renovated to rent-readiness. But there’s also been a tenant identified, qualified and moved into the property. And to top it all off, there’s a property manager already in place who is handling the entire tenant relationship so that you, as the investor, can just collect the checks rather than be a landlord… and it also gives you the ability to invest your capital into markets where it really makes sense to do so, rather than being limited only to investing in your own back yard.


So, a pretty cool concept… right? Sure is. With turnkey rental properties, you’re not buying a house, you’re buying an asset that’s presently producing cash flow.


As a side note, this is one of those places where I think the very famous book Rich Dad, Poor Dad by Robert Kiyosaki really painted too rosy of a picture. The message of that book is great: Invest in assets that produce cash flow. The secondary message is that real estate property is the best way to generate such cash flow. But the story seems to suggest that merely by owning these rental properties, you’re going to experience the theoretically possible cash flow.


It’s just not that way. I was having a conversation last night with one of my subscribers named David who has a vast array of experience as a landlord in multiple markets, and we were looking critically at how one might successfully manage a portfolio of properties from a distance. The conclusion is that it’s not easy to do, and merely owning properties – even good ones – is a long way from guaranteeing your success.


And that’s where the whole turnkey thing comes into focus. When you buy a turnkey property, assuming you’re buying a good property with a good property manager, then what you’re doing is acquiring a real cash-flowing assets… the kind that Kiyosaki praised so heavily in Rich Dad, Poor Dad.


And it’s that level of convenience and automated realization of profits that’s made the business of turnkey rental properties boom so heavily in recent years.


But there’s a dirty little secret in that business that the turnkey providers are really hoping you don’t find out: There’s a serious inventory shortage. That’s right… the turnkey people are having a really hard time keeping up with the demand for these properties because… after all… a key consideration is the ability to generate CASH FLOW from these properties. But as the PRICE of real estate has grown at a much faster pace than the attractiveness of turnkey deals is turning downward.


You need not trust me. Check out today’s page over at SDITalk.com/302 and you’ll see two very interesting links: One with the National Rent Index from Apartment list, showing national rents increasing at only 1.4% per year…


And then you’ll see the National real estate composite index from Case Schiller, which shows a national appreciation rate for actual REAL ESTATE VALUES of more than 3 times that… about 4.7% from July of last year to now.


So as real estate values increase at a dramatically faster rate than rental rates, what we have is a situation where it’s much harder for the turnkey rental property companies to mass-produce turnkey rental properties that offer an acceptable yield.


Now before you conclude that I’m suggesting that this isn’t a good time to buy rental properties, I’ll recommend you hang with me for a minute, because that’s not what I’m saying at all.


What I AM saying is that things are becoming much harder for the turnkey property companies, and so many of them are diversifying AWAY from turnkey properties – which is something that some of them know a lot about – and they’re jumping into offering other types of investments. Usually real estate-related, but certainly not similar to turnkey rental properties. Frequently it’s investments in international real estate in tropical locations… or maybe it’s opportunities to syndicate your money into the building of new entire neighborhoods or developments which will then be sold to other investors or home owners… or maybe it’s something wholly unrelated to real estate.


This stuff gives me pause. It’s not that there’s anything fundamentally wrong with any of that… it’s just that this almost inherently means that the turnkey company you’re working with is stepping out of their area of expertise and into a realm where they’re new to the game. And so that is something important and worthy of consideration where the safety of your money is concerned.


But far be it from me to say that it’s no longer a wise thing to buy rental properties today. It’s pretty much always a smart thing to buy strong cash flow. But there are a couple of distinctions now:


The first is that you’re going to find lower and lower inventories being offered by these turnkey providers. This is evidenced by your needing to be placed on a “waiting list” for properties… and by that wait being multiple months in duration. As such, you’ll find that when properties ARE available for investment, you’ll need to jump on them rather quickly.


Incidentally, we do have a few really great turnkey deals available right now, which you can see by visiting SDITalk.com/turnkey, SDITalk.com/turnkey.


And the other distinction is this: There’s a huge difference between YOU finding rental property investments that make sense, and a turnkey rental property company finding a situation that makes sense. For you, you’ve only got to find deals one by one, or even if you’re deploying a lot of capital, still you only need a relatively small number of deals. But these turnkey people… a lot of them move 50-100+ properties per month… they’ve got to find entire swaths of geographic areas where they can get a large volume of deals on a recurring basis. The advantage is inherently with you, because you’re small, you’re nimble, and when an INDIVIDUAL great opportunity arises, it will make sense for you to pursue it, but not them.


So again, far be it from me to suggest that now is no longer a good time to acquire real estate cash flow. A good time for that is, approximately, ALWAYS.


Ok folks, that’s it for today. Hey… do me a favor, will ya? When you have a question about self-directed IRA’s, 401k’s, custodians or investment strategies, shoot them over to me at questions@SDITalk.com... I’ll do my best to answer them here on the show for you.


My friends… invest wisely today, and live well forever!

]]>
The last decade’s hottest investment strategy among individual real estate investors is dying a very rapid death. Find out what it is… and why it’s dying right now. I’m Bryan Ellis.  You’re listening to Episode #302 of the largest, fastest-growing self-directed investor podcast in America…


-----


Hello, Self-Directed Investor Nation! Welcome to Self-Directed Investor Talk, the SHOW OF RECORD for savvy self-directed investors like YOU! 


Before we get into the thick of things today, I’ve got to ask you: do you THINK you really know the fundamentals of self-directed IRA’s? Do you really? Well if you DON’T know those fundamentals, you’re in luck. And if you think you DO know them… you may be having even BETTER luck. That’s because for a very brief time, you can receive FREE access to a very highly regarded $297 training program called the SDI Wealth Guide to Self-Directed IRA Fundamentals, available now at SDITalk.com/fundamentals. That video-based training is available to you right now… and in it, you’ll receive the unexpected… but TOTALLY accurate… answers to questions like: What is a self-directed IRA? What kind of self-directed IRA’s are available? What’s the best type for YOU? And are there any self-directed investing alternatives that are SUPERIOR to the IRA? So check it out now, because your status as a listener to SDI Talk gets you something very special: FREE access to this training – normally priced at $297 – just by visiting SDITalk.com/fundamentals.


Ok, my friends, this is episode #302, so all of the links and resources I mention in today’s show can be found, very conveniently, by visiting SDITalk.com/302. But I’d like to take about 20 seconds to express to you something kind of personal but very important, and that is that…


I have a sincere thank you for you people. As you know, I’ve been on hiatus from doing this show for some time. To be honest, I’ve been struggling with some pretty severe personal challenges, and my mind wasn’t where it needed to be to give you folks what you deserve in this show. But yesterday, the time had come to begin this show anew, and that’s why I want to thank you:  Yesterday, this show got HUGE download numbers, even though it was the first episode I’ve published in 6 months, and even though I did nothing to promote it. Still, you people downloaded this show en masse… and I’m so very sincerely, sincerely grateful to you. Thank you from the bottom of my heart.


Ok, let’s do this.


In the last decade, there’s been a dramatic rise in something known as “turnkey rental property investments”. This is a type of rental property investing made for people who want the money, but not the time commitments, of rental ownership.


The way it works is simple: If you buy a turnkey rental property, you’re buying more than just a rental property.  You’re buying the property itself, sure… but that property has already been renovated to rent-readiness. But there’s also been a tenant identified, qualified and moved into the property. And to top it all off, there’s a property manager already in place who is handling the entire tenant relationship so that you, as the investor, can just collect the checks rather than be a landlord… and it also gives you the ability to invest your capital into markets where it really makes sense to do so, rather than being limited only to investing in your own back yard.


So, a pretty cool concept… right? Sure is. With turnkey rental properties, you’re not buying a house, you’re buying an asset that’s presently producing cash flow.


As a side note, this is one of those places where I think the very famous book Rich Dad, Poor Dad by Robert Kiyosaki really painted too rosy of a picture. The message of that book is great: Invest in assets that produce cash flow. The secondary message is that real estate property is the best way to generate such cash flow. But the story seems to suggest that merely by owning these rental properties, you’re going to experience the theoretically possible cash flow.


It’s just not that way. I was having a conversation last night with one of my subscribers named David who has a vast array of experience as a landlord in multiple markets, and we were looking critically at how one might successfully manage a portfolio of properties from a distance. The conclusion is that it’s not easy to do, and merely owning properties – even good ones – is a long way from guaranteeing your success.


And that’s where the whole turnkey thing comes into focus. When you buy a turnkey property, assuming you’re buying a good property with a good property manager, then what you’re doing is acquiring a real cash-flowing assets… the kind that Kiyosaki praised so heavily in Rich Dad, Poor Dad.


And it’s that level of convenience and automated realization of profits that’s made the business of turnkey rental properties boom so heavily in recent years.


But there’s a dirty little secret in that business that the turnkey providers are really hoping you don’t find out: There’s a serious inventory shortage. That’s right… the turnkey people are having a really hard time keeping up with the demand for these properties because… after all… a key consideration is the ability to generate CASH FLOW from these properties. But as the PRICE of real estate has grown at a much faster pace than the attractiveness of turnkey deals is turning downward.


You need not trust me. Check out today’s page over at SDITalk.com/302 and you’ll see two very interesting links: One with the National Rent Index from Apartment list, showing national rents increasing at only 1.4% per year…


And then you’ll see the National real estate composite index from Case Schiller, which shows a national appreciation rate for actual REAL ESTATE VALUES of more than 3 times that… about 4.7% from July of last year to now.


So as real estate values increase at a dramatically faster rate than rental rates, what we have is a situation where it’s much harder for the turnkey rental property companies to mass-produce turnkey rental properties that offer an acceptable yield.


Now before you conclude that I’m suggesting that this isn’t a good time to buy rental properties, I’ll recommend you hang with me for a minute, because that’s not what I’m saying at all.


What I AM saying is that things are becoming much harder for the turnkey property companies, and so many of them are diversifying AWAY from turnkey properties – which is something that some of them know a lot about – and they’re jumping into offering other types of investments. Usually real estate-related, but certainly not similar to turnkey rental properties. Frequently it’s investments in international real estate in tropical locations… or maybe it’s opportunities to syndicate your money into the building of new entire neighborhoods or developments which will then be sold to other investors or home owners… or maybe it’s something wholly unrelated to real estate.


This stuff gives me pause. It’s not that there’s anything fundamentally wrong with any of that… it’s just that this almost inherently means that the turnkey company you’re working with is stepping out of their area of expertise and into a realm where they’re new to the game. And so that is something important and worthy of consideration where the safety of your money is concerned.


But far be it from me to say that it’s no longer a wise thing to buy rental properties today. It’s pretty much always a smart thing to buy strong cash flow. But there are a couple of distinctions now:


The first is that you’re going to find lower and lower inventories being offered by these turnkey providers. This is evidenced by your needing to be placed on a “waiting list” for properties… and by that wait being multiple months in duration. As such, you’ll find that when properties ARE available for investment, you’ll need to jump on them rather quickly.


Incidentally, we do have a few really great turnkey deals available right now, which you can see by visiting SDITalk.com/turnkey, SDITalk.com/turnkey.


And the other distinction is this: There’s a huge difference between YOU finding rental property investments that make sense, and a turnkey rental property company finding a situation that makes sense. For you, you’ve only got to find deals one by one, or even if you’re deploying a lot of capital, still you only need a relatively small number of deals. But these turnkey people… a lot of them move 50-100+ properties per month… they’ve got to find entire swaths of geographic areas where they can get a large volume of deals on a recurring basis. The advantage is inherently with you, because you’re small, you’re nimble, and when an INDIVIDUAL great opportunity arises, it will make sense for you to pursue it, but not them.


So again, far be it from me to suggest that now is no longer a good time to acquire real estate cash flow. A good time for that is, approximately, ALWAYS.


Ok folks, that’s it for today. Hey… do me a favor, will ya? When you have a question about self-directed IRA’s, 401k’s, custodians or investment strategies, shoot them over to me at questions@SDITalk.com... I’ll do my best to answer them here on the show for you.


My friends… invest wisely today, and live well forever!

]]>
Real Estate Market Has Multiple Personality Disorder? | Episode #301 Real Estate Market Has Multiple Personality Disorder? | Episode #301 Mon, 30 Jul 2018 16:28:25 GMT 11:36 5b5f3cabd9899d537bfa3dc2 no https://SDITalk.com/301 full 301 The housing market is showing signs of multiple personality disorder... the two things that could bring real estate to it’s knees near-term… and Facebook lays an egg and gets scrambled on Wall Street. I’m Bryan Ellis… this is Episode #301 of Self-Directed Investor Talk.

----

Hello, Self-Directed Investor Nation… a lot to get to today, after a bit of a hiatus. Today’s show page is SDITalk.com/301, so let’s jump right in, after a quick word from our sponsor, the Self-Directed Investor Academy.


Have you ever noticed that there’s just not much in the way of really great training material out there where self-directed IRA’s and solo 401(k)’s are concerned? Oh sure… all of the IRA companies provide “education”… but their end is clearly so you’ll give them your business. And there are a few books written by attorneys using the native language of attorneys which is a strange dialect of Latin known as “YesButProbablyNo”… but if you’re an intelligent person who just wants the hard truth about how to use self-directed retirement accounts while squeezing every penny of value out of them you can… even when that may not be in the best interest of your IRA company… well, SDI Academy is for you. SDI Academy is a private membership group that produces video-based Wealth Guides about the exact topics that self-directed IRA and 401(k) owners need to understand… totally free of the murky babble you see on the internet. I think you’ll particularly enjoy their trainings on how to pick the right self-directed retirement account for you and how to pick the best self-directed IRA company for you… because the results you’ll end up with are probably VERY DIFFERENT than what you’d expect… and so, you’ll really get TREMENDOUS VALUE. For a limited time, listeners to SDI Talk can get a FREE 3-day membership to the already-inexpensive but inordinately valuable SDI Academy by visiting SDITalk.com/academy. That’s SDITalk.com/academy.


Ok people… we all know that the overwhelming top asset class choice among self-directed retirement account owners is real estate, so what I’ve got to share with you will be quite directly relevant for a very large swath of you… say, 100% of you! Hehehehe.


This past week, some new economic numbers came out that suggest the housing market is slowing down… the evidence cited by sources like the very entertaining but not always accurate CNBC informs us the reason for this is a slowdown in boiling-hot markets like L.A. and Denver.  For some reason I’m not entirely sure of, I’ve linked to the cutesy video CNBC made about this over at SDITalk.com/301.


https://www.cnbc.com/video/2018/07/26/housing-market-slows-down-real-estate-housing.html


But this very morning, July 30, 2018, the National Association of Realtors reported that pending home sales rose more than expected after a relatively soft selling season so far this year. Conflicting news, it would seem.


Not really. There’s more to it below the surface. And I, your humble host, will pull back the curtains for you now.


What we have right now, folks, is a situation where real in many of those hot markets, real estate prices are still increasing, but two other statistics have changed: The rate of increase is less than it has been in years – like in Dallas, Texas – and the number of home actually being sold is falling off too, like in Southern California, where CoreLogic tells us that there were SUBSTANTIALLY fewer home sales of all types have sold this year versus last… as in, a whopping 11.8% fewer home sales this year versus last.


So it’s strange… you’ve got rising prices, but decreased activity.


Now I could totally go into geek mode on you with this stuff, but I’ll tell you what I think is happening from a very practical perspective:


What we have is a real estate market that has boomed and boomed and boomed such that it looks like the mortgage meltdown of 2008 never happened at all. That’s only 10 years ago now… and practically NOBODY is sitting on a real estate loss anymore, if they just held on.


Do you know what you’re NOT hearing much about these days, that was a super popular topic back then? Foreclosure filing statistics. I’ll tell you why: There’s almost no bad news there. Foreclosures have tanked practically nationwide. That’s a very good thing.


So what’s going on here with this strange mix of positive and negative data? Everyone has a theory, including me, but let’s look at what we actually KNOW to be true:


The U.S. economy is BOOMING. By any and every reasonable standard, the U.S. economy is in better condition now than at any time in the last 10 years… and maybe longer. It’s eerily… well, quite positively, actually, reminiscent of the 1980’s from about 83 onward… the economy was just clicking on all cylinders… and the same is happening now. Unemployment is lower than it’s been since 2000… GDP is booming… wage growth was higher last month than it’s been all year so far… the fact is, it’s just hard to find any objectively negative indicators about the economy right now.


So what’s going to happen next with housing prices? You people who’ve listened to me for a long time know that I don’t claim to be a prognosticator, and that has not changed. But just from a simple logical point of view, here’s what I expect:


I expect that there will be continued slowing in the rate of appreciation in the super-hot markets, but I don’t believe we’re facing any sort of impending real estate collapse. The fundamentals of the economy are simply too strong for that right now, and there are a number of leading indicators suggesting that it will boom still more.


That said, there are two big potential headwinds to keep an eye on for those of you who may be in the market to unload some of your property to finance retirement or other expenses.


The first headwind is rising interest rates. Interest rates are already on the rise and will likely continue to do so, as is to be expected in a rapidly expanding economy. The thing to watch is whether the Fed goes nuts with this. In recent decades, the Fed has been as much a political entity as an economic one… and that’s NEVER good for the economy. Right now, that tendency appears to be still reasonably in check.


The second potential headwind is the midterm Congressional elections of 2018. Set aside your political biases and beliefs for just a moment, and let’s make some rational predictions here.


What we know, without a doubt, is that the stock market tends to be a leading indicator of the broader economy. We also know that when President Trump was elected in 2016, from the very next day onward for a very long time, the market boomed upwards with a ferocity and consistency that was absolutely breathtaking, which means that the market believed… even though nobody seemed to want to admit it… that they WANTED Trump policies for the good of the economy.


So fast forward to the election to happen in November of this year. Should the Democrats retake the House of Representatives, you can be certain that Congress will instantly slam the door shut on Trump’s economic objectives. There will be a number of things he can continue to do independently, but to effect real change, he needs Congress. So if the Democrats retake Congress, the Trump boom in the economy will likely stagnate… and I bet the stock market will start to bleed consistently.


What I expect, overall, is more of a plateau in real estate values rather than a hard decline.  In a weaker economy, sure… you might predict a bit of a collapse. But a weak economy is not what we have right now. It’s strong, and arguably getting much stronger.


What’s the prescription? Same as always: With your real estate investments, focus on cash flow. Cash flow, cash flow, cash flow. Strong cash flow makes it wholly unnecessary for you to focus much on flighty valuations in real estate or stocks or anything else. Enough cash flow from your investments, and simply nothing else matters. Cash flow is king.


And I can’t wrap up today without mentioning the absolute slaughter of Facebook stock last week… a meltdown that slashed $100 BILLION of value from Facebook. That’s never happened before in the history of the stock market that a company has taking such a quick market cap slashing of that degree.


I bring this up for two reasons:


First, for any of you who remain focused on investing your money in Wall Street, you should take the time to learn about stock options as a way to hedge your risk. You buy insurance for your real estate… I think it’s a bit foolish not to do the same for your investments if it’s simple and economical to do that… and that’s what stock options can do for you.


Second… the Facebook debacle reminds me of one of the reasons it’s so wonderful to invest in non-Wall Street assets… and that is that with a bit of effort, you can actually buy assets at a discount versus their current value… and thereby build in a strong cushion against loss. You can’t do that with Facebook. As I look right now, Facebook is trading at about $170 per share. That being true, there’s no way you’re going to be able to buy those shares at a huge discount versus their current price. But in real estate, for example, it happens ALL THE TIME that you can buy real estate far below it’s market value. That’s a huge difference… a huge reason to seriously look at pushing more and more of your assets AWAY from Wall Street and into assets you actually control and understand yourself.


That is all for today, my friends… I’ll be back with you tomorrow and will tell you something I’m observing in that industry known as “turnkey rental properties”… this is a big deal… and NOBODY is talking about it… except for me, tomorrow, on this very show


I am, of course, Bryan Ellis. This is Self-Directed Investor Talk, the biggest, fastest-growing self-directed investor podcast in America.


------


Self-Directed Investor Talk is a production of the Self-Directed Investor Society. This content is not intended to be advisory in nature and is not offered with the intention of providing legal, tax or other licensed professional guidance to any listener… be sure to see your own licensed advisors for that type of advice. This broadcast is copyright 2018 and is used under license from the Self-Directed Investor Society.


]]>
The housing market is showing signs of multiple personality disorder... the two things that could bring real estate to it’s knees near-term… and Facebook lays an egg and gets scrambled on Wall Street. I’m Bryan Ellis… this is Episode #301 of Self-Directed Investor Talk.

----

Hello, Self-Directed Investor Nation… a lot to get to today, after a bit of a hiatus. Today’s show page is SDITalk.com/301, so let’s jump right in, after a quick word from our sponsor, the Self-Directed Investor Academy.


Have you ever noticed that there’s just not much in the way of really great training material out there where self-directed IRA’s and solo 401(k)’s are concerned? Oh sure… all of the IRA companies provide “education”… but their end is clearly so you’ll give them your business. And there are a few books written by attorneys using the native language of attorneys which is a strange dialect of Latin known as “YesButProbablyNo”… but if you’re an intelligent person who just wants the hard truth about how to use self-directed retirement accounts while squeezing every penny of value out of them you can… even when that may not be in the best interest of your IRA company… well, SDI Academy is for you. SDI Academy is a private membership group that produces video-based Wealth Guides about the exact topics that self-directed IRA and 401(k) owners need to understand… totally free of the murky babble you see on the internet. I think you’ll particularly enjoy their trainings on how to pick the right self-directed retirement account for you and how to pick the best self-directed IRA company for you… because the results you’ll end up with are probably VERY DIFFERENT than what you’d expect… and so, you’ll really get TREMENDOUS VALUE. For a limited time, listeners to SDI Talk can get a FREE 3-day membership to the already-inexpensive but inordinately valuable SDI Academy by visiting SDITalk.com/academy. That’s SDITalk.com/academy.


Ok people… we all know that the overwhelming top asset class choice among self-directed retirement account owners is real estate, so what I’ve got to share with you will be quite directly relevant for a very large swath of you… say, 100% of you! Hehehehe.


This past week, some new economic numbers came out that suggest the housing market is slowing down… the evidence cited by sources like the very entertaining but not always accurate CNBC informs us the reason for this is a slowdown in boiling-hot markets like L.A. and Denver.  For some reason I’m not entirely sure of, I’ve linked to the cutesy video CNBC made about this over at SDITalk.com/301.


https://www.cnbc.com/video/2018/07/26/housing-market-slows-down-real-estate-housing.html


But this very morning, July 30, 2018, the National Association of Realtors reported that pending home sales rose more than expected after a relatively soft selling season so far this year. Conflicting news, it would seem.


Not really. There’s more to it below the surface. And I, your humble host, will pull back the curtains for you now.


What we have right now, folks, is a situation where real in many of those hot markets, real estate prices are still increasing, but two other statistics have changed: The rate of increase is less than it has been in years – like in Dallas, Texas – and the number of home actually being sold is falling off too, like in Southern California, where CoreLogic tells us that there were SUBSTANTIALLY fewer home sales of all types have sold this year versus last… as in, a whopping 11.8% fewer home sales this year versus last.


So it’s strange… you’ve got rising prices, but decreased activity.


Now I could totally go into geek mode on you with this stuff, but I’ll tell you what I think is happening from a very practical perspective:


What we have is a real estate market that has boomed and boomed and boomed such that it looks like the mortgage meltdown of 2008 never happened at all. That’s only 10 years ago now… and practically NOBODY is sitting on a real estate loss anymore, if they just held on.


Do you know what you’re NOT hearing much about these days, that was a super popular topic back then? Foreclosure filing statistics. I’ll tell you why: There’s almost no bad news there. Foreclosures have tanked practically nationwide. That’s a very good thing.


So what’s going on here with this strange mix of positive and negative data? Everyone has a theory, including me, but let’s look at what we actually KNOW to be true:


The U.S. economy is BOOMING. By any and every reasonable standard, the U.S. economy is in better condition now than at any time in the last 10 years… and maybe longer. It’s eerily… well, quite positively, actually, reminiscent of the 1980’s from about 83 onward… the economy was just clicking on all cylinders… and the same is happening now. Unemployment is lower than it’s been since 2000… GDP is booming… wage growth was higher last month than it’s been all year so far… the fact is, it’s just hard to find any objectively negative indicators about the economy right now.


So what’s going to happen next with housing prices? You people who’ve listened to me for a long time know that I don’t claim to be a prognosticator, and that has not changed. But just from a simple logical point of view, here’s what I expect:


I expect that there will be continued slowing in the rate of appreciation in the super-hot markets, but I don’t believe we’re facing any sort of impending real estate collapse. The fundamentals of the economy are simply too strong for that right now, and there are a number of leading indicators suggesting that it will boom still more.


That said, there are two big potential headwinds to keep an eye on for those of you who may be in the market to unload some of your property to finance retirement or other expenses.


The first headwind is rising interest rates. Interest rates are already on the rise and will likely continue to do so, as is to be expected in a rapidly expanding economy. The thing to watch is whether the Fed goes nuts with this. In recent decades, the Fed has been as much a political entity as an economic one… and that’s NEVER good for the economy. Right now, that tendency appears to be still reasonably in check.


The second potential headwind is the midterm Congressional elections of 2018. Set aside your political biases and beliefs for just a moment, and let’s make some rational predictions here.


What we know, without a doubt, is that the stock market tends to be a leading indicator of the broader economy. We also know that when President Trump was elected in 2016, from the very next day onward for a very long time, the market boomed upwards with a ferocity and consistency that was absolutely breathtaking, which means that the market believed… even though nobody seemed to want to admit it… that they WANTED Trump policies for the good of the economy.


So fast forward to the election to happen in November of this year. Should the Democrats retake the House of Representatives, you can be certain that Congress will instantly slam the door shut on Trump’s economic objectives. There will be a number of things he can continue to do independently, but to effect real change, he needs Congress. So if the Democrats retake Congress, the Trump boom in the economy will likely stagnate… and I bet the stock market will start to bleed consistently.


What I expect, overall, is more of a plateau in real estate values rather than a hard decline.  In a weaker economy, sure… you might predict a bit of a collapse. But a weak economy is not what we have right now. It’s strong, and arguably getting much stronger.


What’s the prescription? Same as always: With your real estate investments, focus on cash flow. Cash flow, cash flow, cash flow. Strong cash flow makes it wholly unnecessary for you to focus much on flighty valuations in real estate or stocks or anything else. Enough cash flow from your investments, and simply nothing else matters. Cash flow is king.


And I can’t wrap up today without mentioning the absolute slaughter of Facebook stock last week… a meltdown that slashed $100 BILLION of value from Facebook. That’s never happened before in the history of the stock market that a company has taking such a quick market cap slashing of that degree.


I bring this up for two reasons:


First, for any of you who remain focused on investing your money in Wall Street, you should take the time to learn about stock options as a way to hedge your risk. You buy insurance for your real estate… I think it’s a bit foolish not to do the same for your investments if it’s simple and economical to do that… and that’s what stock options can do for you.


Second… the Facebook debacle reminds me of one of the reasons it’s so wonderful to invest in non-Wall Street assets… and that is that with a bit of effort, you can actually buy assets at a discount versus their current value… and thereby build in a strong cushion against loss. You can’t do that with Facebook. As I look right now, Facebook is trading at about $170 per share. That being true, there’s no way you’re going to be able to buy those shares at a huge discount versus their current price. But in real estate, for example, it happens ALL THE TIME that you can buy real estate far below it’s market value. That’s a huge difference… a huge reason to seriously look at pushing more and more of your assets AWAY from Wall Street and into assets you actually control and understand yourself.


That is all for today, my friends… I’ll be back with you tomorrow and will tell you something I’m observing in that industry known as “turnkey rental properties”… this is a big deal… and NOBODY is talking about it… except for me, tomorrow, on this very show


I am, of course, Bryan Ellis. This is Self-Directed Investor Talk, the biggest, fastest-growing self-directed investor podcast in America.


------


Self-Directed Investor Talk is a production of the Self-Directed Investor Society. This content is not intended to be advisory in nature and is not offered with the intention of providing legal, tax or other licensed professional guidance to any listener… be sure to see your own licensed advisors for that type of advice. This broadcast is copyright 2018 and is used under license from the Self-Directed Investor Society.


]]>
Real Estate: The Ideal IRA Investment | SDITalk.com #300 Real Estate: The Ideal IRA Investment | SDITalk.com #300 Wed, 24 Jan 2018 18:22:01 GMT 8:23 5a68cec9cbf4007a7a11a584 no https://SDITalk.com/300 full 300 https://SDITalk.com/300 -- Yes, it’s true: Rental property investing in your IRA or 401k can make you very, very wealthy. It’s also true that it’s stressful and time consuming to be a landlord, and financially risky to do so within the confines of the IRS’ strict rules for retirement accounts. Fortunately for you, I have the answer. I’m Bryan Ellis. This is episode #300 of Self-Directed Investor Talk.]]> https://SDITalk.com/300 -- Yes, it’s true: Rental property investing in your IRA or 401k can make you very, very wealthy. It’s also true that it’s stressful and time consuming to be a landlord, and financially risky to do so within the confines of the IRS’ strict rules for retirement accounts. Fortunately for you, I have the answer. I’m Bryan Ellis. This is episode #300 of Self-Directed Investor Talk.]]> Can I Transfer Assets I Own Into An IRA? | SDITalk.com #299 Can I Transfer Assets I Own Into An IRA? | SDITalk.com #299 Tue, 23 Jan 2018 16:11:29 GMT 6:25 5a675eb1ce5c542a60547bcd no https://SDITalk.com/299 Danger, Will Robinson full 299 https://SDITalk.com/299 -- One of the most common questions I receive over at SelfDirected.org when somebody wants to buy an asset in their IRA is this: “Bryan, can I buy [insert asset name here] in my name and then transfer it to my retirement account?” I get this question a WHOLE LOT about bitcoin and about real estate. There’s a very definite, unambiguous answer to this, and I’ll share it with you right now. I’m Bryan Ellis. This is Episode #299.]]> https://SDITalk.com/299 -- One of the most common questions I receive over at SelfDirected.org when somebody wants to buy an asset in their IRA is this: “Bryan, can I buy [insert asset name here] in my name and then transfer it to my retirement account?” I get this question a WHOLE LOT about bitcoin and about real estate. There’s a very definite, unambiguous answer to this, and I’ll share it with you right now. I’m Bryan Ellis. This is Episode #299.]]> What is a Self-Directed Investor? | SDITalk.com #298 What is a Self-Directed Investor? | SDITalk.com #298 Mon, 22 Jan 2018 21:36:36 GMT 6:59 5a665969ce5c542a60547ba5 no https://SDITalk.com/298 full 298 https://SDITalk.com/298 -- What, exactly, is a self-directed investor? Well my friends, it’s as much philosophy as technique; as much about wisdom of means as it is success of the ends. It’s all about trusting YOURSELF more than you trust Wall Street, Big Banks or anyone else who has their eye on your investment capital. Find out right now if you REALLY are a self-directed investor… and what that means for you. I’m Bryan Ellis. This is Episode #298.]]> https://SDITalk.com/298 -- What, exactly, is a self-directed investor? Well my friends, it’s as much philosophy as technique; as much about wisdom of means as it is success of the ends. It’s all about trusting YOURSELF more than you trust Wall Street, Big Banks or anyone else who has their eye on your investment capital. Find out right now if you REALLY are a self-directed investor… and what that means for you. I’m Bryan Ellis. This is Episode #298.]]> TERRIBLE! Avoid This Self-Directed IRA Company... | SDITalk.com #297 TERRIBLE! Avoid This Self-Directed IRA Company... | SDITalk.com #297 Fri, 19 Jan 2018 19:32:01 GMT 6:08 5a6247b5f2efdb2329057069 no https://SDITalk.com/297 full 297 https://SDITalk.com/297 -- There are a few big things and a million little things that could make one self-directed IRA custodian better or worse than another. But there’s one thing that makes an IRA company bad for anybody, and I will tell you what it is right now. I’m Bryan Ellis. This is episode #297.]]> https://SDITalk.com/297 -- There are a few big things and a million little things that could make one self-directed IRA custodian better or worse than another. But there’s one thing that makes an IRA company bad for anybody, and I will tell you what it is right now. I’m Bryan Ellis. This is episode #297.]]> What is the Purpose of your IRA Custodian? | SDITalk.com #296 What is the Purpose of your IRA Custodian? | SDITalk.com #296 Thu, 18 Jan 2018 19:45:26 GMT 8:06 5a60f959c392708165a467a6 no https://SDITalk.com/296 Your self-directed IRA custodian serves an important role, but... full 296 https://SDITalk.com/296 -- What is the real purpose of your IRA custodian? It’s probably not what you think, but I’ll tell you the real answer. I’m Bryan Ellis. This is episode #296 of Self-Directed Investor Talk.

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https://SelfDirected.org

https://SelfDirected.org/ira

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https://SDITalk.com/296 -- What is the real purpose of your IRA custodian? It’s probably not what you think, but I’ll tell you the real answer. I’m Bryan Ellis. This is episode #296 of Self-Directed Investor Talk.

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https://SelfDirected.org

https://SelfDirected.org/ira

]]>
What is BITCOIN Really Worth? (New Data) | SDITalk.com #295 What is BITCOIN Really Worth? (New Data) | SDITalk.com #295 Tue, 16 Jan 2018 18:46:47 GMT 7:13 5a5e489917c58bcb22de2a25 no https://SDITalk.com/295 4 Significant New Pieces Of Data Tell An Interesting Tale... full 295 https://SDITalk.com/295 -- I don’t normally dive into these waters, but here we go: What is Bitcoin actually worth? I have some data-backed thinking on this you may not like, but hey… the truth is the truth. I’m Bryan Ellis. This is Episode #295 of Self-Directed Investor Talk.


Self-Directed IRA Guide: https://SelfDirected.org/ira

]]>
https://SDITalk.com/295 -- I don’t normally dive into these waters, but here we go: What is Bitcoin actually worth? I have some data-backed thinking on this you may not like, but hey… the truth is the truth. I’m Bryan Ellis. This is Episode #295 of Self-Directed Investor Talk.


Self-Directed IRA Guide: https://SelfDirected.org/ira

]]>
<![CDATA[How to SLASH Your IRA's Taxes on Flips & Active Income | SDITalk.com #294]]> Mon, 15 Jan 2018 20:35:29 GMT 6:09 5a5d10931afb29d07db864ee no https://SDITalk.com/294 aka How The Trump Tax Cut Helps Your Self-Directed IRA PROFOUNDLY full 294 https://SDITalk.com/294 -- Hello, Self-Directed Investor Nation! Welcome to the broadcast of record for savvy self-directed investors like you, where in each episode, I help you to find, understand and profit from exceptional alternative investment opportunities.


My friends, this episode – episode #294 – is almost a part 2 follow-up to yesterday’s brilliant episode in which I shared with you exactly why it can actually REALLY MAKE SENSE to perform taxable transactions in your IRA, even though the tax rate your IRA will face – something on the order of 40% or so – is painfully high.


Now If you didn’t get to enjoy that episode, you really should do so right now, because this episode builds nicely on that one. You can get the link for that show on today’s resource page, SDITalk.com/294.


So even in the high-tax scenario I described in episode #293, that strategy still makes absolute sense. And today, I’ll make that strategy even better by slashing that tax rate in half by using a bit of tax-planning savvy.


As I do that, you’re welcomed to join the conversation by toll-free telephone at (833) SDI-TALK, by email at feedback@SDITalk.com or by visiting the resource page for this episode, episode #294, which is, of course, SDITalk.com/294.


Ok folks, I’ve got to warn you… or some of you, at least: If you’re one of those folks who hates Donald Trump just because he’s Donald Trump, and you give no regard to the positive economic benefits his policies bring to your financial situation, then you’re going to hate today’s show.


But if you have the ability to be smart with the hand you’re dealt, you’re going to see how to use the recent corporate tax cut to HUGE benefit in your self-directed IRA or 401(k).


So here’s the deal: When you make investments in your IRA that are considered by the IRS to be “active businesses” – like real estate flipping – then your IRA will be subject to income tax. Since your IRA is technically a trust, your IRA is taxed at trust rates… and those rates are high. For all intents and purposes, you can think 40%, and that’s before your state tacks on more.


So a clever self-directed IRA or 401k user might think… “Ok, let’s do the deal inside of the IRA using a more tax-efficient business structure.” You know, something like… let’s set up a corporation inside the IRA and use the corporation’s tax rates instead of the really high trust tax rates.


Sounds like a good idea, right?


Only problem with that is that, until the Trump tax cuts, the corporate income tax rate maxed out around 39%... basically identical to the trust tax rates. So there’d be no real tax advantage for doing your flips through a corporation in your IRA.


But this is where the new tax law can give a huge boost to your IRA. Now, corporate tax rates no longer top out at 39%, but at 21%... basically HALF of what it was before. That’s amazing… HALF!

So you might recall yesterday’s example where your IRA made $60,000 in one year by doing real estate flips, but the IRA actually lost 40% of that – $24,000 – to taxes.


Well, simply by forming a corporation in your IRA and performing the flips within the corporation instead of directly in the IRA, the max federal corporate tax rate drops to 21%, which means your IRA’s tax hit plummets to a bit over $12,000 rather than $24,000.


Yep, you heard that right… the tax cut bill that the press claimed was only for “corporate fat cats” can actually have a very substantively positive effect on your retirement savings via your self-directed IRA or 401(k)!


Think about that difference… a difference of about $12,000. Not a huge amount, but it equates to about 2 year’s worth of maxed-out annual IRA contributions for most people. And what’s more, it’s plausible to experience that kind of result each and every year, not just one time.

The difference can be HUGE.


That’s all I’ve got for you today, but…


Can I take 30 seconds and ask a favor of you? Would you be so kind as to stop by over at iTunes and give us a 5-star rating if you haven’t already? It’s actually really important because some bozo named Bill0804 gave us a bad rating just because I’m not afraid to talk about politics and how it affects your money – just like I did today – and he happens to have a different political opinion. Now let’s be clear, of the 455 ratings we already have on iTunes, 95.6% of them – 435 – are perfect 5-stars, so we’re still doing exceptionally well. But if you enjoy this show, it would be really helpful for me if you’d stop by over at iTunes and give us a great rating. Thanks so much, and one more thing to remember:


Invest wisely today, and live well forever!

]]>
https://SDITalk.com/294 -- Hello, Self-Directed Investor Nation! Welcome to the broadcast of record for savvy self-directed investors like you, where in each episode, I help you to find, understand and profit from exceptional alternative investment opportunities.


My friends, this episode – episode #294 – is almost a part 2 follow-up to yesterday’s brilliant episode in which I shared with you exactly why it can actually REALLY MAKE SENSE to perform taxable transactions in your IRA, even though the tax rate your IRA will face – something on the order of 40% or so – is painfully high.


Now If you didn’t get to enjoy that episode, you really should do so right now, because this episode builds nicely on that one. You can get the link for that show on today’s resource page, SDITalk.com/294.


So even in the high-tax scenario I described in episode #293, that strategy still makes absolute sense. And today, I’ll make that strategy even better by slashing that tax rate in half by using a bit of tax-planning savvy.


As I do that, you’re welcomed to join the conversation by toll-free telephone at (833) SDI-TALK, by email at feedback@SDITalk.com or by visiting the resource page for this episode, episode #294, which is, of course, SDITalk.com/294.


Ok folks, I’ve got to warn you… or some of you, at least: If you’re one of those folks who hates Donald Trump just because he’s Donald Trump, and you give no regard to the positive economic benefits his policies bring to your financial situation, then you’re going to hate today’s show.


But if you have the ability to be smart with the hand you’re dealt, you’re going to see how to use the recent corporate tax cut to HUGE benefit in your self-directed IRA or 401(k).


So here’s the deal: When you make investments in your IRA that are considered by the IRS to be “active businesses” – like real estate flipping – then your IRA will be subject to income tax. Since your IRA is technically a trust, your IRA is taxed at trust rates… and those rates are high. For all intents and purposes, you can think 40%, and that’s before your state tacks on more.


So a clever self-directed IRA or 401k user might think… “Ok, let’s do the deal inside of the IRA using a more tax-efficient business structure.” You know, something like… let’s set up a corporation inside the IRA and use the corporation’s tax rates instead of the really high trust tax rates.


Sounds like a good idea, right?


Only problem with that is that, until the Trump tax cuts, the corporate income tax rate maxed out around 39%... basically identical to the trust tax rates. So there’d be no real tax advantage for doing your flips through a corporation in your IRA.


But this is where the new tax law can give a huge boost to your IRA. Now, corporate tax rates no longer top out at 39%, but at 21%... basically HALF of what it was before. That’s amazing… HALF!

So you might recall yesterday’s example where your IRA made $60,000 in one year by doing real estate flips, but the IRA actually lost 40% of that – $24,000 – to taxes.


Well, simply by forming a corporation in your IRA and performing the flips within the corporation instead of directly in the IRA, the max federal corporate tax rate drops to 21%, which means your IRA’s tax hit plummets to a bit over $12,000 rather than $24,000.


Yep, you heard that right… the tax cut bill that the press claimed was only for “corporate fat cats” can actually have a very substantively positive effect on your retirement savings via your self-directed IRA or 401(k)!


Think about that difference… a difference of about $12,000. Not a huge amount, but it equates to about 2 year’s worth of maxed-out annual IRA contributions for most people. And what’s more, it’s plausible to experience that kind of result each and every year, not just one time.

The difference can be HUGE.


That’s all I’ve got for you today, but…


Can I take 30 seconds and ask a favor of you? Would you be so kind as to stop by over at iTunes and give us a 5-star rating if you haven’t already? It’s actually really important because some bozo named Bill0804 gave us a bad rating just because I’m not afraid to talk about politics and how it affects your money – just like I did today – and he happens to have a different political opinion. Now let’s be clear, of the 455 ratings we already have on iTunes, 95.6% of them – 435 – are perfect 5-stars, so we’re still doing exceptionally well. But if you enjoy this show, it would be really helpful for me if you’d stop by over at iTunes and give us a great rating. Thanks so much, and one more thing to remember:


Invest wisely today, and live well forever!

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<![CDATA[Here's When Taxable Transactions in your IRA are POWERFUL | SDITalk.com #293]]> Fri, 12 Jan 2018 14:06:00 GMT 7:18 5a689394f28c8c8b79a2d6e9 no https://SDITalk.com/293 full 293 https://SDITalk.com/293 -- With almost no exceptions, profits made on transactions in your self-directed IRA are not taxable, no matter how fabulously profitable they might be. But today, I show you why the taxable kinds of transactions in your self-directed IRA may actually be the most profitable of all. My name is Bryan Ellis. This is episode #293 of Self-Directed Investor Talk.]]> https://SDITalk.com/293 -- With almost no exceptions, profits made on transactions in your self-directed IRA are not taxable, no matter how fabulously profitable they might be. But today, I show you why the taxable kinds of transactions in your self-directed IRA may actually be the most profitable of all. My name is Bryan Ellis. This is episode #293 of Self-Directed Investor Talk.]]> Bitcoin Futures Are Here -- Good for your IRA or 401(k)? Bitcoin Futures Are Here -- Good for your IRA or 401(k)? Wed, 13 Dec 2017 19:05:05 GMT 6:47 42c84fadc14db0831b595ce13fb77e0b no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f54b Bitcoin is still all the rage, and recently, a new thing called Bitcoin “futures” became available through reputable exchanges here in the United States.  What are bitcoin futures and why might they be a FAR BETTER way to invest in Bitcoin... invest in Bitcoin through your IRA versus direct ownership?  I’m Bryan Ellis.  I’ll give you the answer right now in Episode #292 of Self-Directed Investor Talk.]]> invest in Bitcoin through your IRA versus direct ownership?  I’m Bryan Ellis.  I’ll give you the answer right now in Episode #292 of Self-Directed Investor Talk.]]> <![CDATA[IMPORTANT: Prohibited Transactions in CONVENTIONAL IRA's | SDITalk #291]]> Tue, 12 Dec 2017 18:44:44 GMT 6:01 0bb28581072fffed810b14342fe85167 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f54c  

IMPORTANT: Prohibited Transactions in CONVENTIONAL IRA's | SDITalk #291

http://SDITalk.com/291

You usually think of prohibited transactions as being a risk that’s almost entirely unique to self-directed IRA’s and 401(k)’s… you usually think conventional IRA’s are largely impervious to this horrible risk that can slash half or more of the value of your account in a single instant.  You’d be wrong.  Today you learn about a policy being implemented by financial behemoths Merrill Lynch, Wells Fargo and others that, I’m confident, will result in awful prohibited transaction penalties within CONVENTIONAL IRA’s… all because of what can only be described as aggressive GREED in the financial industry.  I’m Bryan Ellis.  This is episode #291 of Self-Directed Investor Talk.

 

https://SelfDirected.org/investor-talk

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IMPORTANT: Prohibited Transactions in CONVENTIONAL IRA's | SDITalk #291

http://SDITalk.com/291

You usually think of prohibited transactions as being a risk that’s almost entirely unique to self-directed IRA’s and 401(k)’s… you usually think conventional IRA’s are largely impervious to this horrible risk that can slash half or more of the value of your account in a single instant.  You’d be wrong.  Today you learn about a policy being implemented by financial behemoths Merrill Lynch, Wells Fargo and others that, I’m confident, will result in awful prohibited transaction penalties within CONVENTIONAL IRA’s… all because of what can only be described as aggressive GREED in the financial industry.  I’m Bryan Ellis.  This is episode #291 of Self-Directed Investor Talk.

 

https://SelfDirected.org/investor-talk

https://SelfDirected.org/ira

http://www.Facebook.com/sditalk

http://www.Twitter.com/sditalk

 

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IMN Conference - Panelists Afraid To Express Opinions on Trump? | SDITalk.com #290 IMN Conference - Panelists Afraid To Express Opinions on Trump? | SDITalk.com #290 Tue, 05 Dec 2017 18:39:10 GMT 8:06 115df1334105b32d4570e43468159f1d no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f54d Today I'm at the IMN Single Family Rental Investment Forum in Scottsdale, AZ.  It's an interesting group... it's something like Wall Street meets Real Estate... but a tier or two below the biggest capital players.  It's very interesting too... one thing I've noticed for sure is that panelists seem terrified of having an opinion about the Trump effect on the economy for investors.

So, as your humble host, I'll answer for them.  Enjoy!

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Today I'm at the IMN Single Family Rental Investment Forum in Scottsdale, AZ.  It's an interesting group... it's something like Wall Street meets Real Estate... but a tier or two below the biggest capital players.  It's very interesting too... one thing I've noticed for sure is that panelists seem terrified of having an opinion about the Trump effect on the economy for investors.

So, as your humble host, I'll answer for them.  Enjoy!

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<![CDATA[Dinner with Gates & Buffett - a Big Lesson | Episode #289]]> Fri, 01 Dec 2017 18:34:51 GMT 7:13 7b6bcb4f48420fec965014d48e9fbc14 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f54e  

A Big Lesson from a Dinner with Gates & Buffett

http://SDITalk.com/289

Happy December, Self-Directed Investor Nation!  Today we touch on the DANGER of creativity… the need for a clear investment plan… a famous dinner with Bill Gates and Warren Buffett… and even some blasting of, or maybe praise for Bitcoin… all culminating in the single most important factor for your success and I, Bryan Ellis, your humble host for today’s ascent into investment excellence, will share it all with you right now in Episode #289 of Self-Directed Investor Talk!

 

https://SelfDirected.org/investor-talk/a>

https://SelfDirected.org/ira

http://www.Facebook.com/sditalk

http://www.Twitter.com/sditalk

 

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A Big Lesson from a Dinner with Gates & Buffett

http://SDITalk.com/289

Happy December, Self-Directed Investor Nation!  Today we touch on the DANGER of creativity… the need for a clear investment plan… a famous dinner with Bill Gates and Warren Buffett… and even some blasting of, or maybe praise for Bitcoin… all culminating in the single most important factor for your success and I, Bryan Ellis, your humble host for today’s ascent into investment excellence, will share it all with you right now in Episode #289 of Self-Directed Investor Talk!

 

https://SelfDirected.org/investor-talk/a>

https://SelfDirected.org/ira

http://www.Facebook.com/sditalk

http://www.Twitter.com/sditalk

 

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<![CDATA[7 No-No's When Selecting a Self-Directed IRA Custodian (Part 2) | SDITalk #288]]> Thu, 30 Nov 2017 18:04:11 GMT 5:13 f68b1f4a82e5efd3654e739160641586 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f54f

7 Big "No-No's" When Picking A Self-Directed IRA Custodian (Part 2)

http://SDITalk.com/288

Let’s talk about choosing a self-directed IRA custodian, shall we?  I’m Bryan Ellis.  This is episode #288 of Self-Directed Investor Talk.

https://SelfDirected.org/investor-talk

https://SelfDirected.org/ira

http://www.Facebook.com/sditalk

http://www.Twitter.com/sditalk

 

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7 Big "No-No's" When Picking A Self-Directed IRA Custodian (Part 2)

http://SDITalk.com/288

Let’s talk about choosing a self-directed IRA custodian, shall we?  I’m Bryan Ellis.  This is episode #288 of Self-Directed Investor Talk.

https://SelfDirected.org/investor-talk

https://SelfDirected.org/ira

http://www.Facebook.com/sditalk

http://www.Twitter.com/sditalk

 

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<![CDATA[7 No-No's When Selecting a Self-Directed IRA Custodian (Part 1) | SDITalk #287]]> Wed, 29 Nov 2017 16:38:27 GMT 7:44 04056ac22b25c2389ff274eb856e3bb9 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f550  

7 Big "No-No's" When Picking A Self-Directed IRA Custodian (Part 1)

http://SDITalk.com/287

Let’s talk about choosing a self-directed IRA custodian, shall we?  I’m Bryan Ellis.  This is episode #287 of Self-Directed Investor Talk.

https://SelfDirected.org/investor-talk

https://SelfDirected.org/ira

http://www.Facebook.com/sditalk

http://www.Twitter.com/sditalk

 

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7 Big "No-No's" When Picking A Self-Directed IRA Custodian (Part 1)

http://SDITalk.com/287

Let’s talk about choosing a self-directed IRA custodian, shall we?  I’m Bryan Ellis.  This is episode #287 of Self-Directed Investor Talk.

https://SelfDirected.org/investor-talk

https://SelfDirected.org/ira

http://www.Facebook.com/sditalk

http://www.Twitter.com/sditalk

 

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<![CDATA[PREDICTION: 70% Likelihood of Stock Market "Correction" | SDITalk #286]]> Tue, 28 Nov 2017 16:45:45 GMT 7:41 40969cf4b927bc284c9a9c66d3a8d47a no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f551 PREDICTION:  70% Chance Of Stock Market Tumble http://SDITalk.com/286 An incredibly well-respected financial company is predicting a 70% probability that the stock market will experience a bit of a meltdown.  How will you prepare the...  

PREDICTION:  70% Chance Of Stock Market Tumble

http://SDITalk.com/286

An incredibly well-respected financial company is predicting a 70% probability that the stock market will experience a bit of a meltdown.  How will you prepare the conventional side of your portfolio? I’m Bryan Ellis.  This is Episode #286 of Self-Directed Investor Talk.

https://SelfDirected.org/investor-talk

https://SelfDirected.org/ira

http://www.Facebook.com/sditalk

http://www.Twitter.com/sditalk

 

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PREDICTION:  70% Chance Of Stock Market Tumble

http://SDITalk.com/286

An incredibly well-respected financial company is predicting a 70% probability that the stock market will experience a bit of a meltdown.  How will you prepare the conventional side of your portfolio? I’m Bryan Ellis.  This is Episode #286 of Self-Directed Investor Talk.

https://SelfDirected.org/investor-talk

https://SelfDirected.org/ira

http://www.Facebook.com/sditalk

http://www.Twitter.com/sditalk

 

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Sexual Harassment Claims Reach The Landlording Community | SDITalk.com #285 Sexual Harassment Claims Reach The Landlording Community | SDITalk.com #285 Wed, 22 Nov 2017 17:48:31 GMT 8:05 40d2a88913b199f3b14ed7bd583a2d8f no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f552 Sexual Harassment Accusations Hit The Real Estate Industry... http://SDITalk.com/285 It’s not just Hollywood, Politics and Journalism where accusations of sexual assault are flying.  The Real estate business is in the crosshairs now too…...

Sexual Harassment Accusations Hit The Real Estate Industry...

http://SDITalk.com/285

It’s not just Hollywood, Politics and Journalism where accusations of sexual assault are flying.  The Real estate business is in the crosshairs now too… Landlords beware!  Get ready for the most NOT politically correct but TOTALLY RATIONAL thinking on that whole sticky topic you’ve ever.  I’m Bryan Ellis.  This is Episode #285 of Self-Directed Investor Talk.

https://SelfDirected.org/investor-talk

https://SelfDirected.org/ira

http://www.Facebook.com/sditalk

http://www.Twitter.com/sditalk

 

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Sexual Harassment Accusations Hit The Real Estate Industry...

http://SDITalk.com/285

It’s not just Hollywood, Politics and Journalism where accusations of sexual assault are flying.  The Real estate business is in the crosshairs now too… Landlords beware!  Get ready for the most NOT politically correct but TOTALLY RATIONAL thinking on that whole sticky topic you’ve ever.  I’m Bryan Ellis.  This is Episode #285 of Self-Directed Investor Talk.

https://SelfDirected.org/investor-talk

https://SelfDirected.org/ira

http://www.Facebook.com/sditalk

http://www.Twitter.com/sditalk

 

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Bitcoin Prices Are STUPID, But... | Episode #284 Bitcoin Prices Are STUPID, But... | Episode #284 Tue, 21 Nov 2017 16:26:17 GMT 10:39 b26caa70f2dc5bcac6c27d04d83eabbd no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f553 Bitcoin Prices Are STUPID.  BUT... http://SDITalk.com/284 You know what two things don’t mix?  RATIONALITY and BITCOIN PRICES.  Yep, I said it… Bitcoin prices are JUST STUPID.  But that doesn’t mean what you think it...

Bitcoin Prices Are STUPID.  BUT...

http://SDITalk.com/284

You know what two things don’t mix?  RATIONALITY and BITCOIN PRICES.  Yep, I said it… Bitcoin prices are JUST STUPID.  But that doesn’t mean what you think it does.  Listen on for a point of view sure to surprise and amaze you.  I’m Bryan Ellis.  This is Episode #284 of Self-Directed Investor Talk.

https://SelfDirected.org/investor-talk

https://SelfDirected.org/ira

http://www.Facebook.com/sditalk

http://www.Twitter.com/sditalk

 

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Bitcoin Prices Are STUPID.  BUT...

http://SDITalk.com/284

You know what two things don’t mix?  RATIONALITY and BITCOIN PRICES.  Yep, I said it… Bitcoin prices are JUST STUPID.  But that doesn’t mean what you think it does.  Listen on for a point of view sure to surprise and amaze you.  I’m Bryan Ellis.  This is Episode #284 of Self-Directed Investor Talk.

https://SelfDirected.org/investor-talk

https://SelfDirected.org/ira

http://www.Facebook.com/sditalk

http://www.Twitter.com/sditalk

 

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On Buying S-Corporations In Your IRA | Episode #283 On Buying S-Corporations In Your IRA | Episode #283 Mon, 09 Oct 2017 17:46:49 GMT 8:13 6485968f6146ca780cfcbf7b7e715985 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f554 On Buying S-Corporations In Your IRA https://SelfDirected.org/283 Will your self-directed IRA be guilty of a dreaded PROHIBITED TRANSACTION if it buys shares of an S-corporation?  Conventional wisdom – including many self-directed IRA...

On Buying S-Corporations In Your IRA

https://SelfDirected.org/283

Will your self-directed IRA be guilty of a dreaded PROHIBITED TRANSACTION if it buys shares of an S-corporation?  Conventional wisdom – including many self-directed IRA custodians – say YES.  But the law doesn’t say that AT ALL.  What it ACTUALLY says may surprise you.  I’m Bryan Ellis.  This is Episode #283 of Self-Directed Investor Talk.

https://SelfDirected.org/investor-talk

https://SelfDirected.org/ira

http://www.Facebook.com/sditalk

http://www.Twitter.com/sditalk

 

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On Buying S-Corporations In Your IRA

https://SelfDirected.org/283

Will your self-directed IRA be guilty of a dreaded PROHIBITED TRANSACTION if it buys shares of an S-corporation?  Conventional wisdom – including many self-directed IRA custodians – say YES.  But the law doesn’t say that AT ALL.  What it ACTUALLY says may surprise you.  I’m Bryan Ellis.  This is Episode #283 of Self-Directed Investor Talk.

https://SelfDirected.org/investor-talk

https://SelfDirected.org/ira

http://www.Facebook.com/sditalk

http://www.Twitter.com/sditalk

 

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Diversification Is For The Ignorant | Episode #282 Diversification Is For The Ignorant | Episode #282 Thu, 05 Oct 2017 15:02:54 GMT 10:20 91b4bbbd9ca2cb62b6276806da9d5f04 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f555 Diversification:  Only for the Ignorant? https://SelfDirected.org/282 Should your self-directed retirement account be “well-diversified” as is the popular advice today?  My opinion is 180 degrees opposite conventional wisdom… and the...

Diversification:  Only for the Ignorant?

https://SelfDirected.org/282

Should your self-directed retirement account be “well-diversified” as is the popular advice today?  My opinion is 180 degrees opposite conventional wisdom… and the greatest investor in history agrees with me.  My name is Bryan Ellis.  This is episode #282 of Self-Directed Investor Talk.

https://SelfDirected.org/investor-talk

https://SelfDirected.org/ira

http://www.Facebook.com/sditalk

http://www.Twitter.com/sditalk

 

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Diversification:  Only for the Ignorant?

https://SelfDirected.org/282

Should your self-directed retirement account be “well-diversified” as is the popular advice today?  My opinion is 180 degrees opposite conventional wisdom… and the greatest investor in history agrees with me.  My name is Bryan Ellis.  This is episode #282 of Self-Directed Investor Talk.

https://SelfDirected.org/investor-talk

https://SelfDirected.org/ira

http://www.Facebook.com/sditalk

http://www.Twitter.com/sditalk

 

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Should You Buy Bitcoin In Your IRA? | Episode #281 Should You Buy Bitcoin In Your IRA? | Episode #281 Wed, 04 Oct 2017 13:08:15 GMT 7:33 a2af337c62ccda903bb4475df8d788ea no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f556 Bitcoin In Your IRA:  Should You Invest? https://SelfDirected.org/281 Today, we conclude our brilliant 3-part series on Bitcoin and your IRA with the simple question:  SHOULD you invest in Bitcoin inside of your self-directed IRA or solo...

Bitcoin In Your IRA:  Should You Invest?

https://SelfDirected.org/281

Today, we conclude our brilliant 3-part series on Bitcoin and your IRA with the simple question:  SHOULD you invest in Bitcoin inside of your self-directed IRA or solo 401(k)?  That’s a big question, and I’ve got some important things for you to consider.  I’m Bryan Ellis.  This is Episode #281 of Self-Directed Investor Talk.

https://SelfDirected.org/investor-talk

https://SelfDirected.org/bitcoin-ira

https://SelfDirected.org/ira

http://www.Facebook.com/sditalk

http://www.Twitter.com/sditalk

 

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Bitcoin In Your IRA:  Should You Invest?

https://SelfDirected.org/281

Today, we conclude our brilliant 3-part series on Bitcoin and your IRA with the simple question:  SHOULD you invest in Bitcoin inside of your self-directed IRA or solo 401(k)?  That’s a big question, and I’ve got some important things for you to consider.  I’m Bryan Ellis.  This is Episode #281 of Self-Directed Investor Talk.

https://SelfDirected.org/investor-talk

https://SelfDirected.org/bitcoin-ira

https://SelfDirected.org/ira

http://www.Facebook.com/sditalk

http://www.Twitter.com/sditalk

 

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How to Buy Bitcoin in your IRA | Episode #280 How to Buy Bitcoin in your IRA | Episode #280 Tue, 03 Oct 2017 15:01:35 GMT 10:16 ea57aaa7ace0ab7e1d5bc3cd6477d754 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f557 https://SelfDirected.org/280 Bitcoin IRA’s huh?  So you’ve decided to take the plunge and invest your hard-earned retirement savings into the new kid on the financial block, Bitcoin.  Well, it’s a little different than... https://SelfDirected.org/280

Bitcoin IRA’s huh?  So you’ve decided to take the plunge and invest your hard-earned retirement savings into the new kid on the financial block, Bitcoin.  Well, it’s a little different than other kinds of investments, and today, I’ll show you how to make it happen.  I’m Bryan Ellis.  This is episode #280 of Self-Directed Investor Talk.

https://SelfDirected.org/investor-talk

https://SelfDirected.org/bitcoin-ira

https://SelfDirected.org/ira

https://SelfDirected.org/solo-401k

http://www.Facebook.com/sditalk

http://www.Twitter.com/sditalk

 

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https://SelfDirected.org/280

Bitcoin IRA’s huh?  So you’ve decided to take the plunge and invest your hard-earned retirement savings into the new kid on the financial block, Bitcoin.  Well, it’s a little different than other kinds of investments, and today, I’ll show you how to make it happen.  I’m Bryan Ellis.  This is episode #280 of Self-Directed Investor Talk.

https://SelfDirected.org/investor-talk

https://SelfDirected.org/bitcoin-ira

https://SelfDirected.org/ira

https://SelfDirected.org/solo-401k

http://www.Facebook.com/sditalk

http://www.Twitter.com/sditalk

 

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Bitcoin IRA - Is It A Real Thing? | Episode #279 Bitcoin IRA - Is It A Real Thing? | Episode #279 Mon, 02 Oct 2017 19:40:59 GMT 8:46 3fc46d5ba18893fbaa1b65b55b466b96 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f558 Bitcoin IRA:  Is It A Real Thing? https://SelfDirected.org/279 What financial asset is booming in popularity, making people wealthy very quickly… and facing a difficult political terrain?  Why, it’s none other than Bitcoin, of... Bitcoin IRA:  Is It A Real Thing?

https://SelfDirected.org/279

What financial asset is booming in popularity, making people wealthy very quickly… and facing a difficult political terrain?  Why, it’s none other than Bitcoin, of course!  Today I’ll tell you all about bitcoin and how it fits into your self-directed IRA or solo 401(k).  I’m Bryan Ellis.  This is episode #279 of Self-Directed Investor Talk.

https://SelfDirected.org/bitcoin-ira

https://SelfDirected.org/ira

http://www.Facebook.com/sditalk

http://www.Twitter.com/sditalk

https://SelfDirected.org/bitcoin

 

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Bitcoin IRA:  Is It A Real Thing?

https://SelfDirected.org/279

What financial asset is booming in popularity, making people wealthy very quickly… and facing a difficult political terrain?  Why, it’s none other than Bitcoin, of course!  Today I’ll tell you all about bitcoin and how it fits into your self-directed IRA or solo 401(k).  I’m Bryan Ellis.  This is episode #279 of Self-Directed Investor Talk.

https://SelfDirected.org/bitcoin-ira

https://SelfDirected.org/ira

http://www.Facebook.com/sditalk

http://www.Twitter.com/sditalk

https://SelfDirected.org/bitcoin

 

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The Hourglass Technique | Episode #278 The Hourglass Technique | Episode #278 Tue, 26 Sep 2017 17:47:47 GMT 8:31 08616b1dbf347dac3c46a6c52912fa55 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f559 The Hourglass Technique https://SelfDirected.org/278 Hugh Hefner sold the Playboy Mansion for a whopping $100 MILLION dollars last year… and in so doing, he gave unwittingly provides a roadmap for how to get the tax benefits of a Traditional IRA and...

The Hourglass Technique

https://SelfDirected.org/278

Hugh Hefner sold the Playboy Mansion for a whopping $100 MILLION dollars last year… and in so doing, he gave unwittingly provides a roadmap for how to get the tax benefits of a Traditional IRA and a Roth IRA at the SAME TIME.  My friends, I proudly present the Hourglass Technique.  I’m Bryan Ellis.  This is Episode #278.

https://SelfDirected.org/investor-talk

http://www.Facebook.com/sditalk

http://www.Twitter.com/sditalk

 

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The Hourglass Technique

https://SelfDirected.org/278

Hugh Hefner sold the Playboy Mansion for a whopping $100 MILLION dollars last year… and in so doing, he gave unwittingly provides a roadmap for how to get the tax benefits of a Traditional IRA and a Roth IRA at the SAME TIME.  My friends, I proudly present the Hourglass Technique.  I’m Bryan Ellis.  This is Episode #278.

https://SelfDirected.org/investor-talk

http://www.Facebook.com/sditalk

http://www.Twitter.com/sditalk

 

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Your Investment is NOT IRS-Approved! | SDITalk #277 Your Investment is NOT IRS-Approved! | SDITalk #277 Mon, 25 Sep 2017 14:28:35 GMT 9:46 16917638911400a69ae494d71cf3daff no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f55a

If They Tell You The Investment is IRS-Approved, They're Lying!

https://SelfDirected.org/277

You know that latest investment you were sold on the basis that it is “IRS-approved”?  Or maybe that vendor who offered you a so-called “IRS-approved” checkbook IRA?  Well, my friends… they’re lying to you, and I’ve got the evidence for you right now.  I’m Bryan Ellis.  This is episode #277 of Self-Directed Investor Talk.

https://SelfDirected.org/ira

https://SelfDirected.org/investor-talk

http://www.Facebook.com/sditalk

http://www.Twitter.com/sditalk

 

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If They Tell You The Investment is IRS-Approved, They're Lying!

https://SelfDirected.org/277

You know that latest investment you were sold on the basis that it is “IRS-approved”?  Or maybe that vendor who offered you a so-called “IRS-approved” checkbook IRA?  Well, my friends… they’re lying to you, and I’ve got the evidence for you right now.  I’m Bryan Ellis.  This is episode #277 of Self-Directed Investor Talk.

https://SelfDirected.org/ira

https://SelfDirected.org/investor-talk

http://www.Facebook.com/sditalk

http://www.Twitter.com/sditalk

 

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<![CDATA[Real Estate IRA's: Getting Started Right -- Simple Step 5 of 5 | Episode #276]]> Fri, 22 Sep 2017 15:17:12 GMT 8:24 530da50e4dbc2793d0ce8d1270bc5da3 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f55b Lawsuit Risk and Your IRA:  The Risk Is Greater Than You Realize https://SelfDirected.org/276 Have you ever thought about the risk of lawsuits involving real estate in your IRA?  Or maybe strategies to reduce your IRA taxes during...

Lawsuit Risk and Your IRA:  The Risk Is Greater Than You Realize

https://SelfDirected.org/276

Have you ever thought about the risk of lawsuits involving real estate in your IRA?  Or maybe strategies to reduce your IRA taxes during retirement… or even estate planning issues for your IRA?  These things are rarely considered until it’s too late, and they are the topic of Step 5 of 5 Simple Steps to Getting Started Right with Real Estate IRA’s.  I’m Bryan Ellis.  This is episode #276 of Self-Directed Investor Talk.

5 Steps To Getting Started Right With Real Estate IRA's:

Step 1

Step 2

Step 3

Step 4

Step 5

https://SelfDirected.org/ira

https://SelfDirected.org/investor-talk

http://www.Facebook.com/sditalk

http://www.Twitter.com/sditalk

 

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Lawsuit Risk and Your IRA:  The Risk Is Greater Than You Realize

https://SelfDirected.org/276

Have you ever thought about the risk of lawsuits involving real estate in your IRA?  Or maybe strategies to reduce your IRA taxes during retirement… or even estate planning issues for your IRA?  These things are rarely considered until it’s too late, and they are the topic of Step 5 of 5 Simple Steps to Getting Started Right with Real Estate IRA’s.  I’m Bryan Ellis.  This is episode #276 of Self-Directed Investor Talk.

5 Steps To Getting Started Right With Real Estate IRA's:

Step 1

Step 2

Step 3

Step 4

Step 5

https://SelfDirected.org/ira

https://SelfDirected.org/investor-talk

http://www.Facebook.com/sditalk

http://www.Twitter.com/sditalk

 

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<![CDATA[Real Estate IRA's: Getting Started Right -- Simple Step 4 of 5 | Episode #275]]> Thu, 21 Sep 2017 13:38:43 GMT 7:42 2a08e62873f1a89992909bfcbfa26b9a no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f55c 4 Ways To Get Capital Into Your IRA/401k For Real Estate Deals https://SelfDirected.org/275 How, exactly, do you get the capital into your real estate IRA or 401k to fund that next great deal?  That’s the topic of part 4 of 5 Steps to Getting...

4 Ways To Get Capital Into Your IRA/401k For Real Estate Deals

https://SelfDirected.org/275

How, exactly, do you get the capital into your real estate IRA or 401k to fund that next great deal?  That’s the topic of part 4 of 5 Steps to Getting Started Right with Real Estate IRA’s, and it’s what I’ll tell you right now.  I’m Bryan Ellis.  This is episode #275.

5 Steps To Getting Started Right With Real Estate IRA's:

Step 1

Step 2

Step 3

Step 4

Step 5 - Next Episode!

https://SelfDirected.org/ira

https://SelfDirected.org/investor-talk

http://www.Facebook.com/sditalk

http://www.Twitter.com/sditalk

 

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4 Ways To Get Capital Into Your IRA/401k For Real Estate Deals

https://SelfDirected.org/275

How, exactly, do you get the capital into your real estate IRA or 401k to fund that next great deal?  That’s the topic of part 4 of 5 Steps to Getting Started Right with Real Estate IRA’s, and it’s what I’ll tell you right now.  I’m Bryan Ellis.  This is episode #275.

5 Steps To Getting Started Right With Real Estate IRA's:

Step 1

Step 2

Step 3

Step 4

Step 5 - Next Episode!

https://SelfDirected.org/ira

https://SelfDirected.org/investor-talk

http://www.Facebook.com/sditalk

http://www.Twitter.com/sditalk

 

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<![CDATA[Real Estate IRA's: Getting Started Right -- Simple Step 3 of 5 | Episode #274]]> Wed, 20 Sep 2017 16:40:50 GMT 10:44 38dac937a14f3f4b70ae571486c0df47 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f55d Real Estate IRA's: Getting Started Right -- Simple Step 3 of 5

https://SelfDirected.org/274

You can’t do a great real estate deal in your self-directed IRA or 401k without first setting up that IRA or 401k.  But who is the right provider?  And if you’re not using the best provider right now, should you switch?  I’m Bryan Ellis.  I’ll give you the answer right now in Part 3 of 5 Simple Steps to Getting Started right with a real estate IRA.  This is Episode #274.

https://SelfDirected.org

http://www.Facebook.com/sditalk

http://www.Twitter.com/sditalk

https://SelfDirected.org/ira

https://SelfDirected.org/bryan-ellis

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Real Estate IRA's: Getting Started Right -- Simple Step 3 of 5

https://SelfDirected.org/274

You can’t do a great real estate deal in your self-directed IRA or 401k without first setting up that IRA or 401k.  But who is the right provider?  And if you’re not using the best provider right now, should you switch?  I’m Bryan Ellis.  I’ll give you the answer right now in Part 3 of 5 Simple Steps to Getting Started right with a real estate IRA.  This is Episode #274.

https://SelfDirected.org

http://www.Facebook.com/sditalk

http://www.Twitter.com/sditalk

https://SelfDirected.org/ira

https://SelfDirected.org/bryan-ellis

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<![CDATA[Real Estate IRA's: Getting Started Right -- Simple Step 2 of 5 | Episode #273]]> Tue, 19 Sep 2017 09:54:28 GMT 10:22 f18320d85c5944a074ff81babe9c2770 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f55e Real Estate IRA's: Getting Started Right -- Simple Step 2 of 5 | Episode #273

 

https://SelfDirected.org/273

 

So you’ve found a great real estate deal… congratulations!  Yesterday, we looked at whether you should do that deal INSIDE or OUTSIDE of your self-directed retirement account.  Today, in Part 2 of 5 Simple Steps to Getting Started Right with Real Estate IRA’s, we look at the key question of whether you’ll get the biggest benefit from using a self-directed IRA or solo 401(k)… even if you don’t currently have both types of accounts.  I’m Bryan Ellis.  This is episode #273.

https://SelfDirected.org/ira

https://SelfDirected.org/solo-401k

http://www.Facebook.com/sditalk

http://www.Twitter.com/sditalk

 

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Real Estate IRA's: Getting Started Right -- Simple Step 2 of 5 | Episode #273

 

https://SelfDirected.org/273

 

So you’ve found a great real estate deal… congratulations!  Yesterday, we looked at whether you should do that deal INSIDE or OUTSIDE of your self-directed retirement account.  Today, in Part 2 of 5 Simple Steps to Getting Started Right with Real Estate IRA’s, we look at the key question of whether you’ll get the biggest benefit from using a self-directed IRA or solo 401(k)… even if you don’t currently have both types of accounts.  I’m Bryan Ellis.  This is episode #273.

https://SelfDirected.org/ira

https://SelfDirected.org/solo-401k

http://www.Facebook.com/sditalk

http://www.Twitter.com/sditalk

 

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<![CDATA[Real Estate IRA's: Getting Started Right -- Simple Step 1 of 5 | Episode #272]]> Mon, 18 Sep 2017 12:01:40 GMT 11:46 0ca80c6a068fdc2f8184fe6560a2dfa8 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f55f Real Estate IRA's:  Getting Started Right

https://SelfDirected.org/272

They say when you have a hammer, every problem looks like a nail.  And when you know about real estate IRA’s, every real estate deal can easily look like an IRA deal.  But should it?  Today we look at step 1 of 5 simple steps to getting started right with a real estate IRA.  I’m Bryan Ellis.  This is episode #272.

https://SelfDirected.org

https://SelfDirected.org/ira

https://www.forbes.com/sites/forbesfinancecouncil/2017/08/07/self-directed-iras-are-risky-but-for-whom

http://www.Facebook.com/sditalk

 

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Real Estate IRA's:  Getting Started Right

https://SelfDirected.org/272

They say when you have a hammer, every problem looks like a nail.  And when you know about real estate IRA’s, every real estate deal can easily look like an IRA deal.  But should it?  Today we look at step 1 of 5 simple steps to getting started right with a real estate IRA.  I’m Bryan Ellis.  This is episode #272.

https://SelfDirected.org

https://SelfDirected.org/ira

https://www.forbes.com/sites/forbesfinancecouncil/2017/08/07/self-directed-iras-are-risky-but-for-whom

http://www.Facebook.com/sditalk

 

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U.S. State Pensions on Edge of Implosion | Episode #271 U.S. State Pensions on Edge of Implosion | Episode #271 Fri, 15 Sep 2017 14:43:25 GMT 8:28 d5433483e673d2e8066f50d6699f033c no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f560 https://SelfDirected.org/271 Are you relying on a pension to provide for you during retirement?  If so, my friends, there’s very bad news out today from a very reputable source that you need to hear.  And I’ve got some great news that... https://SelfDirected.org/271

Are you relying on a pension to provide for you during retirement?  If so, my friends, there’s very bad news out today from a very reputable source that you need to hear.  And I’ve got some great news that will really take the pressure off… but only if you act quickly enough.  I’m Bryan Ellis.  This is episode #271 of Self-Directed Investor Talk.]]> https://SelfDirected.org/271

Are you relying on a pension to provide for you during retirement?  If so, my friends, there’s very bad news out today from a very reputable source that you need to hear.  And I’ve got some great news that will really take the pressure off… but only if you act quickly enough.  I’m Bryan Ellis.  This is episode #271 of Self-Directed Investor Talk.]]> Eliminate Prohibited Transactions in your Self-Directed IRA with 3 Simple Questions (3 of 3) | Episode #270 Eliminate Prohibited Transactions in your Self-Directed IRA with 3 Simple Questions (3 of 3) | Episode #270 Thu, 14 Sep 2017 12:59:04 GMT 10:15 3b1b5606e6ebb97b525edccb00f32e9e no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f561 https://SelfDirected.org/270 Conventional financial media is fat with tales of woe and complication for users of self-directed IRA’s… but the prevailing truth is a very different matter.  Today, you learn question #3 of 3 simply questions to... https://SelfDirected.org/270

Conventional financial media is fat with tales of woe and complication for users of self-directed IRA’s… but the prevailing truth is a very different matter.  Today, you learn question #3 of 3 simply questions to ask yourself so you’ll never run into the trumped-up problems THEY want you to believe to be the rule rather than the exception.  I’m Bryan Ellis.  This is episode #270.

https://SelfDirected.org

https://www.facebook.com/sditalk

https://www.forbes.com/sites/forbesfinancecouncil/2017/08/07/self-directed-iras-are-risky-but-for-whom/

https://www.linkedin.com/in/self-directed-ira

 

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https://SelfDirected.org/270

Conventional financial media is fat with tales of woe and complication for users of self-directed IRA’s… but the prevailing truth is a very different matter.  Today, you learn question #3 of 3 simply questions to ask yourself so you’ll never run into the trumped-up problems THEY want you to believe to be the rule rather than the exception.  I’m Bryan Ellis.  This is episode #270.

https://SelfDirected.org

https://www.facebook.com/sditalk

https://www.forbes.com/sites/forbesfinancecouncil/2017/08/07/self-directed-iras-are-risky-but-for-whom/

https://www.linkedin.com/in/self-directed-ira

 

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Eliminiate Prohibited Transactions in your IRA with 3 Simple Questions (2 of 3) | SelfDirected.org/269 Eliminiate Prohibited Transactions in your IRA with 3 Simple Questions (2 of 3) | SelfDirected.org/269 Wed, 13 Sep 2017 15:15:08 GMT 9:21 207442b93cb2fe442962135b84d5a9d8 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f562 https://SelfDirected.org/269 Self-Directed IRA rules are complex, complicated and intimidating… until they’re not.  In the last action-packed episode of SDI Talk, you learned question #1 to ask yourself which will magically help you to avoid... https://SelfDirected.org/269

Self-Directed IRA rules are complex, complicated and intimidating… until they’re not.  In the last action-packed episode of SDI Talk, you learned question #1 to ask yourself which will magically help you to avoid prohibited transactions entirely.  That one was all about the deep legal concept of DOUBLE DIPPING.  Disgusting, right?  Well today, we move on to question #2 which is… well, I’m Bryan Ellis.  I’ll tell you question #2 of 3 simple questions to ask yourself to eliminate prohibited transaction.  This is Episode #269.]]> https://SelfDirected.org/269

Self-Directed IRA rules are complex, complicated and intimidating… until they’re not.  In the last action-packed episode of SDI Talk, you learned question #1 to ask yourself which will magically help you to avoid prohibited transactions entirely.  That one was all about the deep legal concept of DOUBLE DIPPING.  Disgusting, right?  Well today, we move on to question #2 which is… well, I’m Bryan Ellis.  I’ll tell you question #2 of 3 simple questions to ask yourself to eliminate prohibited transaction.  This is Episode #269.]]> Eliminiate Prohibited Transactions in your IRA with 3 Simple Questions (1 of 3) | SelfDirected.org/268 Eliminiate Prohibited Transactions in your IRA with 3 Simple Questions (1 of 3) | SelfDirected.org/268 Tue, 12 Sep 2017 18:57:53 GMT 10:55 c646e89ae6662b37fc0427a4ea2ebb8c no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f563 https://SelfDirected.org/268 Conventional financial “experts” (ahem) say, almost with a unified voice, that self-directed IRA’s are so dangerous that you shouldn’t use them.  I, your humble host, say something entirely different: ... https://SelfDirected.org/268

Conventional financial “experts” (ahem) say, almost with a unified voice, that self-directed IRA’s are so dangerous that you shouldn’t use them.  I, your humble host, say something entirely different:  Don’t let their ignorance get in the way of building great wealth in your IRA through ALTERNATIVE investments!  Today you learn question #1 of 3 simple questions to ask yourself which will virtually guarantee you’ll never face the ire of the IRS due to your IRA.  I’m Bryan Ellis.  This is Episode #268.

]]>
https://SelfDirected.org/268

Conventional financial “experts” (ahem) say, almost with a unified voice, that self-directed IRA’s are so dangerous that you shouldn’t use them.  I, your humble host, say something entirely different:  Don’t let their ignorance get in the way of building great wealth in your IRA through ALTERNATIVE investments!  Today you learn question #1 of 3 simple questions to ask yourself which will virtually guarantee you’ll never face the ire of the IRS due to your IRA.  I’m Bryan Ellis.  This is Episode #268.

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<![CDATA[Why Were Self-Directed IRA's Created? | Episode #6]]> Tue, 15 Aug 2017 15:42:05 GMT 10:04 f2d3e465ef3d6f66b5b7d77e20a6f393 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f564 Classic American cars… Corrupt Labor Unions… pension raids… and even the implosion of an iconic American company!  Get ready to learn why IRA’s were created originally, and how that knowledge can help you avoid the IRA cataclysm known as... Episode #6 of Self-Directed Investor Talk: https://SelfDirected.org/6

  • In 1963, Studebaker - the once-thriving auto manufacturer - produced it's last car before going out of business
  • Before they went out of business, Studebaker was forced by the United Auto Worker's Union to promise unrealistic pension benefits in lieu of higher pay, which Studebaker couldn't afford
  • When Studebaker went out of business, they raided the corporate pension fund, leaving their former employees without the pensions they'd been promised.
  • Studebaker was just one of many companies - nearly all of them highly unionized - that went out of business and raided their corporate pensions in order to pay their debts.  But it was Studebaker that got the attention of Congress...
  • In 1974, Congress passed a collection of laws called the Employee Retirement Income Security Act (ERISA) which, among other things, created the IRA
  • The purpose of the IRA was simple:  To empower Americans to save for retirement in a tax-advantaged way without connecting those savings to employers, or to the risk of employer failure
  • The law didn't create "conventional" IRA's and "self-directed IRA's"... only the IRA.  The distinction between conventional and self-directed is entirely a function of the policies of each individual IRA custodian

Full story at https://SelfDirected.org/6

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Episode #6 of Self-Directed Investor Talk: https://SelfDirected.org/6

  • In 1963, Studebaker - the once-thriving auto manufacturer - produced it's last car before going out of business
  • Before they went out of business, Studebaker was forced by the United Auto Worker's Union to promise unrealistic pension benefits in lieu of higher pay, which Studebaker couldn't afford
  • When Studebaker went out of business, they raided the corporate pension fund, leaving their former employees without the pensions they'd been promised.
  • Studebaker was just one of many companies - nearly all of them highly unionized - that went out of business and raided their corporate pensions in order to pay their debts.  But it was Studebaker that got the attention of Congress...
  • In 1974, Congress passed a collection of laws called the Employee Retirement Income Security Act (ERISA) which, among other things, created the IRA
  • The purpose of the IRA was simple:  To empower Americans to save for retirement in a tax-advantaged way without connecting those savings to employers, or to the risk of employer failure
  • The law didn't create "conventional" IRA's and "self-directed IRA's"... only the IRA.  The distinction between conventional and self-directed is entirely a function of the policies of each individual IRA custodian

Full story at https://SelfDirected.org/6

]]>
Fannie Mae TARGETS SMALL INVESTORS | Episode #266 Fannie Mae TARGETS SMALL INVESTORS | Episode #266 Mon, 29 May 2017 18:04:21 GMT 10:02 698f956df85551f7af975d6a678a3489 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f565 https://selfdirected.org/podcasts/investor-talk/fannie-mae-unjustly-targets-seller-financing-including-rent-installment-contracts-episode-266   The Big Idea Fannie Mae, like most of the rest of the federal government, oversteps its boundaries and... https://selfdirected.org/podcasts/investor-talk/fannie-mae-unjustly-targets-seller-financing-including-rent-installment-contracts-episode-266

 

The Big Idea

Fannie Mae, like most of the rest of the federal government, oversteps its boundaries and begins a campaign to target the elimination of totally legitimate seller-financing strategies like rent-to-own and installment contract sales.

Points To Ponder
  • Happy Memorial Day.  To the families who have lost a loved one in service of the defense of the United States, I (Bryan Ellis) and my family thank you sincerely.  Please be sure to listen to the tribute in today's episode.
  • Fannie Mae has accused a company called Vision Property Management of impropriety in seller financing transactions on homes purchased from Fannie Mae.  (We have no knowledge of the business practices or innocence/guilt of Vision Property Management)
  • Fannie's response:  Prohibition of Vision from purchasing any properties, and targeting of so called "abusive seller finance strategies" from any other companies
  • This is just an attempt to categorize seller financing - which is a competitor to bank financing and therefore to Fannie Mae's profitability - as an "abusive" practice so it will be blackballed through political correctness, even though there's nothing illegal about these strategies
  • This is all a result of the actions of prodding from corrupt Democrat Congressman Elijah Cummings
  • Bottom Line:  It matters for whom you vote, because the effect of your vote will always trickle down to you... sometimes catastrophically
Resources ]]>
https://selfdirected.org/podcasts/investor-talk/fannie-mae-unjustly-targets-seller-financing-including-rent-installment-contracts-episode-266

 

The Big Idea

Fannie Mae, like most of the rest of the federal government, oversteps its boundaries and begins a campaign to target the elimination of totally legitimate seller-financing strategies like rent-to-own and installment contract sales.

Points To Ponder
  • Happy Memorial Day.  To the families who have lost a loved one in service of the defense of the United States, I (Bryan Ellis) and my family thank you sincerely.  Please be sure to listen to the tribute in today's episode.
  • Fannie Mae has accused a company called Vision Property Management of impropriety in seller financing transactions on homes purchased from Fannie Mae.  (We have no knowledge of the business practices or innocence/guilt of Vision Property Management)
  • Fannie's response:  Prohibition of Vision from purchasing any properties, and targeting of so called "abusive seller finance strategies" from any other companies
  • This is just an attempt to categorize seller financing - which is a competitor to bank financing and therefore to Fannie Mae's profitability - as an "abusive" practice so it will be blackballed through political correctness, even though there's nothing illegal about these strategies
  • This is all a result of the actions of prodding from corrupt Democrat Congressman Elijah Cummings
  • Bottom Line:  It matters for whom you vote, because the effect of your vote will always trickle down to you... sometimes catastrophically
Resources ]]>
How Congress IS TARGETING your IRA/401k Right Now | Episode #265 How Congress IS TARGETING your IRA/401k Right Now | Episode #265 Wed, 17 May 2017 19:57:07 GMT 8:12 24aee75bbfcc7dd5c6d584e193774058 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f566 https://selfdirected.org/podcasts/investor-talk/traditional-ira401k-chopping-block-congress-episode-265/   The Big Idea Some people in Congress are very foolishly considering cutting your right to deduct contributions to your IRA or 401(k).... https://selfdirected.org/podcasts/investor-talk/traditional-ira401k-chopping-block-congress-episode-265/

 

The Big Idea

Some people in Congress are very foolishly considering cutting your right to deduct contributions to your IRA or 401(k).  Here's why, and what we'll do about it...

Points To Ponder
  • Some in Congress appear to be considering cutting the tax deduction for contributions to traditional IRA's or 401(k)'s
  • President Trump wants to cut corporate and personal income taxes dramatically
  • Some simpletons in Congress want to reinstate taxes on contributions to IRA's/401k's to "pay" for this tax cut
  • This opinion reflects profound ignorance on the part of Congress, and those who demand "revenue neutral" tax reform
  • Bryan doesn't think this will happen, but the fact it's being seriously discussed is of great concern
  • Stay tuned to Self Directed Investor Talk for more instructions as this situation develops
Resources ]]>
https://selfdirected.org/podcasts/investor-talk/traditional-ira401k-chopping-block-congress-episode-265/

 

The Big Idea

Some people in Congress are very foolishly considering cutting your right to deduct contributions to your IRA or 401(k).  Here's why, and what we'll do about it...

Points To Ponder
  • Some in Congress appear to be considering cutting the tax deduction for contributions to traditional IRA's or 401(k)'s
  • President Trump wants to cut corporate and personal income taxes dramatically
  • Some simpletons in Congress want to reinstate taxes on contributions to IRA's/401k's to "pay" for this tax cut
  • This opinion reflects profound ignorance on the part of Congress, and those who demand "revenue neutral" tax reform
  • Bryan doesn't think this will happen, but the fact it's being seriously discussed is of great concern
  • Stay tuned to Self Directed Investor Talk for more instructions as this situation develops
Resources ]]>
ONE CONCEPT to help avoid Prohibited Transactions | Episode #264 ONE CONCEPT to help avoid Prohibited Transactions | Episode #264 Tue, 16 May 2017 15:55:44 GMT 8:28 d8100553c2569f53ef38990923c4f746 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f567 https://SelfDirected.org/podcasts/investor-talk/one-simple-way-avoid-prohibited-transactions-episode-264 The Big Idea

There's one simple operating principle that is more powerful than any other for avoiding prohibited transactions in your self-directed IRA, and that's simplicity...

Points To Ponder
  • You're welcomed to join us for a casual dinner in the Bay Area of San Francisco on June 12 or 13, 2017.  Email us at feedback at SelfDirected dot org if you're interested
  • The biggest factor to avoid prohibited transactions:  Simplicity
  • Prohibited Transaction:  any transaction involving your IRA that benefits you rather than just the IRA
  • Assets that are standardized are safest regarding prohibited transactions. Examples:  Stocks, CD's, mutual funds
  • The more complex, the greater the prohibited transaction risk.
  • Progression:  Real estate, rental properties, real estate flipping (lease complex and risky to most complex and risky)
  • Excellent alternative:  Private Lending
Resources ]]>
https://SelfDirected.org/podcasts/investor-talk/one-simple-way-avoid-prohibited-transactions-episode-264 The Big Idea

There's one simple operating principle that is more powerful than any other for avoiding prohibited transactions in your self-directed IRA, and that's simplicity...

Points To Ponder
  • You're welcomed to join us for a casual dinner in the Bay Area of San Francisco on June 12 or 13, 2017.  Email us at feedback at SelfDirected dot org if you're interested
  • The biggest factor to avoid prohibited transactions:  Simplicity
  • Prohibited Transaction:  any transaction involving your IRA that benefits you rather than just the IRA
  • Assets that are standardized are safest regarding prohibited transactions. Examples:  Stocks, CD's, mutual funds
  • The more complex, the greater the prohibited transaction risk.
  • Progression:  Real estate, rental properties, real estate flipping (lease complex and risky to most complex and risky)
  • Excellent alternative:  Private Lending
Resources ]]>
TRUMP Tax Proposal... and Your IRA | Episode #263 TRUMP Tax Proposal... and Your IRA | Episode #263 Thu, 27 Apr 2017 19:25:32 GMT 8:18 a4c9266c2ebbaee0ce756bc0070ab0ea no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f568 https://SelfDirected.org/263 The Big Idea

The Trump Administration has proposed a series of tax cut objectives which will, as a whole, have tremendously stimulative effect on the economy.  But there's one problem:  Part of the proposal could hurt your self-directed IRA...

Points To Ponder
  • The Trump Administration has provided a list of policy goals which will dramatically reduce personal and corporate tax rates
  • The effects of such tax cuts will be very stimulative to the economy, as has been shown repeatedly and undeniably in the past
  • Part of the proposal is to reduce corporate income tax rates from 35% to 15%
  • Much to the delight of most observers, Trump wants to extend that rate to pass-through entities like LLC's and S-Corporations, which will result in an effective tax cut there as well
  • However, if your own an LLC in your IRA, it could mean that your LLC is obligated to pay 15% tax on its profits, which would defeat the purpose of owning the LLC in an IRA
  • This is not a certainty and may be worked out as these policy goals are translated into law
  • You must stay informed about this issue in case it becomes necessary to reach out to your representatives.  Do that by subscribing to this show now.
Resources ]]>
https://SelfDirected.org/263 The Big Idea

The Trump Administration has proposed a series of tax cut objectives which will, as a whole, have tremendously stimulative effect on the economy.  But there's one problem:  Part of the proposal could hurt your self-directed IRA...

Points To Ponder
  • The Trump Administration has provided a list of policy goals which will dramatically reduce personal and corporate tax rates
  • The effects of such tax cuts will be very stimulative to the economy, as has been shown repeatedly and undeniably in the past
  • Part of the proposal is to reduce corporate income tax rates from 35% to 15%
  • Much to the delight of most observers, Trump wants to extend that rate to pass-through entities like LLC's and S-Corporations, which will result in an effective tax cut there as well
  • However, if your own an LLC in your IRA, it could mean that your LLC is obligated to pay 15% tax on its profits, which would defeat the purpose of owning the LLC in an IRA
  • This is not a certainty and may be worked out as these policy goals are translated into law
  • You must stay informed about this issue in case it becomes necessary to reach out to your representatives.  Do that by subscribing to this show now.
Resources ]]>
What is the BEST Retirement Plan for Small Business Owners? | Episode #262 What is the BEST Retirement Plan for Small Business Owners? | Episode #262 Tue, 25 Apr 2017 18:42:27 GMT 21:35 c1859f61d4bc7017592126647ada8826 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f569 https://SelfDirected.org/262   The Big Idea Several kinds of retirement plans have sprung up for business owners over the years:  The Keogh, the standard IRA, the SIMPLE IRA, the SEP IRA, the Solo 401(k) and more... which is best - which... https://SelfDirected.org/262   The Big Idea

Several kinds of retirement plans have sprung up for business owners over the years:  The Keogh, the standard IRA, the SIMPLE IRA, the SEP IRA, the Solo 401(k) and more... which is best - which should be relegated to the dustbin of history?

Points To Ponder
  • What's the bottom line on the value of each type of retirement account to the unique needs of Small Business Owners?
  • Two broad categories:  IRA & 401(k)
  • Traditional IRA vs Roth IRA vs SEP IRA
  • Solo 401(k) vs all IRA's
  • 5 Reasons Solo 401(k) is superior choice
  • Does it ever make sense to have more than one type of retirement account?
  • Ideal structure for small business owners to have maximum flexibility with minimum cost
Resources ]]>
https://SelfDirected.org/262   The Big Idea

Several kinds of retirement plans have sprung up for business owners over the years:  The Keogh, the standard IRA, the SIMPLE IRA, the SEP IRA, the Solo 401(k) and more... which is best - which should be relegated to the dustbin of history?

Points To Ponder
  • What's the bottom line on the value of each type of retirement account to the unique needs of Small Business Owners?
  • Two broad categories:  IRA & 401(k)
  • Traditional IRA vs Roth IRA vs SEP IRA
  • Solo 401(k) vs all IRA's
  • 5 Reasons Solo 401(k) is superior choice
  • Does it ever make sense to have more than one type of retirement account?
  • Ideal structure for small business owners to have maximum flexibility with minimum cost
Resources ]]>
Where Can You Find The Best Real Estate IRA? | Episode #261 Where Can You Find The Best Real Estate IRA? | Episode #261 Thu, 20 Apr 2017 19:28:51 GMT 10:42 655d054eb3a1961a5ebd19b77f6bb2d0 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f56a Episode #261: https://SelfDirected.org/261 The Big Idea What is a real estate IRA?  Does it actually possess the unthinkable ability to invest your IRA into real estate?  Who offers the very best real estate IRA in the market today?... Episode #261: https://SelfDirected.org/261

The Big Idea

What is a real estate IRA?  Does it actually possess the unthinkable ability to invest your IRA into real estate?  Who offers the very best real estate IRA in the market today?  That's what's in Episode #261 of Self Directed Investor Talk

Points To Ponder
  • Come to meet Bryan at the ThinkRealty National Conference and Expo in Dallas, Texas on April 29. A few free tickets available if you email Bryan at feedback@selfdirected.org.
  • A “real estate IRA” is theoretically an IRA that’s better suited for purchasing real estate than other IRA’s
  • Under the law, there’s no such thing as a real estate IRA (or a “self-directed IRA”)!
  • That name is used to get your attention, because big dollars are stake for custodians, some of which willfully mislead with statements like these:

"Technically speaking, a Self-Directed IRA is not any different than any other IRA (or 401k)" -- https://www.trustetc.com/self-directed-ira/faqs

"A real estate IRA is technically no different than any other IRA (or 401k)." -- https://www.trustetc.com/real-estate-ira/what-is-it

  • Those statements are patently false and, Bryan suspects, willfully deceptive. (Listen to podcast or see transcript for further substantiation.)
  • Bryan’s 5 recommendations if you want to buy real estate in an IRA:
    1. Consider buying real estate OUTSIDE your IRA rather than INSIDE it
    2. No need to use a so-called “real estate IRA”… any self directed IRA will do
    3. It is possible for your IRA to get a loan to buy real estate
    4. Use a solo 401k (aka self-directed 401k) rather than a self-directed IRA if possible (here's why)
    5. Consider taking title to real estate in an LLC rather than directly in your IRA
  • A few good custodians for real estate transactions: Advanta IRA, uDirect IRA, Quest IRA
  • The Very Best option for buying real estate with your retirement funds is available here 
  • Please read transcript or listen to full episode for further substantiation.
Resources ]]>
Episode #261: https://SelfDirected.org/261

The Big Idea

What is a real estate IRA?  Does it actually possess the unthinkable ability to invest your IRA into real estate?  Who offers the very best real estate IRA in the market today?  That's what's in Episode #261 of Self Directed Investor Talk

Points To Ponder
  • Come to meet Bryan at the ThinkRealty National Conference and Expo in Dallas, Texas on April 29. A few free tickets available if you email Bryan at feedback@selfdirected.org.
  • A “real estate IRA” is theoretically an IRA that’s better suited for purchasing real estate than other IRA’s
  • Under the law, there’s no such thing as a real estate IRA (or a “self-directed IRA”)!
  • That name is used to get your attention, because big dollars are stake for custodians, some of which willfully mislead with statements like these:

"Technically speaking, a Self-Directed IRA is not any different than any other IRA (or 401k)" -- https://www.trustetc.com/self-directed-ira/faqs

"A real estate IRA is technically no different than any other IRA (or 401k)." -- https://www.trustetc.com/real-estate-ira/what-is-it

  • Those statements are patently false and, Bryan suspects, willfully deceptive. (Listen to podcast or see transcript for further substantiation.)
  • Bryan’s 5 recommendations if you want to buy real estate in an IRA:
    1. Consider buying real estate OUTSIDE your IRA rather than INSIDE it
    2. No need to use a so-called “real estate IRA”… any self directed IRA will do
    3. It is possible for your IRA to get a loan to buy real estate
    4. Use a solo 401k (aka self-directed 401k) rather than a self-directed IRA if possible (here's why)
    5. Consider taking title to real estate in an LLC rather than directly in your IRA
  • A few good custodians for real estate transactions: Advanta IRA, uDirect IRA, Quest IRA
  • The Very Best option for buying real estate with your retirement funds is available here 
  • Please read transcript or listen to full episode for further substantiation.
Resources ]]>
260A: Emotional Decision Making | Episode #260A 260A: Emotional Decision Making | Episode #260A Thu, 23 Mar 2017 19:56:56 GMT 11:44 93ae0681d27b79dc0d8c30a3fe4eef37 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f56b Millennials make decisions about real estate purchases on a basis that seems incredibly foreign to me.  Yet my criteria - and your criteria - really don't matter, because it is the millennials who will be our buyers and renters.  Here's a peak into their [strange] thought processes...

Full Podcast:  https://SelfDirected.org/podcast/investor-talk/episode-260

 

More resources:

http://www.huffingtonpost.com/entry/self-directed-iras-and-s-corporations-what-youve_us_58d28bc4e4b062043ad4aea6

https://SelfDirected.org/ira

https://www.thestreet.com/story/13625516/1/avoid-these-5-traps-when-buying-real-estate-in-self-directed-iras.html

https://www.Facebook.com/sditalk

 

]]>
Millennials make decisions about real estate purchases on a basis that seems incredibly foreign to me.  Yet my criteria - and your criteria - really don't matter, because it is the millennials who will be our buyers and renters.  Here's a peak into their [strange] thought processes...

Full Podcast:  https://SelfDirected.org/podcast/investor-talk/episode-260

 

More resources:

http://www.huffingtonpost.com/entry/self-directed-iras-and-s-corporations-what-youve_us_58d28bc4e4b062043ad4aea6

https://SelfDirected.org/ira

https://www.thestreet.com/story/13625516/1/avoid-these-5-traps-when-buying-real-estate-in-self-directed-iras.html

https://www.Facebook.com/sditalk

 

]]>
259E: 5 Reason NOT To Buy Real Estate In Your IRA | Episode #259E 259E: 5 Reason NOT To Buy Real Estate In Your IRA | Episode #259E Wed, 22 Mar 2017 17:14:08 GMT 8:13 94808160e8d776cbc977ff1eb7acd54d no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f56c  

Here at SelfDirected.org, we love self-directed IRA's.  And we love real estate as an investment asset class.  So it seems like the combination of the two would be a match made in heaven... right?

Well, maybe... and maybe not.  It could actually be a really bad idea.

Enjoy this in-depth look at the 5 reasons not to buy real estate in your IRA, based on one of Bryan's award-winning articles published on TheStreet.com.

 

Full Episode: https://SelfDirected.org/podcasts/investor-talk/episode-259

More Resources:

https://www.Facebook.com/sditalk

http://www.huffingtonpost.com/entry/58d28bc4e4b062043ad4aea6

http://www.IRAIdeas.com

 

 

]]>
 

Here at SelfDirected.org, we love self-directed IRA's.  And we love real estate as an investment asset class.  So it seems like the combination of the two would be a match made in heaven... right?

Well, maybe... and maybe not.  It could actually be a really bad idea.

Enjoy this in-depth look at the 5 reasons not to buy real estate in your IRA, based on one of Bryan's award-winning articles published on TheStreet.com.

 

Full Episode: https://SelfDirected.org/podcasts/investor-talk/episode-259

More Resources:

https://www.Facebook.com/sditalk

http://www.huffingtonpost.com/entry/58d28bc4e4b062043ad4aea6

http://www.IRAIdeas.com

 

 

]]>
259D: 5 Reasons NOT To Buy Real Estate In Your IRA | Episode #259D 259D: 5 Reasons NOT To Buy Real Estate In Your IRA | Episode #259D Wed, 22 Mar 2017 17:12:36 GMT 6:30 f24d2d50770288e46df422f93cde5760 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f56d  

Here at SelfDirected.org, we love self-directed IRA's.  And we love real estate as an investment asset class.  So it seems like the combination of the two would be a match made in heaven... right?

Well, maybe... and maybe not.  It could actually be a really bad idea.

Enjoy this in-depth look at the 5 reasons not to buy real estate in your IRA, based on one of Bryan's award-winning articles published on TheStreet.com.

 

Full Episode: https://SelfDirected.org/podcasts/investor-talk/episode-259

More Resources:

https://www.Facebook.com/sditalk

http://www.huffingtonpost.com/entry/58d28bc4e4b062043ad4aea6

http://www.IRAIdeas.com

 

 

]]>
 

Here at SelfDirected.org, we love self-directed IRA's.  And we love real estate as an investment asset class.  So it seems like the combination of the two would be a match made in heaven... right?

Well, maybe... and maybe not.  It could actually be a really bad idea.

Enjoy this in-depth look at the 5 reasons not to buy real estate in your IRA, based on one of Bryan's award-winning articles published on TheStreet.com.

 

Full Episode: https://SelfDirected.org/podcasts/investor-talk/episode-259

More Resources:

https://www.Facebook.com/sditalk

http://www.huffingtonpost.com/entry/58d28bc4e4b062043ad4aea6

http://www.IRAIdeas.com

 

 

]]>
259C: 5 Reasons NOT To Buy Real Estate In Your IRA | Episode #259C 259C: 5 Reasons NOT To Buy Real Estate In Your IRA | Episode #259C Wed, 22 Mar 2017 17:11:19 GMT 6:29 f0557a40c6ed8a6321e46c9e8a3280fc no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f56e  

Here at SelfDirected.org, we love self-directed IRA's.  And we love real estate as an investment asset class.  So it seems like the combination of the two would be a match made in heaven... right?

Well, maybe... and maybe not.  It could actually be a really bad idea.

Enjoy this in-depth look at the 5 reasons not to buy real estate in your IRA, based on one of Bryan's award-winning articles published on TheStreet.com.

 

Full Episode: https://SelfDirected.org/podcasts/investor-talk/episode-259

More Resources:

https://www.Instagram.com/sditalk

http://www.huffingtonpost.com/entry/58d28bc4e4b062043ad4aea6

https://selfdirectedira.tumblr.com/

 

 

]]>
 

Here at SelfDirected.org, we love self-directed IRA's.  And we love real estate as an investment asset class.  So it seems like the combination of the two would be a match made in heaven... right?

Well, maybe... and maybe not.  It could actually be a really bad idea.

Enjoy this in-depth look at the 5 reasons not to buy real estate in your IRA, based on one of Bryan's award-winning articles published on TheStreet.com.

 

Full Episode: https://SelfDirected.org/podcasts/investor-talk/episode-259

More Resources:

https://www.Instagram.com/sditalk

http://www.huffingtonpost.com/entry/58d28bc4e4b062043ad4aea6

https://selfdirectedira.tumblr.com/

 

 

]]>
259B: 5 Reason NOT To Buy Real Estate In Your IRA | Episode #259B 259B: 5 Reason NOT To Buy Real Estate In Your IRA | Episode #259B Wed, 22 Mar 2017 17:08:57 GMT 7:28 b6511d4e73462751543a9644febeee57 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f56f  

Here at SelfDirected.org, we love self-directed IRA's.  And we love real estate as an investment asset class.  So it seems like the combination of the two would be a match made in heaven... right?

Well, maybe... and maybe not.  It could actually be a really bad idea.

Enjoy this in-depth look at the 5 reasons not to buy real estate in your IRA, based on one of Bryan's award-winning articles published on TheStreet.com.

 

Full Episode: https://SelfDirected.org/podcasts/investor-talk/episode-259

More Resources:

https://www.Facebook.com/sditalk

http://www.huffingtonpost.com/entry/58d28bc4e4b062043ad4aea6

http://www.IRAIdeas.com

 

 

 

]]>
 

Here at SelfDirected.org, we love self-directed IRA's.  And we love real estate as an investment asset class.  So it seems like the combination of the two would be a match made in heaven... right?

Well, maybe... and maybe not.  It could actually be a really bad idea.

Enjoy this in-depth look at the 5 reasons not to buy real estate in your IRA, based on one of Bryan's award-winning articles published on TheStreet.com.

 

Full Episode: https://SelfDirected.org/podcasts/investor-talk/episode-259

More Resources:

https://www.Facebook.com/sditalk

http://www.huffingtonpost.com/entry/58d28bc4e4b062043ad4aea6

http://www.IRAIdeas.com

 

 

 

]]>
259A: 5 Reasons NOT To Buy Real Estate In Your IRA | Episode #259A 259A: 5 Reasons NOT To Buy Real Estate In Your IRA | Episode #259A Wed, 22 Mar 2017 15:22:08 GMT 11:52 8f774cbaef82c36f2033f6eb82b6e507 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f570  

Here at SelfDirected.org, we love self-directed IRA's.  And we love real estate as an investment asset class.  So it seems like the combination of the two would be a match made in heaven... right?

Well, maybe... and maybe not.  It could actually be a really bad idea.

Enjoy this in-depth look at the 5 reasons not to buy real estate in your IRA, based on one of Bryan's award-winning articles published on TheStreet.com.

 

Full Episode: https://SelfDirected.org/podcasts/investor-talk/episode-259

More Resources:

https://www.Facebook.com/sditalk

http://www.huffingtonpost.com/entry/58d28bc4e4b062043ad4aea6

http://www.IRAIdeas.com

 

 

 

]]>
 

Here at SelfDirected.org, we love self-directed IRA's.  And we love real estate as an investment asset class.  So it seems like the combination of the two would be a match made in heaven... right?

Well, maybe... and maybe not.  It could actually be a really bad idea.

Enjoy this in-depth look at the 5 reasons not to buy real estate in your IRA, based on one of Bryan's award-winning articles published on TheStreet.com.

 

Full Episode: https://SelfDirected.org/podcasts/investor-talk/episode-259

More Resources:

https://www.Facebook.com/sditalk

http://www.huffingtonpost.com/entry/58d28bc4e4b062043ad4aea6

http://www.IRAIdeas.com

 

 

 

]]>
258E: Traditional vs Roth IRA | Episode #258E 258E: Traditional vs Roth IRA | Episode #258E Tue, 21 Mar 2017 20:05:01 GMT 11:51 f767c0935bdf5fe217cbc5ab170852e4 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f571 Episode #258: Traditional vs Roth IRA https://SelfDirected.org/podcast/investor-talk/episode-258 Episode #258:

Traditional vs Roth IRA

https://SelfDirected.org/podcast/investor-talk/episode-258

]]>
Episode #258:

Traditional vs Roth IRA

https://SelfDirected.org/podcast/investor-talk/episode-258

]]>
257E: Asset Suitability Assessment | Episode #257E 257E: Asset Suitability Assessment | Episode #257E Mon, 20 Mar 2017 15:32:09 GMT 7:54 c6ecbe8f090122501a440b6e9451f446 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f572 Ask yourself these 7 questions to determine whether a particular asset class is compatible with your IRA:

Full Podcast Episode:  https://SelfDirected.org/podcasts/investor-talk/episode-257

 

Other Resources:

https://SelfDirected.org/ira

https://www.Facebook.com/sditalk

https://www.Instagram.com/sditalk

 

]]>
Ask yourself these 7 questions to determine whether a particular asset class is compatible with your IRA:

Full Podcast Episode:  https://SelfDirected.org/podcasts/investor-talk/episode-257

 

Other Resources:

https://SelfDirected.org/ira

https://www.Facebook.com/sditalk

https://www.Instagram.com/sditalk

 

]]>
257D: Asset Suitability Assessment Part 1 | Episode #257D 257D: Asset Suitability Assessment Part 1 | Episode #257D Mon, 20 Mar 2017 15:28:36 GMT 6:31 1d6d92a97f77096e3e4c09b86d5c35a9 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f573 Ask yourself these 7 questions to determine whether a particular asset class is compatible with your IRA.

 

Full Podcast & Resource:  https://SelfDirected.org/podcasts/investor-talk/episode-257

 

Other Resources:

https://SelfDirected.org/ira/law

https://issuu.com/selfdirected

http://www.Twitter.com/sditalk

 

]]>
Ask yourself these 7 questions to determine whether a particular asset class is compatible with your IRA.

 

Full Podcast & Resource:  https://SelfDirected.org/podcasts/investor-talk/episode-257

 

Other Resources:

https://SelfDirected.org/ira/law

https://issuu.com/selfdirected

http://www.Twitter.com/sditalk

 

]]>
257C: Can I Borrow From My IRA? | Episode #257C 257C: Can I Borrow From My IRA? | Episode #257C Mon, 20 Mar 2017 15:22:57 GMT 6:23 99f6063246621de1d94d001a7588f5e5 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f574 Can You Borrow From Your IRA?  NO, But...   Full Podcast and Resources:  https://SelfDirected.org/podcasts/investor-talk/episode-257   Other Resources: https://SelfDirected.org/ira/custodians http://www.imfaceplate.com/SelfDirected...  

Full Podcast and Resources:  https://SelfDirected.org/podcasts/investor-talk/episode-257

 

Other Resources:

https://SelfDirected.org/ira/custodians

http://www.imfaceplate.com/SelfDirected

https://www.instagram.com/sditalk/

 

]]>
 

Full Podcast and Resources:  https://SelfDirected.org/podcasts/investor-talk/episode-257

 

Other Resources:

https://SelfDirected.org/ira/custodians

http://www.imfaceplate.com/SelfDirected

https://www.instagram.com/sditalk/

 

]]>
257B: California Taking Aim at Landlords Again | Episode #257B 257B: California Taking Aim at Landlords Again | Episode #257B Mon, 20 Mar 2017 14:50:57 GMT 7:24 433d5b0a76c0d7bcc93d677eab0be41d no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f575 Full Episode & Resources Here:  https://SelfDirected.org/podcasts/investor-talk/episode-257

 

More Resources:

https://SelfDirected.org/ira

https://www.Facebook.com/sditalk

https://vimeo.com/selfdirected/about

 

]]>
Full Episode & Resources Here:  https://SelfDirected.org/podcasts/investor-talk/episode-257

 

More Resources:

https://SelfDirected.org/ira

https://www.Facebook.com/sditalk

https://vimeo.com/selfdirected/about

 

]]>
257A: Federal Reserve Playing Politics with Your Portfolio | Episode 257A 257A: Federal Reserve Playing Politics with Your Portfolio | Episode 257A Fri, 17 Mar 2017 18:59:33 GMT 11:49 74a9b9cb996bed48f79842c897c2eaa1 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f576 The Federal Reserve took action on interest rates this week, and many people are questioning why they did it... and Fed Chair Janet Yetllen can't answer the question of why she did it.  It means one thing:  She's playing politics with YOUR portfolio...

 

Full Episode Here: https://SelfDirected.org/257

 

More Resources:

https://SelfDirected.org/ira

https://SelfDirected.org/ira/custodians

https://www.Facebook.com/sditalk

https://SelfDirected.org/podcasts/investor-talk/

http://www.Twitter.com/sditalk

 

]]>
The Federal Reserve took action on interest rates this week, and many people are questioning why they did it... and Fed Chair Janet Yetllen can't answer the question of why she did it.  It means one thing:  She's playing politics with YOUR portfolio...

 

Full Episode Here: https://SelfDirected.org/257

 

More Resources:

https://SelfDirected.org/ira

https://SelfDirected.org/ira/custodians

https://www.Facebook.com/sditalk

https://SelfDirected.org/podcasts/investor-talk/

http://www.Twitter.com/sditalk

 

]]>
256E: Traditional IRA vs Roth IRA | Episode 256E 256E: Traditional IRA vs Roth IRA | Episode 256E Wed, 15 Mar 2017 18:19:41 GMT 7:36 fa912c5f1f203a27e80a73d093693674 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f577 Traditional IRA or Roth IRA - Which Is Fundamentally Better? (Part 1 of 3) All else being equal, which is better:  The Traditional IRA or the Roth IRA?  Well, all things are NOT equal, but there are some very important differences that... All else being equal, which is better:  The Traditional IRA or the Roth IRA?  Well, all things are NOT equal, but there are some very important differences that go beyond even the taxation issues that distinguish these account types.  Learn the deeper differences right now:

Full episode & All Resources: https://SelfDirected.org/256

]]>
All else being equal, which is better:  The Traditional IRA or the Roth IRA?  Well, all things are NOT equal, but there are some very important differences that go beyond even the taxation issues that distinguish these account types.  Learn the deeper differences right now:

Full episode & All Resources: https://SelfDirected.org/256

]]>
256D: Traditional IRA vs Roth IRA (Part 2) | Episode #256D 256D: Traditional IRA vs Roth IRA (Part 2) | Episode #256D Wed, 15 Mar 2017 18:18:49 GMT 6:26 e81ddf481f8074db75a7e18c8ebc50e8 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f578 Traditional IRA or Roth IRA - Which Is Fundamentally Better? (Part 1 of 3) All else being equal, which is better:  The Traditional IRA or the Roth IRA?  Well, all things are NOT equal, but there are some very important differences that... All else being equal, which is better:  The Traditional IRA or the Roth IRA?  Well, all things are NOT equal, but there are some very important differences that go beyond even the taxation issues that distinguish these account types.  Learn the deeper differences right now:

Full episode & All Resources: https://SelfDirected.org/256

]]>
All else being equal, which is better:  The Traditional IRA or the Roth IRA?  Well, all things are NOT equal, but there are some very important differences that go beyond even the taxation issues that distinguish these account types.  Learn the deeper differences right now:

Full episode & All Resources: https://SelfDirected.org/256

]]>
256C: Traditional IRA vs Roth IRA (Part 1) | Episode #256C 256C: Traditional IRA vs Roth IRA (Part 1) | Episode #256C Wed, 15 Mar 2017 18:17:08 GMT 6:26 6fd0d923e66b939fc1fa18449e717872 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f579 Traditional IRA or Roth IRA - Which Is Fundamentally Better? (Part 1 of 3) All else being equal, which is better:  The Traditional IRA or the Roth IRA?  Well, all things are NOT equal, but there are some very important differences that... All else being equal, which is better:  The Traditional IRA or the Roth IRA?  Well, all things are NOT equal, but there are some very important differences that go beyond even the taxation issues that distinguish these account types.  Learn the deeper differences right now:

Full episode & All Resources: https://SelfDirected.org/256

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All else being equal, which is better:  The Traditional IRA or the Roth IRA?  Well, all things are NOT equal, but there are some very important differences that go beyond even the taxation issues that distinguish these account types.  Learn the deeper differences right now:

Full episode & All Resources: https://SelfDirected.org/256

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256B: a FAKEOUT INDICATOR That You Probably Trust | Episode #256B 256B: a FAKEOUT INDICATOR That You Probably Trust | Episode #256B Wed, 15 Mar 2017 18:11:48 GMT 7:25 de1dbd1a1ba51dfc6831c389877fb207 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f57a There's a very trendy housing market indicator frequently cited by the press, yet it's only accurate on its own an incredibly small portion of the time.  Don't get faked out!  Learn more now:

Full Podcast And Resources Here: https://SelfDirected.org/256

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There's a very trendy housing market indicator frequently cited by the press, yet it's only accurate on its own an incredibly small portion of the time.  Don't get faked out!  Learn more now:

Full Podcast And Resources Here: https://SelfDirected.org/256

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<![CDATA[256A: AirBnb & VRBO in Your Self-Directed IRA? WARNING! | Episode #256A]]> Wed, 15 Mar 2017 18:04:45 GMT 11:54 82842f883ddca6569a32a35bb37b7e94 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f57b It was inevitable!  AirBnB & VRBO have become so popular that people are combining real estate owned in their self-directed IRA's with the AirBnb/VRBO way of property rentals, but... there's a HUGE "gotchya".  Listen in now to hear more about the "catch" that could bite you:

Full Episode and Resources here: https://SelfDirected.org/256

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It was inevitable!  AirBnB & VRBO have become so popular that people are combining real estate owned in their self-directed IRA's with the AirBnb/VRBO way of property rentals, but... there's a HUGE "gotchya".  Listen in now to hear more about the "catch" that could bite you:

Full Episode and Resources here: https://SelfDirected.org/256

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255E: Can I Borrow Money In My IRA? | Episode #255E 255E: Can I Borrow Money In My IRA? | Episode #255E Mon, 13 Mar 2017 19:23:47 GMT 8:11 1090f18101fa9bf3a7927451fd18f399 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f57c  

I don't know about you, but to me, the notion of introducing debt into an IRA or 401(k) seems... scary.  Nevertheless, it is possible and in some cases, can even make a lot of sense.  But it opens up another entire can of worms, so learn the ins and outs here:

Here's the full podcast (and all resources): https://SelfDirected.org/255]]>  

I don't know about you, but to me, the notion of introducing debt into an IRA or 401(k) seems... scary.  Nevertheless, it is possible and in some cases, can even make a lot of sense.  But it opens up another entire can of worms, so learn the ins and outs here:

Here's the full podcast (and all resources): https://SelfDirected.org/255]]> 255D: What Can I Buy In My IRA? | Episode #255D 255D: What Can I Buy In My IRA? | Episode #255D Mon, 13 Mar 2017 19:21:26 GMT 6:27 a5caf994b12e552ac15e2e50432825e8 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f57d What Kind Of Assets Can You Buy In Your IRA? (Part 2) Yes, your Self-Directed IRA is very flexible... but exactly what kinds of assets can you ACTUALLY buy using your retirement money... or are there any limits at all?  Hint:  There are... Yes, your Self-Directed IRA is very flexible... but exactly what kinds of assets can you ACTUALLY buy using your retirement money... or are there any limits at all?  Hint:  There are limits, but not many - but ignoring them can hurt very, very badly:

Here's the podcast (and all resources): https://SelfDirected.org/255

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Yes, your Self-Directed IRA is very flexible... but exactly what kinds of assets can you ACTUALLY buy using your retirement money... or are there any limits at all?  Hint:  There are limits, but not many - but ignoring them can hurt very, very badly:

Here's the podcast (and all resources): https://SelfDirected.org/255

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255C: What Can I Buy In My IRA? | Episode #255C 255C: What Can I Buy In My IRA? | Episode #255C Mon, 13 Mar 2017 19:16:11 GMT 6:26 242ff78750614323218300f591722a1a no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f57e What Kind Of Assets Can You Buy In Your IRA? (Part 1) Yes, your Self-Directed IRA is very flexible... but exactly what kinds of assets can you ACTUALLY buy using your retirement money... or are there any limits at all?  Hint:  There are... Yes, your Self-Directed IRA is very flexible... but exactly what kinds of assets can you ACTUALLY buy using your retirement money... or are there any limits at all?  Hint:  There are limits, but not many - but ignoring them can hurt very, very badly...

Full Podcast and Resources Here: https://SelfDirected.org/255

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Yes, your Self-Directed IRA is very flexible... but exactly what kinds of assets can you ACTUALLY buy using your retirement money... or are there any limits at all?  Hint:  There are limits, but not many - but ignoring them can hurt very, very badly...

Full Podcast and Resources Here: https://SelfDirected.org/255

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255B: Market Evaluation - 3 Smart Questions About JOBS | Episode #255B 255B: Market Evaluation - 3 Smart Questions About JOBS | Episode #255B Mon, 13 Mar 2017 19:13:58 GMT 7:24 d85fbfb0eb70cdc7c19aa8eaa8244fd8 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f57f  

Not all jobs are created equally, and some types of jobs have a much higher predictive value than others.  Take a moment now to learn 3 important questions you should ask...

Full Podcast and Resources here: https://SelfDirected.org/255]]>  

Not all jobs are created equally, and some types of jobs have a much higher predictive value than others.  Take a moment now to learn 3 important questions you should ask...

Full Podcast and Resources here: https://SelfDirected.org/255]]> 255A: Is DALLAS Headed For A Crash? | Episode #255A 255A: Is DALLAS Headed For A Crash? | Episode #255A Mon, 13 Mar 2017 19:10:24 GMT 11:51 fbe4aec829e706f118118eecbc80d63b no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f580 One SDI listener is extremely interested in investing in turnkey rental property in Dallas, Texas... but he can't shake the memory of the real estate crash in Dallas in the '80's.  Is today's market like that one in any important ways?

 

The Podcast (And Resources) Are Here: https://SelfDirected.org/255

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One SDI listener is extremely interested in investing in turnkey rental property in Dallas, Texas... but he can't shake the memory of the real estate crash in Dallas in the '80's.  Is today's market like that one in any important ways?

 

The Podcast (And Resources) Are Here: https://SelfDirected.org/255

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254E: Taxable vs Prohibited Transactions in your IRA | Episode 254E 254E: Taxable vs Prohibited Transactions in your IRA | Episode 254E Fri, 10 Mar 2017 21:28:42 GMT 8:12 5515cf8c5ec37b51e8c819d8439d823a no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f581 Many Self-Directed IRA owners don't realize that it's possible to engage in transactions in an IRA that establish a present-day tax liability.  Those who do know that frequently confuse taxable transactions in an IRA with the more sinister risk, the prohibited transaction.  Prohibited transactions are always taxable.  But taxable transactions aren't always prohibited.  Here's the difference:

This episode (and all supporting materials): https://SelfDirected.org/254

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Many Self-Directed IRA owners don't realize that it's possible to engage in transactions in an IRA that establish a present-day tax liability.  Those who do know that frequently confuse taxable transactions in an IRA with the more sinister risk, the prohibited transaction.  Prohibited transactions are always taxable.  But taxable transactions aren't always prohibited.  Here's the difference:

This episode (and all supporting materials): https://SelfDirected.org/254

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254C: Who Set Up Your Solo 401(k)? DANGER - SERIOUS NOTICE | Episode #254C 254C: Who Set Up Your Solo 401(k)? DANGER - SERIOUS NOTICE | Episode #254C Fri, 10 Mar 2017 21:09:01 GMT 6:29 8d492aaf02617d8a52bece6f63ab0416 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f582 One thing that is undeniably true about Self-Directed (Solo) 401k's versus Self-Directed IRA's is that 401k's are far more resilient against prohibited transactions than their IRA counterparts.  But as it turns out, that's only true if your Solo 401k was established in the correct way.  If not, then your Solo 401k is no safer against PT's than any run-of-the-mill IRA.  Learn why right now:

This Episode - and all supporting content - available at: https://SelfDirected.org/254

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One thing that is undeniably true about Self-Directed (Solo) 401k's versus Self-Directed IRA's is that 401k's are far more resilient against prohibited transactions than their IRA counterparts.  But as it turns out, that's only true if your Solo 401k was established in the correct way.  If not, then your Solo 401k is no safer against PT's than any run-of-the-mill IRA.  Learn why right now:

This Episode - and all supporting content - available at: https://SelfDirected.org/254

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254B: the IDEAL RENTER Demographic | Episode #254B 254B: the IDEAL RENTER Demographic | Episode #254B Fri, 10 Mar 2017 21:01:22 GMT 7:27 1d0cdb58a2774a7df73f295f216dcdc1 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f583 There's a huge population of reliable renters likely to be flush with cash from a recent home sale who want to stay in your rental property - if you meet their requirements - for life!  If you want to know where and what these folks will be renting over the next decade or more, listen in right now:

This episode - and all supporting content - located at: https://SelfDirected.org/254

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There's a huge population of reliable renters likely to be flush with cash from a recent home sale who want to stay in your rental property - if you meet their requirements - for life!  If you want to know where and what these folks will be renting over the next decade or more, listen in right now:

This episode - and all supporting content - located at: https://SelfDirected.org/254

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Should You Use an IRA Company to Set Up Your Solo 401(k)? | Episode #254D Should You Use an IRA Company to Set Up Your Solo 401(k)? | Episode #254D Fri, 10 Mar 2017 21:00:00 GMT 6:27 19c9423c5e9c83d9e6f89e0ad7c70f87 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f584

Should You Use an IRA Company to Set Up Your Solo 401(k)?

https://SelfDirected.org/254d

There's a hidden distinction among solo 401(k) plans from one provider to the next that's big, bad and disconcerting if you discover it the wrong way.  I'm Bryan Ellis.  I'll tell you what it is right now in Episode #254 (part D) of Self Directed Investor Talk.

https://SelfDirected.org/ira

https://SelfDirected.org/investor-talk

http://www.Facebook.com/sditalk

http://www.Twitter.com/sditalk

 

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Should You Use an IRA Company to Set Up Your Solo 401(k)?

https://SelfDirected.org/254d

There's a hidden distinction among solo 401(k) plans from one provider to the next that's big, bad and disconcerting if you discover it the wrong way.  I'm Bryan Ellis.  I'll tell you what it is right now in Episode #254 (part D) of Self Directed Investor Talk.

https://SelfDirected.org/ira

https://SelfDirected.org/investor-talk

http://www.Facebook.com/sditalk

http://www.Twitter.com/sditalk

 

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254A: The TRUMP Economy for Self Directed Investors | Episode #254-A 254A: The TRUMP Economy for Self Directed Investors | Episode #254-A Fri, 10 Mar 2017 16:49:28 GMT 11:49 8ac72fa8a8b9d5d74fed237906c48a89 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f585 3 New Pieces of data about the Trump Economy are eye-openers… absolutely shocking… and frankly, are each great indicators about what CAN happen in YOUR Self-Directed IRA, Solo 401k or any other investment portfolio if you’re smart enough to play... 3 New Pieces of data about the Trump Economy are eye-openers… absolutely shocking… and frankly, are each great indicators about what CAN happen in YOUR Self-Directed IRA, Solo 401k or any other investment portfolio if you’re smart enough to play the hand you’re dealt.  Learn about those 3 earth-shaking pieces of data, and how they play in your favor RIGHT NOW:

Full Notes and Resources available at: https://SelfDirected.org/254

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3 New Pieces of data about the Trump Economy are eye-openers… absolutely shocking… and frankly, are each great indicators about what CAN happen in YOUR Self-Directed IRA, Solo 401k or any other investment portfolio if you’re smart enough to play the hand you’re dealt.  Learn about those 3 earth-shaking pieces of data, and how they play in your favor RIGHT NOW:

Full Notes and Resources available at: https://SelfDirected.org/254

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All Prohibited Transactions Are Taxable… All Taxable Transactions Aren’t Prohibited [Episode #253] All Prohibited Transactions Are Taxable… All Taxable Transactions Aren’t Prohibited [Episode #253] Wed, 08 Mar 2017 21:40:10 GMT 8:50 5e99cd629df64579e1095c524d7968cc no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f586 The Big Idea Prohibited transactions are a terrible, terrible thing for your IRA, and they are ALWAYS taxable, with penalties and interest, too.  Yes, all prohibited transactions are taxable.  But not all taxable transactions in your IRA... The Big Idea

Prohibited transactions are a terrible, terrible thing for your IRA, and they are ALWAYS taxable, with penalties and interest, too.  Yes, all prohibited transactions are taxable.  But not all taxable transactions in your IRA are prohibited...

Points To Ponder
  • Prohibited transactions are prohibited because they benefit someone other than the IRA
  • Not all transactions that are taxable to your IRA are prohibited
  • Zamir from Boston proposes a transaction that could be both... or neither... we take a look
Resources ]]>
The Big Idea

Prohibited transactions are a terrible, terrible thing for your IRA, and they are ALWAYS taxable, with penalties and interest, too.  Yes, all prohibited transactions are taxable.  But not all taxable transactions in your IRA are prohibited...

Points To Ponder
  • Prohibited transactions are prohibited because they benefit someone other than the IRA
  • Not all transactions that are taxable to your IRA are prohibited
  • Zamir from Boston proposes a transaction that could be both... or neither... we take a look
Resources ]]>
an EXCELLENT MARKET for owning TURNKEY RENTALS is... | SDITalk.com #252 an EXCELLENT MARKET for owning TURNKEY RENTALS is... | SDITalk.com #252 Thu, 09 Feb 2017 20:15:54 GMT 6:53 7c57b7d7f2eb2b005d2e87b94b40485c no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f587 There's nothing sexy about Birmingham, Alabama... unless very high cash flow from very inexpensive properties is sexy.  In that case... Birmingham is smoking hot!

Points To Ponder
  • Turnkey rental properties are homes you buy as rental properties, but there's already a tenant and property manager in place to make the whole investment "hands-off" for you
  • Birmingham, Alabama is a strong alternative to consider.  Cash flow ROI is very strong.
  • Example:  1,000 SF home, built in 1920's but fully renovated, 3 bedrooms, 1 bath, kitchen, livingroom, etc.  Fully renovated:  $55,000
  • Net ROI easily in 8-13% range
  • To learn more about this market, call the SDI 2-minute free recorded info line at (773) TURNKEY.
Resources

 

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There's nothing sexy about Birmingham, Alabama... unless very high cash flow from very inexpensive properties is sexy.  In that case... Birmingham is smoking hot!

Points To Ponder
  • Turnkey rental properties are homes you buy as rental properties, but there's already a tenant and property manager in place to make the whole investment "hands-off" for you
  • Birmingham, Alabama is a strong alternative to consider.  Cash flow ROI is very strong.
  • Example:  1,000 SF home, built in 1920's but fully renovated, 3 bedrooms, 1 bath, kitchen, livingroom, etc.  Fully renovated:  $55,000
  • Net ROI easily in 8-13% range
  • To learn more about this market, call the SDI 2-minute free recorded info line at (773) TURNKEY.
Resources

 

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TRUMP Does Something GREAT For Self-Directed Invsetors | SDITalk.com #251 TRUMP Does Something GREAT For Self-Directed Invsetors | SDITalk.com #251 Wed, 08 Feb 2017 10:01:34 GMT 7:24 c035e5048286daec663a0f16aa1b30d2 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f588 The Fiduciary Rule claims to benefit the "best interests" of retirement account investors, but will only serve to keep middle-income Americans away from alternative assets and from high-quality financial advice.  Trump has delayed implementation of this new rule and may end it entirely... Bravo!

Points To Ponder
  • In April 2016, the Department of Labor proposed new rules to expand the definition of "fiduciary" to anyone connected with providing guidance to retirement account investors
  • The "suitability" standard had been in place - effectively - for many years, which required that advisors only make investment recommendations that are suitable to investors
  • "Fiduciary" status raises the bar for advice from "suitability" to "best interests"... with stated motivation of eliminating "conflicts of interest"
  • No evidence that "suitability" was an insufficient standard
  • New "best interests" stndard will absolutely limit access to alternative investments and financial advice to all but the upper tier of retirement account holders
  • Fundamental Effect of Fiduciary rule would be to limit the availability of financial advice
  • Trump has delayed implementation of the Fiduciary Rule for 180 days so he can determine what to do with it.  Seems likely he'll eliminate it entirely as it limits investor choice.
Resources Next Episode

The next episode of Self Directed Investor Talk addresses one particular market for turnkey rental properties that we at SDI are proponents of... along with a case study of a particular investment opportunity to give you a good "taste" for the potential!

]]>
The Fiduciary Rule claims to benefit the "best interests" of retirement account investors, but will only serve to keep middle-income Americans away from alternative assets and from high-quality financial advice.  Trump has delayed implementation of this new rule and may end it entirely... Bravo!

Points To Ponder
  • In April 2016, the Department of Labor proposed new rules to expand the definition of "fiduciary" to anyone connected with providing guidance to retirement account investors
  • The "suitability" standard had been in place - effectively - for many years, which required that advisors only make investment recommendations that are suitable to investors
  • "Fiduciary" status raises the bar for advice from "suitability" to "best interests"... with stated motivation of eliminating "conflicts of interest"
  • No evidence that "suitability" was an insufficient standard
  • New "best interests" stndard will absolutely limit access to alternative investments and financial advice to all but the upper tier of retirement account holders
  • Fundamental Effect of Fiduciary rule would be to limit the availability of financial advice
  • Trump has delayed implementation of the Fiduciary Rule for 180 days so he can determine what to do with it.  Seems likely he'll eliminate it entirely as it limits investor choice.
Resources Next Episode

The next episode of Self Directed Investor Talk addresses one particular market for turnkey rental properties that we at SDI are proponents of... along with a case study of a particular investment opportunity to give you a good "taste" for the potential!

]]>
a WARNING about your SOLO 401(k) Plan | SDITalk.com #250 a WARNING about your SOLO 401(k) Plan | SDITalk.com #250 Tue, 07 Feb 2017 18:02:40 GMT 7:20 7e48ee2f3e0083a82a8b3cbb2e862f70 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f589 An old IRS Revenue Ruling makes Solo 401k's set up by banks, brokerages and self directed IRA custodians just as risky as IRA's in the event of a prohibited transaction... and it does not need to be that way.  Pay close attention for the problem and the solution.

Points To Ponder
  • 401(k) plans (including Solo 401k's) can be set up as "Custodial" or "Trust" plans
    • "Custodial" plans are usually those set up by financial companies, including Self Directed IRA custodians
    • "Trust" plans are usually those where the employer/business owner directly manages the 401k
  • IRS Revenue Ruling 71-153, in effect, says that Custodial-type 401k plans are not able to be "fixed" if a prohibited transaction occurs, but that Trust-type plans can be corrected
  • This means that Custodial 401k plans are just as susceptible to the horrible risk of prohibited transactions as IRA's... and the risk there is catastrophically significant
  • If you have a Solo 401k plan, your action items are:
    • Determine whether your plan is Custodial or Trust
    • If your plan is a Custodial plan, consider amending it so that it's a Trust-type of 401k plan
  • Contact solo 401k attorney Tim Berry here to determine if your plan is a Custodial plan, and to have it amended if necessary
  • Revenue Ruling 71-153 is a very old ruling, so an alternative legal opinion is plausible.  However, subsequent regulations have been issued which echo the verbiage in this ruling, so there's substantive reason to believe it remains relevant.
Resources

 

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An old IRS Revenue Ruling makes Solo 401k's set up by banks, brokerages and self directed IRA custodians just as risky as IRA's in the event of a prohibited transaction... and it does not need to be that way.  Pay close attention for the problem and the solution.

Points To Ponder
  • 401(k) plans (including Solo 401k's) can be set up as "Custodial" or "Trust" plans
    • "Custodial" plans are usually those set up by financial companies, including Self Directed IRA custodians
    • "Trust" plans are usually those where the employer/business owner directly manages the 401k
  • IRS Revenue Ruling 71-153, in effect, says that Custodial-type 401k plans are not able to be "fixed" if a prohibited transaction occurs, but that Trust-type plans can be corrected
  • This means that Custodial 401k plans are just as susceptible to the horrible risk of prohibited transactions as IRA's... and the risk there is catastrophically significant
  • If you have a Solo 401k plan, your action items are:
    • Determine whether your plan is Custodial or Trust
    • If your plan is a Custodial plan, consider amending it so that it's a Trust-type of 401k plan
  • Contact solo 401k attorney Tim Berry here to determine if your plan is a Custodial plan, and to have it amended if necessary
  • Revenue Ruling 71-153 is a very old ruling, so an alternative legal opinion is plausible.  However, subsequent regulations have been issued which echo the verbiage in this ruling, so there's substantive reason to believe it remains relevant.
Resources

 

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a BETTER WAY to Invest In Turnkey Rental Property? | SDITalk.com #249 a BETTER WAY to Invest In Turnkey Rental Property? | SDITalk.com #249 Mon, 06 Feb 2017 15:28:35 GMT 7:52 7909a3808465387614ab4519c116b0ff no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f58a The Big Idea Turnkey rental property investing is inherently simple, eliminating 95% of the effort and time involved in rental property investing.  But for those seeking a 100% hands-off experience - along with the benefit of a higher level... Turnkey rental property investing is inherently simple, eliminating 95% of the effort and time involved in rental property investing.  But for those seeking a 100% hands-off experience - along with the benefit of a higher level of professional management - a brand new approach to turnkey investing could be even better than it was before.

Points to Ponder
  • Turnkey rental property investing eliminates 95% of the effort involved in rental property ownership, but for some, that's not enough
  • "Buffer Fund" is an investment fund that invests in rental properties and is an alternative to direct 100% ownership of individual properties
  • "Negatives" of investing in Buffer Fund rather than directly into real estate:
  • "Positives" of investing in a buffer fund rather than directly into real estate:
    • All involvement and time requirements are eliminated
    • Your legal & financial risks are each greatly diminished
    • Superior diversification
    • Economy of Scale
  • What do you think?  We really want to know your opinion... please use the comments area below to sound off!
Resources Next Episode

 

]]>
Turnkey rental property investing is inherently simple, eliminating 95% of the effort and time involved in rental property investing.  But for those seeking a 100% hands-off experience - along with the benefit of a higher level of professional management - a brand new approach to turnkey investing could be even better than it was before.

Points to Ponder
  • Turnkey rental property investing eliminates 95% of the effort involved in rental property ownership, but for some, that's not enough
  • "Buffer Fund" is an investment fund that invests in rental properties and is an alternative to direct 100% ownership of individual properties
  • "Negatives" of investing in Buffer Fund rather than directly into real estate:
  • "Positives" of investing in a buffer fund rather than directly into real estate:
    • All involvement and time requirements are eliminated
    • Your legal & financial risks are each greatly diminished
    • Superior diversification
    • Economy of Scale
  • What do you think?  We really want to know your opinion... please use the comments area below to sound off!
Resources Next Episode

 

]]>
<![CDATA[PRIVATIZING Fannie & Freddie - Your Opportunity | SDITalk.com #248]]> Fri, 03 Feb 2017 15:12:25 GMT 7:52 ba4e8bc6ec11c5254a9cc72679c24626 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f58b Treasury Secretary Steve Mnuchin has said he plans to privatize Fannie Mae and Freddie Mac.  But will he really?  If he does, there's a great opportunity lurking...

Points To Ponder
  • Treasury Secretary Steve Mnuchin said very unambiguously that privatization of Fannie Mae and Freddie Mac are high priorities and can be accomplished quickly
  • That was welcomed news to current shareholders, who have been the victim of the Fannie/Freddie bailout in 2008
  • If privatization of Fannie Mae and Freddie Mac happen, the market for 30-year fixed rate mortgages will likely disappear
  • The reduction of funding will likely cause a temporary diversion of the price of real estate and it's value, thus creating a strong buying opportunity for cash buyers
  • Seller-financing-oriented investors stand to fare very well... but Dodd Frank must first be repealed, which is also a Trump objective
Resources & Transcript Next Episode ]]>
Treasury Secretary Steve Mnuchin has said he plans to privatize Fannie Mae and Freddie Mac.  But will he really?  If he does, there's a great opportunity lurking...

Points To Ponder
  • Treasury Secretary Steve Mnuchin said very unambiguously that privatization of Fannie Mae and Freddie Mac are high priorities and can be accomplished quickly
  • That was welcomed news to current shareholders, who have been the victim of the Fannie/Freddie bailout in 2008
  • If privatization of Fannie Mae and Freddie Mac happen, the market for 30-year fixed rate mortgages will likely disappear
  • The reduction of funding will likely cause a temporary diversion of the price of real estate and it's value, thus creating a strong buying opportunity for cash buyers
  • Seller-financing-oriented investors stand to fare very well... but Dodd Frank must first be repealed, which is also a Trump objective
Resources & Transcript Next Episode ]]>
Which Solo 401(k) Is The Best? | SDITalk.com #247 Which Solo 401(k) Is The Best? | SDITalk.com #247 Thu, 02 Feb 2017 17:58:17 GMT 7:49 f81ad1b8531f134f749e00b0bd86d91e no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f58c Not all solo 401(k)'s are the same... and the differences can be very profound.

Points To Ponder
  • A 401(k) is an employee-sponsored salary deferral and profit sharing plan.  It can be both, one or neither of "Solo" or "Self-Directed"
  • Solo 401(k)'s offered by stock brokerages tend to exclude all assets other than stocks, bonds and mutual funds.
  • The law doesn't require a 3rd party custodian/trustee for your 401k, but some providers do
  • Your plan will be more flexible as a trustee-directed plan than as an individual-directed plan... as long as you're the trustee!
  • The expertise and availability of the provider of the solo 401(k) plan is the most important distinction
Resources ]]>
Not all solo 401(k)'s are the same... and the differences can be very profound.

Points To Ponder
  • A 401(k) is an employee-sponsored salary deferral and profit sharing plan.  It can be both, one or neither of "Solo" or "Self-Directed"
  • Solo 401(k)'s offered by stock brokerages tend to exclude all assets other than stocks, bonds and mutual funds.
  • The law doesn't require a 3rd party custodian/trustee for your 401k, but some providers do
  • Your plan will be more flexible as a trustee-directed plan than as an individual-directed plan... as long as you're the trustee!
  • The expertise and availability of the provider of the solo 401(k) plan is the most important distinction
Resources ]]>
<![CDATA[Trump's SCOTUS Nominee Neil Gorsuch vs YOUR PORTFOLIO | SDITalk.com #246]]> Wed, 01 Feb 2017 16:41:30 GMT 13:01 512bb46e2204e41c926870d3058547d2 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f58d There are two fundamental philosophies when it comes to interpreting law as a judge, and one of them is absolutely better for anyone who makes their own investment decisions.  How does Neil Gorsuch, President Trump's nominee for the US Supreme Court, stack up?

Points To Ponder
  • President Trump just nominated Judge Neil Gorsuch to serve as the next US Supreme Court
  • It matters greatly because judges who ascribe to a particular judicial philosophy are very bad for investors and businesses
  • The two philosophies are Originalist and Acitivist
    • Originalism says:  The plain words of the law are the guide and absolute limits of my ruling in any case.  It’s the job of CONGRESS to create or change laws, not the job of judges to do so
    • Activism says:  The law is a guide I’ll consider.  But if necessary, I’ll subordinate the law to other factors, including my own political beliefs, the legal system in other jurisdictions, social preferences, etc so that I can arrive at a decision that I believe to be suitable.
  • This all boils down to whether a particular judge makes decisions that create reliable precedent so that we can make decision about investing our money
  • Origianlists tend to make more consistent decisions based on the law itself - regardless of whether the law is "conservative" or "liberal"
  • Neil Gorsuch is definitely an originalist and is an excellent pick for the US Supreme Court
Resources

 

]]>
There are two fundamental philosophies when it comes to interpreting law as a judge, and one of them is absolutely better for anyone who makes their own investment decisions.  How does Neil Gorsuch, President Trump's nominee for the US Supreme Court, stack up?

Points To Ponder
  • President Trump just nominated Judge Neil Gorsuch to serve as the next US Supreme Court
  • It matters greatly because judges who ascribe to a particular judicial philosophy are very bad for investors and businesses
  • The two philosophies are Originalist and Acitivist
    • Originalism says:  The plain words of the law are the guide and absolute limits of my ruling in any case.  It’s the job of CONGRESS to create or change laws, not the job of judges to do so
    • Activism says:  The law is a guide I’ll consider.  But if necessary, I’ll subordinate the law to other factors, including my own political beliefs, the legal system in other jurisdictions, social preferences, etc so that I can arrive at a decision that I believe to be suitable.
  • This all boils down to whether a particular judge makes decisions that create reliable precedent so that we can make decision about investing our money
  • Origianlists tend to make more consistent decisions based on the law itself - regardless of whether the law is "conservative" or "liberal"
  • Neil Gorsuch is definitely an originalist and is an excellent pick for the US Supreme Court
Resources

 

]]>
Which is Better: SEP IRA or Solo 401k? | SDITalk.com #244 Which is Better: SEP IRA or Solo 401k? | SDITalk.com #244 Tue, 31 Jan 2017 19:22:18 GMT 7:38 e057fc0cc7c11418c9ed49638c50f4a7 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f58e The Big Idea Self-employed investors have retirement account options that are FAR superior to conventionally employed people in the form of the SEP IRA and the Solo 401k.  One of them is clearly better than the other... Points To Ponder ... Self-employed investors have retirement account options that are FAR superior to conventionally employed people in the form of the SEP IRA and the Solo 401k.  One of them is clearly better than the other...

Points To Ponder
  • IRA's are great, but you can't contribute more than $6,500 per year to them
  • Self-employed investors may qualify for the SEP IRA or the Solo 401k, both of which have a much larger limit - up to $60,000 per year
  • Solo 401k is practically always a far superior alternative to the SEP IRA because:
    • It's much easier to actually contribute to the solo 401k than to the SEP IRA
    • You can't have a SEP IRA that's taxed as a Roth account
    • The SEP IRA has all of the severe vulnerabilities to prohibited transactions that are present with all IRA's.  Solo 401k's are much safer and friendlier to the investor.
  • If your advisor recommends a SEP IRA over a solo 401k, they're likely either ignorant or are being compensated to motivate you to open an IRA.
Resources

 

]]>
Self-employed investors have retirement account options that are FAR superior to conventionally employed people in the form of the SEP IRA and the Solo 401k.  One of them is clearly better than the other...

Points To Ponder
  • IRA's are great, but you can't contribute more than $6,500 per year to them
  • Self-employed investors may qualify for the SEP IRA or the Solo 401k, both of which have a much larger limit - up to $60,000 per year
  • Solo 401k is practically always a far superior alternative to the SEP IRA because:
    • It's much easier to actually contribute to the solo 401k than to the SEP IRA
    • You can't have a SEP IRA that's taxed as a Roth account
    • The SEP IRA has all of the severe vulnerabilities to prohibited transactions that are present with all IRA's.  Solo 401k's are much safer and friendlier to the investor.
  • If your advisor recommends a SEP IRA over a solo 401k, they're likely either ignorant or are being compensated to motivate you to open an IRA.
Resources

 

]]>
the CONSERVATIVE way to invest AGGRESSIVELY | SDITalk.com #244 the CONSERVATIVE way to invest AGGRESSIVELY | SDITalk.com #244 Mon, 30 Jan 2017 18:39:00 GMT 7:23 8802954405118fa28ce89a7cf91c85ba no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f58f Want to know how to TRIPLE the returns Wall Street offers for that part of your portfolio that absolutely, positively must stay safe?  I’m Bryan Ellis.  I’ll tell you how to do that EASILY right now in Episode #244 of Self Directed... Want to know how to TRIPLE the returns Wall Street offers for that part of your portfolio that absolutely, positively must stay safe?  I’m Bryan Ellis.  I’ll tell you how to do that EASILY right now in Episode #244 of Self Directed Investor Talk.

-----

Hello, Self-Directed Investor Nation!  Welcome to the podcast of record for savvy self-directed investors like you, where each and every day, you learn how to DECLARE INDEPENDENCE from Wall Street as we teach you how to find, understand and PROFIT from exceptional ALTERNATIVE asset investment opportunities!

It’s Monday again and I don’t know about you… I love every moment of the weekend, but I definitely look forward to Monday morning, too… it’s good to be back at it with you today!

Ok, let’s jump right in.  I’m going to tell you how to TRIPLE what Wall Street offers for money you need to keep safe.  What’s more, you’re going to understand it perfectly and quite easily, before the end of this show.

So here’s the deal:  Sooner or later, everybody gets to a point or a life circumstance where you need to make sure that money you have now, you’ll definitely have later.  Yes, of course, we all expect to never lose on an investment, but I think you understand what I’m saying.  The way you invest when you’re well into retirement years, for example, could look very, very different from the way you invest in your 20’s and 30’s.

So how do you make THAT money – the “safe” money – continue to grow while minimizing risk?

And what would be even BETTER is to enjoy rates of return that are MULTIPLES of what Wall Street offers.

Turns out, we can do that.  So first, what does Wall Street recommend for low-risk investing?

The primary choices are:

  1. Standard bank savings accounts & CD’s
  2. Money market accounts
  3. Treasuries

Historically, all of those are quite safe, and that’s a great thing.  But there are two additional things we need to consider about them:  Their RATES of RETURN and whether there are BETTER OPTIONS.

First:  Rates of Return.  I just looked at Wells Fargo’s CD rates, and right now, they range from an interest rate of ZERO up to a WHOPPING 0.55%.  That’s not 55%, that’s 55 one hundreds of ONE percent.  Savings account rates are even lower.

Then there’s Money Market Accounts, which are basically just a checking account where your money is invested into a collection of high-quality bonds, like government treasuries, municipal bonds, etc.  I stopped by BankRate.com to see what was available, and money market accounts reach into rare air… one of them reached as high as 1.15%  Big time!

And then there are bonds issued by Uncle Sam, aka Treasuries.  While most options are at or below 1%, BankRate tells us the ten-year constant maturity option reaches all the way to a bit over 2%.  Yowzha!

So now we know the rates of return.  Thus the question becomes:  Is there a better alternative?

Well, yes.

For context, understand this:  Every one of those 3 “safe” investments that the conventional financial world loves – CD’s, money market funds and treasuries – every single one of them is a “debt” investment.  In other words, they’re just loans that you’re making to somebody.  In the case of CD’s, you’re making an unsecured loan to a bank.  In the case of money market funds, you’re making unsecured loans to the underlying bond issuers.  And in the case of government treasuries, you’re making unsecured loans to the US federal government.

So let’s do better, shall we?

We’ll imagine you’ve got $100,000 to invest that you know you’re going to need in 5 years.  My humble, but entirely correct, opinion of what to do here is this:  Invest your money in DEBT… yes.  That makes sense because a smartly-structured debt investment can have one thing that makes your money very secure:  COLLATERAL.  Collateral is what you have to fall back on if the loan you make doesn’t get paid, so this is CENTRAL to keeping your money safe.

But what’s conveniently missing from CD’s, from Money Market funds and from Treasuries?  You guessed it… COLLATERAL.  Yes, your bank promises they’ll repay your CD.  Some local government is putting their name behind their muni bonds in your money market account.  And yes, Uncle Sam signs on the dotted line for treasuries.  But my friends… none of that is REAL.  It’s all fluff… hot air… nothing more.

So the way to do better is this:  Take that $100,000 and LOAN it to someone, just like we’ve already said.  But have them pledge COLLATERAL to make your loan safe.  What if you could get someone to pledge a $200,000 property as collateral for your $100,000 loan?  Well, the answer is:  Nothing is ever totally safe, but that’s pretty freaking safe.  If you made that loan even during the worst of times in the real estate crash of 2007/2008, you’d likely be JUST FINE.

What’s more, you’ll easily make a MULTIPLE of what you’ll make in CD’s, money market funds and treasuries.  It’s REALLY easy to get 5 or 6% interest on loans like this – which is clearly, double, triple, sometimes quadruple what you’d get by going the route of “conventional wisdom”.

And remember – if it turns out that your borrower doesn’t pay you… you’ve got collateral worth DOUBLE the money you put into the deal.  It’s a STRONG position for you to be in.  You’d be even wiser to take that $100K and split it up among 2-4 smaller deals as well, to further spread your already minimal risk.

So how do you do it?  Easy answer… if that’s you, and you’ve got $100K or so and are looking for an extremely safe way to make 5-6% or so, reach out to me by email at feedback@sditalk.com or by phone at 512-SDI-TALK.  Again, if you’ve got $100K or more and are looking for an extremely safe way to make 5-6% or so, just reach out to me by email at feedback@sditalk.com or by phone at 512-SDI-TALK.

My friends, thank you for listening to Self Directed Investor Talk and remember:  Invest wisely today, and live well forever!

]]>
Want to know how to TRIPLE the returns Wall Street offers for that part of your portfolio that absolutely, positively must stay safe?  I’m Bryan Ellis.  I’ll tell you how to do that EASILY right now in Episode #244 of Self Directed Investor Talk.

-----

Hello, Self-Directed Investor Nation!  Welcome to the podcast of record for savvy self-directed investors like you, where each and every day, you learn how to DECLARE INDEPENDENCE from Wall Street as we teach you how to find, understand and PROFIT from exceptional ALTERNATIVE asset investment opportunities!

It’s Monday again and I don’t know about you… I love every moment of the weekend, but I definitely look forward to Monday morning, too… it’s good to be back at it with you today!

Ok, let’s jump right in.  I’m going to tell you how to TRIPLE what Wall Street offers for money you need to keep safe.  What’s more, you’re going to understand it perfectly and quite easily, before the end of this show.

So here’s the deal:  Sooner or later, everybody gets to a point or a life circumstance where you need to make sure that money you have now, you’ll definitely have later.  Yes, of course, we all expect to never lose on an investment, but I think you understand what I’m saying.  The way you invest when you’re well into retirement years, for example, could look very, very different from the way you invest in your 20’s and 30’s.

So how do you make THAT money – the “safe” money – continue to grow while minimizing risk?

And what would be even BETTER is to enjoy rates of return that are MULTIPLES of what Wall Street offers.

Turns out, we can do that.  So first, what does Wall Street recommend for low-risk investing?

The primary choices are:

  1. Standard bank savings accounts & CD’s
  2. Money market accounts
  3. Treasuries

Historically, all of those are quite safe, and that’s a great thing.  But there are two additional things we need to consider about them:  Their RATES of RETURN and whether there are BETTER OPTIONS.

First:  Rates of Return.  I just looked at Wells Fargo’s CD rates, and right now, they range from an interest rate of ZERO up to a WHOPPING 0.55%.  That’s not 55%, that’s 55 one hundreds of ONE percent.  Savings account rates are even lower.

Then there’s Money Market Accounts, which are basically just a checking account where your money is invested into a collection of high-quality bonds, like government treasuries, municipal bonds, etc.  I stopped by BankRate.com to see what was available, and money market accounts reach into rare air… one of them reached as high as 1.15%  Big time!

And then there are bonds issued by Uncle Sam, aka Treasuries.  While most options are at or below 1%, BankRate tells us the ten-year constant maturity option reaches all the way to a bit over 2%.  Yowzha!

So now we know the rates of return.  Thus the question becomes:  Is there a better alternative?

Well, yes.

For context, understand this:  Every one of those 3 “safe” investments that the conventional financial world loves – CD’s, money market funds and treasuries – every single one of them is a “debt” investment.  In other words, they’re just loans that you’re making to somebody.  In the case of CD’s, you’re making an unsecured loan to a bank.  In the case of money market funds, you’re making unsecured loans to the underlying bond issuers.  And in the case of government treasuries, you’re making unsecured loans to the US federal government.

So let’s do better, shall we?

We’ll imagine you’ve got $100,000 to invest that you know you’re going to need in 5 years.  My humble, but entirely correct, opinion of what to do here is this:  Invest your money in DEBT… yes.  That makes sense because a smartly-structured debt investment can have one thing that makes your money very secure:  COLLATERAL.  Collateral is what you have to fall back on if the loan you make doesn’t get paid, so this is CENTRAL to keeping your money safe.

But what’s conveniently missing from CD’s, from Money Market funds and from Treasuries?  You guessed it… COLLATERAL.  Yes, your bank promises they’ll repay your CD.  Some local government is putting their name behind their muni bonds in your money market account.  And yes, Uncle Sam signs on the dotted line for treasuries.  But my friends… none of that is REAL.  It’s all fluff… hot air… nothing more.

So the way to do better is this:  Take that $100,000 and LOAN it to someone, just like we’ve already said.  But have them pledge COLLATERAL to make your loan safe.  What if you could get someone to pledge a $200,000 property as collateral for your $100,000 loan?  Well, the answer is:  Nothing is ever totally safe, but that’s pretty freaking safe.  If you made that loan even during the worst of times in the real estate crash of 2007/2008, you’d likely be JUST FINE.

What’s more, you’ll easily make a MULTIPLE of what you’ll make in CD’s, money market funds and treasuries.  It’s REALLY easy to get 5 or 6% interest on loans like this – which is clearly, double, triple, sometimes quadruple what you’d get by going the route of “conventional wisdom”.

And remember – if it turns out that your borrower doesn’t pay you… you’ve got collateral worth DOUBLE the money you put into the deal.  It’s a STRONG position for you to be in.  You’d be even wiser to take that $100K and split it up among 2-4 smaller deals as well, to further spread your already minimal risk.

So how do you do it?  Easy answer… if that’s you, and you’ve got $100K or so and are looking for an extremely safe way to make 5-6% or so, reach out to me by email at feedback@sditalk.com or by phone at 512-SDI-TALK.  Again, if you’ve got $100K or more and are looking for an extremely safe way to make 5-6% or so, just reach out to me by email at feedback@sditalk.com or by phone at 512-SDI-TALK.

My friends, thank you for listening to Self Directed Investor Talk and remember:  Invest wisely today, and live well forever!

]]>
Not a fan of LEVERAGE in an IRA, but... | SDITalk #243 Not a fan of LEVERAGE in an IRA, but... | SDITalk #243 Fri, 27 Jan 2017 15:00:06 GMT 5:52 efb2b803dc54745e851cee8a2d8083b0 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f590 I’m not a huge fan of using leverage in a retirement account.  But this time, it makes some sense.  I’m Bryan Ellis.  I’ll tell you about this special case right now in Episode #243 of Self Directed Investor Talk. ----- Hello Self... I’m not a huge fan of using leverage in a retirement account.  But this time, it makes some sense.  I’m Bryan Ellis.  I’ll tell you about this special case right now in Episode #243 of Self Directed Investor Talk.

-----

Hello Self Directed Investor Nation!  Welcome back to the podcast of record for savvy self-directed investors like you… where all we ask of you is 7 minutes a day… and in return, we give you MASTERY as a self-directed investor.

Hey folks, I hope you’ve taken the time to check out the BRAND NEW website for this show, SDITalk.com.  It’s designed specifically to give you much easier access to all of the information you love, and it is, STILL, 100% free!  Check it out now… SDITalk.com.

Quick note, too… you’ve heard me say it before, and I’ll say it again:  If you need funding for your deals or your business, the best interest rate to pay is ZERO.  The best type of collateral to place is NONE.  And the best kind of credit to have is CASH credit.  So, if you’re interested in up to $250,000 of zero collateral, zero interest CASH CREDIT, stop by SDITalk.com/credit for a free webinar on that very topic.  SDITalk.com/credit.  You’ll be very glad you did!

Ok, here’s the deal:  I’m just not a big fan of using leverage in a retirement account.  By leverage, of course I mean getting a loan, usually to buy real estate.

It’s totally legal to do that in your IRA or 401k, you just have to make sure that the loan fits the right parameters.  Setting aside that issue, it’s really not a big issue anymore, as the number of IRA-compliant lenders is growing each year.

Having said that, I’m still just leary of leverage.  I’m a fan of the Dave Ramsey school of thought where debt is a bad idea period.  I actually don’t believe that, but frankly, that’s a mindset that will never steer you wrong.

But hey… sometimes, you do what you’ve got to do.

And one of those circumstances comes up for people who invest their IRA in real estate.

Actually, there are two situations.

One of them is this one:

You’ve done well, you’re in your retirement years, your account has about a million dollar’s worth of real estate in it, and that’s when you’re told you’ve got to pay out the dreaded RMD – required minimum distribution.  That’s the withdrawal the IRS forces you to take even if you don’t want it, just so that they can get some income taxes from you.

And with an account of that size, it’s totally plausible that a person in their 70’s will have an RMD of $40,000 to $50,000 per year.

Well what if you’re fully invested… maybe you own 3 or 4 properties and that’s all that’s in your account?

Well, you MUST pay the RMD… penalties for failure are rather severe… so I see 3 options here:

  1. You pay the money with cash on hand outside your retirement account
  2. You sell one of those properties to raise the cash, taking on the valuation discount that’ll likely be necessary if you have to do a quick sale to pay the RMD, or…
  3. You get a small loan in your IRA against one of the properties, and pay the RMD with that!

Now obviously this is contingent on whether your properties generate sufficient cash flow to cover the payments, but they certainly should.

A similar strategy might be useful for that kind of circumstance where you just need a large chunk of cash from your IRA or 401k, and the only way to get it would be to sell a property.  In that case, it might be worth getting an equity loan against the property instead if you believe there’s still upside in that property.

I’m thinking specifically about college expenses.  I’m 42 years old, and while I have one child in college and one who is a junior in high school, I also have one who is 3 years old and one who is 2 years old.  That means that right about the time I start to be able to withdraw money from my IRA, I could use that money to pay for college.  But I just can’t imagine actually SELLING real estate for that reason.  Rather, I can totally envision getting a low LTV loan against those properties so I can pay those large college lump sum expenses without actually giving up my properties.

So I’m still not a big fan of using leverage in IRA’s or 401k’s, but when the alternative is to likely take a guaranteed loss due to the necessity of a quick sale, or holding on to a great asset at the expense of the risk posed by low-LTV leverage, I have to say:  I’d have to seriously consider taking on leverage.

So what do you YOU think?  Sound off, my friends, on today’s show notes page at SDITalk.com/243.

My friends, invest wisely today, and live well forever!

]]>
I’m not a huge fan of using leverage in a retirement account.  But this time, it makes some sense.  I’m Bryan Ellis.  I’ll tell you about this special case right now in Episode #243 of Self Directed Investor Talk.

-----

Hello Self Directed Investor Nation!  Welcome back to the podcast of record for savvy self-directed investors like you… where all we ask of you is 7 minutes a day… and in return, we give you MASTERY as a self-directed investor.

Hey folks, I hope you’ve taken the time to check out the BRAND NEW website for this show, SDITalk.com.  It’s designed specifically to give you much easier access to all of the information you love, and it is, STILL, 100% free!  Check it out now… SDITalk.com.

Quick note, too… you’ve heard me say it before, and I’ll say it again:  If you need funding for your deals or your business, the best interest rate to pay is ZERO.  The best type of collateral to place is NONE.  And the best kind of credit to have is CASH credit.  So, if you’re interested in up to $250,000 of zero collateral, zero interest CASH CREDIT, stop by SDITalk.com/credit for a free webinar on that very topic.  SDITalk.com/credit.  You’ll be very glad you did!

Ok, here’s the deal:  I’m just not a big fan of using leverage in a retirement account.  By leverage, of course I mean getting a loan, usually to buy real estate.

It’s totally legal to do that in your IRA or 401k, you just have to make sure that the loan fits the right parameters.  Setting aside that issue, it’s really not a big issue anymore, as the number of IRA-compliant lenders is growing each year.

Having said that, I’m still just leary of leverage.  I’m a fan of the Dave Ramsey school of thought where debt is a bad idea period.  I actually don’t believe that, but frankly, that’s a mindset that will never steer you wrong.

But hey… sometimes, you do what you’ve got to do.

And one of those circumstances comes up for people who invest their IRA in real estate.

Actually, there are two situations.

One of them is this one:

You’ve done well, you’re in your retirement years, your account has about a million dollar’s worth of real estate in it, and that’s when you’re told you’ve got to pay out the dreaded RMD – required minimum distribution.  That’s the withdrawal the IRS forces you to take even if you don’t want it, just so that they can get some income taxes from you.

And with an account of that size, it’s totally plausible that a person in their 70’s will have an RMD of $40,000 to $50,000 per year.

Well what if you’re fully invested… maybe you own 3 or 4 properties and that’s all that’s in your account?

Well, you MUST pay the RMD… penalties for failure are rather severe… so I see 3 options here:

  1. You pay the money with cash on hand outside your retirement account
  2. You sell one of those properties to raise the cash, taking on the valuation discount that’ll likely be necessary if you have to do a quick sale to pay the RMD, or…
  3. You get a small loan in your IRA against one of the properties, and pay the RMD with that!

Now obviously this is contingent on whether your properties generate sufficient cash flow to cover the payments, but they certainly should.

A similar strategy might be useful for that kind of circumstance where you just need a large chunk of cash from your IRA or 401k, and the only way to get it would be to sell a property.  In that case, it might be worth getting an equity loan against the property instead if you believe there’s still upside in that property.

I’m thinking specifically about college expenses.  I’m 42 years old, and while I have one child in college and one who is a junior in high school, I also have one who is 3 years old and one who is 2 years old.  That means that right about the time I start to be able to withdraw money from my IRA, I could use that money to pay for college.  But I just can’t imagine actually SELLING real estate for that reason.  Rather, I can totally envision getting a low LTV loan against those properties so I can pay those large college lump sum expenses without actually giving up my properties.

So I’m still not a big fan of using leverage in IRA’s or 401k’s, but when the alternative is to likely take a guaranteed loss due to the necessity of a quick sale, or holding on to a great asset at the expense of the risk posed by low-LTV leverage, I have to say:  I’d have to seriously consider taking on leverage.

So what do you YOU think?  Sound off, my friends, on today’s show notes page at SDITalk.com/243.

My friends, invest wisely today, and live well forever!

]]>
<![CDATA[PRIVATE LENDERS - this one's for you, from the IRS with love (?) | SDITalk #242]]> Tue, 24 Jan 2017 16:44:46 GMT 7:21 2ebc15e2308a52c8f1535b2f61a240d4 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f591 Hey all of you private lenders out there, this episode is for you… and unfortunately, it involves your preferred asset type, and our friends at the IRS.  I’m Bryan Ellis.  I’ll tell you all about it right now in Episode #242 of Self... Hey all of you private lenders out there, this episode is for you… and unfortunately, it involves your preferred asset type, and our friends at the IRS.  I’m Bryan Ellis.  I’ll tell you all about it right now in Episode #242 of Self Directed Investor Talk.

-----

Hello, Self Directed Investor Nation, welcome to the podcast of record for savvy self-directed investors like you!  This is the show where all you’ve got to is give us 7 minutes a day… and you get back MASTERY as a self-directed investor!

Good show for you today, folks, prompted by a telephone consultation I did yesterday for two attorneys who have a major private lending business OUTSIDE of their self-directed IRA… and are also doing MILLIONS in private lending business INSIDE of their IRAs.  These guys have a lot at stake… I did some research, and I’ll tell you what I found.

And as I do so, feel free to write to me with your questions and comments by email at feedback@sditalk.com, feedback@sditalk.com.  Or – and frankly, I’d really appreciate this – stop by our Facebook page and click the LIKE button.  You can get to it at SDITalk.com/facebook.  And while you’re there, ask any questions you have for me.

And a quick note:  If you’d like to learn how to have a cash credit line of up to $250,000 that’s both unsecured and charges absolutely ZERO interest, stop by SDITalk.com/credit where you can sign up for a free webinar we’re offering this week that will show you exactly how to do that.  We’ve helped clients to raise MILLIONS of dollars in just the past 90 days alone, so if you’re looking for some capital, stop by SDITalk.com/credit right now.

Ok folks, so here’s the deal:  Again, you people are providing the content of my show for me.  I had a consultation with a couple of your fellow listeners yesterday.  For their privacy, I won’t say their names, but all of the details I’ll share with you are accurate.

The basic idea is this:  Both of these guys are lawyers up in Rhode Island, so they know more than enough to understand the need to be careful.  But their legal expertise is in real estate and title work, and not in retirement plan law.

Their concern is this:  Both of them have very large IRA’s, from which they do a lot of private lending.  They also have a very substantial private lending business OUTSIDE of their IRAs.

For those of you who may not be familiar, private lending is just lending your own money to some third party in such a way that you receive PLENTY of collateral and a relatively high interest rate.  Private loans can definitely be a great type of asset.

So your fellow listeners up in Rhode Island are concerned about this situation because it would be an absolute DISASTER if the IRS took a look at their IRA’s and decided that what they are doing is conducting an active business within their IRA’s. That would be a disaster because then their IRA’s would be liable to pay something called “unrelated business income tax” – or UBIT for short – on its earnings each year, as the IRS isn’t keen on people operating active businesses in their retirement accounts.

So is the concern of our lawyer friends justified about this?

There’s good reason, actually.  The comparable issue that many of you folks in SDI Nation may be familiar with is the one where you do a lot of real estate flipping BOTH OUTSIDE and INSIDE of your self directed IRA.  In that case, there’s plenty of precedent that the IRS could, in fact, conclude that your active business is real estate flipping, and that the activity in your IRA is just an extension of your business and is thus subject to UBIT.

Obviously, that’s a very bad thing.

So if the IRS can take that position with house flipping, do our lawyer friends in Rhode Island… and do YOU, my dear listeners… face the same risk if you do private lending both IN and OUT of your self directed IRA?

I’ve certainly got the answer for you, but before I give it to you:  People, I’m not a lawyer.  I’m not giving you legal advice.  If you need legal advice – and you do if you’re using a self directed IRA – then you should talk to a lawyer, period.

And as it turns out, the very best one in the country for this type of thing is THE GREAT ONE, Mr. Tim Berry – and YES, his contact info is linked on today’s show notes page at SDITalk.com/242.

And Tim is who I asked to help me clarify this issue.

You see, I suspected that our private lending pals might have a better time of it than if they were flipping houses because, frankly, it’s pretty hard to argue that collecting INTEREST on a LOAN is anything but passive.

And this is yet another case of being glad I asked for Tim’s advice, because he both confirmed and obliterated my assumption using case law.

Bottom line, in general:  Yes, the lending activity inside of the IRA is an active business activity, and any fees earned from those activities – such as maybe document preparation – would likely be subject to UBIT.  But the LION’S SHARE of income comes from earning interest from a loan.  And THAT type of income – interest, specifically – is statutorily exempt from UBIT.

And yes, for you legal beagles, both the revenue ruling where this happened and the original code citations are available for you on today’s show notes page at SDITalk.com/242.

Folks, who else in the entire US of A is providing self-directed investors like you with ABSOLUTE GOLD like this?  NOBODY… that’s who!  Nevertheless, I’m SO GRATEFUL that you’re listening to ME right here on Self Directed Investor Talk.

SDI Nation, you long-time listeners know that I’m very, very leary of the use of debt in any way.  But one REALLY brilliant use of debt in your IRA specifically hit me between the eyes this week, and I’d like to share it with you…

…And that’s exactly what I’ll do in TOMORROW’s edition – Episode #243 –  of Self Directed Investor Talk, so be sure to SUBSCRIBE to this show by visiting SDITalk.com or if you’re on an Apple device, subscribe on iTunes.  Either way it’s free for your benefit!

That’s all for today but a quick request… if you enjoyed this show, would you stop by iTunes right now and give us a nice 5-star rating, maybe even write a comment? That would REALLY help us out a lot.  Thanks!

My friends, invest wisely today, and live well forever!

]]>
Hey all of you private lenders out there, this episode is for you… and unfortunately, it involves your preferred asset type, and our friends at the IRS.  I’m Bryan Ellis.  I’ll tell you all about it right now in Episode #242 of Self Directed Investor Talk.

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Hello, Self Directed Investor Nation, welcome to the podcast of record for savvy self-directed investors like you!  This is the show where all you’ve got to is give us 7 minutes a day… and you get back MASTERY as a self-directed investor!

Good show for you today, folks, prompted by a telephone consultation I did yesterday for two attorneys who have a major private lending business OUTSIDE of their self-directed IRA… and are also doing MILLIONS in private lending business INSIDE of their IRAs.  These guys have a lot at stake… I did some research, and I’ll tell you what I found.

And as I do so, feel free to write to me with your questions and comments by email at feedback@sditalk.com, feedback@sditalk.com.  Or – and frankly, I’d really appreciate this – stop by our Facebook page and click the LIKE button.  You can get to it at SDITalk.com/facebook.  And while you’re there, ask any questions you have for me.

And a quick note:  If you’d like to learn how to have a cash credit line of up to $250,000 that’s both unsecured and charges absolutely ZERO interest, stop by SDITalk.com/credit where you can sign up for a free webinar we’re offering this week that will show you exactly how to do that.  We’ve helped clients to raise MILLIONS of dollars in just the past 90 days alone, so if you’re looking for some capital, stop by SDITalk.com/credit right now.

Ok folks, so here’s the deal:  Again, you people are providing the content of my show for me.  I had a consultation with a couple of your fellow listeners yesterday.  For their privacy, I won’t say their names, but all of the details I’ll share with you are accurate.

The basic idea is this:  Both of these guys are lawyers up in Rhode Island, so they know more than enough to understand the need to be careful.  But their legal expertise is in real estate and title work, and not in retirement plan law.

Their concern is this:  Both of them have very large IRA’s, from which they do a lot of private lending.  They also have a very substantial private lending business OUTSIDE of their IRAs.

For those of you who may not be familiar, private lending is just lending your own money to some third party in such a way that you receive PLENTY of collateral and a relatively high interest rate.  Private loans can definitely be a great type of asset.

So your fellow listeners up in Rhode Island are concerned about this situation because it would be an absolute DISASTER if the IRS took a look at their IRA’s and decided that what they are doing is conducting an active business within their IRA’s. That would be a disaster because then their IRA’s would be liable to pay something called “unrelated business income tax” – or UBIT for short – on its earnings each year, as the IRS isn’t keen on people operating active businesses in their retirement accounts.

So is the concern of our lawyer friends justified about this?

There’s good reason, actually.  The comparable issue that many of you folks in SDI Nation may be familiar with is the one where you do a lot of real estate flipping BOTH OUTSIDE and INSIDE of your self directed IRA.  In that case, there’s plenty of precedent that the IRS could, in fact, conclude that your active business is real estate flipping, and that the activity in your IRA is just an extension of your business and is thus subject to UBIT.

Obviously, that’s a very bad thing.

So if the IRS can take that position with house flipping, do our lawyer friends in Rhode Island… and do YOU, my dear listeners… face the same risk if you do private lending both IN and OUT of your self directed IRA?

I’ve certainly got the answer for you, but before I give it to you:  People, I’m not a lawyer.  I’m not giving you legal advice.  If you need legal advice – and you do if you’re using a self directed IRA – then you should talk to a lawyer, period.

And as it turns out, the very best one in the country for this type of thing is THE GREAT ONE, Mr. Tim Berry – and YES, his contact info is linked on today’s show notes page at SDITalk.com/242.

And Tim is who I asked to help me clarify this issue.

You see, I suspected that our private lending pals might have a better time of it than if they were flipping houses because, frankly, it’s pretty hard to argue that collecting INTEREST on a LOAN is anything but passive.

And this is yet another case of being glad I asked for Tim’s advice, because he both confirmed and obliterated my assumption using case law.

Bottom line, in general:  Yes, the lending activity inside of the IRA is an active business activity, and any fees earned from those activities – such as maybe document preparation – would likely be subject to UBIT.  But the LION’S SHARE of income comes from earning interest from a loan.  And THAT type of income – interest, specifically – is statutorily exempt from UBIT.

And yes, for you legal beagles, both the revenue ruling where this happened and the original code citations are available for you on today’s show notes page at SDITalk.com/242.

Folks, who else in the entire US of A is providing self-directed investors like you with ABSOLUTE GOLD like this?  NOBODY… that’s who!  Nevertheless, I’m SO GRATEFUL that you’re listening to ME right here on Self Directed Investor Talk.

SDI Nation, you long-time listeners know that I’m very, very leary of the use of debt in any way.  But one REALLY brilliant use of debt in your IRA specifically hit me between the eyes this week, and I’d like to share it with you…

…And that’s exactly what I’ll do in TOMORROW’s edition – Episode #243 –  of Self Directed Investor Talk, so be sure to SUBSCRIBE to this show by visiting SDITalk.com or if you’re on an Apple device, subscribe on iTunes.  Either way it’s free for your benefit!

That’s all for today but a quick request… if you enjoyed this show, would you stop by iTunes right now and give us a nice 5-star rating, maybe even write a comment? That would REALLY help us out a lot.  Thanks!

My friends, invest wisely today, and live well forever!

]]>
how will TRUMP policies affect YOUR Real Estate Values? | SDITalk.com #241 how will TRUMP policies affect YOUR Real Estate Values? | SDITalk.com #241 Mon, 23 Jan 2017 16:19:29 GMT 7:57 2f7c51f3ff4b5895008f4aacec3f98e8 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f592 How will Trump policies affect real estate investors specifically?  I’m Bryan Ellis.  I’ll give you the answer right now in Episode #241 of Self Directed Investor Talk. ----- Hello, Self Directed Investor Nation.  Welcome to the... How will Trump policies affect real estate investors specifically?  I’m Bryan Ellis.  I’ll give you the answer right now in Episode #241 of Self Directed Investor Talk.

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Hello, Self Directed Investor Nation.  Welcome to the show of record for savvy self-directed investors like you, where for just 7 minutes of your time per day, we give you MASTERY as a self-directed investor.

Welcome to another week, folks.  I’ll be honest with you, I’ve had a pretty awful last 24 hours and don’t even feel like doing this show right now.  Am I allowed to admit that to you?  Well of course I am.  It’s my show, I can say whatever I want.  I suspect that’s part of why you continue to listen, frankly.

But I have some important things to say today and it might take just a minute or 2 longer than the 7 minute standard we have around here.

Ok, let’s talk about Trump and how I expect his policy proposals to affect real estate as an investment.

Look, I think overall, the outlook is extremely positive, but with one rather large question mark I’d like to explain to you, and I need for you to listen to every word of this brief show so you can hear that.

First, the good news:

If Trump is even only partially successful at cutting both personal and corporate income tax rates as he’s pledged to do, then I can tell you with utmost certainty what will happen:  The economy will BOOM, absolutely BOOM.

Let me tell you something… I’ve already told you I’m feeling a little foul this morning so I’m not going to hold back on you, and while I hope I don’t offend any of you, the fact is I’m far less concerned with your sensibilities than your portfolio value.

So here’s the deal:  In the history of the United States – over 240 years – EVERY SINGLE PRESIDENT has produced one particular economic result, so common, so baseline is this result.  That result is that each president has seen at least one year of GDP growth of 3% or more.

All presidents – every single one of them – except, that is, Barrack Hussein Obama, who also holds the distinction of being the fourth-worst presidency on record for GDP growth, clocking in at an anemic 1.45%... and those stats are per Obama’s own Department of Commerce, the link to which you can find on today’s show notes page at SDITalk.com/241.

Curiously, even JIMMY CARTER had a better average GDP.

So why does this matter?  Here’s why:  The American economy is nothing more than a real-world demonstration of the prevailing psyche of the American public.  That’s it.  And for the last 8 years… and frankly, longer than that… because George W. Bush was certainly no great champion of economic growth… but PARTICULARLY for the past 8 years, Americans have operated under an explicit admission from our leaders that there’s a “NEW NORMAL” in effect, which includes things like lower job growth, decreased national security and reduced prominence of America on the world stage.  If you think Obama didn’t actually say that, check out the show notes page on SDITalk.com/241.

Why does it matter?  Well that sort of talk is bother a damper on the psyche of Americans, and is totally ANTITHETICAL to the very fundamental nature of who Americans are.  We are optimists.  We are opportunists.  We are lovers of freedom.  We are seekers of wealth and greatness.

And suddenly, we have a President who – love him or hate him – TOTALLY agrees with all of that… and has made the GREATNESS of America the central theme of his campaign and his Presidency.  So he’s looking to  do the things that ALWAYS spur economic growth, which are to reduce the punishment of taxation so there’s MORE MONEY in the pockets of people and companies; and he’s looking to substantially cut back the complexity of regulation and the costs those regulations create, which also directly contributes to MORE MONEY in the pockets of people and companies.

And it doesn’t take a rocket scientist to figure out that MORE MONEY in the hands of people and companies means more spending which leads to more economic growth which leads to higher incomes.  These are all VERY GOOD THINGS… notwithstanding the concoctions of propeller-headed intellectuals.  I, for one, am sick of hearing from academics or ANYONE who has never owned or run a business where it comes to what’s necessary for our economy.

And that’s why, frankly, there’s a broad and growing very POSITIVE CONSENSUS about Trump’s policies.  You’ve got well known and highly regarded people and organizations – nearly all of them diametrically opposed to Trump politically – coming out and making positive pronouncements about Trump’s proposals and their effects on the economy – including investment superstar Mohammed El-Erian and none other than the World Bank itself.

You might not like his politics, but his economics – at least, his proposals – absolutely work towards a stronger economy.  And a strong economy, simply put, means more money for people to spend on buying homes, renovating homes, renting homes… and of course all of the other investment opportunities under the real estate umbrella.

Folks, put your politics aside.  You know what I’m telling you is true.  These kinds of policies will be VERY GOOD for the US economy.

BUT… there is a point of concern for me, which is that Trump’s people are proposing to eliminate the mortgage interest deduction in favor of increasing the standard deduction.  The idea is that you’ll still get the same tax break, but that tax break will no longer be tied to real estate in any way.

Look, I get what they’re saying, but that’s a horrible idea.  There are MANY reasons for that, but the biggest one is this:  I believe that eliminating the mortgage interest deduction will actually directly hurt home values… the value of YOUR real estate investments.  One study from the Federal Reserve – linked for you at SDITalk.com/241 – predicts homeowners will lose an average of 11.5% of their property value as a function of eliminating the mortgage interest deduction.

That’s a lot.

Here’s the bright side of that:  I don’t think it will happen.  The mortgage interest deduction is one of the most popular deductions of all, and I suspect it won’t be particularly expedient for this particular item to be attacked.

One more thing:  I suspect those of you who were Obama supporters are already frustrated with me and those of you who are Trump supporters are basically giving me high 5’s.  Well, you’re both responding the wrong way, here’s why:

It’s easy for us to assume something like “hey – Trump is a real estate guy, and I’m a real estate investor… he’s not going to do anything that will hurt the real estate investing business.”

That, my friends, is plausible but not rational.  Remember:  Trump is a real estate DEVELOPER, not a real estate INVESTOR.  You and I are, by and large, PASSIVE investors in real estate… we want to make acquisitions that will pay us over time and will require as little direct involvement as possible.  For Trump, real estate is a BUSINESS, not an investment… and so the vantage point is RADICALLY different and thus, there’s just not room to assume that what’s good for the individual investor is also good for Trump’s investment interests.  It’s an irrational stretch.

Having said that, it’s definitely my belief that Trump’s proposed policies, taken as a whole, will be PROFOUNDLY positive for our economy generally, and for real estate specifically.

The future is bright, my friends.  So invest wisely today, and live well forever!

]]>
How will Trump policies affect real estate investors specifically?  I’m Bryan Ellis.  I’ll give you the answer right now in Episode #241 of Self Directed Investor Talk.

-----

Hello, Self Directed Investor Nation.  Welcome to the show of record for savvy self-directed investors like you, where for just 7 minutes of your time per day, we give you MASTERY as a self-directed investor.

Welcome to another week, folks.  I’ll be honest with you, I’ve had a pretty awful last 24 hours and don’t even feel like doing this show right now.  Am I allowed to admit that to you?  Well of course I am.  It’s my show, I can say whatever I want.  I suspect that’s part of why you continue to listen, frankly.

But I have some important things to say today and it might take just a minute or 2 longer than the 7 minute standard we have around here.

Ok, let’s talk about Trump and how I expect his policy proposals to affect real estate as an investment.

Look, I think overall, the outlook is extremely positive, but with one rather large question mark I’d like to explain to you, and I need for you to listen to every word of this brief show so you can hear that.

First, the good news:

If Trump is even only partially successful at cutting both personal and corporate income tax rates as he’s pledged to do, then I can tell you with utmost certainty what will happen:  The economy will BOOM, absolutely BOOM.

Let me tell you something… I’ve already told you I’m feeling a little foul this morning so I’m not going to hold back on you, and while I hope I don’t offend any of you, the fact is I’m far less concerned with your sensibilities than your portfolio value.

So here’s the deal:  In the history of the United States – over 240 years – EVERY SINGLE PRESIDENT has produced one particular economic result, so common, so baseline is this result.  That result is that each president has seen at least one year of GDP growth of 3% or more.

All presidents – every single one of them – except, that is, Barrack Hussein Obama, who also holds the distinction of being the fourth-worst presidency on record for GDP growth, clocking in at an anemic 1.45%... and those stats are per Obama’s own Department of Commerce, the link to which you can find on today’s show notes page at SDITalk.com/241.

Curiously, even JIMMY CARTER had a better average GDP.

So why does this matter?  Here’s why:  The American economy is nothing more than a real-world demonstration of the prevailing psyche of the American public.  That’s it.  And for the last 8 years… and frankly, longer than that… because George W. Bush was certainly no great champion of economic growth… but PARTICULARLY for the past 8 years, Americans have operated under an explicit admission from our leaders that there’s a “NEW NORMAL” in effect, which includes things like lower job growth, decreased national security and reduced prominence of America on the world stage.  If you think Obama didn’t actually say that, check out the show notes page on SDITalk.com/241.

Why does it matter?  Well that sort of talk is bother a damper on the psyche of Americans, and is totally ANTITHETICAL to the very fundamental nature of who Americans are.  We are optimists.  We are opportunists.  We are lovers of freedom.  We are seekers of wealth and greatness.

And suddenly, we have a President who – love him or hate him – TOTALLY agrees with all of that… and has made the GREATNESS of America the central theme of his campaign and his Presidency.  So he’s looking to  do the things that ALWAYS spur economic growth, which are to reduce the punishment of taxation so there’s MORE MONEY in the pockets of people and companies; and he’s looking to substantially cut back the complexity of regulation and the costs those regulations create, which also directly contributes to MORE MONEY in the pockets of people and companies.

And it doesn’t take a rocket scientist to figure out that MORE MONEY in the hands of people and companies means more spending which leads to more economic growth which leads to higher incomes.  These are all VERY GOOD THINGS… notwithstanding the concoctions of propeller-headed intellectuals.  I, for one, am sick of hearing from academics or ANYONE who has never owned or run a business where it comes to what’s necessary for our economy.

And that’s why, frankly, there’s a broad and growing very POSITIVE CONSENSUS about Trump’s policies.  You’ve got well known and highly regarded people and organizations – nearly all of them diametrically opposed to Trump politically – coming out and making positive pronouncements about Trump’s proposals and their effects on the economy – including investment superstar Mohammed El-Erian and none other than the World Bank itself.

You might not like his politics, but his economics – at least, his proposals – absolutely work towards a stronger economy.  And a strong economy, simply put, means more money for people to spend on buying homes, renovating homes, renting homes… and of course all of the other investment opportunities under the real estate umbrella.

Folks, put your politics aside.  You know what I’m telling you is true.  These kinds of policies will be VERY GOOD for the US economy.

BUT… there is a point of concern for me, which is that Trump’s people are proposing to eliminate the mortgage interest deduction in favor of increasing the standard deduction.  The idea is that you’ll still get the same tax break, but that tax break will no longer be tied to real estate in any way.

Look, I get what they’re saying, but that’s a horrible idea.  There are MANY reasons for that, but the biggest one is this:  I believe that eliminating the mortgage interest deduction will actually directly hurt home values… the value of YOUR real estate investments.  One study from the Federal Reserve – linked for you at SDITalk.com/241 – predicts homeowners will lose an average of 11.5% of their property value as a function of eliminating the mortgage interest deduction.

That’s a lot.

Here’s the bright side of that:  I don’t think it will happen.  The mortgage interest deduction is one of the most popular deductions of all, and I suspect it won’t be particularly expedient for this particular item to be attacked.

One more thing:  I suspect those of you who were Obama supporters are already frustrated with me and those of you who are Trump supporters are basically giving me high 5’s.  Well, you’re both responding the wrong way, here’s why:

It’s easy for us to assume something like “hey – Trump is a real estate guy, and I’m a real estate investor… he’s not going to do anything that will hurt the real estate investing business.”

That, my friends, is plausible but not rational.  Remember:  Trump is a real estate DEVELOPER, not a real estate INVESTOR.  You and I are, by and large, PASSIVE investors in real estate… we want to make acquisitions that will pay us over time and will require as little direct involvement as possible.  For Trump, real estate is a BUSINESS, not an investment… and so the vantage point is RADICALLY different and thus, there’s just not room to assume that what’s good for the individual investor is also good for Trump’s investment interests.  It’s an irrational stretch.

Having said that, it’s definitely my belief that Trump’s proposed policies, taken as a whole, will be PROFOUNDLY positive for our economy generally, and for real estate specifically.

The future is bright, my friends.  So invest wisely today, and live well forever!

]]>
how TRUMP will impact your Portfolio (VERY Specifically) | SDITalk.com #240 how TRUMP will impact your Portfolio (VERY Specifically) | SDITalk.com #240 Fri, 20 Jan 2017 15:05:42 GMT 8:10 d5b11bc8f0049dd90aa62d8f8d87fb80 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f593 The Trump era dawns today, amidst a storm of both honest disagreement and an overwhelming degree of infantile protest.  What will Trump mean for the retirement account of the self-directed investor?  I’m Bryan Ellis.  I’ll break it... The Trump era dawns today, amidst a storm of both honest disagreement and an overwhelming degree of infantile protest.  What will Trump mean for the retirement account of the self-directed investor?  I’m Bryan Ellis.  I’ll break it down for you right now in Special Episode #240 of Self Directed Investor Talk

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Happy Inauguration Day, self-directed investor nation!  Welcome to the podcast of record for savvy self-directed investors like YOU, where if you give us just 7 minutes a day… we give you back MASTERY as a self-directed investor!

Ahhh yes… pomp and circumstance.  I really enjoy it, honestly.  I’ve watched all of the inaugurations, and the day’s events leading up to them during my adult lifetime, and it’s really so fascinating to me.  You can frequently tell a WHOLE LOT about how the President will behave in office solely on the basis of how they behave during inauguration.  In fact, that was more true of Obama than for anyone else, but that’s old news, because there’s a new sheriff in town.

His name is Donald Trump, and he’s a billionaire real estate developer… and he’s already changed the political landscape of America in a way that nobody every predicted… I mean, NOBODY AT ALL… except, for Donald Trump.

That’s kind of an interesting thing, isn’t it?  I’ll bet it’s safe to say that when Trump announced his candidacy on June 14 of 2016, I think there was probably one and only one person in the entire country… the entire WORLD… who believed he’d be the next president, and that was Trump.

He was right.  The entire rest of the world – including me, by the way – was wrong.

But what will this mean for you and me as Self-Directed Investors?  I’ll tell you, right now, my friends.

But first, two things:

Number One:  More than any other day, I’d REALLY love to get your feedback about what I have to say.  Just go to today’s show notes page at SDITalk.com/240 to leave your comments.

Number Two:  Remember – always and forever – if you need some funding for your business or real estate deal, and ZERO PERCENT sounds like the kind of interest rate you’d like to pay to borrow that capital, then stop by SDITalk.com/credit.  We have a great FREE WEBINAR there that will tell you exactly how that can be done.  And it’s the best kind of credit, too… totally unsecured, and not connected to your personal credit report.  Doesn’t get better than that, so visit SDITalk.com/credit.

What will Trump mean for Self-Directed Investors?

All in all, I think that Trump could prove to be OVERWHELMINGLY GOOD for those of us who take care of our own investment decisions.  I mean, stratospherically excellent.  And understand… while I did vote for Trump in the general election, I did not vote for him in the primary, so it can’t be said that I’m a Trump fanboy.

So here’s what I’m expecting:

The most immediate impact on you as a user of retirement accounts – self-directed or otherwise – is that TRADITIONAL accounts will become a bit less valuable and ROTH accounts will become a bit more valuable.  That’s under the assumption that Trump succeeds in reducing personal income tax rates, which is a great thing, but also means that the tax deduction you’d receive for contributions to a Traditional IRA or 401k would inherently result in less real dollar savings for you.  So that’s the first real, tangible effect.

Second, if Trump succeeds – in part or in whole – in two of his stated objectives, the economy will simply explode to the upside and the stock market would have some serious upside pressure.  Those two objectives are:

Number 1:  Reduction of CORPORATE income tax rates to 15%.  Now just understand… that is HUGE.  Or maybe it’s YUGE.  Currently, that rate is 35%... so Trump is proposing to slash corporate rates by well over half.  What does that mean?  The Tax Policy Center estimates that $473.3 BILLION dollars was collected in 2016 in corporate taxes.  A very crude calculation would suggest that this change alone would leave over $200 BILLION dollars in the coffers of corporations, and that nearly always means one or more 3 things:  (1) more dividends for owners; (2) more jobs; and/or (3) investment in infrastructure for future growth.  All three of those things are very, very good for an economy.

But yes, this is a huge TAX CUT… and some of you think that’s a bad thing.  Sound off about it!  Leave your comments at in the comments area below!

And the second big objective that could rock the economy in a big way is Trump’s proposed tax holiday on repatriating offshore profits.  This is a big deal, folks… and you folks out in Silicon Valley and up in Redmond, Washington are, I’m sure, particularly interested in this one.  You see, a lot of Fortune 500 companies – most notably Apple and Microsoft – have hundreds of billions of dollars stashed offshore.  The moment they bring that money back to the US, they’ve got to pay that horrendous 35% tax rate.  But Trump is proposing a bit of a tax holiday on repatriating that capital… a massive holiday, actually, down to 10% for a time.  According to one estimate, Apple alone would save over $48 billion in taxes and Microsoft would save about $24 billion in taxes.  Now folks, I don’t care who you are… even if you’re Warren Buffett… those are MASSIVE MASSIVE numbers, and have the potential to be GAME CHANGERS… again, with likely results being one or more of:  increased dividends, more hiring and/or more business growth infrastructure.  All very, very good for the economy, but not so good – at least when judged in vaccum – for US tax revenues.

I’m not one to cry over reduced tax revenues.  Unlike the government, I don’t see my money as the government’s first, and then mine if and only if I can manage to keep it from them.  What do you think?  Let me know at SDITalk.com/240.

I’ve got more to say about the expected Trump effect for investors like you and me, but we’re just about out of time today, so I’ll revisit this in our next episode, and in that episode, we’ll look more into the specific effect on real estate and other alternative assets, because I think we can make some reasonably well educated predictions on that.

And look… I REALLY want to hear from you folks about this, and right away!  The inauguration happens in about 2 hours from now, so there’s no time to lose!  Jump on over to SDITalk.com/240 right now and let me know what you think!

My friends… invest wisely today, and live well forever!

Listen in to the NEXT EPISODE now - Click Here

The PREVIOUS Episode was great, too... Listen Here!

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The Trump era dawns today, amidst a storm of both honest disagreement and an overwhelming degree of infantile protest.  What will Trump mean for the retirement account of the self-directed investor?  I’m Bryan Ellis.  I’ll break it down for you right now in Special Episode #240 of Self Directed Investor Talk

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Happy Inauguration Day, self-directed investor nation!  Welcome to the podcast of record for savvy self-directed investors like YOU, where if you give us just 7 minutes a day… we give you back MASTERY as a self-directed investor!

Ahhh yes… pomp and circumstance.  I really enjoy it, honestly.  I’ve watched all of the inaugurations, and the day’s events leading up to them during my adult lifetime, and it’s really so fascinating to me.  You can frequently tell a WHOLE LOT about how the President will behave in office solely on the basis of how they behave during inauguration.  In fact, that was more true of Obama than for anyone else, but that’s old news, because there’s a new sheriff in town.

His name is Donald Trump, and he’s a billionaire real estate developer… and he’s already changed the political landscape of America in a way that nobody every predicted… I mean, NOBODY AT ALL… except, for Donald Trump.

That’s kind of an interesting thing, isn’t it?  I’ll bet it’s safe to say that when Trump announced his candidacy on June 14 of 2016, I think there was probably one and only one person in the entire country… the entire WORLD… who believed he’d be the next president, and that was Trump.

He was right.  The entire rest of the world – including me, by the way – was wrong.

But what will this mean for you and me as Self-Directed Investors?  I’ll tell you, right now, my friends.

But first, two things:

Number One:  More than any other day, I’d REALLY love to get your feedback about what I have to say.  Just go to today’s show notes page at SDITalk.com/240 to leave your comments.

Number Two:  Remember – always and forever – if you need some funding for your business or real estate deal, and ZERO PERCENT sounds like the kind of interest rate you’d like to pay to borrow that capital, then stop by SDITalk.com/credit.  We have a great FREE WEBINAR there that will tell you exactly how that can be done.  And it’s the best kind of credit, too… totally unsecured, and not connected to your personal credit report.  Doesn’t get better than that, so visit SDITalk.com/credit.

What will Trump mean for Self-Directed Investors?

All in all, I think that Trump could prove to be OVERWHELMINGLY GOOD for those of us who take care of our own investment decisions.  I mean, stratospherically excellent.  And understand… while I did vote for Trump in the general election, I did not vote for him in the primary, so it can’t be said that I’m a Trump fanboy.

So here’s what I’m expecting:

The most immediate impact on you as a user of retirement accounts – self-directed or otherwise – is that TRADITIONAL accounts will become a bit less valuable and ROTH accounts will become a bit more valuable.  That’s under the assumption that Trump succeeds in reducing personal income tax rates, which is a great thing, but also means that the tax deduction you’d receive for contributions to a Traditional IRA or 401k would inherently result in less real dollar savings for you.  So that’s the first real, tangible effect.

Second, if Trump succeeds – in part or in whole – in two of his stated objectives, the economy will simply explode to the upside and the stock market would have some serious upside pressure.  Those two objectives are:

Number 1:  Reduction of CORPORATE income tax rates to 15%.  Now just understand… that is HUGE.  Or maybe it’s YUGE.  Currently, that rate is 35%... so Trump is proposing to slash corporate rates by well over half.  What does that mean?  The Tax Policy Center estimates that $473.3 BILLION dollars was collected in 2016 in corporate taxes.  A very crude calculation would suggest that this change alone would leave over $200 BILLION dollars in the coffers of corporations, and that nearly always means one or more 3 things:  (1) more dividends for owners; (2) more jobs; and/or (3) investment in infrastructure for future growth.  All three of those things are very, very good for an economy.

But yes, this is a huge TAX CUT… and some of you think that’s a bad thing.  Sound off about it!  Leave your comments at in the comments area below!

And the second big objective that could rock the economy in a big way is Trump’s proposed tax holiday on repatriating offshore profits.  This is a big deal, folks… and you folks out in Silicon Valley and up in Redmond, Washington are, I’m sure, particularly interested in this one.  You see, a lot of Fortune 500 companies – most notably Apple and Microsoft – have hundreds of billions of dollars stashed offshore.  The moment they bring that money back to the US, they’ve got to pay that horrendous 35% tax rate.  But Trump is proposing a bit of a tax holiday on repatriating that capital… a massive holiday, actually, down to 10% for a time.  According to one estimate, Apple alone would save over $48 billion in taxes and Microsoft would save about $24 billion in taxes.  Now folks, I don’t care who you are… even if you’re Warren Buffett… those are MASSIVE MASSIVE numbers, and have the potential to be GAME CHANGERS… again, with likely results being one or more of:  increased dividends, more hiring and/or more business growth infrastructure.  All very, very good for the economy, but not so good – at least when judged in vaccum – for US tax revenues.

I’m not one to cry over reduced tax revenues.  Unlike the government, I don’t see my money as the government’s first, and then mine if and only if I can manage to keep it from them.  What do you think?  Let me know at SDITalk.com/240.

I’ve got more to say about the expected Trump effect for investors like you and me, but we’re just about out of time today, so I’ll revisit this in our next episode, and in that episode, we’ll look more into the specific effect on real estate and other alternative assets, because I think we can make some reasonably well educated predictions on that.

And look… I REALLY want to hear from you folks about this, and right away!  The inauguration happens in about 2 hours from now, so there’s no time to lose!  Jump on over to SDITalk.com/240 right now and let me know what you think!

My friends… invest wisely today, and live well forever!

Listen in to the NEXT EPISODE now - Click Here

The PREVIOUS Episode was great, too... Listen Here!

]]>
Can your IRA buy an Office Building? | SDITalk #239 Can your IRA buy an Office Building? | SDITalk #239 Thu, 19 Jan 2017 19:37:33 GMT 6:28 9758e61ef3e4aff4672b5fdf3f113d88 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f594 Can you buy an OFFICE BUILDING in your self directed IRA or 401k?  I’ll bet you think the answer is YES, don’t you?  Actually, it’s only MAYBE.  I’m Bryan Ellis.  I’ll tell you why right now in Episode #239 of Self... Can you buy an OFFICE BUILDING in your self directed IRA or 401k?  I’ll bet you think the answer is YES, don’t you?  Actually, it’s only MAYBE.  I’m Bryan Ellis.  I’ll tell you why right now in Episode #239 of Self Directed Investor Talk

----

Hello, SDI Nation!  Welcome to the podcast of record for savvy self-directed investors like you where all we ask is 7 minutes a day… and what you get in return is self-directed investing MASTERY!

A great show is in store for you today and I’d like to remind you that you can ALWAYS get to the show notes for any show by putting the episode number after the domain name SDITalk.com.  For today, the show notes page is SDITalk.com/239… and you really should check it out.  You doubtlessly hear me referring to articles, studies and links from time to time in this show, and all you’ve got to do to get access to all of that EXTRA SDI-goodness is to visit the show notes page where you’ll find the show itself, a full transcript, and all of the resources I just mentioned.  Again, today’s show notes page is SDITalk.com/239.

There’s one more link you should be aware of.  It’s SDITalk.com/credit.  I’ll make this short:  If you have any need for investment or even business funding, and you’d like to get up to $250,000 at a ZERO interest rate, then go to SDITalk.com/credit, sign up for the free webinar that’s offered there, and learn how to do it.  The guys behind that – Ari and Mike at Fund & Grow – are REAL pros, and they’ve provided over $4 MILLION in zero interest credit to your fellow members of SDI Nation in the past 12 months alone.  Check them out at SDITalk.com/credit.

Ok, so can you buy an office building in your IRA?

This question was prompted by an article I saw where a rather conventional financial advisor struggled to answer this question correctly, so I’ve decided to grace you with the actual CORRECT version of things.

The simple answer?  YES.  Your IRA can own an office building.  There’s nothing in the law governing IRA’s – unless it’s changed dramatically in the last 24 hours – that prohibits your IRA from owning real estate, commercial buildings included.  Same for 401k’s – they are absolutely allowed to own real estate.

But there’s a BIG BUT – that sounded a little vile, hmmph – there’s a big EXCEPTION to consider, which is:

Many commercial properties are owned by a business entity of some sort – such as a corporation or LLC.  And it’s that entity which owns the real estate, and all of the accoutrements necessary to make that building a productive asset, like office equipment and such.

So the real question to ask yourself is:  Am I buying real estate, or am I buying a business entity that owns real estate.

Still, one would think that there’s no problem, because just as the tax code governing your IRA doesn’t prevent your IRA from owning real estate, it also doesn’t prohibit your IRA from owning business entities.

So we’re good, right?  If the building is owned by an entity, just buy the entity, and it’s all good… right?  Your IRA can just buy the entity that owns the building and you’re all set… right?

You’d certainly think so since neither real estate nor business entities are on the short list of totally prohibited asset types.  (Incidentally… do you know the things that ARE on the totally prohibited list of asset types?  You can find out on the show notes page at SDITalk.com/239.  Yes, that’s a shameless plug to get you to visit the website.)

PROHIBITED ASSSETS go here in the fancy box https://www.irs.gov/retirement-plans/retirement-plans-faqs-regarding-iras-investments

So can your IRA buy the entity that owns that building?

Well… maybe.  Probably, even.

But if the entity that owns the building happens to be an S corporation, then your IRA is kind of out of luck, even though the Employee Retirement Income Security Act of 1974 - better known as ERISA – the law which created the IRA, certainly doesn’t prohibit it.

But it’s prohibited nevertheless.  Under the law that created S corporations on the federal level, there are some limits to who can own shares in S corporations.  I’ll link to the relevant materials for you on SDITalk.com/239 but bottom line:  IRA’s are excluded from that list.

So, in this, as in everything where rules and regulations are concerned… reality is a bit more nuanced than any of us would like it to be.

But there is a type of real estate I know you CAN own in your IRA… and that is TURNKEY RENTAL PROPERTY!  You can learn more about that by calling my 24-hour free recorded info line at 773-TURNKEY, 773-TURNKEY.

And a quick note – for any of you out in the Bay Area of California, well into Silicon Valley and surrounding areas… be sure to listen to the RADIO version of Self Directed Investor Talk every day at 3:00 pacific on KDOW 1220, the Wall Street Business Network!  Those of you NOT in the Bay Area can listen in very easily too, through iHeartRadio… just stop by the show notes page at SDITalk.com/239 for a link to KDOW’s live feed on iHeartRadio.

And YES… we’ll likely be in more markets very soon, like as in the first quarter of 2017, so very soon.

My friends… thanks for joining me and remember:  Invest wisely today, and live well forever!

]]>
Can you buy an OFFICE BUILDING in your self directed IRA or 401k?  I’ll bet you think the answer is YES, don’t you?  Actually, it’s only MAYBE.  I’m Bryan Ellis.  I’ll tell you why right now in Episode #239 of Self Directed Investor Talk

----

Hello, SDI Nation!  Welcome to the podcast of record for savvy self-directed investors like you where all we ask is 7 minutes a day… and what you get in return is self-directed investing MASTERY!

A great show is in store for you today and I’d like to remind you that you can ALWAYS get to the show notes for any show by putting the episode number after the domain name SDITalk.com.  For today, the show notes page is SDITalk.com/239… and you really should check it out.  You doubtlessly hear me referring to articles, studies and links from time to time in this show, and all you’ve got to do to get access to all of that EXTRA SDI-goodness is to visit the show notes page where you’ll find the show itself, a full transcript, and all of the resources I just mentioned.  Again, today’s show notes page is SDITalk.com/239.

There’s one more link you should be aware of.  It’s SDITalk.com/credit.  I’ll make this short:  If you have any need for investment or even business funding, and you’d like to get up to $250,000 at a ZERO interest rate, then go to SDITalk.com/credit, sign up for the free webinar that’s offered there, and learn how to do it.  The guys behind that – Ari and Mike at Fund & Grow – are REAL pros, and they’ve provided over $4 MILLION in zero interest credit to your fellow members of SDI Nation in the past 12 months alone.  Check them out at SDITalk.com/credit.

Ok, so can you buy an office building in your IRA?

This question was prompted by an article I saw where a rather conventional financial advisor struggled to answer this question correctly, so I’ve decided to grace you with the actual CORRECT version of things.

The simple answer?  YES.  Your IRA can own an office building.  There’s nothing in the law governing IRA’s – unless it’s changed dramatically in the last 24 hours – that prohibits your IRA from owning real estate, commercial buildings included.  Same for 401k’s – they are absolutely allowed to own real estate.

But there’s a BIG BUT – that sounded a little vile, hmmph – there’s a big EXCEPTION to consider, which is:

Many commercial properties are owned by a business entity of some sort – such as a corporation or LLC.  And it’s that entity which owns the real estate, and all of the accoutrements necessary to make that building a productive asset, like office equipment and such.

So the real question to ask yourself is:  Am I buying real estate, or am I buying a business entity that owns real estate.

Still, one would think that there’s no problem, because just as the tax code governing your IRA doesn’t prevent your IRA from owning real estate, it also doesn’t prohibit your IRA from owning business entities.

So we’re good, right?  If the building is owned by an entity, just buy the entity, and it’s all good… right?  Your IRA can just buy the entity that owns the building and you’re all set… right?

You’d certainly think so since neither real estate nor business entities are on the short list of totally prohibited asset types.  (Incidentally… do you know the things that ARE on the totally prohibited list of asset types?  You can find out on the show notes page at SDITalk.com/239.  Yes, that’s a shameless plug to get you to visit the website.)

PROHIBITED ASSSETS go here in the fancy box https://www.irs.gov/retirement-plans/retirement-plans-faqs-regarding-iras-investments

So can your IRA buy the entity that owns that building?

Well… maybe.  Probably, even.

But if the entity that owns the building happens to be an S corporation, then your IRA is kind of out of luck, even though the Employee Retirement Income Security Act of 1974 - better known as ERISA – the law which created the IRA, certainly doesn’t prohibit it.

But it’s prohibited nevertheless.  Under the law that created S corporations on the federal level, there are some limits to who can own shares in S corporations.  I’ll link to the relevant materials for you on SDITalk.com/239 but bottom line:  IRA’s are excluded from that list.

So, in this, as in everything where rules and regulations are concerned… reality is a bit more nuanced than any of us would like it to be.

But there is a type of real estate I know you CAN own in your IRA… and that is TURNKEY RENTAL PROPERTY!  You can learn more about that by calling my 24-hour free recorded info line at 773-TURNKEY, 773-TURNKEY.

And a quick note – for any of you out in the Bay Area of California, well into Silicon Valley and surrounding areas… be sure to listen to the RADIO version of Self Directed Investor Talk every day at 3:00 pacific on KDOW 1220, the Wall Street Business Network!  Those of you NOT in the Bay Area can listen in very easily too, through iHeartRadio… just stop by the show notes page at SDITalk.com/239 for a link to KDOW’s live feed on iHeartRadio.

And YES… we’ll likely be in more markets very soon, like as in the first quarter of 2017, so very soon.

My friends… thanks for joining me and remember:  Invest wisely today, and live well forever!

]]>
CASE STUDY: Funding Retirement with Turnkey Rental Property | SDITalk #238 CASE STUDY: Funding Retirement with Turnkey Rental Property | SDITalk #238 Wed, 18 Jan 2017 21:58:11 GMT 7:14 60217725271480619c5acf81813eb224 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f595 Here’s a GREAT case study that will show you just what’s possible with a little bit of creative thinking, some great real estate deals and a little bit of capital.  I’m Bryan Ellis.  This is Episode #238 of Self Directed Investor... Here’s a GREAT case study that will show you just what’s possible with a little bit of creative thinking, some great real estate deals and a little bit of capital.  I’m Bryan Ellis.  This is Episode #238 of Self Directed Investor Talk

----

Hello, Self Directed Investor Nation!  Welcome to the podcast of record for savvy, self-directed investors like you, where we show you how to DECLARE INDEPENDENCE from Wall Street and build wealth for generations!

My friends, I had a really enjoyable consultation with one of your fellow listeners today, and while I’m not going to share his name to maintain his privacy, I think the other details of his circumstance will be very, very instructional to you, so we’re going to dig into that in today’s episode.

But first… don’t forget:  Fund and GrowFund and GrowFund and Grow.  Those are the guys who are essentially – not exactly, but in effect – able to get you a CREDIT CARD at a zero percent interest rate, and a limit of up to $250,000.  That’s not exactly what they’re doing, but it’s pretty close. They’ve got a great FREE WEBINAR up at SDITalk.com/credit that you should check out… you’ll see what they do, and your mind will be blown… that is, if no-interest financing of up to $250,000 interests you.  Check them out at SDITalk.com/credit

Ok, today I had a call with one of your fellow members of SDI Nation.  His name’s not actually Rick, but I’ll call him Rick for simplicity.  All the other details I’ll share are correct.

Rick is conventionally employed and has a 401k worth about $500,000.  He turns 59 ½ in March, and at that time, he can transfer as much of that money out of his 401k as he wants.  His money is currently in the stock market but he’s very ready to get off of that train.

Oh… and one other important fact.  Rick and his wife own, outside of their retirement accounts, 5 turnkey rental properties spread across 2 different states.  He likes the concept of turnkey rental property investing, but he’s been stung a bit by the company he’s worked with, because 2 of the 5 properties have been – shall I say – an unfortunate experience for Rick.

Nevertheless, he’s gotten enough of a taste of the good side of that asset class that he wants to do more.  That’s what we discussed today.

Rick told me he wants to roll his 401k over into a self-directed IRA and buy more turnkey houses.  And there was the first place we were able to optimize his plan.  With a tiny bit of effort, Rick will be able to qualify to have a self-directed 401k rather than a self-directed IRA.  Why does that matter?  Two reasons:  First, the IRS is far more forgiving if you commit a booboo in a 401k versus an IRA.  And Second… and this is the big one for Rick… he’s thinking about leveraging his savings in order to buy MORE properties than he has cash to buy.  Bottom line on this is if he does so in an IRA, he’ll have to pay income taxes every year – regardless of withdrawals.  But if he does the same deal in every way, but with a self-directed 401k instead, then that tax liability simply disappears.  So right there, he’s going to save a big chunk of cash.

Next, we have to figure out what to do to generate income for Rick… and income is what he’s after, specifically.

I mentioned to him some of the work we do with turnkey rental properties down in Birmingham, Alabama, where it’s rather common for our clients to pay only $55,000 for a newly renovated property that yields a reliable – and government-guaranteed - $750 per month rental income.  In these properties, it’s a rather frequent occurrence for clients to NET 8 to 10% after ALL expenses… including a nice-sized rainy-day fund for those “just in case” kinds of situations.

We envisioned a simple scenario in which Rick deployed his retirement funds into a collection of such properties. Bottom line:  Rick ends up with a net cash flow of, conservatively, $40,000 to $50,000 per year, immediately.

And remember – he doesn’t have to do any of the dirty work.  He’s not a landlord, he’s not a property manager, he doesn’t have to be directly involved in any way.

That’s what turnkey rental property investing is all about:  The benefits of real estate ownership without the hassles.

But that assumes we’re doing all-cash transactions, and Rick was specifically interested in using leverage.  Look… leverage makes me nervous, but done conservatively, it can work out very nicely.  I advised Rick to not seek more than 50% loans for his properties, just to keep stress levels low.  How does that affect the financial picture?

Well, instead of buying 9 houses, he now gets to buy 18.  And his income increases, too.  After paying his mortgage note, he’d likely be looking at a net income of around $60,000 per year or so.  But really… that’s only about $10 grand per year more, because his mortgage payment would take up a big chunk of it.

Is it worth it?  Man that’s tough… I’d like to sell Rick 18 houses instead of 9 but I’ve got to tell you… I just don’t know if I’d be able to recommend the leverage angle in good conscience.  Now if we’re able to find him some really great financing rates, that’s a different thing… but at the prevailing rates today for investment properties… particularly for non-recourse loans… I’d have a hard time recommending that he does that.

Actually… now that I think of it, there might be an incredibly cool play that combines the zero-interest financing that my friends over at FUND and GROW provide.  We’ll have to be creative and careful to avoid prohibited transactions, but that would change the game ENTIRELY.

But short of working some absolute magic like that – and I’m nothing, if not a magician when it comes to self-directed retirement accounts – then Rick is going to get to enjoy a VERY strong income of around $50,000 a year NET… without taking on any debt, without being a landlord or property manager, and… best of all… WITHOUT facing another night of worrying about the stock market.

And that, my friends, is why I LOVE turnkey rental property investing.  Want to know more?  I have a great new ebook called Building Legacy Wealth with Turnkey Income Properties, and if you’re interested in turnkey rental investing and you’d like a free copy of this ebook, just call my 24-hour free recorded message line at 773-TURNKEY.  Nobody will answer the phone… it’s just a 2 minute recording that gives you the basics on turnkey rental investing so you’ll know whether it’s the right thing for you to do… or to do again!

My friends, invest wisely today, and live well forever!

 

]]>
Here’s a GREAT case study that will show you just what’s possible with a little bit of creative thinking, some great real estate deals and a little bit of capital.  I’m Bryan Ellis.  This is Episode #238 of Self Directed Investor Talk

----

Hello, Self Directed Investor Nation!  Welcome to the podcast of record for savvy, self-directed investors like you, where we show you how to DECLARE INDEPENDENCE from Wall Street and build wealth for generations!

My friends, I had a really enjoyable consultation with one of your fellow listeners today, and while I’m not going to share his name to maintain his privacy, I think the other details of his circumstance will be very, very instructional to you, so we’re going to dig into that in today’s episode.

But first… don’t forget:  Fund and GrowFund and GrowFund and Grow.  Those are the guys who are essentially – not exactly, but in effect – able to get you a CREDIT CARD at a zero percent interest rate, and a limit of up to $250,000.  That’s not exactly what they’re doing, but it’s pretty close. They’ve got a great FREE WEBINAR up at SDITalk.com/credit that you should check out… you’ll see what they do, and your mind will be blown… that is, if no-interest financing of up to $250,000 interests you.  Check them out at SDITalk.com/credit

Ok, today I had a call with one of your fellow members of SDI Nation.  His name’s not actually Rick, but I’ll call him Rick for simplicity.  All the other details I’ll share are correct.

Rick is conventionally employed and has a 401k worth about $500,000.  He turns 59 ½ in March, and at that time, he can transfer as much of that money out of his 401k as he wants.  His money is currently in the stock market but he’s very ready to get off of that train.

Oh… and one other important fact.  Rick and his wife own, outside of their retirement accounts, 5 turnkey rental properties spread across 2 different states.  He likes the concept of turnkey rental property investing, but he’s been stung a bit by the company he’s worked with, because 2 of the 5 properties have been – shall I say – an unfortunate experience for Rick.

Nevertheless, he’s gotten enough of a taste of the good side of that asset class that he wants to do more.  That’s what we discussed today.

Rick told me he wants to roll his 401k over into a self-directed IRA and buy more turnkey houses.  And there was the first place we were able to optimize his plan.  With a tiny bit of effort, Rick will be able to qualify to have a self-directed 401k rather than a self-directed IRA.  Why does that matter?  Two reasons:  First, the IRS is far more forgiving if you commit a booboo in a 401k versus an IRA.  And Second… and this is the big one for Rick… he’s thinking about leveraging his savings in order to buy MORE properties than he has cash to buy.  Bottom line on this is if he does so in an IRA, he’ll have to pay income taxes every year – regardless of withdrawals.  But if he does the same deal in every way, but with a self-directed 401k instead, then that tax liability simply disappears.  So right there, he’s going to save a big chunk of cash.

Next, we have to figure out what to do to generate income for Rick… and income is what he’s after, specifically.

I mentioned to him some of the work we do with turnkey rental properties down in Birmingham, Alabama, where it’s rather common for our clients to pay only $55,000 for a newly renovated property that yields a reliable – and government-guaranteed - $750 per month rental income.  In these properties, it’s a rather frequent occurrence for clients to NET 8 to 10% after ALL expenses… including a nice-sized rainy-day fund for those “just in case” kinds of situations.

We envisioned a simple scenario in which Rick deployed his retirement funds into a collection of such properties. Bottom line:  Rick ends up with a net cash flow of, conservatively, $40,000 to $50,000 per year, immediately.

And remember – he doesn’t have to do any of the dirty work.  He’s not a landlord, he’s not a property manager, he doesn’t have to be directly involved in any way.

That’s what turnkey rental property investing is all about:  The benefits of real estate ownership without the hassles.

But that assumes we’re doing all-cash transactions, and Rick was specifically interested in using leverage.  Look… leverage makes me nervous, but done conservatively, it can work out very nicely.  I advised Rick to not seek more than 50% loans for his properties, just to keep stress levels low.  How does that affect the financial picture?

Well, instead of buying 9 houses, he now gets to buy 18.  And his income increases, too.  After paying his mortgage note, he’d likely be looking at a net income of around $60,000 per year or so.  But really… that’s only about $10 grand per year more, because his mortgage payment would take up a big chunk of it.

Is it worth it?  Man that’s tough… I’d like to sell Rick 18 houses instead of 9 but I’ve got to tell you… I just don’t know if I’d be able to recommend the leverage angle in good conscience.  Now if we’re able to find him some really great financing rates, that’s a different thing… but at the prevailing rates today for investment properties… particularly for non-recourse loans… I’d have a hard time recommending that he does that.

Actually… now that I think of it, there might be an incredibly cool play that combines the zero-interest financing that my friends over at FUND and GROW provide.  We’ll have to be creative and careful to avoid prohibited transactions, but that would change the game ENTIRELY.

But short of working some absolute magic like that – and I’m nothing, if not a magician when it comes to self-directed retirement accounts – then Rick is going to get to enjoy a VERY strong income of around $50,000 a year NET… without taking on any debt, without being a landlord or property manager, and… best of all… WITHOUT facing another night of worrying about the stock market.

And that, my friends, is why I LOVE turnkey rental property investing.  Want to know more?  I have a great new ebook called Building Legacy Wealth with Turnkey Income Properties, and if you’re interested in turnkey rental investing and you’d like a free copy of this ebook, just call my 24-hour free recorded message line at 773-TURNKEY.  Nobody will answer the phone… it’s just a 2 minute recording that gives you the basics on turnkey rental investing so you’ll know whether it’s the right thing for you to do… or to do again!

My friends, invest wisely today, and live well forever!

 

]]>
how to use a ROTH IRA - even if your Income Is Too High! | SDITalk.com #237 how to use a ROTH IRA - even if your Income Is Too High! | SDITalk.com #237 Tue, 17 Jan 2017 22:21:37 GMT 7:27 07168b0c64ac168c8fcc807a87c44cbc no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f596 Want to contribute to a Roth IRA, but your income is too high?  Never fear, my friends… a solution is here!  I’m Bryan Ellis.  I’ll give you that solution right now in Episode #237 of Self Directed Investor Talk. ---- Hello, SDI... Want to contribute to a Roth IRA, but your income is too high?  Never fear, my friends… a solution is here!  I’m Bryan Ellis.  I’ll give you that solution right now in Episode #237 of Self Directed Investor Talk.

----

Hello, SDI Nation!  Welcome to the broadcast of record for savvy self-directed investors like you, where each day we educate, entertain and INSPIRE you to DECLARE INDEPENDENCE from Wall Street… and in the place of simply DEFAULTING to stocks, bonds and mutual funds, you open your mind and portfolio to alternative assets that are SIMPLE, SAFE and STRONG!

Glad to be with you again today, my friends.  To participate in the show, just drop me an email at feedback@sditalk.com or reach out on Twitter or Facebook where our handle is @SDITalk in both places.  And… BE SURE that in this NEW YEAR you’re on the SDI Private Update list, which you can join by texting the word SDITALK with no spaces or periods to 44222.

Hey I’ve told you a few times about my friends Ari & Mike over at Fund & Grow… they’re the people who, in effect, make it possible for you to have a 0% interest rate credit card with credit limits totaling up to $250,000 or more.  Their info that you should check out is over at SDITalk.com/credit but here’s something really cool I just learned:  In the last 90 days, they’ve helped a few of your fellow listeners to acquire a bit over $2 million in zero-interest rate credit.  Yep.  Pretty cool.  If you need some capital for your investments or your business, check them out at SDITalk.com/credit now.

You want to contribute to an IRA, and you want the best tax benefits possible, which arguably come from the Roth IRA.  Problem is, you make too much money.  That’s right… the US congress, in its constant state of trying to punish the successful, instituted an income limitation such that you can’t even contribute to a Roth IRA if you make somewhere around $118,000 per year if you’re single or about $186,000 per year if you’re married.

But fear not, SDI Nation!  There is a solution!

It’s called the Backdoor Roth IRA, and the basic idea is that:

While there’s an income limit for CONTRIBUTING to a Roth IRA, there’s no income limit for CONVERTING to a Roth IRA.  So here’s how we take advantage of this loophole in a most advantageous of manners to give you, my high-income-earning listener, the ability to contribute to a Roth just like your lower-income brethren.

STEP 1:  Open a TRADITIONAL IRA – yes, I said “traditional”, not Roth – and make your deposit into that account.  But here’s the thing:  You can’t take a tax deduction for that contribution.  You’ll be doing what’s called a non-deductible contribution.  And that’s important in…

STEP 2:  This is where you convert that Traditional IRA into a Roth IRA.  Voila!  Now you’ve got a Roth IRA, just as if you’d put money there in the first place.

Yes, that’s all there is to it, conceptually.  It’s a simple 2-step maneuver that effectively eliminates the income limits for Roth IRA contributions.

Now I’ll go ahead and warn you:  There are some people out there who criticize this strategy, even suggesting that it’s illegal.  That’s a hard case to make since Congress actually REMOVED the income limits for Roth conversions back in 2010, so from the vantage point of this incredibly well-informed layman who is still, in the interest of full disclosure, NOT a lawyer, I think it’s darn near impossible to argue that this is illegal.

But there are 2 red flags to keep your eye on:

Red Flag #1:  If you have any money in a traditional IRA at the present time, you might have a bit of a hiccup using this back-door Roth IRA strategy due to something called the IRS Aggregation Rule.  I won’t weigh you down with the details right now, but if you’re interested, check them out on today’s show notes page at SDITalk.com/237.

And Red Flag #2 is something called the Step Transaction Doctrine.  In a nutshell, this is a legal doctrine that says if it’s against the law for you to do a certain thing, then it’s still against the law for you to accomplish that thing even if you can get there by taking intermediate steps that are entirely within the law.  The fear is that the IRS may apply that doctrine to the backdoor Roth IRA strategy.

How do you address that risk?  My gut sense, as a non-lawyer who is wholly unqualified to give legal advice, is that it’s wildly improbable that the IRS would pursue that path.  Attacking retirement accounts en masse is a real hot button issue for them… there was a situation that arose a few years ago where the IRS could have EASILY pursued tens of millions of IRA’s of all types – not just self-directed IRA’s – for a particular kind of prohibited transaction, and they simply passed on the chance to do it… I think because it would never fly politically.  But that’s just my opinion of course, incredibly insightful though it is.

So my advice:  Yes, you should seriously consider the backdoor Roth IRA if you want to contribute to a Roth but your income is too high.  But before you do that, be sure to talk to an attorney who is an expert in the area of self directed IRA’s.  If you don’t have such an attorney, there’s one I recommend highly, and you can get his information on today’s show notes page at SDITalk.com/237.

And a quick parting note, my friends… We have some EXTRAORDINARY turnkey rental property investment opportunities available RIGHT NOW, the opportunity has never been better.  If you’re looking for some great real estate investments, whether inside your retirement account or outside of it – including for 1031 exchanges – then just call my 24 hour free information line at 773-TURNKEY and listen to my 2 minute recording to see if turnkey investing is right for you.

My friends… invest wisely today, and live well forever!

]]>
Want to contribute to a Roth IRA, but your income is too high?  Never fear, my friends… a solution is here!  I’m Bryan Ellis.  I’ll give you that solution right now in Episode #237 of Self Directed Investor Talk.

----

Hello, SDI Nation!  Welcome to the broadcast of record for savvy self-directed investors like you, where each day we educate, entertain and INSPIRE you to DECLARE INDEPENDENCE from Wall Street… and in the place of simply DEFAULTING to stocks, bonds and mutual funds, you open your mind and portfolio to alternative assets that are SIMPLE, SAFE and STRONG!

Glad to be with you again today, my friends.  To participate in the show, just drop me an email at feedback@sditalk.com or reach out on Twitter or Facebook where our handle is @SDITalk in both places.  And… BE SURE that in this NEW YEAR you’re on the SDI Private Update list, which you can join by texting the word SDITALK with no spaces or periods to 44222.

Hey I’ve told you a few times about my friends Ari & Mike over at Fund & Grow… they’re the people who, in effect, make it possible for you to have a 0% interest rate credit card with credit limits totaling up to $250,000 or more.  Their info that you should check out is over at SDITalk.com/credit but here’s something really cool I just learned:  In the last 90 days, they’ve helped a few of your fellow listeners to acquire a bit over $2 million in zero-interest rate credit.  Yep.  Pretty cool.  If you need some capital for your investments or your business, check them out at SDITalk.com/credit now.

You want to contribute to an IRA, and you want the best tax benefits possible, which arguably come from the Roth IRA.  Problem is, you make too much money.  That’s right… the US congress, in its constant state of trying to punish the successful, instituted an income limitation such that you can’t even contribute to a Roth IRA if you make somewhere around $118,000 per year if you’re single or about $186,000 per year if you’re married.

But fear not, SDI Nation!  There is a solution!

It’s called the Backdoor Roth IRA, and the basic idea is that:

While there’s an income limit for CONTRIBUTING to a Roth IRA, there’s no income limit for CONVERTING to a Roth IRA.  So here’s how we take advantage of this loophole in a most advantageous of manners to give you, my high-income-earning listener, the ability to contribute to a Roth just like your lower-income brethren.

STEP 1:  Open a TRADITIONAL IRA – yes, I said “traditional”, not Roth – and make your deposit into that account.  But here’s the thing:  You can’t take a tax deduction for that contribution.  You’ll be doing what’s called a non-deductible contribution.  And that’s important in…

STEP 2:  This is where you convert that Traditional IRA into a Roth IRA.  Voila!  Now you’ve got a Roth IRA, just as if you’d put money there in the first place.

Yes, that’s all there is to it, conceptually.  It’s a simple 2-step maneuver that effectively eliminates the income limits for Roth IRA contributions.

Now I’ll go ahead and warn you:  There are some people out there who criticize this strategy, even suggesting that it’s illegal.  That’s a hard case to make since Congress actually REMOVED the income limits for Roth conversions back in 2010, so from the vantage point of this incredibly well-informed layman who is still, in the interest of full disclosure, NOT a lawyer, I think it’s darn near impossible to argue that this is illegal.

But there are 2 red flags to keep your eye on:

Red Flag #1:  If you have any money in a traditional IRA at the present time, you might have a bit of a hiccup using this back-door Roth IRA strategy due to something called the IRS Aggregation Rule.  I won’t weigh you down with the details right now, but if you’re interested, check them out on today’s show notes page at SDITalk.com/237.

And Red Flag #2 is something called the Step Transaction Doctrine.  In a nutshell, this is a legal doctrine that says if it’s against the law for you to do a certain thing, then it’s still against the law for you to accomplish that thing even if you can get there by taking intermediate steps that are entirely within the law.  The fear is that the IRS may apply that doctrine to the backdoor Roth IRA strategy.

How do you address that risk?  My gut sense, as a non-lawyer who is wholly unqualified to give legal advice, is that it’s wildly improbable that the IRS would pursue that path.  Attacking retirement accounts en masse is a real hot button issue for them… there was a situation that arose a few years ago where the IRS could have EASILY pursued tens of millions of IRA’s of all types – not just self-directed IRA’s – for a particular kind of prohibited transaction, and they simply passed on the chance to do it… I think because it would never fly politically.  But that’s just my opinion of course, incredibly insightful though it is.

So my advice:  Yes, you should seriously consider the backdoor Roth IRA if you want to contribute to a Roth but your income is too high.  But before you do that, be sure to talk to an attorney who is an expert in the area of self directed IRA’s.  If you don’t have such an attorney, there’s one I recommend highly, and you can get his information on today’s show notes page at SDITalk.com/237.

And a quick parting note, my friends… We have some EXTRAORDINARY turnkey rental property investment opportunities available RIGHT NOW, the opportunity has never been better.  If you’re looking for some great real estate investments, whether inside your retirement account or outside of it – including for 1031 exchanges – then just call my 24 hour free information line at 773-TURNKEY and listen to my 2 minute recording to see if turnkey investing is right for you.

My friends… invest wisely today, and live well forever!

]]>
Own Real Estate In A Traditional IRA? Slash Your Taxes THIS WAY! | SDITalk.com/236 Own Real Estate In A Traditional IRA? Slash Your Taxes THIS WAY! | SDITalk.com/236 Fri, 13 Jan 2017 18:31:50 GMT 7:32 fdcdef1a469e669f56b048be299f9d73 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f597 Want a quick tip for saving a TON of taxes if you own real estate in a traditional self-directed IRA?   I’ve got just the thing for you now.  I’m Bryan Ellis.  This is Episode #236. ---- Hello, SDI Nation!  Welcome to the... Want a quick tip for saving a TON of taxes if you own real estate in a traditional self-directed IRA?   I’ve got just the thing for you now.  I’m Bryan Ellis.  This is Episode #236.

----

Hello, SDI Nation!  Welcome to the podcast of record for savvy self-directed investors like YOU where you are educated, entertained and even INSPIRED to DECLARE INDEPENDENCE from Wall Street… Our goal here is to help you find, understand and PROFIT from the very best alternative assets that money can buy.

I’ve got some more tax-saving goodness for you real estate investors who use your Traditional IRA to own real estate.

But before we go there… have you checked out SDITalk.com/credit?  That’s where you’re going to learn how to get up to around $250,000 of ZERO-INTEREST capital for your investments or your business.  You know those credit cards that offer a zero percent introductory offer?  Well imagine you could do that… but you could extend the “introductory” period out indefinitely.  That’s what you’ll learn how to do at SDITalk.com/credit.  They’ve set up over $2 million of zero-interest funding for your fellow listeners just since October – you know, during the past 3 months – and more than $4.1 Million in the past year, so this is for real.  Check them out at SDITalk.com/credit.

Now onward, my friends…

So, let’s just imagine you’re one of the MANY folks who owns real estate in your IRA.  Actually… I’ve got the perfect context for a story to explain this to you.

We’re currently doing some research to check out the background of a company who has a unique angle on the turnkey rental property business.  What these people do is work with investors who want to buy a RETIREMENT HOME for themselves in their IRA in a nice location.  So what this company does is basically puts all of that together for the investor, and then monetizes the property for the owner in the form of corporate rentals.  So what you have is high quality tenants who are paying a premium rental rate, and who are likely to take really good care of the property… and then when the time comes for your retirement, you’ve got a home that you can live in, paid for by your IRA!

Well, there’s just one little hitch with that.

You can’t live in that house until it’s not in your IRA any more.  For it not to be in your IRA any more, it has to be distributed to you, in other words, removed from your IRA.

And as soon as that happens, guess what?  You guessed it:  Taxes.  You get to pay income tax rates on the ENTIRE value of the house.  So if it’s worth $200,000 and you’re in the 30% effective tax bracket, you’ll have to come up with $60,000 just to cover the income tax due to you.

Ouch.  Hey… that’s the reality… the traditional IRA is just a tool for tax deferral, not a tool for tax elimination.

HOWEVER… there is something that can be done quite easily to substantially reduce that tax burden, and I will, of course, share this bit of tax brilliance with you… originally taught to me by the great one, Tim Berry, America’s top self-directed IRA attorney.

So we’ve already agreed this house is worth $200,000, right?

What is half of that house worth?  $100,000?

Well… no, it’s not.  What can you do with ½ ownership of a house?  Maybe you’re entitled to half of the income it generates.  You’re entitled to half of the income if it’s sold.  But do you actually own the house if you o nly own half the house?  No, you don’t.  You can’t independently decide to rent it or to renovate it or the sell it or anything else like that.  You’ve got to get the OK of the other owner, too.

So it’s safe to say – and is an accepted truth in tax law that our friends at the IRS would agree with – the value of half (or any proportion) of an asset is LESS than the value of half of the whole thing… and that makes perfect sense.

So here’s the play:

Instead of distributing the house to yourself from your IRA, distribute HALF of the house to yourself from your IRA, and then the other half at some time in the future… maybe the next day, maybe the next tax year, that’s a question for your tax advisor.

But the net effect is this:  You’re ultimately receiving 100% ownership of the property, but you’re doing it in such a way that the value of the property is reduced by some factor – probably around 25% - because you’re taking it out in PIECES, which are each inherently less valuable than the whole.

So that means your $60,000 tax bill just dropped by 25%... or $15,000.

There, you just save $15,000 by listening to Self Directed Investor Talk.  You’re welcome! 

Actually, THANK YOU!  Thank you for listening to SDI Talk.  I really appreciate you.

Remember – today’s show notes page is at SDITalk.com/236.  You might check it out… it’s a totally new format that I think you’re going to find incredibly helpful.

And before I let you go… We’ve got some GREAT turnkey rental property investment opportunities in several cities throughout the country, and I know MANY of you are interested in that asset class, as well you should be.  BUT…

There are 7 key questions you need to make sure that you answer before you buy your first (or your next) turnkey rental property, and after you answer them, you’ve basically assured yourself of an excellent transaction.  To learn more just call my free recorded message line at (773) TURNKEY.  It’s only 2 minutes long, and nobody will answer the phone, it’s just a recording, but I think you’ll really benefit from the information.  That’s (773) TURNKEY.

My friends, thank you for listening in today!  Please, spread the word about SDI Talk and remember:  Invest wisely today and live well forever!

]]>
Want a quick tip for saving a TON of taxes if you own real estate in a traditional self-directed IRA?   I’ve got just the thing for you now.  I’m Bryan Ellis.  This is Episode #236.

----

Hello, SDI Nation!  Welcome to the podcast of record for savvy self-directed investors like YOU where you are educated, entertained and even INSPIRED to DECLARE INDEPENDENCE from Wall Street… Our goal here is to help you find, understand and PROFIT from the very best alternative assets that money can buy.

I’ve got some more tax-saving goodness for you real estate investors who use your Traditional IRA to own real estate.

But before we go there… have you checked out SDITalk.com/credit?  That’s where you’re going to learn how to get up to around $250,000 of ZERO-INTEREST capital for your investments or your business.  You know those credit cards that offer a zero percent introductory offer?  Well imagine you could do that… but you could extend the “introductory” period out indefinitely.  That’s what you’ll learn how to do at SDITalk.com/credit.  They’ve set up over $2 million of zero-interest funding for your fellow listeners just since October – you know, during the past 3 months – and more than $4.1 Million in the past year, so this is for real.  Check them out at SDITalk.com/credit.

Now onward, my friends…

So, let’s just imagine you’re one of the MANY folks who owns real estate in your IRA.  Actually… I’ve got the perfect context for a story to explain this to you.

We’re currently doing some research to check out the background of a company who has a unique angle on the turnkey rental property business.  What these people do is work with investors who want to buy a RETIREMENT HOME for themselves in their IRA in a nice location.  So what this company does is basically puts all of that together for the investor, and then monetizes the property for the owner in the form of corporate rentals.  So what you have is high quality tenants who are paying a premium rental rate, and who are likely to take really good care of the property… and then when the time comes for your retirement, you’ve got a home that you can live in, paid for by your IRA!

Well, there’s just one little hitch with that.

You can’t live in that house until it’s not in your IRA any more.  For it not to be in your IRA any more, it has to be distributed to you, in other words, removed from your IRA.

And as soon as that happens, guess what?  You guessed it:  Taxes.  You get to pay income tax rates on the ENTIRE value of the house.  So if it’s worth $200,000 and you’re in the 30% effective tax bracket, you’ll have to come up with $60,000 just to cover the income tax due to you.

Ouch.  Hey… that’s the reality… the traditional IRA is just a tool for tax deferral, not a tool for tax elimination.

HOWEVER… there is something that can be done quite easily to substantially reduce that tax burden, and I will, of course, share this bit of tax brilliance with you… originally taught to me by the great one, Tim Berry, America’s top self-directed IRA attorney.

So we’ve already agreed this house is worth $200,000, right?

What is half of that house worth?  $100,000?

Well… no, it’s not.  What can you do with ½ ownership of a house?  Maybe you’re entitled to half of the income it generates.  You’re entitled to half of the income if it’s sold.  But do you actually own the house if you o nly own half the house?  No, you don’t.  You can’t independently decide to rent it or to renovate it or the sell it or anything else like that.  You’ve got to get the OK of the other owner, too.

So it’s safe to say – and is an accepted truth in tax law that our friends at the IRS would agree with – the value of half (or any proportion) of an asset is LESS than the value of half of the whole thing… and that makes perfect sense.

So here’s the play:

Instead of distributing the house to yourself from your IRA, distribute HALF of the house to yourself from your IRA, and then the other half at some time in the future… maybe the next day, maybe the next tax year, that’s a question for your tax advisor.

But the net effect is this:  You’re ultimately receiving 100% ownership of the property, but you’re doing it in such a way that the value of the property is reduced by some factor – probably around 25% - because you’re taking it out in PIECES, which are each inherently less valuable than the whole.

So that means your $60,000 tax bill just dropped by 25%... or $15,000.

There, you just save $15,000 by listening to Self Directed Investor Talk.  You’re welcome! 

Actually, THANK YOU!  Thank you for listening to SDI Talk.  I really appreciate you.

Remember – today’s show notes page is at SDITalk.com/236.  You might check it out… it’s a totally new format that I think you’re going to find incredibly helpful.

And before I let you go… We’ve got some GREAT turnkey rental property investment opportunities in several cities throughout the country, and I know MANY of you are interested in that asset class, as well you should be.  BUT…

There are 7 key questions you need to make sure that you answer before you buy your first (or your next) turnkey rental property, and after you answer them, you’ve basically assured yourself of an excellent transaction.  To learn more just call my free recorded message line at (773) TURNKEY.  It’s only 2 minutes long, and nobody will answer the phone, it’s just a recording, but I think you’ll really benefit from the information.  That’s (773) TURNKEY.

My friends, thank you for listening in today!  Please, spread the word about SDI Talk and remember:  Invest wisely today and live well forever!

]]>
Crowdfunding Part 1 with Sal Buscemi | SDITalk.com #235 Crowdfunding Part 1 with Sal Buscemi | SDITalk.com #235 Mon, 02 Jan 2017 21:08:35 GMT 7:41 84dfb679dbe190cd3b0f70bb1ea18113 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f598 It was big in 2016 – and will be even bigger in 2017.  What is “IT”? CROWDFUNDING, of course… and I’ve brought in a special expert to discuss this whole CROWDFUNDING PHENOMEMON with us… and his opinion is… shall I say… something... It was big in 2016 – and will be even bigger in 2017.  What is “IT”? CROWDFUNDING, of course… and I’ve brought in a special expert to discuss this whole CROWDFUNDING PHENOMEMON with us… and his opinion is… shall I say… something DIFFERENT than the conventional wisdom.  I think you’ll love it.  I’m Bryan Ellis.  This is Episode #235.

----

Hello, SDI Nation!  Welcome to the broadcast of record for savvy self-directed investors like you where each day, we help you DECLARE INDEPENDENCE FROM WALL STREET.

Today is show #235 so that means you can get the links, resources and transcripts from today’s show at SDITalk.com/235.  And if you’d like to participate in the discussion about this with us online, you can do that on Twitter or Facebook where you can find us at – of course – SDITalk.

Today I’m sharing a special interview with you I did with Sal Buscemi of Dandrew Partners LLC, a New York-based commercial real estate advisory boutique firm that helps institutional investors place capital into distressed commercial real estate assets.

He’s also a Goldman Sachs alum, having spent 5 years there as an investment banker, so he’s got the big-capital perspective of Wall Street, but the heart of a real estate man.  I’ve known Sal a long time, and while I don’t agree with everything he says.  I absolutely, positively respect his opinion.  I bet you will, too.  But first –

Remember this, folks:  Here at the start of 2017 if you need $50,000 to $250,000 for an investment or your business, there’s one place to go to get that capital at ZERO INTEREST – yes, you heard that correctly – is to visit SDITalk.com/credit.  There you’ll find my friends Ari Page & Mike Banks from Fund & Grow.  Those guys work some special magic to make it possible to acquire long-term zero-percent funding for anybody with good credit… so if that’s you and you need a bit of capital to push 2017 in the direction you need, reach out to them now at SDITalk.com/credit.

 

Bryan Ellis:                       Sal, this whole thing called crowdfunding, there’s a lot of interest out there in this topic but from my vantage point, there’s a lot of confusion as well. It looks like from my humble but incredibly prescient viewpoint, this looks like amateur hour to me. How is crowdfunding playing out from your point of view?

Sal Buscemi:                    I’ll tell you, I think it’s going to be one of the largest vehicles for wealth destruction in this country. I’ll tell you why, because you’re getting less sophisticated people coming in with the bare minimum investment of $500, $1000. They’re able to get involved in deals but are they really getting good deals and what’s really the driver behind this? Are there interests … In the industry we say, “How are my interests aligned with the operator?”

Bryan Ellis:                       Right.

Sal Buscemi:                    The operator is the person who’s pulling the money, who’s going to buy the investment. You always want to ask the hard questions and a lot of people are just not sophisticated enough going into this knowing the hard questions to ask.

Bryan Ellis:                       Yeah, it looks like basically what’s happened is that crowdfunding’s made it to some degree possible for inexperienced investors to build pools of capital where before they would have at least had to go through maybe the Regulation D type offering at the very least. Now it’s much, much simpler for everybody so the bar’s lower and the dirt is thicker.

Sal Buscemi:                    Yeah, there’s a lower bar to entry, right? The cheapest capital support is the biggest losers. Now you’re going to have people who don’t understand the asset class, they think they’re buying one thing, are they really buying it and really, what is the operator’s experience? My saying in the industry is, “Good operators turn bad deals into good ones and bad operators turn good deals into bad deals.” That’s just the way it goes and I think when the … Especially now where we are in the market right now Bryan, things are capped out. What I mean by that, prices are at the top and interest rates have changed and nobody was doing anything until we saw a change in the election. Now we see interest rates creeping a little bit, it has to do with China, they’re dumping some of the treasuries, I don’t think it’s going to last but that’s going to affect a lot of …

                                         I don’t think somebody getting in it at a price today are going to be able to exit at the same price or more later on if that makes sense. It is no different than buying a house in Phoenix in 2007. It only was really worth at one point $200,000 but people are bidding as high as 350, 400,000 dollars. The only reason why they were able to do that is because there was so much cash readily available through subprime. The same thing is happening here and now you have one guy who decided to wake up one day, he’s tired of his corporate job, he’s a software engineer and he’s going to decide to buy an apartment complex two states away or two time zones away and I’m speaking from experience here. He has no one on the ground to manage it and he’s treating it like it’s a bond or a stock and it’s absolutely not.

Bryan Ellis:                       Right. Sal let’s back up just a little bit, what is crowdfunding?

Sal Buscemi:                    Crowdfunding in its simplest form is you’re able to crowdsource money from people using something that is passed during 2013 during the Obama administration called the JOBS Act, I think it’s title four if I recall correctly. It allows people to go out and raise smaller increments of money whereas before they would have to do something more meaningful using a Reg D. It would be more cost prohibitive, there would be a higher barrier to entry. Now, those barriers to entry have been removed as a direct result of the Jumpstart Our Businesses Act or I think that’s what the acronym is, the JOBS Act. That has made people able to go out there and crowdsource things as it relates to in simplest forms maybe new widgets, maybe new technology but it’s moving over to real estate and that’s really where the scary part is for me as someone who has grown up and been professionally trained as a classical distressed real estate investor his whole life.

My friends, there's a whole lot more of that interview you'll get right here on tomorrow's show.  If you'd like to hear it right now, you're welcomed to do that by going over to SDITalk.com/235 where you'll find the transcript and entire interview if you'd like to get it right now.

In the mean time, invest wisely today and live well forever... throughout ALL of this great new year of 2017!

]]>
It was big in 2016 – and will be even bigger in 2017.  What is “IT”? CROWDFUNDING, of course… and I’ve brought in a special expert to discuss this whole CROWDFUNDING PHENOMEMON with us… and his opinion is… shall I say… something DIFFERENT than the conventional wisdom.  I think you’ll love it.  I’m Bryan Ellis.  This is Episode #235.

----

Hello, SDI Nation!  Welcome to the broadcast of record for savvy self-directed investors like you where each day, we help you DECLARE INDEPENDENCE FROM WALL STREET.

Today is show #235 so that means you can get the links, resources and transcripts from today’s show at SDITalk.com/235.  And if you’d like to participate in the discussion about this with us online, you can do that on Twitter or Facebook where you can find us at – of course – SDITalk.

Today I’m sharing a special interview with you I did with Sal Buscemi of Dandrew Partners LLC, a New York-based commercial real estate advisory boutique firm that helps institutional investors place capital into distressed commercial real estate assets.

He’s also a Goldman Sachs alum, having spent 5 years there as an investment banker, so he’s got the big-capital perspective of Wall Street, but the heart of a real estate man.  I’ve known Sal a long time, and while I don’t agree with everything he says.  I absolutely, positively respect his opinion.  I bet you will, too.  But first –

Remember this, folks:  Here at the start of 2017 if you need $50,000 to $250,000 for an investment or your business, there’s one place to go to get that capital at ZERO INTEREST – yes, you heard that correctly – is to visit SDITalk.com/credit.  There you’ll find my friends Ari Page & Mike Banks from Fund & Grow.  Those guys work some special magic to make it possible to acquire long-term zero-percent funding for anybody with good credit… so if that’s you and you need a bit of capital to push 2017 in the direction you need, reach out to them now at SDITalk.com/credit.

 

Bryan Ellis:                       Sal, this whole thing called crowdfunding, there’s a lot of interest out there in this topic but from my vantage point, there’s a lot of confusion as well. It looks like from my humble but incredibly prescient viewpoint, this looks like amateur hour to me. How is crowdfunding playing out from your point of view?

Sal Buscemi:                    I’ll tell you, I think it’s going to be one of the largest vehicles for wealth destruction in this country. I’ll tell you why, because you’re getting less sophisticated people coming in with the bare minimum investment of $500, $1000. They’re able to get involved in deals but are they really getting good deals and what’s really the driver behind this? Are there interests … In the industry we say, “How are my interests aligned with the operator?”

Bryan Ellis:                       Right.

Sal Buscemi:                    The operator is the person who’s pulling the money, who’s going to buy the investment. You always want to ask the hard questions and a lot of people are just not sophisticated enough going into this knowing the hard questions to ask.

Bryan Ellis:                       Yeah, it looks like basically what’s happened is that crowdfunding’s made it to some degree possible for inexperienced investors to build pools of capital where before they would have at least had to go through maybe the Regulation D type offering at the very least. Now it’s much, much simpler for everybody so the bar’s lower and the dirt is thicker.

Sal Buscemi:                    Yeah, there’s a lower bar to entry, right? The cheapest capital support is the biggest losers. Now you’re going to have people who don’t understand the asset class, they think they’re buying one thing, are they really buying it and really, what is the operator’s experience? My saying in the industry is, “Good operators turn bad deals into good ones and bad operators turn good deals into bad deals.” That’s just the way it goes and I think when the … Especially now where we are in the market right now Bryan, things are capped out. What I mean by that, prices are at the top and interest rates have changed and nobody was doing anything until we saw a change in the election. Now we see interest rates creeping a little bit, it has to do with China, they’re dumping some of the treasuries, I don’t think it’s going to last but that’s going to affect a lot of …

                                         I don’t think somebody getting in it at a price today are going to be able to exit at the same price or more later on if that makes sense. It is no different than buying a house in Phoenix in 2007. It only was really worth at one point $200,000 but people are bidding as high as 350, 400,000 dollars. The only reason why they were able to do that is because there was so much cash readily available through subprime. The same thing is happening here and now you have one guy who decided to wake up one day, he’s tired of his corporate job, he’s a software engineer and he’s going to decide to buy an apartment complex two states away or two time zones away and I’m speaking from experience here. He has no one on the ground to manage it and he’s treating it like it’s a bond or a stock and it’s absolutely not.

Bryan Ellis:                       Right. Sal let’s back up just a little bit, what is crowdfunding?

Sal Buscemi:                    Crowdfunding in its simplest form is you’re able to crowdsource money from people using something that is passed during 2013 during the Obama administration called the JOBS Act, I think it’s title four if I recall correctly. It allows people to go out and raise smaller increments of money whereas before they would have to do something more meaningful using a Reg D. It would be more cost prohibitive, there would be a higher barrier to entry. Now, those barriers to entry have been removed as a direct result of the Jumpstart Our Businesses Act or I think that’s what the acronym is, the JOBS Act. That has made people able to go out there and crowdsource things as it relates to in simplest forms maybe new widgets, maybe new technology but it’s moving over to real estate and that’s really where the scary part is for me as someone who has grown up and been professionally trained as a classical distressed real estate investor his whole life.

My friends, there's a whole lot more of that interview you'll get right here on tomorrow's show.  If you'd like to hear it right now, you're welcomed to do that by going over to SDITalk.com/235 where you'll find the transcript and entire interview if you'd like to get it right now.

In the mean time, invest wisely today and live well forever... throughout ALL of this great new year of 2017!

]]>
SDI Talk Special Episode - Daren Blomquist Interview SDI Talk Special Episode - Daren Blomquist Interview Thu, 29 Dec 2016 19:57:24 GMT 12:44 f9309c37ff36dc5306a7f68ad90c8eae no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f599 In this special Expert Series edition of Self Directed Investor Talk, Daren Blomquist, Vice President of the respected data firm RealtyTrac gives his insights on the suitability of today’s market for house flipping, along with his predictions for... In this special Expert Series edition of Self Directed Investor Talk, Daren Blomquist, Vice President of the respected data firm RealtyTrac gives his insights on the suitability of today’s market for house flipping, along with his predictions for what 2017 holds for America’s real estate markets.  I’m Bryan Ellis, your host and I’d like to welcome you to a very special edition of Self Directed Investor Talk.  Please send your questions and comments to us by email at feedback at sditalk.com or on Facebook or Twitter at SDITalk.  With that…

Bryan Ellis:                       Mr. Blomquist, how are you today, sir?

Daren Blomquist:            I'm doing very well. How are you?

Bryan Ellis:                       Very well. Thanks for joining us. Look, I've always or have long been a fan of Realtytrac and what is now ATTOM Data Solutions, and particularly your quarterly home flipping report, because that's one of the businesses that we're in. I had a look at the Q3 2016 report, and it's interesting because it looks like overall, the information's positive, 45,000 flips last quarter with a pretty substantial gross ROI. Some of the other data, such as slowing volume of flips compared to both last quarter and compared to a year ago. At least a significantly the declining percentage of flipped funded with cash. Those things raise my eyebrows as someone who looks at this market. What do you make of those things?

Daren Blomquist:            Yeah, I think the decline in flips is ... Right now, I would consider that more of an aberration that's interrupting a long-term trend upward home flipping, and the market is very favorable to home flippers right now. Now it's becoming tougher because prices are getting so high and flippers are jumping into the market, it's becoming more competitive.

Bryan Ellis:                       Right.

Daren Blomquist:            Still, you have low inventory that's very favorable to flippers. They're providing inventory that the new home builders are not.

Bryan Ellis:                       Right.

Daren Blomquist:            Then you have rising home prices, which is a double-edged sword. It's tough, it makes it tougher for flippers to find discounts on the front end, but it makes it a lot easier for them to sell. It gives them a cushion to some on the back end. All that to say, I think actually we saw a decrease in overall sales in the third quarter, and I think it's partially a reaction to uncertainty around the election.

Bryan Ellis:                       Sure.

Daren Blomquist:            I think we'll see that aberration pick back up in terms of the number of home flips. Now I think we'll see it shift, which we're already starting to see to the flippers are shifting to different markets where they can actually find, still find discounts on properties on the front end, or there's more availability of discounts. A lot of times in the form of foreclosures.

Bryan Ellis:                       Right.

Daren Blomquist:            In terms of the cash piece of it, there's fewer. It's still 68% of flippers are using cash to buy, which compared to the last housing boom, we were seeing about 35% of flippers using cash to buy.

Bryan Ellis:                       Wow.

Daren Blomquist:            Much more of them were using lending. We are seeing that number at an eight-year low, which means there is more availability of funding for flippers rather than having to use their own money in terms of crowdfunding. In terms of other alternative financing sources. That actually is one of the reasons I think we'll see flipping continue is that's going to enable more flippers to jump in. That may not always be a good thing, but it is going to push the market higher I think in 2017.

Bryan Ellis:                       In your analysis or if you guys track this, who buys those flipper properties? Owner occupants or other investors?

Daren Blomquist:            I don't have the exact percentage on that, but the majority is owner occupants. When we look at that ... We look at who's buying basically as a proxy, who's buying the flip, not the flipper buying with cash, but if the person they're, or entity they're selling to, is buying with cash, and we do see a fairly substantial number selling to other cash buyers, which for us is a good proxy likely for investors.

Bryan Ellis:                       Right.

Daren Blomquist:            The majority is owner occupants, but I think you look at markets like Memphis and Cleveland, and places like that where we're seeing quite a bit of home flipping, and a lot of-

Bryan Ellis:                       There's a lot of investor to investor stuff there.

Daren Blomquist:            Those are going to other investors who then are taking those properties and turning them into rentals. They don't want to deal with the rehab portion of it.

Bryan Ellis:                       Yeah. I have wondered if there are any homeowners left in Memphis at all.

Daren Blomquist:            Yeah, it's the top market for flipping and it's also one of the top markets when we look at single family rentals for purchasing those.

Bryan Ellis:                       Right. You recently had an article called "Blue State Buyers Swing to Red State Rentals," which I thought was interesting. It was a discussion of the whole turnkey rental property phenomenon that's going on, which really reflects exactly what's going on with the clients of the Self Directed Investor Society, namely that California investors, and in our case, particularly those in the Bay Area, are finding it really interesting to buy real estate in the Southeast. What's your take on that? Why is that happening?

Daren Blomquist:            Yeah. I think that investors realize that real estate is one of the best places to still get a return in this low interest rate environment. The stock market is good, it has been good, but they want to diversify and they say real estate is a great way to do that.

Bryan Ellis:                       Yeah.

Daren Blomquist:            Investing in their backyard is really a non-starter when you're ... You just can't cash flow property.

Bryan Ellis:                       Right.

Daren Blomquist:            Flipping a ... These are the type of investors who probably don't want to get into flipping. They're professionals, they have a day job. They're going to those markets where you can't cash flow and there's still a lot of lower priced properties available that can be purchased and cash flow very well. I would just mention we're not just seeing it in the South. Southeast is a big center of it, but we actually broke it down for Orange ... I know you look a lot at the Bay Area, but we looked at Orange County, California, which is where we are, and where the top counties were, Orange County buyers are purchasing rental properties basically. Not surprisingly, the first few counties were right in the immediate vicinity, but in the Inland Empire where prices are cheaper. Then after that, you have of course Las Vegas, Phoenix are near the top. Then you have places like Memphis. Memphis was in the top 10.

Bryan Ellis:                       Yeah.

Daren Blomquist:            Shelby County there. Of places that Orange County buyers are purchasing rental properties, you had Wayne County, Michigan [inaudible 00:06:14], which is not really Southeast. That's Detroit. Was one, was in the top 10 for places that Orange County buyers are purchasing rental property. That was-

Bryan Ellis:                       That's interesting.

Daren Blomquist:            That was an eye opener and certainly we see ... Anecdotally, we hear a lot about that as well.

Bryan Ellis:                       Yeah. Daren, in February or so this year, you had an article out that had some housing predictions, some forecast for 2016. I wanted to take a minute to hold your feet to the fire, so to speak. See how things actually worked out in practice. Let's look at the predictions here.

Daren Blomquist:            Great.

Bryan Ellis:                       I'm not sure if these are your predictions or the predictions of the other experts that were cited in the article, but the key ideas here were, number one, the prediction for growing rental rights and moderate home price growth, which should force more people, or motivate more people to look to buy in 2016. The second-

Daren Blomquist:            We did. Yeah. I'll just stop you.

Bryan Ellis:                       Yeah.

Daren Blomquist:            We did see that pretty much play out. The home price growth was stronger than I expected. It's about five percent for the year.

Bryan Ellis:                       Okay.

Daren Blomquist:            It was actually a little bit stronger, but it is moderate and we were at double digit price growth. Now we've come down. Rental rates continue to be strong.

Bryan Ellis:                       Right. That was a definite check mark. The second prediction was mortgage rates will rise, which should help boost the number of buyers out there. It looks like that one was a little less accurate I guess. Started to rise at the end of the year.

Daren Blomquist:            Right, yeah. Get that right if you count to the last couple months of the year, but it really didn't rise ... A year ago ... It feels like Groundhog Day. A year ago, the fed was raising rates in December and predicting that they would raise rates throughout 2016 and it didn't happen. Now they're doing the same thing again. We'll see if that happens in 2017. I do. Really we're off the mark there, but I think more ... The fed has limited control really over mortgage rates.

Bryan Ellis:                       Yeah.

Daren Blomquist:            I think what we saw following the election is more going to be a driver of rising interest rates than the fed necessarily, but I do expect to see that going into 2017.

Bryan Ellis:                       Yeah, I think we're all surprised that rates didn't go higher than they did. Then that third prediction was inventory's expected to remain a problem in 2016. That certainly looks to continue to be true.

Daren Blomquist:            Yeah. It's a major theme, and I think most people view it as a challenge in this housing market, but it's really ... It's a good problem to have because it's keeping ... It's a safety net for this market, even if we are seeing some bubbles forming, overheated markets. Those markets typically do not have an oversupply of inventory, which means even if you see demand fall, there's a safety net of low inventory.

Bryan Ellis:                       Yeah.

Daren Blomquist:            To keep those markets chugging along.

Bryan Ellis:                       Yeah, exactly. Now this leads me to the predictable final question. You did pretty well in predicting 2016. You definitely got two right and the one was flat. What does 2017 look like for you? What do you expect to happen?

Daren Blomquist:            I'll go out on a limb and do, as I mentioned, we will see interest rates rise, and I think we're seeing that already at the end of this year.

Bryan Ellis:                       Yeah.

Daren Blomquist:            I think we'll see more substantive rising of rates in 2017 that will, and then that in turn is an important factor that will start to slow down some of these overheated markets in terms of home sales and home prices particularly. Again, we're at about five percent appreciation this year. I think we'll see it go down to two to three percent appreciation. This is a nationwide number of course.

Bryan Ellis:                       Yeah, sure.

Daren Blomquist:            There's a lot of variance from market to market, but I think in general, we'll see cooling appreciation. We will see I think a surge in home sales early in the year. We already saw it a little bit in November as people try to beat out the higher interest rates. That's going to be an overriding factor.

Bryan Ellis:                       Sure.

Daren Blomquist:            Another prediction that's a little more localized in nature is I think ... I'm very bullish on the Rust Belt.

Bryan Ellis:                       Are you?

Daren Blomquist:            They were a big part of the election, and in determining the election, and there's been a lot of talk by now president-elect Trump to invest in infrastructure, and there seems to be a lot of bipartisan support for that. The cities that need the most infrastructure improvement tend to be in the Ruse Belt.

Bryan Ellis:                       Yeah. They're going to feel the love.

Daren Blomquist:            Places like Flint, Michigan, that have aging water systems and what not. We see that investment happening, that's going to really help housing in those markets and improve the overall value of the housing market.

Bryan Ellis:                       Awesome. Daren, thank you so much for your time. I am very grateful to you, and hopefully we'll get to have you back on and maybe dig a little bit deeper into the single family rental market, because I know that's an area of expertise for you and ATTOM Data Solutions. Thank you so much for being here.

Daren Blomquist:            Yes. I'm glad to be here and happy to come back at some point in the future.

Bryan Ellis:         Awesome. Thank you, sir.

]]>
In this special Expert Series edition of Self Directed Investor Talk, Daren Blomquist, Vice President of the respected data firm RealtyTrac gives his insights on the suitability of today’s market for house flipping, along with his predictions for what 2017 holds for America’s real estate markets.  I’m Bryan Ellis, your host and I’d like to welcome you to a very special edition of Self Directed Investor Talk.  Please send your questions and comments to us by email at feedback at sditalk.com or on Facebook or Twitter at SDITalk.  With that…

Bryan Ellis:                       Mr. Blomquist, how are you today, sir?

Daren Blomquist:            I'm doing very well. How are you?

Bryan Ellis:                       Very well. Thanks for joining us. Look, I've always or have long been a fan of Realtytrac and what is now ATTOM Data Solutions, and particularly your quarterly home flipping report, because that's one of the businesses that we're in. I had a look at the Q3 2016 report, and it's interesting because it looks like overall, the information's positive, 45,000 flips last quarter with a pretty substantial gross ROI. Some of the other data, such as slowing volume of flips compared to both last quarter and compared to a year ago. At least a significantly the declining percentage of flipped funded with cash. Those things raise my eyebrows as someone who looks at this market. What do you make of those things?

Daren Blomquist:            Yeah, I think the decline in flips is ... Right now, I would consider that more of an aberration that's interrupting a long-term trend upward home flipping, and the market is very favorable to home flippers right now. Now it's becoming tougher because prices are getting so high and flippers are jumping into the market, it's becoming more competitive.

Bryan Ellis:                       Right.

Daren Blomquist:            Still, you have low inventory that's very favorable to flippers. They're providing inventory that the new home builders are not.

Bryan Ellis:                       Right.

Daren Blomquist:            Then you have rising home prices, which is a double-edged sword. It's tough, it makes it tougher for flippers to find discounts on the front end, but it makes it a lot easier for them to sell. It gives them a cushion to some on the back end. All that to say, I think actually we saw a decrease in overall sales in the third quarter, and I think it's partially a reaction to uncertainty around the election.

Bryan Ellis:                       Sure.

Daren Blomquist:            I think we'll see that aberration pick back up in terms of the number of home flips. Now I think we'll see it shift, which we're already starting to see to the flippers are shifting to different markets where they can actually find, still find discounts on properties on the front end, or there's more availability of discounts. A lot of times in the form of foreclosures.

Bryan Ellis:                       Right.

Daren Blomquist:            In terms of the cash piece of it, there's fewer. It's still 68% of flippers are using cash to buy, which compared to the last housing boom, we were seeing about 35% of flippers using cash to buy.

Bryan Ellis:                       Wow.

Daren Blomquist:            Much more of them were using lending. We are seeing that number at an eight-year low, which means there is more availability of funding for flippers rather than having to use their own money in terms of crowdfunding. In terms of other alternative financing sources. That actually is one of the reasons I think we'll see flipping continue is that's going to enable more flippers to jump in. That may not always be a good thing, but it is going to push the market higher I think in 2017.

Bryan Ellis:                       In your analysis or if you guys track this, who buys those flipper properties? Owner occupants or other investors?

Daren Blomquist:            I don't have the exact percentage on that, but the majority is owner occupants. When we look at that ... We look at who's buying basically as a proxy, who's buying the flip, not the flipper buying with cash, but if the person they're, or entity they're selling to, is buying with cash, and we do see a fairly substantial number selling to other cash buyers, which for us is a good proxy likely for investors.

Bryan Ellis:                       Right.

Daren Blomquist:            The majority is owner occupants, but I think you look at markets like Memphis and Cleveland, and places like that where we're seeing quite a bit of home flipping, and a lot of-

Bryan Ellis:                       There's a lot of investor to investor stuff there.

Daren Blomquist:            Those are going to other investors who then are taking those properties and turning them into rentals. They don't want to deal with the rehab portion of it.

Bryan Ellis:                       Yeah. I have wondered if there are any homeowners left in Memphis at all.

Daren Blomquist:            Yeah, it's the top market for flipping and it's also one of the top markets when we look at single family rentals for purchasing those.

Bryan Ellis:                       Right. You recently had an article called "Blue State Buyers Swing to Red State Rentals," which I thought was interesting. It was a discussion of the whole turnkey rental property phenomenon that's going on, which really reflects exactly what's going on with the clients of the Self Directed Investor Society, namely that California investors, and in our case, particularly those in the Bay Area, are finding it really interesting to buy real estate in the Southeast. What's your take on that? Why is that happening?

Daren Blomquist:            Yeah. I think that investors realize that real estate is one of the best places to still get a return in this low interest rate environment. The stock market is good, it has been good, but they want to diversify and they say real estate is a great way to do that.

Bryan Ellis:                       Yeah.

Daren Blomquist:            Investing in their backyard is really a non-starter when you're ... You just can't cash flow property.

Bryan Ellis:                       Right.

Daren Blomquist:            Flipping a ... These are the type of investors who probably don't want to get into flipping. They're professionals, they have a day job. They're going to those markets where you can't cash flow and there's still a lot of lower priced properties available that can be purchased and cash flow very well. I would just mention we're not just seeing it in the South. Southeast is a big center of it, but we actually broke it down for Orange ... I know you look a lot at the Bay Area, but we looked at Orange County, California, which is where we are, and where the top counties were, Orange County buyers are purchasing rental properties basically. Not surprisingly, the first few counties were right in the immediate vicinity, but in the Inland Empire where prices are cheaper. Then after that, you have of course Las Vegas, Phoenix are near the top. Then you have places like Memphis. Memphis was in the top 10.

Bryan Ellis:                       Yeah.

Daren Blomquist:            Shelby County there. Of places that Orange County buyers are purchasing rental properties, you had Wayne County, Michigan [inaudible 00:06:14], which is not really Southeast. That's Detroit. Was one, was in the top 10 for places that Orange County buyers are purchasing rental property. That was-

Bryan Ellis:                       That's interesting.

Daren Blomquist:            That was an eye opener and certainly we see ... Anecdotally, we hear a lot about that as well.

Bryan Ellis:                       Yeah. Daren, in February or so this year, you had an article out that had some housing predictions, some forecast for 2016. I wanted to take a minute to hold your feet to the fire, so to speak. See how things actually worked out in practice. Let's look at the predictions here.

Daren Blomquist:            Great.

Bryan Ellis:                       I'm not sure if these are your predictions or the predictions of the other experts that were cited in the article, but the key ideas here were, number one, the prediction for growing rental rights and moderate home price growth, which should force more people, or motivate more people to look to buy in 2016. The second-

Daren Blomquist:            We did. Yeah. I'll just stop you.

Bryan Ellis:                       Yeah.

Daren Blomquist:            We did see that pretty much play out. The home price growth was stronger than I expected. It's about five percent for the year.

Bryan Ellis:                       Okay.

Daren Blomquist:            It was actually a little bit stronger, but it is moderate and we were at double digit price growth. Now we've come down. Rental rates continue to be strong.

Bryan Ellis:                       Right. That was a definite check mark. The second prediction was mortgage rates will rise, which should help boost the number of buyers out there. It looks like that one was a little less accurate I guess. Started to rise at the end of the year.

Daren Blomquist:            Right, yeah. Get that right if you count to the last couple months of the year, but it really didn't rise ... A year ago ... It feels like Groundhog Day. A year ago, the fed was raising rates in December and predicting that they would raise rates throughout 2016 and it didn't happen. Now they're doing the same thing again. We'll see if that happens in 2017. I do. Really we're off the mark there, but I think more ... The fed has limited control really over mortgage rates.

Bryan Ellis:                       Yeah.

Daren Blomquist:            I think what we saw following the election is more going to be a driver of rising interest rates than the fed necessarily, but I do expect to see that going into 2017.

Bryan Ellis:                       Yeah, I think we're all surprised that rates didn't go higher than they did. Then that third prediction was inventory's expected to remain a problem in 2016. That certainly looks to continue to be true.

Daren Blomquist:            Yeah. It's a major theme, and I think most people view it as a challenge in this housing market, but it's really ... It's a good problem to have because it's keeping ... It's a safety net for this market, even if we are seeing some bubbles forming, overheated markets. Those markets typically do not have an oversupply of inventory, which means even if you see demand fall, there's a safety net of low inventory.

Bryan Ellis:                       Yeah.

Daren Blomquist:            To keep those markets chugging along.

Bryan Ellis:                       Yeah, exactly. Now this leads me to the predictable final question. You did pretty well in predicting 2016. You definitely got two right and the one was flat. What does 2017 look like for you? What do you expect to happen?

Daren Blomquist:            I'll go out on a limb and do, as I mentioned, we will see interest rates rise, and I think we're seeing that already at the end of this year.

Bryan Ellis:                       Yeah.

Daren Blomquist:            I think we'll see more substantive rising of rates in 2017 that will, and then that in turn is an important factor that will start to slow down some of these overheated markets in terms of home sales and home prices particularly. Again, we're at about five percent appreciation this year. I think we'll see it go down to two to three percent appreciation. This is a nationwide number of course.

Bryan Ellis:                       Yeah, sure.

Daren Blomquist:            There's a lot of variance from market to market, but I think in general, we'll see cooling appreciation. We will see I think a surge in home sales early in the year. We already saw it a little bit in November as people try to beat out the higher interest rates. That's going to be an overriding factor.

Bryan Ellis:                       Sure.

Daren Blomquist:            Another prediction that's a little more localized in nature is I think ... I'm very bullish on the Rust Belt.

Bryan Ellis:                       Are you?

Daren Blomquist:            They were a big part of the election, and in determining the election, and there's been a lot of talk by now president-elect Trump to invest in infrastructure, and there seems to be a lot of bipartisan support for that. The cities that need the most infrastructure improvement tend to be in the Ruse Belt.

Bryan Ellis:                       Yeah. They're going to feel the love.

Daren Blomquist:            Places like Flint, Michigan, that have aging water systems and what not. We see that investment happening, that's going to really help housing in those markets and improve the overall value of the housing market.

Bryan Ellis:                       Awesome. Daren, thank you so much for your time. I am very grateful to you, and hopefully we'll get to have you back on and maybe dig a little bit deeper into the single family rental market, because I know that's an area of expertise for you and ATTOM Data Solutions. Thank you so much for being here.

Daren Blomquist:            Yes. I'm glad to be here and happy to come back at some point in the future.

Bryan Ellis:         Awesome. Thank you, sir.

]]>
<![CDATA[the US Supreme Court VS the IRA You're Leaving To Loved Ones | SDITalk.com #234]]> Thu, 29 Dec 2016 13:37:40 GMT 7:33 d4da187179ae8644103145a1f22d6318 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f59a Ruth Heffron did everything right – she built up an IRA big enough for her retirement, AND enough to leave her daughter nearly half a million dollars.  But the US Supreme Court has different ideas, and it’s bad for Ruth, her daughter, and... Ruth Heffron did everything right – she built up an IRA big enough for her retirement, AND enough to leave her daughter nearly half a million dollars.  But the US Supreme Court has different ideas, and it’s bad for Ruth, her daughter, and YOU.  I’m Bryan Ellis.  This is Episode #234.

-----

Hello, SDI Nation!  Welcome back to Self Directed Investor Talk… the show where I, your humble host, daily throw myself into the lion’s den in proclamation of the Gospel of Self Directed Investing… namely, that you MUST DECLARE INDEPENDENCE FROM WALL STREET and take control of your own capital!

Before we do that… can I just remind you guys about Fund & Grow?  They’re the guys that are just EXTRAORDINARY when it comes to build cash credit for investors, businesspeople and others.  For anyone with decent credit, their specialty is establishing $50,000 to $250,000 or more of ZERO INTEREST credit for you to use on anything you want.  Totally unsecured, too… It’s really amazing.  A great alternative to hard money loans, for example.  Check them out if you need capital.  I endorse them very proudly.  You can reach them at SDITalk.com/credit

Ok, let’s jump in.  To participate in the conversation, reach out to us on Facebook or Twitter, or by email at feedback at sditalk.com.

Ruth Heffron must be spinning in her grave.  She opened an IRA and build it up such that, even after using it herself, there was still nearly half a million dollars in there when she passed away.  Mrs. Heffron did what may of us would do in that case… she designated her only child Heidi Heffron-Clark as her beneficiary.

For a while, things were fine.  Heidi was able to withdraw a bit of that money over time, such that she drew it down to a value of about $300,000.  But then something unfortunate happened.  Heidi found herself facing some financial difficulty, and chose to declare bankruptcy.

Now if you’re wondering why Heidi would declare bankruptcy since she had an IRA worth $300,000… well, you’re on the right track.  When one declares bankruptcy, their assets are basically up for grabs by creditors… and so that $300,000 IRA she inherited from dear old mom would seem to be on the chopping block.

Alas… Heidi – or more likely, her bankruptcy attorney – knew that there’s some very special statutory protection for retirement accounts.  With only a few exceptions, IRA’s and other retirement accounts are basically outside of the reach of creditors, even in the case of bankruptcy.  It’s one of the things that makes that type of account truly special… something like a fortress for your financial assets.

So, armed with this assurance, Heidi Heffron-Clark filed for bankruptcy.  But then something wholly unexpected happened:  Her creditors fought back.  They claimed that those protections against creditors available to retirement accounts are available ONLY to retirement accounts… and since Heidi had INHERITED her IRA, and had been using it to pay her life expenses, then that account was arguably NOT a retirement account, and thus no longer entitled to the protections provided by law.

And, lo and behold, when those creditors made these arguments before the US bankruptcy court, the court agreed, and Heidi had lost her $300,000 IRA.  Then the appeals came… she won some, she lost some… you know the drill, until one day, Heidi and the case of her $300,000 IRA land before the U.S. Supreme Court.

And when the judgment on that case was handed down, something unusual happened:  There was a unanimous decision AGAINST Heidi’s claim.  Indeed, the U.S. Supreme Court had decided that by virtue of having INHERITED the account, Heidi’s IRA was no longer actually a retirement account, but was, essentially, a normal financial account, available to satisfy the demands of creditors like any other asset.

Let’s put aside for a moment whether we agree with that decision.  The fact that it was unanimous – which is a rarity at the Supreme Court – suggests that the law is settled, whether we like it or not.

But that raises the question:  How can you make sure that your beneficiaries ACTUALLY receive the money you’re leaving for them, since this IRA protection is no longer available?

And respectfully, my friends, don’t do yourself the disservice of thinking this isn’t relevant for your loved ones.  You might have adult children who are extremely well established financially, and who you can’t imagine would ever declare bankruptcy.  But the issue is broader than that.  I submit for your consideration two additional considerations:

Scenario #1 happens when someone – anyone – is attacked by an unexpected lawsuit.  It could be a car accident that you didn’t intend to cause, but that is nevertheless your fault.  It could be some unforeseen business issue.  No matter… if your beneficiary is targeted by and the victim of a money judgement, then whatever you leave to them in an IRA will be at risk.

And scenario #2 is the all-too-common instance of divorce.  You leave your IRA to your child, and after you’ve passed on, there’s an ugly divorce… and your IRA will be fair game in that proceeding, even though you left it to your CHILD or GRANDCHILD or whoever… and not to their spouse.  That’s just the way it usually works out.

So this is a real issue for everyone… not just those of you who have future beneficiaries who are currently showing signs of financial distress.

So, what do you do?

Well, step 1 – mandatory for everybody – is talk to a competent attorney about this issue.  I, of course, recommend THE GREAT ONE, Tim Berry who you can reach at SDITalk.com/tim.  But no matter who you choose, you MUST work with an attorney who has very specific expertise in BOTH retirement plan law AND in asset protection law, because this issue represents a collision of those two complex areas.

The solution for MOST people will be one or both of these strategies:

#1:  Put a TRUST between your IRA and your future beneficiaries.  I know that Tim Berry is particularly fond of using something called a Charitable Remainder Trust for even greater tax benefits.  Maybe I’ll have him on the show soon to discuss that.

And strategy #2 is to structure the assets INSIDE of your IRA in some sort of asset-protected manner.  This is actually a rather ninja-level strategy, but the basic idea is to structure the assets inside of your IRA such that they are very valuable to you, but practically worthless to anyone else.  There again, I think I’ll have Tim come on and talk with me someday soon about this.

There is one bit of good news though.  Since this Supreme Court ruling came down, several STATES have begun implementing specific protections for inherited IRA’s.  That’s not as good as protection by federal law, but it’s certainly a formidable barrier between the IRA you’ve worked so hard to build and the creditors who would like to take it from you or your loved ones.

That’s all I’ve got for you, except this:  Please, tell your friends about this show… Several ways to listen… on radio via the Wall Street Business Network, on iTunes or of course at SDITalk.com.  I’d appreciate it so much!  Any my friends, invest wisely today, and live well forever!

 

]]>
Ruth Heffron did everything right – she built up an IRA big enough for her retirement, AND enough to leave her daughter nearly half a million dollars.  But the US Supreme Court has different ideas, and it’s bad for Ruth, her daughter, and YOU.  I’m Bryan Ellis.  This is Episode #234.

-----

Hello, SDI Nation!  Welcome back to Self Directed Investor Talk… the show where I, your humble host, daily throw myself into the lion’s den in proclamation of the Gospel of Self Directed Investing… namely, that you MUST DECLARE INDEPENDENCE FROM WALL STREET and take control of your own capital!

Before we do that… can I just remind you guys about Fund & Grow?  They’re the guys that are just EXTRAORDINARY when it comes to build cash credit for investors, businesspeople and others.  For anyone with decent credit, their specialty is establishing $50,000 to $250,000 or more of ZERO INTEREST credit for you to use on anything you want.  Totally unsecured, too… It’s really amazing.  A great alternative to hard money loans, for example.  Check them out if you need capital.  I endorse them very proudly.  You can reach them at SDITalk.com/credit

Ok, let’s jump in.  To participate in the conversation, reach out to us on Facebook or Twitter, or by email at feedback at sditalk.com.

Ruth Heffron must be spinning in her grave.  She opened an IRA and build it up such that, even after using it herself, there was still nearly half a million dollars in there when she passed away.  Mrs. Heffron did what may of us would do in that case… she designated her only child Heidi Heffron-Clark as her beneficiary.

For a while, things were fine.  Heidi was able to withdraw a bit of that money over time, such that she drew it down to a value of about $300,000.  But then something unfortunate happened.  Heidi found herself facing some financial difficulty, and chose to declare bankruptcy.

Now if you’re wondering why Heidi would declare bankruptcy since she had an IRA worth $300,000… well, you’re on the right track.  When one declares bankruptcy, their assets are basically up for grabs by creditors… and so that $300,000 IRA she inherited from dear old mom would seem to be on the chopping block.

Alas… Heidi – or more likely, her bankruptcy attorney – knew that there’s some very special statutory protection for retirement accounts.  With only a few exceptions, IRA’s and other retirement accounts are basically outside of the reach of creditors, even in the case of bankruptcy.  It’s one of the things that makes that type of account truly special… something like a fortress for your financial assets.

So, armed with this assurance, Heidi Heffron-Clark filed for bankruptcy.  But then something wholly unexpected happened:  Her creditors fought back.  They claimed that those protections against creditors available to retirement accounts are available ONLY to retirement accounts… and since Heidi had INHERITED her IRA, and had been using it to pay her life expenses, then that account was arguably NOT a retirement account, and thus no longer entitled to the protections provided by law.

And, lo and behold, when those creditors made these arguments before the US bankruptcy court, the court agreed, and Heidi had lost her $300,000 IRA.  Then the appeals came… she won some, she lost some… you know the drill, until one day, Heidi and the case of her $300,000 IRA land before the U.S. Supreme Court.

And when the judgment on that case was handed down, something unusual happened:  There was a unanimous decision AGAINST Heidi’s claim.  Indeed, the U.S. Supreme Court had decided that by virtue of having INHERITED the account, Heidi’s IRA was no longer actually a retirement account, but was, essentially, a normal financial account, available to satisfy the demands of creditors like any other asset.

Let’s put aside for a moment whether we agree with that decision.  The fact that it was unanimous – which is a rarity at the Supreme Court – suggests that the law is settled, whether we like it or not.

But that raises the question:  How can you make sure that your beneficiaries ACTUALLY receive the money you’re leaving for them, since this IRA protection is no longer available?

And respectfully, my friends, don’t do yourself the disservice of thinking this isn’t relevant for your loved ones.  You might have adult children who are extremely well established financially, and who you can’t imagine would ever declare bankruptcy.  But the issue is broader than that.  I submit for your consideration two additional considerations:

Scenario #1 happens when someone – anyone – is attacked by an unexpected lawsuit.  It could be a car accident that you didn’t intend to cause, but that is nevertheless your fault.  It could be some unforeseen business issue.  No matter… if your beneficiary is targeted by and the victim of a money judgement, then whatever you leave to them in an IRA will be at risk.

And scenario #2 is the all-too-common instance of divorce.  You leave your IRA to your child, and after you’ve passed on, there’s an ugly divorce… and your IRA will be fair game in that proceeding, even though you left it to your CHILD or GRANDCHILD or whoever… and not to their spouse.  That’s just the way it usually works out.

So this is a real issue for everyone… not just those of you who have future beneficiaries who are currently showing signs of financial distress.

So, what do you do?

Well, step 1 – mandatory for everybody – is talk to a competent attorney about this issue.  I, of course, recommend THE GREAT ONE, Tim Berry who you can reach at SDITalk.com/tim.  But no matter who you choose, you MUST work with an attorney who has very specific expertise in BOTH retirement plan law AND in asset protection law, because this issue represents a collision of those two complex areas.

The solution for MOST people will be one or both of these strategies:

#1:  Put a TRUST between your IRA and your future beneficiaries.  I know that Tim Berry is particularly fond of using something called a Charitable Remainder Trust for even greater tax benefits.  Maybe I’ll have him on the show soon to discuss that.

And strategy #2 is to structure the assets INSIDE of your IRA in some sort of asset-protected manner.  This is actually a rather ninja-level strategy, but the basic idea is to structure the assets inside of your IRA such that they are very valuable to you, but practically worthless to anyone else.  There again, I think I’ll have Tim come on and talk with me someday soon about this.

There is one bit of good news though.  Since this Supreme Court ruling came down, several STATES have begun implementing specific protections for inherited IRA’s.  That’s not as good as protection by federal law, but it’s certainly a formidable barrier between the IRA you’ve worked so hard to build and the creditors who would like to take it from you or your loved ones.

That’s all I’ve got for you, except this:  Please, tell your friends about this show… Several ways to listen… on radio via the Wall Street Business Network, on iTunes or of course at SDITalk.com.  I’d appreciate it so much!  Any my friends, invest wisely today, and live well forever!

 

]]>
Why You Should NOT Buy Real Estate In Your IRA | SDIRadio.com #233 Why You Should NOT Buy Real Estate In Your IRA | SDIRadio.com #233 Tue, 27 Dec 2016 18:36:04 GMT 8:13 ee55f5a292f9525f532ed41c7deee318 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f59b Is there ever a time when it is NOT wise to invest your IRA money into a great real estate deal?  You may be surprised to hear it, but the answer is, without a doubt, YES!  I’ll tell you when that’s true… and give you an extraordinary... Is there ever a time when it is NOT wise to invest your IRA money into a great real estate deal?  You may be surprised to hear it, but the answer is, without a doubt, YES!  I’ll tell you when that’s true… and give you an extraordinary alternative.  I’m Bryan Ellis.  This is Episode #233

----

Hello, Self Directed Investor Nation!  Welcome to another exciting edition of Self Directed Investor Radio, the show by savvy investors, for savvy investors where we help you to DECLARE INDEPENDENCE from Wall Street… and help you to build wealth for generations to come.

This is is Episode #233 and you know what that means… you can find the transcript and show notes for today’s episode at SDIRadio.com/233.  And if you have questions or comments, you can post them right there at SDIRadio.com/233 or you can reach out on either Twitter or Facebook at SDITalk.

My friends, a few months ago, a highly esteemed publication – none other than TheStreet.com, a major news source for the whole Wall Street crowd – asked me to begin writing for them, as there’s a very clear appetite on the part of many, many “conventional” investors to look at ways to invest their capital OUTSIDE of the monster known as Wall Street.

The very first article I wrote for them – called “Avoid These 5 Traps When Buying Real Estate In Self-Directed IRA’s” – was promptly awarded an editor’s choice award, which is of course, gratifying, so thank you to the editorial team at TheStreet.com.  But that article and the 5 points within it point to a reality that is somewhat foreign to many investors like me and you who, completely reasonably, see the self-directed IRA and/or 401k as the best thing since sliced bread.  That reality is that:  Sometimes, it’s a good idea to AVOID buying real estate in your self-directed IRA.

Here’s why:

First, it’s actually possible you’ll pay MORE in taxes by doing so.  If you’re using a Roth IRA… no problem, your tax issue is solved.  But if you’re using a traditional account, remember that when you make withdrawals, those withdrawals are taxed at INCOME TAX rates, which are frequently MUCH HIGHER than the capital gains rates you’d likely pay if you did the same deal OUTSIDE of your IRA.  This is a complex issue, and merits some professional advice.

The Second complication with buying real estate in your self-directed IRA is related to LEVERAGE… also known as getting a loan to buy property.  You absolutely CAN do that within a self-directed IRA.  But it’s complicated, and it does subject your IRA to present-day taxes based on a variety of factors we won’t dive into here.  Getting a loan to buy real estate OUTSIDE of an IRA is, by comparison, a rather simple, cut-and-dry sort of thing, so remember that if leverage is key to your strategy.

The Third issue is that if you buy real estate in an IRA, you no longer get the benefit of other great real estate-specific tax advantages that render the IRA less meaningful, such as depreciation and the almighty 1031 exchange.  Those two benefits alone make it worth seriously considering doing a real estate deal OUTSIDE of an IRA rather than inside of it if you have that option.

The fourth big issue for buying real estate in a self-directed IRA is connected with the notion of SWEAT EQUITY… the active investor’s best friend.  You know what I’m talking about… sweat equity is the increase in property value one receives by doing work on the property yourself rather than hiring out to expensive contractors.  But with a self-directed IRA, that issue is challenging because it’s very plausible and very reasonable for the IRS to view the work you’re doing on your IRA’s houses without being paid as a contribution to the plan beyond what’s allowed, and that can cause a big heap of trouble for you should Uncle Sam decide to have a closer look at your IRA.

And the fifth big issue for buying real estate inside of a self directed IRA is this:  You’ve got the freedom to hang yourself.  What I mean is that you are, almost completely, unrestricted in your moment-to-moment activities with the assets of your self-directed IRA.  That’s a good thing… freedom is wonderful, but it can be dangerous, too.  Because if you run askew of the IRS’ rules for how your self-directed IRA can be managed – and those rules are both LEGION and sometimes indecipherable – then the IRS could pin your account with the dreaded “prohibited transaction” label which… in one way of looking at it… probably means that somewhere between half and all of the value of your IRA just went out the door to taxes, penalties and interest because the IRS is NOT PLAYING AROUND on this prohibited transactions thing.

That all sounds rather ominous, doesn’t’ it?  Well… it is.  But only if you’re not well prepared for what you’re attempting to do.

You see, it IS both legal and frequently wise to buy real estate in an IRA.  But there is a generalization that I’d like to recommend to you, which is:

For any given real estate transaction, if you have the option whether to perform he deal EITHER inside OR outside the IRA, my recommendation is that you default to skipping the IRA and do the deal with non-retirement funds.  You’ve heard 5 reasons why so far, but here’s the really big one:

Real estate is, as a legal, statutory matter, extremely tax-favored by the law… much more so than practically any other asset class… certainly more so than stocks.  What I mean is that, even without the benefit of a self-directed IRA, the tax laws are so kind to real estate investors who plan properly that you may actually end up doing BETTER for yourself financially by focusing on the two tax goldmines that exist for real estate investors, which are DEPRECIATION and the 1031 exchange.

Depreciation is a tax strategy that allows many investors to take more in tax deductions than they’ve actually spent.  So it’s a great income tax shelter if you qualify for it.

The 1031 exchange is another marvel of real estate tax law that, in a nutshell, allows you to buy a property, let it blow up in value and become very profitable, and then sell very profitably and pay no tax… as long as you immediately re-invest your proceeds of sale into some other real estate deal.  It’s a way to get the same type of tax deferral that traditional IRA’s offer… but without the threat of prohibited transactions or other risks that are inherent to self-directed IRAs.

But I have one other parting bit of advice for you as well:  Don’t avoid a great real estate deal just because your IRA is the only place where you can fund the deal.  Absolutely not.  I’m NOT telling you that you should NEVER buy real estate in your IRA… only that you should be biased against doing so if you have other alternatives.

And, of course, you need to speak with your own tax counsel about this.  The truth is I know MANY, MANY people who have very successfully navigated the requirements of owning real estate in their retirement accounts… and are very glad they did so.

And, by the way… if you are looking for a GREAT real estate investment… I’ve got some thoughts for you on that, too!  Just text the word SENDBOOK to 44222 to get a free copy of our latest ebook called the SDI Guide To Real Estate Wealth for Busy Investors where you’ll learn how to build a high-quality portfolio of turnkey rental properties that build your cash flow – and your wealth – without your day-to-day involvement… just like it should be for busy investors like you!  Again, just go ahead and text SENDBOOK with no spaces, just one word, to 44222 right now.

Folks, I hope you had a very merry Christmas or are enjoying a happy Hanukkah.  The coming year is going to be an exciting, exciting time for all of us, and for now, I leave you with this bit of advice… invest wisely today, and live well forever!

]]>
Is there ever a time when it is NOT wise to invest your IRA money into a great real estate deal?  You may be surprised to hear it, but the answer is, without a doubt, YES!  I’ll tell you when that’s true… and give you an extraordinary alternative.  I’m Bryan Ellis.  This is Episode #233

----

Hello, Self Directed Investor Nation!  Welcome to another exciting edition of Self Directed Investor Radio, the show by savvy investors, for savvy investors where we help you to DECLARE INDEPENDENCE from Wall Street… and help you to build wealth for generations to come.

This is is Episode #233 and you know what that means… you can find the transcript and show notes for today’s episode at SDIRadio.com/233.  And if you have questions or comments, you can post them right there at SDIRadio.com/233 or you can reach out on either Twitter or Facebook at SDITalk.

My friends, a few months ago, a highly esteemed publication – none other than TheStreet.com, a major news source for the whole Wall Street crowd – asked me to begin writing for them, as there’s a very clear appetite on the part of many, many “conventional” investors to look at ways to invest their capital OUTSIDE of the monster known as Wall Street.

The very first article I wrote for them – called “Avoid These 5 Traps When Buying Real Estate In Self-Directed IRA’s” – was promptly awarded an editor’s choice award, which is of course, gratifying, so thank you to the editorial team at TheStreet.com.  But that article and the 5 points within it point to a reality that is somewhat foreign to many investors like me and you who, completely reasonably, see the self-directed IRA and/or 401k as the best thing since sliced bread.  That reality is that:  Sometimes, it’s a good idea to AVOID buying real estate in your self-directed IRA.

Here’s why:

First, it’s actually possible you’ll pay MORE in taxes by doing so.  If you’re using a Roth IRA… no problem, your tax issue is solved.  But if you’re using a traditional account, remember that when you make withdrawals, those withdrawals are taxed at INCOME TAX rates, which are frequently MUCH HIGHER than the capital gains rates you’d likely pay if you did the same deal OUTSIDE of your IRA.  This is a complex issue, and merits some professional advice.

The Second complication with buying real estate in your self-directed IRA is related to LEVERAGE… also known as getting a loan to buy property.  You absolutely CAN do that within a self-directed IRA.  But it’s complicated, and it does subject your IRA to present-day taxes based on a variety of factors we won’t dive into here.  Getting a loan to buy real estate OUTSIDE of an IRA is, by comparison, a rather simple, cut-and-dry sort of thing, so remember that if leverage is key to your strategy.

The Third issue is that if you buy real estate in an IRA, you no longer get the benefit of other great real estate-specific tax advantages that render the IRA less meaningful, such as depreciation and the almighty 1031 exchange.  Those two benefits alone make it worth seriously considering doing a real estate deal OUTSIDE of an IRA rather than inside of it if you have that option.

The fourth big issue for buying real estate in a self-directed IRA is connected with the notion of SWEAT EQUITY… the active investor’s best friend.  You know what I’m talking about… sweat equity is the increase in property value one receives by doing work on the property yourself rather than hiring out to expensive contractors.  But with a self-directed IRA, that issue is challenging because it’s very plausible and very reasonable for the IRS to view the work you’re doing on your IRA’s houses without being paid as a contribution to the plan beyond what’s allowed, and that can cause a big heap of trouble for you should Uncle Sam decide to have a closer look at your IRA.

And the fifth big issue for buying real estate inside of a self directed IRA is this:  You’ve got the freedom to hang yourself.  What I mean is that you are, almost completely, unrestricted in your moment-to-moment activities with the assets of your self-directed IRA.  That’s a good thing… freedom is wonderful, but it can be dangerous, too.  Because if you run askew of the IRS’ rules for how your self-directed IRA can be managed – and those rules are both LEGION and sometimes indecipherable – then the IRS could pin your account with the dreaded “prohibited transaction” label which… in one way of looking at it… probably means that somewhere between half and all of the value of your IRA just went out the door to taxes, penalties and interest because the IRS is NOT PLAYING AROUND on this prohibited transactions thing.

That all sounds rather ominous, doesn’t’ it?  Well… it is.  But only if you’re not well prepared for what you’re attempting to do.

You see, it IS both legal and frequently wise to buy real estate in an IRA.  But there is a generalization that I’d like to recommend to you, which is:

For any given real estate transaction, if you have the option whether to perform he deal EITHER inside OR outside the IRA, my recommendation is that you default to skipping the IRA and do the deal with non-retirement funds.  You’ve heard 5 reasons why so far, but here’s the really big one:

Real estate is, as a legal, statutory matter, extremely tax-favored by the law… much more so than practically any other asset class… certainly more so than stocks.  What I mean is that, even without the benefit of a self-directed IRA, the tax laws are so kind to real estate investors who plan properly that you may actually end up doing BETTER for yourself financially by focusing on the two tax goldmines that exist for real estate investors, which are DEPRECIATION and the 1031 exchange.

Depreciation is a tax strategy that allows many investors to take more in tax deductions than they’ve actually spent.  So it’s a great income tax shelter if you qualify for it.

The 1031 exchange is another marvel of real estate tax law that, in a nutshell, allows you to buy a property, let it blow up in value and become very profitable, and then sell very profitably and pay no tax… as long as you immediately re-invest your proceeds of sale into some other real estate deal.  It’s a way to get the same type of tax deferral that traditional IRA’s offer… but without the threat of prohibited transactions or other risks that are inherent to self-directed IRAs.

But I have one other parting bit of advice for you as well:  Don’t avoid a great real estate deal just because your IRA is the only place where you can fund the deal.  Absolutely not.  I’m NOT telling you that you should NEVER buy real estate in your IRA… only that you should be biased against doing so if you have other alternatives.

And, of course, you need to speak with your own tax counsel about this.  The truth is I know MANY, MANY people who have very successfully navigated the requirements of owning real estate in their retirement accounts… and are very glad they did so.

And, by the way… if you are looking for a GREAT real estate investment… I’ve got some thoughts for you on that, too!  Just text the word SENDBOOK to 44222 to get a free copy of our latest ebook called the SDI Guide To Real Estate Wealth for Busy Investors where you’ll learn how to build a high-quality portfolio of turnkey rental properties that build your cash flow – and your wealth – without your day-to-day involvement… just like it should be for busy investors like you!  Again, just go ahead and text SENDBOOK with no spaces, just one word, to 44222 right now.

Folks, I hope you had a very merry Christmas or are enjoying a happy Hanukkah.  The coming year is going to be an exciting, exciting time for all of us, and for now, I leave you with this bit of advice… invest wisely today, and live well forever!

]]>
<![CDATA[Donald Trump's Transition for Self-Directed Investors | Episode 232]]> Mon, 26 Dec 2016 19:14:11 GMT 7:16 26b79c3b3cd723f7210871c959bec8ca no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f59c Donald Trump was elected president, and you’ve heard nothing about it from yours truly, the voice of the Self Directed Investor Revolution.  So what does Trumps ascendancy to the Presidency mean for you and me?  And what’s the one thing... Donald Trump was elected president, and you’ve heard nothing about it from yours truly, the voice of the Self Directed Investor Revolution.  So what does Trumps ascendancy to the Presidency mean for you and me?  And what’s the one thing he’s saying right now that concern me FAR MORE than anything else the press is focused on?  I’ll tell you right now.  I’m Bryan Ellis.  This is Episode #231.

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Hello, SDI Nation!  Welcome to the broadcast of record for savvy self-directed investors like you, where each day we help you DECLARE INDEPENDENCE FROM WALL STREET and build wealth for multiple generations – your generation, and your loved ones, too!

My friends, there’s been a lot going on here at SDI Southern Command in Atlanta, Georgia.  Far from being silent, I’ve been speaking out more than ever before… but in a new, different way than any of you area accustomed to.

You see, the overwhelming success of this very podcast brought to me the opportunity to get the word out to an even broader group of people on conventional radio, and since early December, I – along with my lovely and incredibly brilliant wife Carole – have been featured each day at 3pm Pacific on KDOW 1220 in San Francisco.

So, for any of you in or near the Bay Area, please do join us each day at 3pm!  And of course for everyone else, you can get access to that hour-long show by looking up KDOW 1220 on either iHeartRadio or TuneIn radio.

I’ll get to the primary content of today’s episode in just a moment, which is nothing less than my evaluation of Donald Trump’s stunning victory in early November, but as far as this show going onto traditional radio is concerned, I’ll go ahead and answer a 3 questions I know I’ll get.

First, YES, it’s a tremendous honor to have received this opportunity and we’re having a great time doing the show.  It’s a bit different from this show, as it’s a full hour long and features daily news commentary along with expert interviews, as compared to this show which features only my monologue in episode.  So it’s different, while still maintaining the same viewpoint along with a healthy dose of monologues like you all seem to enjoy.  It was humbling… I was provided with a list of about one dozen major markets across the United States, and chose to start up right there in the Bay Area for a variety of strategic reasons, not the least of which is that so many of you already live in that area.

Second, my broadcasting partner has, after a mere 3 weeks of our being on the air, made it very clear to me that he thinks we have the right stuff to go much broader, and to target additional major markets such as Dallas, Seattle, Boston, Atlanta and Miami… and there are others.  So the possibility that we’ll be on far more major markets in the near future is very high.

And Third… this is the weird one… I don’t yet know how I feel about doing that show.  Honestly, it’s a LOT of work… I mean, a LOT of work.  I haven’t really hit my groove yet as far as being able to do it efficiently.  So while I’m very encouraged by the response I’m receiving so far – which includes a near-record number of downloads of this podcast last week, even though I’ve not produced a new episode in over a month – I’m not yet sure whether this “radio thing” is something we’re going to do long-term.  It’s a wait-and-see, trial basis kind of thing.

But what’s not “trial basis” is my return to this show, and regularly producing great content for you, just as I have in the past.  Great content, such as what I have for you right now in the form of my assessment and predictions for Donald Trump’s presidency and it’s effect on you and me as investors.  That’s right, folks… this is a political topic, but the focus is all about your investments.

So… President-Elect Donald Trump.  I’ve got to say… overall, I’m really, really impressed with the way he’s handled his transition.

Yes, it’s true that he’s selected a swatch of very, very wealthy business people to run practically every department of the federal government.  And yes, I know that’s really not be done before.  But I’ve got to tell you:  I like it.  I like it a lot.  You might criticize them for a lack of government experience, but organizational leadership experience they have in spades.  Take, for example, Rex Tillerson, When Tillerson transitions from his post as CEO of Exxon to his new role as Secretary of State, he’ll actually be taking over an organization – the US State Department – that has only about HALF as many employees as Tillerson had an Exxon.  Furthermore, the guy is reputed to have a personal, first-name basis with dozens of major leaders across the world, because, let’s face it – Exxon is so big that other governments have long had to treat it with respect.  So Tillerson won’t be new to that type of role.

I could go on, as there are really interesting things to say about all of Trump’s selections so far.  Now far be it from me to suggest that they’re all perfect choices.  They’re not.  But overall, I’m really impressed.  Trump is methodically building an organizational dream team.

Will it work?  I bet it will.  I just bet it will.

Of course, Trump has been making waves with his negotiation of the deal to keep all of those jobs from Carrier corporation here in the U.S.  In the grand scheme of things, that’s really only about 1,000 jobs… but we’ve never seen the current occupant of 1600 Pennsylvania Avenue do anything of the sort at all, so it was a special thing.

My overall predication is that Trump is going to continue to face really aggressive opposition from the media, just as during the election.  He’s directly minimizing their relevance by using Twitter so much, and I suspect that will continue.

I also suspect he’ll end up nominating Senator Ted Cruz to the U.S. Supreme Court, and that will set off a firestorm, which will likely ultimately be successful.

And he seems really serious about actually cutting taxes and doing many of the things he said on the campaign trail.  I expected to hear him softening on a lot of his core positions by now, but not only has that not happened, but his selections for his cabinet suggest he’s as determined as ever.

My one big concern is this:  Even though Trump is saying the right things in terms of getting the economy going – namely that we have to have lower taxes, better trade policy and a stronger dollar – the other thing he’s saying concerns me greatly, and that is that he wants to spend money… a LOT of money… in some sort of new stimulus for the purpose of infrastructure repair.

Look, one can make the argument that that is necessary.  But it makes me nervous… government spending is such a dangerous, dangerous thing.  It makes me really, really nervous.

But I’ve got to tell you… overall… I’m excited. I think there’s actual REAL POTENTIAL that the U.S. economy could be truly strong, truly great again… and that’s good for all of us.

My friends… thank you for listening and remember:

Invest wisely today, and live well forever!

]]>
Donald Trump was elected president, and you’ve heard nothing about it from yours truly, the voice of the Self Directed Investor Revolution.  So what does Trumps ascendancy to the Presidency mean for you and me?  And what’s the one thing he’s saying right now that concern me FAR MORE than anything else the press is focused on?  I’ll tell you right now.  I’m Bryan Ellis.  This is Episode #231.

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Hello, SDI Nation!  Welcome to the broadcast of record for savvy self-directed investors like you, where each day we help you DECLARE INDEPENDENCE FROM WALL STREET and build wealth for multiple generations – your generation, and your loved ones, too!

My friends, there’s been a lot going on here at SDI Southern Command in Atlanta, Georgia.  Far from being silent, I’ve been speaking out more than ever before… but in a new, different way than any of you area accustomed to.

You see, the overwhelming success of this very podcast brought to me the opportunity to get the word out to an even broader group of people on conventional radio, and since early December, I – along with my lovely and incredibly brilliant wife Carole – have been featured each day at 3pm Pacific on KDOW 1220 in San Francisco.

So, for any of you in or near the Bay Area, please do join us each day at 3pm!  And of course for everyone else, you can get access to that hour-long show by looking up KDOW 1220 on either iHeartRadio or TuneIn radio.

I’ll get to the primary content of today’s episode in just a moment, which is nothing less than my evaluation of Donald Trump’s stunning victory in early November, but as far as this show going onto traditional radio is concerned, I’ll go ahead and answer a 3 questions I know I’ll get.

First, YES, it’s a tremendous honor to have received this opportunity and we’re having a great time doing the show.  It’s a bit different from this show, as it’s a full hour long and features daily news commentary along with expert interviews, as compared to this show which features only my monologue in episode.  So it’s different, while still maintaining the same viewpoint along with a healthy dose of monologues like you all seem to enjoy.  It was humbling… I was provided with a list of about one dozen major markets across the United States, and chose to start up right there in the Bay Area for a variety of strategic reasons, not the least of which is that so many of you already live in that area.

Second, my broadcasting partner has, after a mere 3 weeks of our being on the air, made it very clear to me that he thinks we have the right stuff to go much broader, and to target additional major markets such as Dallas, Seattle, Boston, Atlanta and Miami… and there are others.  So the possibility that we’ll be on far more major markets in the near future is very high.

And Third… this is the weird one… I don’t yet know how I feel about doing that show.  Honestly, it’s a LOT of work… I mean, a LOT of work.  I haven’t really hit my groove yet as far as being able to do it efficiently.  So while I’m very encouraged by the response I’m receiving so far – which includes a near-record number of downloads of this podcast last week, even though I’ve not produced a new episode in over a month – I’m not yet sure whether this “radio thing” is something we’re going to do long-term.  It’s a wait-and-see, trial basis kind of thing.

But what’s not “trial basis” is my return to this show, and regularly producing great content for you, just as I have in the past.  Great content, such as what I have for you right now in the form of my assessment and predictions for Donald Trump’s presidency and it’s effect on you and me as investors.  That’s right, folks… this is a political topic, but the focus is all about your investments.

So… President-Elect Donald Trump.  I’ve got to say… overall, I’m really, really impressed with the way he’s handled his transition.

Yes, it’s true that he’s selected a swatch of very, very wealthy business people to run practically every department of the federal government.  And yes, I know that’s really not be done before.  But I’ve got to tell you:  I like it.  I like it a lot.  You might criticize them for a lack of government experience, but organizational leadership experience they have in spades.  Take, for example, Rex Tillerson, When Tillerson transitions from his post as CEO of Exxon to his new role as Secretary of State, he’ll actually be taking over an organization – the US State Department – that has only about HALF as many employees as Tillerson had an Exxon.  Furthermore, the guy is reputed to have a personal, first-name basis with dozens of major leaders across the world, because, let’s face it – Exxon is so big that other governments have long had to treat it with respect.  So Tillerson won’t be new to that type of role.

I could go on, as there are really interesting things to say about all of Trump’s selections so far.  Now far be it from me to suggest that they’re all perfect choices.  They’re not.  But overall, I’m really impressed.  Trump is methodically building an organizational dream team.

Will it work?  I bet it will.  I just bet it will.

Of course, Trump has been making waves with his negotiation of the deal to keep all of those jobs from Carrier corporation here in the U.S.  In the grand scheme of things, that’s really only about 1,000 jobs… but we’ve never seen the current occupant of 1600 Pennsylvania Avenue do anything of the sort at all, so it was a special thing.

My overall predication is that Trump is going to continue to face really aggressive opposition from the media, just as during the election.  He’s directly minimizing their relevance by using Twitter so much, and I suspect that will continue.

I also suspect he’ll end up nominating Senator Ted Cruz to the U.S. Supreme Court, and that will set off a firestorm, which will likely ultimately be successful.

And he seems really serious about actually cutting taxes and doing many of the things he said on the campaign trail.  I expected to hear him softening on a lot of his core positions by now, but not only has that not happened, but his selections for his cabinet suggest he’s as determined as ever.

My one big concern is this:  Even though Trump is saying the right things in terms of getting the economy going – namely that we have to have lower taxes, better trade policy and a stronger dollar – the other thing he’s saying concerns me greatly, and that is that he wants to spend money… a LOT of money… in some sort of new stimulus for the purpose of infrastructure repair.

Look, one can make the argument that that is necessary.  But it makes me nervous… government spending is such a dangerous, dangerous thing.  It makes me really, really nervous.

But I’ve got to tell you… overall… I’m excited. I think there’s actual REAL POTENTIAL that the U.S. economy could be truly strong, truly great again… and that’s good for all of us.

My friends… thank you for listening and remember:

Invest wisely today, and live well forever!

]]>
Trump vs Hillary (3 of 3) – the IMPACT for Self-Directed Investors – RISE Act Trump vs Hillary (3 of 3) – the IMPACT for Self-Directed Investors – RISE Act Mon, 07 Nov 2016 15:51:45 GMT 7:41 f12c4803bc393fa8cf3cf4c1cac718cf no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f59d The RISE Act Proposal is the biggest threat to self-directed IRA investors we’ve ever faced. Two episodes ago, I told you how Mitt Romney’s massive $100 million IRA prompted the creation of the RISE act, which I explained – in all of its... The RISE Act Proposal is the biggest threat to self-directed IRA investors we’ve ever faced. Two episodes ago, I told you how Mitt Romney’s massive $100 million IRA prompted the creation of the RISE act, which I explained – in all of its terrifying detail – in the last episode.  Today, you see how this is ABSOLUTELY, POISTIVELY connected to the Trump vs Clinton choice we’ve all got to make on election day, November 8.  The next 7 minutes are overwhelmingly important to the future of EVERY SINGLE self-directed IRA investor.  I’m Bryan Ellis. This is Episode #231.

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Hello SDI Nation, welcome to the podcast of record where we help you to declare independence from Wall Street and build a financial legacy for future generations.  Today I’ll show you how the future of the overwhelmingly NEGATIVE RISE act proposal is INTIMATELY connected to the Trump vs Clinton choice.  Remember – right now RISE is just a proposal, but not law.  Today you learn how to make sure it never, ever becomes law.

Just a heads up… in today’s show, you’re going to hear me refer to the show notes page a few times.  That page is SDIRadio.com/231 and it’s got some really important, profoundly relevant things for you, including the links to Part 1 and Part 2 of this 3-part series.  So when you hear me refer to today’s show notes page, know that I’m referring to SDIRadio.com/231.

But first – folks, you’ve doubtlessly heard of my friends over at Fund & Grow.  These guys are absolute magicians when it comes to helping their clients acquire zero-interest lines of credit… lines of credit that are essentially just signature loans, not even secured by real estate or anything else.  Think about that, folks… what if you could finance that real estate deal using a zero percent interest loan?  It’s a game changer, and that’s exactly what my friends Ari and Mike over at Fund & Grow do.  I say they’re magicians, but in truth, they just follow a great, great process that’s very reliable.  For people with decent credit or better, it’s totally achievable to reach $250,000 in zero-interest credit… and my friends, they’ve actually generated over $2.9 million worth of that type of credit for your fellow listeners just this year alone.  So my recommendation?  Check them out, and do it now… at SDIRadio.com/credit.  Again, that’s SDIRadio.com/credit.  You’ll be glad you did.

So in episode #229 I showed you how Mitt Romney built a $100 Million IRA… and how the disclosure of that account may have, in part, cost him the presidency.  And in Episode #230 I showed you how the negative publicity that generated led to the proposal of the RISE Act by socialist Senator Ron Wyden, democrat from Oregon… an act that, frankly, if it passes into law, it will be a catastrophe of cataclysmic proportions for self-directed IRA owners.

So what do we do about this?  We here at Self Directed Investor Radio, and our parent organization the Self Directed Investor Society, are here as YOUR ADVOCATE against government encroachment of your rights.

Frankly, I’ll have a lot more to say after the coming week to guide you about how to respond to this threat, but in the coming week, you have a HUGE opportunity to DIRECTLY impact this particular issue… to cut it off at the knees before it ever takes root.

How?  The way to do that is to WISELY cast your vote, both at the Presidential and at the Congressional levels.

Here’s are 3 things we know for sure:

  • First, If Republicans maintain control of both houses of Congress, the RISE act proposal will never see the light of day. As it currently stands, this proposal is little more than political theater to stoke the passions of Wyden’s bleeding-heart, entitlement-oriented constituency.  But if Democrats take both – or even EITHER house of congress – on Tuesday of this coming week, then this proposal stands a very, very real chance of introduction and passage
  • The second thing we know is that If Hillary Clinton is elected President, you can bet your bottom dollar she’ll be totally on board to support this proposal. Hillary is no friend of your wallet.  She’s already proposed MASSIVE increases in income taxes and estate taxes, and mark my words:  Your IRA is a juicy target to her.  She famously made – and never, ever retracted – this statement: “Many of you are well off enough that the tax cuts may have helped you.  We’re saying that for America to get back on track, we’re probably going to cut that short and not give it to you.  We’re going to take things away from you on behalf of the common good.”  Think you aren’t wealthy enough to be in her crosshairs?  Think again:  You don’t need to be in the top 1%.  More like the top 20%... and it only takes a family income of $111,000 per year.  Not a high standard, folks.
  • The last thing we know is that If Donald Trump is elected, we don’t have any overt indication of where he’d fall on this issue. To my way of thinking, this is Trump’s greatest weakness:  We don’t have profound clarity on his positions because he’s not a politician with a long paper trail.  But what we do have is an overt proclivity in his published position papers IN FAVOR OF capitalism, small business and tax reduction.  That, in and of itself, is a huge positive.  Trump makes me nervous… nervous in a lot of ways.  But he’s definitely SAYING the right things in terms of showing respect for you and your wealth.

So folks, if you’re voting with an eye towards the safety and security of your self-directed IRA… not just now, but for years into the future, then here’s what I recommend you do on election day, Tuesday, November 8:

I recommend you vote AGAINST the philosophy of Hillary Clinton and Ron Wyden that will profoundly damage your self directed IRA by SUPPORTING Donald Trump.  And I recommend you hold your nose and have a bias in favor of Republican candidates for the US House & Senate.  I say that NOT because I’m a Republican.  I am NOT.  I find the Republican party – and the Democrat party – to be utterly negative and nothing more than a voice for the “elites” of this country who think they know how to run our lives better than we do.

But where your retirement savings are concerned – and that means the financial security of your family, and of future generations – there’s simply no plausible argument to suggest that Hillary Clinton or any of Senator Wyden’s fellow democrats have any interest in doing anything with your money other than taking more of it away.  The RISE Act is prima facie evidence of that.  That proposal actually

To vote for anyone who thinks like Wyden or Hillary is to vote against yourself, and to vote against the security of your IRA and retirement savings.

And that, my friends, is the cold, hard truth of how you should vote on Tuesday if your retirement account matters to you.  Hold your nose, and vote for Trump and the Republicans.  Set aside petty concerns and vote to protect your family’s financial security – and your financial legacy – by supporting Trump and the Republicans.

My friends… invest wisely today… and live well forever.

]]>
The RISE Act Proposal is the biggest threat to self-directed IRA investors we’ve ever faced. Two episodes ago, I told you how Mitt Romney’s massive $100 million IRA prompted the creation of the RISE act, which I explained – in all of its terrifying detail – in the last episode.  Today, you see how this is ABSOLUTELY, POISTIVELY connected to the Trump vs Clinton choice we’ve all got to make on election day, November 8.  The next 7 minutes are overwhelmingly important to the future of EVERY SINGLE self-directed IRA investor.  I’m Bryan Ellis. This is Episode #231.

-----

Hello SDI Nation, welcome to the podcast of record where we help you to declare independence from Wall Street and build a financial legacy for future generations.  Today I’ll show you how the future of the overwhelmingly NEGATIVE RISE act proposal is INTIMATELY connected to the Trump vs Clinton choice.  Remember – right now RISE is just a proposal, but not law.  Today you learn how to make sure it never, ever becomes law.

Just a heads up… in today’s show, you’re going to hear me refer to the show notes page a few times.  That page is SDIRadio.com/231 and it’s got some really important, profoundly relevant things for you, including the links to Part 1 and Part 2 of this 3-part series.  So when you hear me refer to today’s show notes page, know that I’m referring to SDIRadio.com/231.

But first – folks, you’ve doubtlessly heard of my friends over at Fund & Grow.  These guys are absolute magicians when it comes to helping their clients acquire zero-interest lines of credit… lines of credit that are essentially just signature loans, not even secured by real estate or anything else.  Think about that, folks… what if you could finance that real estate deal using a zero percent interest loan?  It’s a game changer, and that’s exactly what my friends Ari and Mike over at Fund & Grow do.  I say they’re magicians, but in truth, they just follow a great, great process that’s very reliable.  For people with decent credit or better, it’s totally achievable to reach $250,000 in zero-interest credit… and my friends, they’ve actually generated over $2.9 million worth of that type of credit for your fellow listeners just this year alone.  So my recommendation?  Check them out, and do it now… at SDIRadio.com/credit.  Again, that’s SDIRadio.com/credit.  You’ll be glad you did.

So in episode #229 I showed you how Mitt Romney built a $100 Million IRA… and how the disclosure of that account may have, in part, cost him the presidency.  And in Episode #230 I showed you how the negative publicity that generated led to the proposal of the RISE Act by socialist Senator Ron Wyden, democrat from Oregon… an act that, frankly, if it passes into law, it will be a catastrophe of cataclysmic proportions for self-directed IRA owners.

So what do we do about this?  We here at Self Directed Investor Radio, and our parent organization the Self Directed Investor Society, are here as YOUR ADVOCATE against government encroachment of your rights.

Frankly, I’ll have a lot more to say after the coming week to guide you about how to respond to this threat, but in the coming week, you have a HUGE opportunity to DIRECTLY impact this particular issue… to cut it off at the knees before it ever takes root.

How?  The way to do that is to WISELY cast your vote, both at the Presidential and at the Congressional levels.

Here’s are 3 things we know for sure:

  • First, If Republicans maintain control of both houses of Congress, the RISE act proposal will never see the light of day. As it currently stands, this proposal is little more than political theater to stoke the passions of Wyden’s bleeding-heart, entitlement-oriented constituency.  But if Democrats take both – or even EITHER house of congress – on Tuesday of this coming week, then this proposal stands a very, very real chance of introduction and passage
  • The second thing we know is that If Hillary Clinton is elected President, you can bet your bottom dollar she’ll be totally on board to support this proposal. Hillary is no friend of your wallet.  She’s already proposed MASSIVE increases in income taxes and estate taxes, and mark my words:  Your IRA is a juicy target to her.  She famously made – and never, ever retracted – this statement: “Many of you are well off enough that the tax cuts may have helped you.  We’re saying that for America to get back on track, we’re probably going to cut that short and not give it to you.  We’re going to take things away from you on behalf of the common good.”  Think you aren’t wealthy enough to be in her crosshairs?  Think again:  You don’t need to be in the top 1%.  More like the top 20%... and it only takes a family income of $111,000 per year.  Not a high standard, folks.
  • The last thing we know is that If Donald Trump is elected, we don’t have any overt indication of where he’d fall on this issue. To my way of thinking, this is Trump’s greatest weakness:  We don’t have profound clarity on his positions because he’s not a politician with a long paper trail.  But what we do have is an overt proclivity in his published position papers IN FAVOR OF capitalism, small business and tax reduction.  That, in and of itself, is a huge positive.  Trump makes me nervous… nervous in a lot of ways.  But he’s definitely SAYING the right things in terms of showing respect for you and your wealth.

So folks, if you’re voting with an eye towards the safety and security of your self-directed IRA… not just now, but for years into the future, then here’s what I recommend you do on election day, Tuesday, November 8:

I recommend you vote AGAINST the philosophy of Hillary Clinton and Ron Wyden that will profoundly damage your self directed IRA by SUPPORTING Donald Trump.  And I recommend you hold your nose and have a bias in favor of Republican candidates for the US House & Senate.  I say that NOT because I’m a Republican.  I am NOT.  I find the Republican party – and the Democrat party – to be utterly negative and nothing more than a voice for the “elites” of this country who think they know how to run our lives better than we do.

But where your retirement savings are concerned – and that means the financial security of your family, and of future generations – there’s simply no plausible argument to suggest that Hillary Clinton or any of Senator Wyden’s fellow democrats have any interest in doing anything with your money other than taking more of it away.  The RISE Act is prima facie evidence of that.  That proposal actually

To vote for anyone who thinks like Wyden or Hillary is to vote against yourself, and to vote against the security of your IRA and retirement savings.

And that, my friends, is the cold, hard truth of how you should vote on Tuesday if your retirement account matters to you.  Hold your nose, and vote for Trump and the Republicans.  Set aside petty concerns and vote to protect your family’s financial security – and your financial legacy – by supporting Trump and the Republicans.

My friends… invest wisely today… and live well forever.

]]>
Trump vs Hillary (2 of 3) – the IMPACT for Self-Directed Investors – RISE Act Trump vs Hillary (2 of 3) – the IMPACT for Self-Directed Investors – RISE Act Mon, 07 Nov 2016 15:16:27 GMT 8:27 2db5c17c7b3f3100e139bcfb5392fa48 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f59e In our last exciting exciting episode, you discovered how the specter of Mitt Romney’s 2012 disclosure of his $100 Million IRA still looms large over politics in 2016 with the announcement of the RISE Act Proposal, a legislative objective designed... In our last exciting exciting episode, you discovered how the specter of Mitt Romney’s 2012 disclosure of his $100 Million IRA still looms large over politics in 2016 with the announcement of the RISE Act Proposal, a legislative objective designed to totally cut off self-directed IRA’s at the knees.  Today, you learn exactly what the RISE Act is and why it’s the worst news for self-directed IRA investors… maybe ever.  And… oh yeah… you’ll learn about the CLEAR CONNECTION to the Trump vs Clinton presidential battle. Buckle your seatbelts, folks.  This one is going to be ugly.  This is episode #230.

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Hello SDI Nation, welcome to the podcast of record where we help you to declare independence from Wall Street and build a financial legacy for future generations.  Today’s show notes page is at SDIRadio.com/230… write that down, because you’ll need it to reference some of the things I’ll tell you about today, that will simply leave you aghast.

But first, folks, I owe it to you to make sure you know about my friends over at Fund & Grow.  These guys are absolute magicians when it comes to helping their clients acquire zero-interest lines of credit… lines of credit that are essentially just signature loans, not even secured by real estate or anything else.  Think about that, folks… what if you could finance that real estate deal using a zero percent interest loan?  It’s a game changer, and that’s exactly what my friends Ari and Mike over at Fund & Grow do.  I say they’re magicians, but in truth, they just follow a great, great process that’s very reliable.  For people with decent credit or better, it’s totally achievable to reach $250,000 in zero-interest credit… and my friends, they’ve actually generated over $2.9 million worth of that type of credit for your fellow listeners just this year alone.  So my recommendation?  Check them out, and do it now… at SDIRadio.com/credit.  Again, that’s SDIRadio.com/credit.  You’ll be glad you did.

So, yesterday in Episode 229, I gave you my presumption about exactly how it is that Mitt Romney was able to build an IRA worth $100 million, totally legally.  You also learned how Romney’s success and the class envy-based reasoning of Senator Ron Wyden, Democrat from Oregon, resulted in the recent proposal of the deceptively named RISE Act – Retirement Income and Savings Enhancement Act of 2016.

So what is it?  And what’s the connection to the Trum p vs Clinton battle?  Let’s dig in now.

The RISE Act Proposal is the work of Ron Wyden, democrat Senator from Oregon.  It offers two mildly positive features:

  • A very slight increase in the age where you must begin to take required minimum distributions, and
  • Removal of the maximum age for Traditional IRA contributions

Those are good things, but they’re incredibly minor in the grand scheme of things.  But there are 3 features of this proposal – “features” is the wrong word, they’re more like ASSAULTS – and they’re truly horrible… a direct attack against you as an IRA user… these assaults are designed to make sure that the IRA is less valuable in the future than it is now… and one of those assaults is designed specifically to cut the legs out from under savvy users of self-directed IRA’s who invest in real estate, private businesses or any other non-exchange-listed assets.  Let’s take a look:

Assault #1 targets owners of Traditional IRAs whether self-directed or otherwise.  If Senator Wyden’s proposal becomes law, you’ll no longer have the option of converting your Traditional to a Roth.  The Roth account is in the cross hairs of the government because the Roth actually ELIMINATES tax liability rather than deferring it like the traditional IRA.  As such, Wyden proposes to eliminate your right to reduce your tax liability by converting from a al to a Roth.

Assault #2 targets owners of Roth IRA’s, whether self-directed or otherwise.  If that’s you, you’ll now be subject to required minimum distributions – the dreaded RMD.  If you’re not familiar, RMD is a formula for determining how much money MUST be withdrawn from your IRA, even if you don’t want to withdraw it.  Previously, only Traditional IRA’s were subject to this, but not Roths.  Why is Senator Wyden expanding it to Roth IRA’s?  Well, here again, Wyden and his ilk HATE the Roth IRA because it ELIMINATES taxes rather than just deferring them.  Furthermore, the Roth IRA may be the single greatest estate planning tool ever created, because if you leave a Roth IRA to a beneficiary, that beneficiary can take that money out totally tax free at any time… but they can also continue to build that account using the funds you left to them, and the profits from THEIR transactions are also entirely tax free, and also entirely available for withdrawal at any time they want.  In effect, the owner of a well-managed inherited Roth IRA could live their life ENTIRELY income-tax free.  The inherited Roth IRA is astoundingly powerful, and Wyden is doing what he can to make sure that not only do YOU get less benefit from your Roth IRA, but he’s also trying to make sure your Roth IRA is distributed during your lifetime so that your beneficiaries can’t continue benefiting from its income tax elimination features.

Which leads us to Assault #3… and this is the one that really cuts the legs out from under self-directed IRA owners specifically, whether using a Traditional or Roth account.  This one is actually two assaults in one.  First, the assets of self-directed IRA’s will now be required to be formally valued via a “qualified appraisal”.  The meaning of “qualified appraisal” is not defined, meaning that it’s left to the IRS to decide.  At the very least, I suspect this will translate into a requirement for formal independent appraisals.  That, in itself, is a huge, huge issue for some investors.  The cost of appraising certain types of commercial real estate or privately held businesses or other non-exchange-traded assets can EASILY become prohibitive, running to the 10’s of thousands of dollars per asset, creating an astounding burden on the self-directed IRA owner.

But that’s just the tip of the iceberg.  The REAL REASON that valuations are required under Senator Wyden’s proposal is that the RISE act explicitly prohibits you from buying any asset for less than its market value.  Yes, you heard that correctly.  If Senator Wyden gets his way, you’ll no longer even have the option of buying real estate at a discount.  You’ll no longer be able to buy discounted notes or mortgages or any other asset at favorable prices.  You’ll no longer have the ability to do the one thing that real estate investors always aim to do:  To profit on the front end by BUYING RIGHT.  That will, literally, be illegal.

And that’s not the whole story.  There are even MORE assaults against you as an IRA investor.  It’s simply stunning how thoroughly anti-capitalist the RISE proposal really is.  Folks, the tiny, tiny, infinitesimally small benefits offered by the RISE Act proposal are absolutely worthless compared with the tremendous, tremendous damage this act will do to you as a self-directed IRA user, whether Roth or Traditional.

In short, this is PROFOUNDLY opposed to your interests, and it’s opposed to the interests of your beneficiaries, if building a financial legacy matters to you.  There’s just no doubt about it.

So what’s the connection to the Presidential election that rages on right now?  My friends, I’m sorry… I’ve run out of time again for this episode.  But in the interest of making sure you get the information in time, you can hear part 3 – the FINAL part of this URGENT topic right now by going over to SDIRadio.com/231.  

My friends, invest wisely today, and live well forever!

]]>
In our last exciting exciting episode, you discovered how the specter of Mitt Romney’s 2012 disclosure of his $100 Million IRA still looms large over politics in 2016 with the announcement of the RISE Act Proposal, a legislative objective designed to totally cut off self-directed IRA’s at the knees.  Today, you learn exactly what the RISE Act is and why it’s the worst news for self-directed IRA investors… maybe ever.  And… oh yeah… you’ll learn about the CLEAR CONNECTION to the Trump vs Clinton presidential battle. Buckle your seatbelts, folks.  This one is going to be ugly.  This is episode #230.

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Hello SDI Nation, welcome to the podcast of record where we help you to declare independence from Wall Street and build a financial legacy for future generations.  Today’s show notes page is at SDIRadio.com/230… write that down, because you’ll need it to reference some of the things I’ll tell you about today, that will simply leave you aghast.

But first, folks, I owe it to you to make sure you know about my friends over at Fund & Grow.  These guys are absolute magicians when it comes to helping their clients acquire zero-interest lines of credit… lines of credit that are essentially just signature loans, not even secured by real estate or anything else.  Think about that, folks… what if you could finance that real estate deal using a zero percent interest loan?  It’s a game changer, and that’s exactly what my friends Ari and Mike over at Fund & Grow do.  I say they’re magicians, but in truth, they just follow a great, great process that’s very reliable.  For people with decent credit or better, it’s totally achievable to reach $250,000 in zero-interest credit… and my friends, they’ve actually generated over $2.9 million worth of that type of credit for your fellow listeners just this year alone.  So my recommendation?  Check them out, and do it now… at SDIRadio.com/credit.  Again, that’s SDIRadio.com/credit.  You’ll be glad you did.

So, yesterday in Episode 229, I gave you my presumption about exactly how it is that Mitt Romney was able to build an IRA worth $100 million, totally legally.  You also learned how Romney’s success and the class envy-based reasoning of Senator Ron Wyden, Democrat from Oregon, resulted in the recent proposal of the deceptively named RISE Act – Retirement Income and Savings Enhancement Act of 2016.

So what is it?  And what’s the connection to the Trum p vs Clinton battle?  Let’s dig in now.

The RISE Act Proposal is the work of Ron Wyden, democrat Senator from Oregon.  It offers two mildly positive features:

  • A very slight increase in the age where you must begin to take required minimum distributions, and
  • Removal of the maximum age for Traditional IRA contributions

Those are good things, but they’re incredibly minor in the grand scheme of things.  But there are 3 features of this proposal – “features” is the wrong word, they’re more like ASSAULTS – and they’re truly horrible… a direct attack against you as an IRA user… these assaults are designed to make sure that the IRA is less valuable in the future than it is now… and one of those assaults is designed specifically to cut the legs out from under savvy users of self-directed IRA’s who invest in real estate, private businesses or any other non-exchange-listed assets.  Let’s take a look:

Assault #1 targets owners of Traditional IRAs whether self-directed or otherwise.  If Senator Wyden’s proposal becomes law, you’ll no longer have the option of converting your Traditional to a Roth.  The Roth account is in the cross hairs of the government because the Roth actually ELIMINATES tax liability rather than deferring it like the traditional IRA.  As such, Wyden proposes to eliminate your right to reduce your tax liability by converting from a al to a Roth.

Assault #2 targets owners of Roth IRA’s, whether self-directed or otherwise.  If that’s you, you’ll now be subject to required minimum distributions – the dreaded RMD.  If you’re not familiar, RMD is a formula for determining how much money MUST be withdrawn from your IRA, even if you don’t want to withdraw it.  Previously, only Traditional IRA’s were subject to this, but not Roths.  Why is Senator Wyden expanding it to Roth IRA’s?  Well, here again, Wyden and his ilk HATE the Roth IRA because it ELIMINATES taxes rather than just deferring them.  Furthermore, the Roth IRA may be the single greatest estate planning tool ever created, because if you leave a Roth IRA to a beneficiary, that beneficiary can take that money out totally tax free at any time… but they can also continue to build that account using the funds you left to them, and the profits from THEIR transactions are also entirely tax free, and also entirely available for withdrawal at any time they want.  In effect, the owner of a well-managed inherited Roth IRA could live their life ENTIRELY income-tax free.  The inherited Roth IRA is astoundingly powerful, and Wyden is doing what he can to make sure that not only do YOU get less benefit from your Roth IRA, but he’s also trying to make sure your Roth IRA is distributed during your lifetime so that your beneficiaries can’t continue benefiting from its income tax elimination features.

Which leads us to Assault #3… and this is the one that really cuts the legs out from under self-directed IRA owners specifically, whether using a Traditional or Roth account.  This one is actually two assaults in one.  First, the assets of self-directed IRA’s will now be required to be formally valued via a “qualified appraisal”.  The meaning of “qualified appraisal” is not defined, meaning that it’s left to the IRS to decide.  At the very least, I suspect this will translate into a requirement for formal independent appraisals.  That, in itself, is a huge, huge issue for some investors.  The cost of appraising certain types of commercial real estate or privately held businesses or other non-exchange-traded assets can EASILY become prohibitive, running to the 10’s of thousands of dollars per asset, creating an astounding burden on the self-directed IRA owner.

But that’s just the tip of the iceberg.  The REAL REASON that valuations are required under Senator Wyden’s proposal is that the RISE act explicitly prohibits you from buying any asset for less than its market value.  Yes, you heard that correctly.  If Senator Wyden gets his way, you’ll no longer even have the option of buying real estate at a discount.  You’ll no longer be able to buy discounted notes or mortgages or any other asset at favorable prices.  You’ll no longer have the ability to do the one thing that real estate investors always aim to do:  To profit on the front end by BUYING RIGHT.  That will, literally, be illegal.

And that’s not the whole story.  There are even MORE assaults against you as an IRA investor.  It’s simply stunning how thoroughly anti-capitalist the RISE proposal really is.  Folks, the tiny, tiny, infinitesimally small benefits offered by the RISE Act proposal are absolutely worthless compared with the tremendous, tremendous damage this act will do to you as a self-directed IRA user, whether Roth or Traditional.

In short, this is PROFOUNDLY opposed to your interests, and it’s opposed to the interests of your beneficiaries, if building a financial legacy matters to you.  There’s just no doubt about it.

So what’s the connection to the Presidential election that rages on right now?  My friends, I’m sorry… I’ve run out of time again for this episode.  But in the interest of making sure you get the information in time, you can hear part 3 – the FINAL part of this URGENT topic right now by going over to SDIRadio.com/231.  

My friends, invest wisely today, and live well forever!

]]>
Trump vs Hillary (1 of 3) – the IMPACT for Self-Directed Investors – RISE Act Trump vs Hillary (1 of 3) – the IMPACT for Self-Directed Investors – RISE Act Mon, 07 Nov 2016 14:18:26 GMT 7:35 79568df146da0a6af1451467a0e69dd0 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f59f You’re a self-directed investor.  Do you think that there’s no difference between a vote for Trump and a vote for Hillary?  Think again, my friends.  A new legislative proposal is out that directly attacks self-directed IRA’s... You’re a self-directed investor.  Do you think that there’s no difference between a vote for Trump and a vote for Hillary?  Think again, my friends.  A new legislative proposal is out that directly attacks self-directed IRA’s specifically, and this leads to the CLEAR and RATIONAL conclusion that the difference between the candidates is huge.  I’m Bryan Ellis. I’ll spell it out in CRYSTAL CLEAR LANGUAGE RIGHT NOW in Episode #229.

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Hello SDI Nation, welcome to the podcast of record where we help you to declare independence from Wall Street and build a financial legacy for future generations.  Today I’ll do that by helping you to understand what’s at stake in the upcoming presidential election that’s directly relevant to YOU as a self-directed investor.  Just a heads up… in today’s show, you’re going to hear me refer to today’s show notes page a few times.  That page is SDIRadio.com/229 and it’s got some really important, profoundly relevant things for you.  So when you hear me refer to today’s show notes page, know that I’m referring to SDIRadio.com/229.

First – folks, you’ve doubtlessly heard of my friends over at Fund & Grow.  These guys are absolute magicians when it comes to helping their clients acquire zero-interest lines of credit… lines of credit that are essentially just signature loans, not even secured by real estate or anything else.  Think about that, folks… what if you could finance that real estate deal using a zero percent interest loan?  It’s a game changer, and that’s exactly what my friends Ari and Mike over at Fund & Grow do.  I say they’re magicians, but in truth, they just follow a great, great process that’s very reliable.  For people with decent credit or better, it’s totally achievable to reach $250,000 in zero-interest credit… and my friends, they’ve actually generated over $2.9 million worth of that type of credit for your fellow listeners just this year alone.  So my recommendation?  Check them out, and do it now… at SDIRadio.com/credit.  Again, that’s SDIRadio.com/credit.  You’ll be glad you did.

My friends, have you heard of the poorly named Retirement Improvements and Savings Enhancements Act of 2016 – aka the RISE Act proposal?  Probably not… but as a self-directed investor, it’s HUGELY relevant to you, because it’s an all-out attempt to gut your rights to use a self-directed IRA in the ways that work best.  I’ll tell you specifically how in just a minute, but you really need to understand the background.

During the presidential battle of 2012, Mitt Romney made the shocking revelation that he owned an IRA worth as much as $102 MILLION.  When I heard that, I thought WOW!  I want to be like him when I grow up!  But when certain people in Congress heard about it, all they could see was “THE RICH GET RICHER” and “THAT’S UNFAIR” and “he couldn’t do that legally”.

All of these things are, of course, just the typical babblings of intellectually dishonest politicians who – let’s be honest – don’t give one little damn self directed IRA’s or about you.  What they do care about is appearing to their constituents – at least half of whom are below the average national income – that “I’m on your side and I’ll punish those rich guys who are getting rich at your expense.”

It’s absolute garbage… it’s simple-minded reasoning for simple-minded constituents who have been trained by government schools, the media and our self-obsessed culture that success should be attacked rather than emulated.  If you agree with that – that success should be attacked rather than emulated – then you should stop listening to this show right now, because I’m not interested in having you as a listener.

But if you understand, you agree that success is laudable, good and praiseworthy, and you agree that success leaves clues that the rest of us can follow, then listen on as I explain how we got to the threat of the RISE act that we face today.

One particularly class envy-oriented senator, Ron Wyden, Democrat from Oregon, appears to have really gone bankers over the fact that some people had become very successful using their IRA’s… so much so that he demanded that the Government Accountability Office perform a study to find out how big the “problem” was, and how it was that anyone could ever build that much wealth.

That last part is a legit question.  Most IRA’s have a max contribution of 6 grand per year or so, and even if you got a long-term profit rate of 8% per year, it would still take more than 90 years to get to $100 million.  Clearly, Romney isn’t 90 years old, so how’d he do it?

Well, Romney didn’t break any rules.  We don’t really know what he did to accumulate such an impressive sum, but here’s my guess... and that’s all it is is a guess.  Remember that Romney was became rich as a venture capitalist specializing in business turnarounds and restructuring.  In other words, it was his JOB to find companies that were headed towards or already in bankruptcy – and thus essentially worthless – and to turn those companies around in such a way as to make a big profit.  And I suspect, after Romney had been doing this for a while and was very good at predicting which companies could be successfully turned around before it happened, he started to acquire shares of these companies in his self-directed IRA BERFORE he turned them around while they were available at very, very low prices.  You know, a company in bankruptcy is not expensive to buy.  So maybe he’s able to acquire thousands or millions of shares of a company for a few pennies per share.  He then works his magic as a turnaround expert and brings that company back from the brink of bankruptcy and causes those shares he bought for a few pennies to be worth a dollar, or 5 dollars or $100 dollars or more.

And I suspect he did this many times.  And with that, it suddenly becomes very, very plausible to accumulate as much money as Romney did.  Again, that’s just my guess… only Romney really knows… but I bet it’s pretty close to this.

Well, like I said, this revelation drove Senator Wyden insane with class envy. He commissions the GAO study I mentioned to you a moment ago, and what was revealed is that this issue of “mega IRA’s” like Romney’s isn’t a particularly big issue.  There’s a total of about 9,000 IRA’s in the entirety of America with a balance of greater than $5 million, most of whom are formerly high-earning retirees.  There are more than 9,000 people within 5 miles of my house.  That’s a tiny number.  So clearly, there’s nothing to see here in terms of a real problem.  Frankly in my mind, it wouldn’t be a problem if there were a million huge IRA’s… but the way I think is very different from the way Senator Wyden thinks.

Which leads us to the RISE act proposal… and its connection to the Trump vs Clinton battle.  But unfortunately, we’re out of time- past time actually – in this episode.  So let’s do this:  The next episode with the Trump/Clinton connection is up and available RIGHT NOW at SDIRadio.com/230.  Again, that’s SDIRadio.com/230… so please, go there right now and check it out, because nothing could be more TIME SENSITIVE or RELEVANT to the safety and security of your self-directed IRA.

My friends, invest wisely today, and live well forever!

]]>
You’re a self-directed investor.  Do you think that there’s no difference between a vote for Trump and a vote for Hillary?  Think again, my friends.  A new legislative proposal is out that directly attacks self-directed IRA’s specifically, and this leads to the CLEAR and RATIONAL conclusion that the difference between the candidates is huge.  I’m Bryan Ellis. I’ll spell it out in CRYSTAL CLEAR LANGUAGE RIGHT NOW in Episode #229.

------ 

Hello SDI Nation, welcome to the podcast of record where we help you to declare independence from Wall Street and build a financial legacy for future generations.  Today I’ll do that by helping you to understand what’s at stake in the upcoming presidential election that’s directly relevant to YOU as a self-directed investor.  Just a heads up… in today’s show, you’re going to hear me refer to today’s show notes page a few times.  That page is SDIRadio.com/229 and it’s got some really important, profoundly relevant things for you.  So when you hear me refer to today’s show notes page, know that I’m referring to SDIRadio.com/229.

First – folks, you’ve doubtlessly heard of my friends over at Fund & Grow.  These guys are absolute magicians when it comes to helping their clients acquire zero-interest lines of credit… lines of credit that are essentially just signature loans, not even secured by real estate or anything else.  Think about that, folks… what if you could finance that real estate deal using a zero percent interest loan?  It’s a game changer, and that’s exactly what my friends Ari and Mike over at Fund & Grow do.  I say they’re magicians, but in truth, they just follow a great, great process that’s very reliable.  For people with decent credit or better, it’s totally achievable to reach $250,000 in zero-interest credit… and my friends, they’ve actually generated over $2.9 million worth of that type of credit for your fellow listeners just this year alone.  So my recommendation?  Check them out, and do it now… at SDIRadio.com/credit.  Again, that’s SDIRadio.com/credit.  You’ll be glad you did.

My friends, have you heard of the poorly named Retirement Improvements and Savings Enhancements Act of 2016 – aka the RISE Act proposal?  Probably not… but as a self-directed investor, it’s HUGELY relevant to you, because it’s an all-out attempt to gut your rights to use a self-directed IRA in the ways that work best.  I’ll tell you specifically how in just a minute, but you really need to understand the background.

During the presidential battle of 2012, Mitt Romney made the shocking revelation that he owned an IRA worth as much as $102 MILLION.  When I heard that, I thought WOW!  I want to be like him when I grow up!  But when certain people in Congress heard about it, all they could see was “THE RICH GET RICHER” and “THAT’S UNFAIR” and “he couldn’t do that legally”.

All of these things are, of course, just the typical babblings of intellectually dishonest politicians who – let’s be honest – don’t give one little damn self directed IRA’s or about you.  What they do care about is appearing to their constituents – at least half of whom are below the average national income – that “I’m on your side and I’ll punish those rich guys who are getting rich at your expense.”

It’s absolute garbage… it’s simple-minded reasoning for simple-minded constituents who have been trained by government schools, the media and our self-obsessed culture that success should be attacked rather than emulated.  If you agree with that – that success should be attacked rather than emulated – then you should stop listening to this show right now, because I’m not interested in having you as a listener.

But if you understand, you agree that success is laudable, good and praiseworthy, and you agree that success leaves clues that the rest of us can follow, then listen on as I explain how we got to the threat of the RISE act that we face today.

One particularly class envy-oriented senator, Ron Wyden, Democrat from Oregon, appears to have really gone bankers over the fact that some people had become very successful using their IRA’s… so much so that he demanded that the Government Accountability Office perform a study to find out how big the “problem” was, and how it was that anyone could ever build that much wealth.

That last part is a legit question.  Most IRA’s have a max contribution of 6 grand per year or so, and even if you got a long-term profit rate of 8% per year, it would still take more than 90 years to get to $100 million.  Clearly, Romney isn’t 90 years old, so how’d he do it?

Well, Romney didn’t break any rules.  We don’t really know what he did to accumulate such an impressive sum, but here’s my guess... and that’s all it is is a guess.  Remember that Romney was became rich as a venture capitalist specializing in business turnarounds and restructuring.  In other words, it was his JOB to find companies that were headed towards or already in bankruptcy – and thus essentially worthless – and to turn those companies around in such a way as to make a big profit.  And I suspect, after Romney had been doing this for a while and was very good at predicting which companies could be successfully turned around before it happened, he started to acquire shares of these companies in his self-directed IRA BERFORE he turned them around while they were available at very, very low prices.  You know, a company in bankruptcy is not expensive to buy.  So maybe he’s able to acquire thousands or millions of shares of a company for a few pennies per share.  He then works his magic as a turnaround expert and brings that company back from the brink of bankruptcy and causes those shares he bought for a few pennies to be worth a dollar, or 5 dollars or $100 dollars or more.

And I suspect he did this many times.  And with that, it suddenly becomes very, very plausible to accumulate as much money as Romney did.  Again, that’s just my guess… only Romney really knows… but I bet it’s pretty close to this.

Well, like I said, this revelation drove Senator Wyden insane with class envy. He commissions the GAO study I mentioned to you a moment ago, and what was revealed is that this issue of “mega IRA’s” like Romney’s isn’t a particularly big issue.  There’s a total of about 9,000 IRA’s in the entirety of America with a balance of greater than $5 million, most of whom are formerly high-earning retirees.  There are more than 9,000 people within 5 miles of my house.  That’s a tiny number.  So clearly, there’s nothing to see here in terms of a real problem.  Frankly in my mind, it wouldn’t be a problem if there were a million huge IRA’s… but the way I think is very different from the way Senator Wyden thinks.

Which leads us to the RISE act proposal… and its connection to the Trump vs Clinton battle.  But unfortunately, we’re out of time- past time actually – in this episode.  So let’s do this:  The next episode with the Trump/Clinton connection is up and available RIGHT NOW at SDIRadio.com/230.  Again, that’s SDIRadio.com/230… so please, go there right now and check it out, because nothing could be more TIME SENSITIVE or RELEVANT to the safety and security of your self-directed IRA.

My friends, invest wisely today, and live well forever!

]]>
Troubling Self-Directed IRA Restrictions | SDIRadio #228 Troubling Self-Directed IRA Restrictions | SDIRadio #228 Thu, 20 Oct 2016 13:37:13 GMT 8:28 0b1267b9193a67340550e3b972feada3 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f5a0 My friends, get ready to learn something about a huge limit on your IRA that is TOTALLY OPPOSITE what you’ve been told by everybody else.  This is a big, big deal and a huge risk factor for your self-directed IRA.  I’m Bryan Ellis. ... My friends, get ready to learn something about a huge limit on your IRA that is TOTALLY OPPOSITE what you’ve been told by everybody else.  This is a big, big deal and a huge risk factor for your self-directed IRA.  I’m Bryan Ellis.  I’ve got the details for you now in Episode 228.

 

Hello, SDI Nation!  Welcome to the podcast of record for savvy self-directed investors like you, where we help you take control of your investments and your legacy, and today, I’ll do that by helping you to protect your self-directed IRA in the face of transactions that appear totally kosher, but could be like a nuclear detonation in your retirement savings.

Let’s start the show with a bribe.  Hehehehe  Here goes:

I want you to SUBSCRIBE to this show on iTunes.  That tells the iTunes people that we’re producing good stuff, and in turn they send us more listeners.  So here’s my proposal:  If I teach you something today you didn’t know before, which is DIRECTLY RELEVANT TO THE SAFETY OF YOUR INVESTMENTS either now or in the future, then will you SUBSCRIBE to this show for free when we’re done with this show in a few minutes? 

That’s all I ask.  Deal?  Thanks so much!

Awesome, let’s get to it.  This episode was spurred by an article I saw over at MarketWatch, where a debate broke out concerning whether a self-directed IRA can buy assets from or sell them to a COUSIN of the IRA owner.  The broadly accepted advice on this – spelled out on the IRS website – is that the only family members expressly disqualified are ancestors – like parents and grandparents – along with your descendants and their spouses.  This seems to indicate that other family members – like siblings, aunts, uncles, cousins, etc. are not disqualified and therefore are fair game as counterparties for your self-directed IRA.

So is it kosher for your IRA to do business with a cousin, or other non-lineal family members?  Folks, that’s the WRONG QUESTION entirely, and looking at it that way can DESTROY your IRA.  Let’s look at that right after I tell you how to get 0% interest lines of credit of $50,000 to $250,000 by working with my friends at Fund & Grow.  A quick story – I was recently at the Georgia Real Estate Investors Association meeting, and another member came up to me and said “it works!”  I was really happy to hear this, but I didn’t know this person or what they were talking about… and that’s when they told me they’d listened in to the webinar I did with Fund & Grow… and as a result, this local investor was able to achieve an eye-popping amount of zero-interest credit!  It was really cool because they just approached me randomly… I wasn’t a speaker at that meeting or anything of the sort.  But this guy and his wife sought me out specifically to tell me about their GREAT results of getting 0% interest funding through my friends Ari & Mike at Fund & Grow.   Folks, if you need funding for any of your deals, do yourself a favor and reach out to them.  You can find them at SDIRadio.com/credit, and when you go there, you’ll learn how to have an extraordinary competitive advantage.  I believe in them.  Check them out right now at SDIRadio.com/credit.

So… can your IRA do business with a cousin or aunt or uncle?  Or is that even the right question?  Well, to be blunt, it’s absolutely the WRONG question.

Here’s the thing:  Yes, the IRS does stipulate a limited set of family members who are expressly disqualified from doing business with you through your IRA.  So, for example, if your parents or grandparents or even children owned a piece of real estate, and you wanted to buy it into your IRA, you can’t do it.  That’s prohibited very clearly.  But as far as family is concerned, the answer changes if the owner of the property isn’t your direct ancestors or descendants, but rather a sibling or cousin.  Those, at first glance, seem to be ok… and that’s the broadly accepted opinion.

Alas, there’s more… FAR MORE… than meets the eye, and it’s all legally uncharted waters.  And I’m not giving legal advice here, though I am giving you exceptionally good information, hehehehehe.

In moving forward, keep this little tidbit in mind:  The IRS lists 10 groups of people who are DISQUALIFIED from doing business with your IRA.  That list is linked in the resources for today’s show.  Number 6 on that list is “family members”… and we know from other sections that this only means lineal ancestors and descendants and their spouses.

Ok, that’s great.  Siblings, cousins, aunts, uncles… none of them are listed as disqualified.  So it’s cool to buy from them, right?

Ummm…. Not so fast, sparky.

Family members only make the list at #6.  What’s #1?  That honor goes to anyone who can be described as a FIDUCIARY of the plan.  So what, right?  The custodian is the fiduciary, right?  Yep, that’s right.  But my trusted legal advisor Tim Berry – the Great One, we call him – tells me that Section 4975 of the tax code defines Fiduciary as anyone who has discretionary authority over a retirement plan.

Do YOU have discretionary authority over your retirement plan?  Ummm…. Yes, you do.  Remember, it’s *SELF* directed.

But that only prohibits the IRA from doing business directly with you, right?  You’d think so, but… no.

According to Tim, the examples in that regulation make it arguable that the disqualification extends not just to the fiduciary, but to anyone in whom the fiduciary has an “interest” that could sway the judgment of the fiduciary.  Notice the use of the vague word “interest”.  It doesn’t say bloodline.  It doesn’t say family relationship.  It doesn’t even say “personal relationship”.  It just says “interest”.

Is it arguable that you have an interest in your siblings, your aunts, your uncles, your nieces or nephews?  Sure it is.

So the bad news is this:  The law says YOU are a fiduciary of your plan, and that you – and anyone in whom you’ve got an interest – are disqualified from doing business with your IRA.  That’s a sobering thought.

The good news:  Tim says he’s never seen this authority asserted by the IRS, so maybe their operating definition is narrower than what appears to be stipulated in law.

So there you have it:  Chances are stratospherically high that 7 minutes ago, you thought your IRA could safely do business with siblings or cousins.  You probably also didn’t know you are technically a fiduciary of your own self-directed IRA… and because of that troublesome designation, anyone in whom you have an interest is prohibited from engaging in transactions with your IRA.

Hey – I’m sorry the news isn’t a little better.  My advice:  Before allowing your IRA to do business with ANYONE with whom you’ve ever had a relationship of ANY sort… personal or business… get advice from the Great One, Tim Berry, or some other attorney who REALLY knows self-directed IRA’s.

Tim’s contact information is linked in the resource page for today’s show at SDIRadio.com/228.

So there you have it… did I deliver on my promise to you at the beginning of the show… did I teach you something about self-directed IRA’s you didn’t know which could end up being DIRECTLY RELEVANT TO THE SAFETY YOUR ACCOUNT?  If so, *PLEASE* stop by iTunes and subscribe to this show.  It’s easy and free, and there are directions available at SDIRadio.com/howto.  That’s SDIRadio.com/howto.

Thanks for joining me today – we’ve got a lot more for you coming up as we continue helping you take control of your investments AND your legacy.

My friends, invest wisely today, and live well forever!

 

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My friends, get ready to learn something about a huge limit on your IRA that is TOTALLY OPPOSITE what you’ve been told by everybody else.  This is a big, big deal and a huge risk factor for your self-directed IRA.  I’m Bryan Ellis.  I’ve got the details for you now in Episode 228.

 

Hello, SDI Nation!  Welcome to the podcast of record for savvy self-directed investors like you, where we help you take control of your investments and your legacy, and today, I’ll do that by helping you to protect your self-directed IRA in the face of transactions that appear totally kosher, but could be like a nuclear detonation in your retirement savings.

Let’s start the show with a bribe.  Hehehehe  Here goes:

I want you to SUBSCRIBE to this show on iTunes.  That tells the iTunes people that we’re producing good stuff, and in turn they send us more listeners.  So here’s my proposal:  If I teach you something today you didn’t know before, which is DIRECTLY RELEVANT TO THE SAFETY OF YOUR INVESTMENTS either now or in the future, then will you SUBSCRIBE to this show for free when we’re done with this show in a few minutes? 

That’s all I ask.  Deal?  Thanks so much!

Awesome, let’s get to it.  This episode was spurred by an article I saw over at MarketWatch, where a debate broke out concerning whether a self-directed IRA can buy assets from or sell them to a COUSIN of the IRA owner.  The broadly accepted advice on this – spelled out on the IRS website – is that the only family members expressly disqualified are ancestors – like parents and grandparents – along with your descendants and their spouses.  This seems to indicate that other family members – like siblings, aunts, uncles, cousins, etc. are not disqualified and therefore are fair game as counterparties for your self-directed IRA.

So is it kosher for your IRA to do business with a cousin, or other non-lineal family members?  Folks, that’s the WRONG QUESTION entirely, and looking at it that way can DESTROY your IRA.  Let’s look at that right after I tell you how to get 0% interest lines of credit of $50,000 to $250,000 by working with my friends at Fund & Grow.  A quick story – I was recently at the Georgia Real Estate Investors Association meeting, and another member came up to me and said “it works!”  I was really happy to hear this, but I didn’t know this person or what they were talking about… and that’s when they told me they’d listened in to the webinar I did with Fund & Grow… and as a result, this local investor was able to achieve an eye-popping amount of zero-interest credit!  It was really cool because they just approached me randomly… I wasn’t a speaker at that meeting or anything of the sort.  But this guy and his wife sought me out specifically to tell me about their GREAT results of getting 0% interest funding through my friends Ari & Mike at Fund & Grow.   Folks, if you need funding for any of your deals, do yourself a favor and reach out to them.  You can find them at SDIRadio.com/credit, and when you go there, you’ll learn how to have an extraordinary competitive advantage.  I believe in them.  Check them out right now at SDIRadio.com/credit.

So… can your IRA do business with a cousin or aunt or uncle?  Or is that even the right question?  Well, to be blunt, it’s absolutely the WRONG question.

Here’s the thing:  Yes, the IRS does stipulate a limited set of family members who are expressly disqualified from doing business with you through your IRA.  So, for example, if your parents or grandparents or even children owned a piece of real estate, and you wanted to buy it into your IRA, you can’t do it.  That’s prohibited very clearly.  But as far as family is concerned, the answer changes if the owner of the property isn’t your direct ancestors or descendants, but rather a sibling or cousin.  Those, at first glance, seem to be ok… and that’s the broadly accepted opinion.

Alas, there’s more… FAR MORE… than meets the eye, and it’s all legally uncharted waters.  And I’m not giving legal advice here, though I am giving you exceptionally good information, hehehehehe.

In moving forward, keep this little tidbit in mind:  The IRS lists 10 groups of people who are DISQUALIFIED from doing business with your IRA.  That list is linked in the resources for today’s show.  Number 6 on that list is “family members”… and we know from other sections that this only means lineal ancestors and descendants and their spouses.

Ok, that’s great.  Siblings, cousins, aunts, uncles… none of them are listed as disqualified.  So it’s cool to buy from them, right?

Ummm…. Not so fast, sparky.

Family members only make the list at #6.  What’s #1?  That honor goes to anyone who can be described as a FIDUCIARY of the plan.  So what, right?  The custodian is the fiduciary, right?  Yep, that’s right.  But my trusted legal advisor Tim Berry – the Great One, we call him – tells me that Section 4975 of the tax code defines Fiduciary as anyone who has discretionary authority over a retirement plan.

Do YOU have discretionary authority over your retirement plan?  Ummm…. Yes, you do.  Remember, it’s *SELF* directed.

But that only prohibits the IRA from doing business directly with you, right?  You’d think so, but… no.

According to Tim, the examples in that regulation make it arguable that the disqualification extends not just to the fiduciary, but to anyone in whom the fiduciary has an “interest” that could sway the judgment of the fiduciary.  Notice the use of the vague word “interest”.  It doesn’t say bloodline.  It doesn’t say family relationship.  It doesn’t even say “personal relationship”.  It just says “interest”.

Is it arguable that you have an interest in your siblings, your aunts, your uncles, your nieces or nephews?  Sure it is.

So the bad news is this:  The law says YOU are a fiduciary of your plan, and that you – and anyone in whom you’ve got an interest – are disqualified from doing business with your IRA.  That’s a sobering thought.

The good news:  Tim says he’s never seen this authority asserted by the IRS, so maybe their operating definition is narrower than what appears to be stipulated in law.

So there you have it:  Chances are stratospherically high that 7 minutes ago, you thought your IRA could safely do business with siblings or cousins.  You probably also didn’t know you are technically a fiduciary of your own self-directed IRA… and because of that troublesome designation, anyone in whom you have an interest is prohibited from engaging in transactions with your IRA.

Hey – I’m sorry the news isn’t a little better.  My advice:  Before allowing your IRA to do business with ANYONE with whom you’ve ever had a relationship of ANY sort… personal or business… get advice from the Great One, Tim Berry, or some other attorney who REALLY knows self-directed IRA’s.

Tim’s contact information is linked in the resource page for today’s show at SDIRadio.com/228.

So there you have it… did I deliver on my promise to you at the beginning of the show… did I teach you something about self-directed IRA’s you didn’t know which could end up being DIRECTLY RELEVANT TO THE SAFETY YOUR ACCOUNT?  If so, *PLEASE* stop by iTunes and subscribe to this show.  It’s easy and free, and there are directions available at SDIRadio.com/howto.  That’s SDIRadio.com/howto.

Thanks for joining me today – we’ve got a lot more for you coming up as we continue helping you take control of your investments AND your legacy.

My friends, invest wisely today, and live well forever!

 

]]>
<![CDATA[7 Financial Lessons from HILLARY CLINTON'S ILLNESS | SDIRadio.com/227]]> Thu, 15 Sep 2016 18:55:08 GMT 9:09 8788d5a3d63072b163ece1e52f98518e no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f5a1 When a candidate for President of the United States is so sick she’s got to leave the 9/11 memorial service halfway through, and then is unable to get into her vehicle under her own power, that’s a person who is clearly unwell.  Regardless of... When a candidate for President of the United States is so sick she’s got to leave the 9/11 memorial service halfway through, and then is unable to get into her vehicle under her own power, that’s a person who is clearly unwell.  Regardless of political stripes, we wish Hillary Clinton a speedy recovery.  But her illnesses – and the fact they’ve been so carefully hidden – begs the question:  What about YOU?  Have you prepared your spouse, your kids or whoever will inherit your portfolio all they need to know to understand and succeed with your assets?  And by the way – the potential of severe illness for Hillary has ramifications for your money, too.  Let’s take a hard look right now.  I’m Bryan Ellis.  This is Episode #227.

 -----

Hello, SDI Nation!  Welcome to the podcast of record for savvy self-directed investors like you where we help you TAKE and KEEP control of your investments.

In the last episode, we talked about Bob, who recently passed away and left his 3 children with an IRA containing real estate.  It was a very valuable IRA, but Bob didn’t plan for the fact that that real estate would have to be divided when he passed away, and the predictable result was bad:  Serious legal strife among his 3 kids.

But the potential for conflict over dividing assets in an inherited IRA is only one challenge when beneficiaries inherit a self-directed retirement account.  The other challenge is brought into sharper focus by recent news of Hillary Clinton’s health challenges.  Now before we proceed, note that this isn’t a political analysis, but a financial one.

We know that Mrs. Clinton is suffering from a severe case of pneumonia and that she’s had a collection of other serious head injuries and illnesses in the past.  There’s also pervasive discussion in the medical community of the likelihood that she suffers from ongoing neurological problems.

Whether those things are true or a product of the political circus we’re all witnessing right now, one thing is true:  Mrs. Clinton – just like you and me – will die someday.  Now unlike me, and most of you as well, Mrs. Clinton and her husband are extremely wealthy, reportedly having a net worth in excess of $100 million.  I don’t know how or whether the Clintons invest their money, but this issue affects them just like it does me and you.

What’s the issue?  Preparing the next generation to handle the money and the assets.

If, God forbid, Hillary and Bill were hit by a train, would Chelsea know how to handle what they leave behind to her?

More importantly, will YOUR spouse or your children know how to handle the assets you leave behind?

It’s important for you to grasp this one central concept:  Your knowledge doesn’t transfer automatically.  Your motivations and plans don’t transfer automatically.  Not even your IRA or 401k transfer automatically.  In each case, you’ve got to DO SOMETHING to make sure that your assets – and the ability to properly manage them – ends up in the possession of your loved ones…

….and nobody can make that happen except for YOU.

Here are some of the things you need to make sure to do to prepare your beneficiaries for a successful succession into your financial assets, and as I go through this list, ask yourself:  Do your beneficiaries have this information for YOUR assets?  Here we go:

  1. A clear, detailed list of assets, and the accounts in which they’re held.
  2. A clear, detailed status report for your assets, including valuation (and how to update the valuation), any debt, any recurring or expected expenses, most likely unplanned expenses and any risk factors you see
  3. Thorough financial records. Think in terms of preparation for an IRS audit, because that could happen after you’re gone, and you won’t be available to lend your knowledge
  4. A detailed explanation of assets. For example:  What is the asset, exactly?  Is it a stock or bond or real estate or precious metal or… what exactly is it?  How can it be profitable?  How can it lose money?  Why did you choose to invest in it to begin with?  What were you hoping to accomplish?
  5. A target for your assets. If you have specific financial benchmarks you’re hoping to achieve with your assets, after which you want to liquidate or take other action, detail these targets and intentions.
  6. List of resources & relationships needed to manage your assets. For example:  If you are leaving real estate behind, you should make sure that you’ve documented the names and contact information of your property managers, insurance companies, lenders and any other service providers.  Document the names of the law firms, accounting firms and other professional services used on the property.  The goal here is for truly simple, seamless transition.
  7. List of responsibilities of the assets. Again using a real estate example:  Each year, property taxes must be paid.  Insurance must be purchased.  The property must be rented to generate cash flow.  These are all examples, and there are more.  The point is this:  Don’t assume that your beneficiaries know any of this.  In fact, assume that they know NONE of it.  And don’t fail to document EVERYTHING, even if those responsibilities are presently handled by a management company or other professionals, because at the end of the day, those responsibilities are still responsibilities of the owner.

Give yourself a report card on succession planning for your portfolio right now.  Forget about whether end-of-life issues are a top-of-mind consideration for you presently, since none of us are guaranteed another day.  This is a here-and-now kind of thing… if your beneficiaries are actually important to you, that is.  And OF COURSE they are.

 

This is important stuff, folks.  If you didn’t get all of those, check out the list, which I’ve left for you in the description area below.

Think seriously about this stuff my friends.  Just think of all of the STUPID mistakes you can make on your first real estate deal… and that’s when you’re excited about being a real estate investor.  Odds are, your beneficiaries may not have your level of enthusiasm about it, so they could be even more prone to make costly mistakes, so do them a favor:  Make it easy by leaving CLEAR documentation.  There’s no other way!

And folks, before I go, I want to mention something to you:  I’ve found a GREAT way to fund 100% of the cost of most deals – particularly those in the $50,000 to $250,000 range… and the cost to you is no more than the equivalent of a very few points up front and ZERO INTEREST on the loan.  That’s right… ZERO interest!  That funding method is to work with my friends Ari and Mike at Fund & Grow.  Those guys are THE EXPERTS at establishing zero-interest lines of credit for their clients.  They don’t tell you how… they do it for you!  This is great stuff and I’ve seen it work time and time and time again, so check them out right now over at SDIRadio.com/credit.  Again, SDIRadio.com/credit.  You’ll be VERY glad you did!

That’s all for now, my friends, but I do wonder what you think about something:  What are YOU doing to prepare the next generation to inherit your assets?  What things in addition to those I’ve outlined do you think should be done?  Tell me!  Tell me now!

 

You can do that by leaving a comment on today’s show notes page over at SDIRadio.com/227.  And be sure to check out the first comment on that page, which is from me.  There I give you one more tip that I’m using, which is NOT in today’s episode… and then tell me what you think!  And hey… if you’ve enjoyed this show and want more, be sure to tell your friends about Self Directed Investor Radio.  And if you haven’t yet given us a 5-star rating on iTunes, I’ll be SO GRATEFUL if you’d do so.  It costs you nothing and has a HUGE impact on this show.  If you don’t know how to do that, just go to SDIRadio.com/howto where you can get full instructions.

My friends… a lot of GREAT things are in the very near future for this show.  Hang with me, and we’ll blow your mind.  And remember:

Invest wisely today, and live well forever!

]]>
When a candidate for President of the United States is so sick she’s got to leave the 9/11 memorial service halfway through, and then is unable to get into her vehicle under her own power, that’s a person who is clearly unwell.  Regardless of political stripes, we wish Hillary Clinton a speedy recovery.  But her illnesses – and the fact they’ve been so carefully hidden – begs the question:  What about YOU?  Have you prepared your spouse, your kids or whoever will inherit your portfolio all they need to know to understand and succeed with your assets?  And by the way – the potential of severe illness for Hillary has ramifications for your money, too.  Let’s take a hard look right now.  I’m Bryan Ellis.  This is Episode #227.

 -----

Hello, SDI Nation!  Welcome to the podcast of record for savvy self-directed investors like you where we help you TAKE and KEEP control of your investments.

In the last episode, we talked about Bob, who recently passed away and left his 3 children with an IRA containing real estate.  It was a very valuable IRA, but Bob didn’t plan for the fact that that real estate would have to be divided when he passed away, and the predictable result was bad:  Serious legal strife among his 3 kids.

But the potential for conflict over dividing assets in an inherited IRA is only one challenge when beneficiaries inherit a self-directed retirement account.  The other challenge is brought into sharper focus by recent news of Hillary Clinton’s health challenges.  Now before we proceed, note that this isn’t a political analysis, but a financial one.

We know that Mrs. Clinton is suffering from a severe case of pneumonia and that she’s had a collection of other serious head injuries and illnesses in the past.  There’s also pervasive discussion in the medical community of the likelihood that she suffers from ongoing neurological problems.

Whether those things are true or a product of the political circus we’re all witnessing right now, one thing is true:  Mrs. Clinton – just like you and me – will die someday.  Now unlike me, and most of you as well, Mrs. Clinton and her husband are extremely wealthy, reportedly having a net worth in excess of $100 million.  I don’t know how or whether the Clintons invest their money, but this issue affects them just like it does me and you.

What’s the issue?  Preparing the next generation to handle the money and the assets.

If, God forbid, Hillary and Bill were hit by a train, would Chelsea know how to handle what they leave behind to her?

More importantly, will YOUR spouse or your children know how to handle the assets you leave behind?

It’s important for you to grasp this one central concept:  Your knowledge doesn’t transfer automatically.  Your motivations and plans don’t transfer automatically.  Not even your IRA or 401k transfer automatically.  In each case, you’ve got to DO SOMETHING to make sure that your assets – and the ability to properly manage them – ends up in the possession of your loved ones…

….and nobody can make that happen except for YOU.

Here are some of the things you need to make sure to do to prepare your beneficiaries for a successful succession into your financial assets, and as I go through this list, ask yourself:  Do your beneficiaries have this information for YOUR assets?  Here we go:

  1. A clear, detailed list of assets, and the accounts in which they’re held.
  2. A clear, detailed status report for your assets, including valuation (and how to update the valuation), any debt, any recurring or expected expenses, most likely unplanned expenses and any risk factors you see
  3. Thorough financial records. Think in terms of preparation for an IRS audit, because that could happen after you’re gone, and you won’t be available to lend your knowledge
  4. A detailed explanation of assets. For example:  What is the asset, exactly?  Is it a stock or bond or real estate or precious metal or… what exactly is it?  How can it be profitable?  How can it lose money?  Why did you choose to invest in it to begin with?  What were you hoping to accomplish?
  5. A target for your assets. If you have specific financial benchmarks you’re hoping to achieve with your assets, after which you want to liquidate or take other action, detail these targets and intentions.
  6. List of resources & relationships needed to manage your assets. For example:  If you are leaving real estate behind, you should make sure that you’ve documented the names and contact information of your property managers, insurance companies, lenders and any other service providers.  Document the names of the law firms, accounting firms and other professional services used on the property.  The goal here is for truly simple, seamless transition.
  7. List of responsibilities of the assets. Again using a real estate example:  Each year, property taxes must be paid.  Insurance must be purchased.  The property must be rented to generate cash flow.  These are all examples, and there are more.  The point is this:  Don’t assume that your beneficiaries know any of this.  In fact, assume that they know NONE of it.  And don’t fail to document EVERYTHING, even if those responsibilities are presently handled by a management company or other professionals, because at the end of the day, those responsibilities are still responsibilities of the owner.

Give yourself a report card on succession planning for your portfolio right now.  Forget about whether end-of-life issues are a top-of-mind consideration for you presently, since none of us are guaranteed another day.  This is a here-and-now kind of thing… if your beneficiaries are actually important to you, that is.  And OF COURSE they are.

 

This is important stuff, folks.  If you didn’t get all of those, check out the list, which I’ve left for you in the description area below.

Think seriously about this stuff my friends.  Just think of all of the STUPID mistakes you can make on your first real estate deal… and that’s when you’re excited about being a real estate investor.  Odds are, your beneficiaries may not have your level of enthusiasm about it, so they could be even more prone to make costly mistakes, so do them a favor:  Make it easy by leaving CLEAR documentation.  There’s no other way!

And folks, before I go, I want to mention something to you:  I’ve found a GREAT way to fund 100% of the cost of most deals – particularly those in the $50,000 to $250,000 range… and the cost to you is no more than the equivalent of a very few points up front and ZERO INTEREST on the loan.  That’s right… ZERO interest!  That funding method is to work with my friends Ari and Mike at Fund & Grow.  Those guys are THE EXPERTS at establishing zero-interest lines of credit for their clients.  They don’t tell you how… they do it for you!  This is great stuff and I’ve seen it work time and time and time again, so check them out right now over at SDIRadio.com/credit.  Again, SDIRadio.com/credit.  You’ll be VERY glad you did!

That’s all for now, my friends, but I do wonder what you think about something:  What are YOU doing to prepare the next generation to inherit your assets?  What things in addition to those I’ve outlined do you think should be done?  Tell me!  Tell me now!

 

You can do that by leaving a comment on today’s show notes page over at SDIRadio.com/227.  And be sure to check out the first comment on that page, which is from me.  There I give you one more tip that I’m using, which is NOT in today’s episode… and then tell me what you think!  And hey… if you’ve enjoyed this show and want more, be sure to tell your friends about Self Directed Investor Radio.  And if you haven’t yet given us a 5-star rating on iTunes, I’ll be SO GRATEFUL if you’d do so.  It costs you nothing and has a HUGE impact on this show.  If you don’t know how to do that, just go to SDIRadio.com/howto where you can get full instructions.

My friends… a lot of GREAT things are in the very near future for this show.  Hang with me, and we’ll blow your mind.  And remember:

Invest wisely today, and live well forever!

]]>
the PROBLEM with Inheriting a Self-Directed IRA | SDIRadio.com #226 the PROBLEM with Inheriting a Self-Directed IRA | SDIRadio.com #226 Tue, 06 Sep 2016 18:24:11 GMT 7:20 280898e7189ac8d64ca88c53a84ef038 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f5a2 Advanced Self-Directed IRA Training Bob died recently, and left a self-directed IRA worth $2 million to his 3 adult children.  Fortunately for Bob, he never saw the huge problem he caused, which threatens to tear his family apart.  Today, I’ll tell you what Bob did wrong, because odds are, you’re doing exactly the same thing and don’t even know it.  I’m Bryan Ellis.  This is episode #226.

 

Hello Self Directed Investor Nation!  Welcome to the podcast of record for SAVVY self-directed investors like you, where each day we help you find, understand and PROFIT from exceptional investment opportunities.

Today’s episode is a serious one, but first I’d like to share something with you from today’s sponsor, Fund & Grow.  Fund & Grow is awesome, plain and simple.  Ari & Mike, the guys who run the company, are MASTERS at helping you acquire ZERO-INTEREST lines of credit of $50,000 to $250,000 or more.  And it’s NOT THEORY in any way… I’ve seen it happen over and over and over again.  So if you need some capital for that great real estate deal, your business or anything else, reach out to them at SDIRadio.com/credit.  I recommend them because they are truly excellent at what they do.

Ok folks, the serious matter at hand today:  Let’s consider Bob, who as I mentioned to you a moment ago, recently passed away.  Bob invested through his IRA and blew it up to being worth $2 million.  A great thing, for sure!  But Bob passed away, and now his 3 adult children own it, each with an equal share.

Now if Bob’s portfolio was in stocks, mutual funds or other highly liquid assets, there’d really be no problem at all.  Each child would be able to have an inherited IRA with 1/3 of the assets of Bob’s account.  Any of Bob’s kid that doesn’t want to keep the stocks or mutual funds could sell them.  Any kid that wants to hold the assets could hold them.  Easy peasy.

But in Bob’s case, he made his fortune through real estate investing.  In fact, the entire value of Bob’s account is attributable to a single piece of real estate he bought way back in the day that appreciated massively.

And now, Bob’s 3 kids are going to own that piece of real estate… somehow.

But how?  As it turns out, Kid #1 wants to keep the real estate.  Kids 2 & 3 want the money from selling the real estate.  And Bob… for all his kindness in bequeathing this incredibly valuable account to his kids, did them no favors at all, because all he did was to stipulate that each child received 1/3 of the account.  He didn’t specify how those assets should be divided, nor did he use any strategies to make real estate – which is inherently difficult to divide – easier for his children to deal with.

And now, Bob’s kids are fighting with each other.  There’s a civil war going on in Bob’s family, and frankly, Bob’s wonderful act of generosity, coupled with his incredible lack of foresight, is clearly the cause.

What could Bob have done differently?

The most simplistic answer would be that Bob could have sold off his property and converted the account to cash before he passed on.  Cash is much easier to divide than real estate.  But even if that had been convenient for him to do, it wasn’t what he WANTED to do, because Bob believed there was a lot of upside potential to the property.

Another option is that the kids could – will probably have to, in fact – hire a lawyer to divide the property among them by re-conveying a portion of the property to each one of their inherited IRA’s.  That can work and will work if they go through this legal division process, but because there’s tension among the kids, there may well be litigation costs involved as well… certainly not what Bob wanted, or what you want for your beneficiaries.

Another option could be that maybe Bob should have titled the real estate in an LLC or trust, and have his IRA be the owner of that LLC or trust.  That way, what the kids would be inheriting would be shares of an LLC or trust… which, like cash, is much easier to divide than real estate.  In fact, Bob could have specified in the LLC or trust documents exactly how the real estate was to be managed and distributed when he was gone, to remove even more uncertainty.  That would have been wise.

Another option of great potential is this:  There’s nothing prohibiting you from explicitly dividing your account among your beneficiaries by some means OTHER than simple percentages.  For example, you could allocate Asset A to Kid 1, Asset B to Kid 2 and Asset C to Kid 3.  Obviously there are some risks here too, but this is particularly relevant and worth considering for those of you who, like me, think that involving the family in your financial decision making is a great way to help them learn from your experience.

Bottom line?  Bob failed in two ways, not just one.

The first one is obvious – he didn’t clarify how his assets were to be divided, even though he knew that real estate is difficult to divide.

The other one is less obvious – he didn’t prepare his children for what they were about to receive… they just had no real connection to or understanding of this wonderful asset Bob was leaving for them.  In so doing, Bob’s wonderful gift to them turned into something of a curse.

My friends, don’t let that happen to you or your family.  It’s actually quite simple to avoid this sort of fate, but since self-directed IRA’s are such a new phenomenon, nobody is talking about this.  But as your THOUGHT LEADER in the self-directed IRA world, I of course consider it my job to think the thoughts you should think, but aren’t yet thinking!  Hehehehe.

And in all fairness, I learned a WHOLE LOT about this topic very recently from IRA attorney extraordinaire, Mr. Tim Berry.  That guy is like a mad scientist, only he’s an IRA lawyer, and he’s REALLY, REALLY good.  If today’s episode stoked any concerns you might have about leaving assets that could cause a problem for your family, Tim is the guy you should reach out to. 

You can get his contact info on today’s show notes page at SDIRadio.com/226.

That’s also where you should go to comment on this episode.  I’d love to hear what you have to say… if you’re investing in real estate or ANY illiquid type of asset, this issue is important for YOU!   So stop by at SDIRadio.com/226 and tell me if you’ve done any estate planning within your self-directed IRA… I’d love to hear from you!

 

My friends… invest wisely today, and live well forever!

]]>
Bob died recently, and left a self-directed IRA worth $2 million to his 3 adult children.  Fortunately for Bob, he never saw the huge problem he caused, which threatens to tear his family apart.  Today, I’ll tell you what Bob did wrong, because odds are, you’re doing exactly the same thing and don’t even know it.  I’m Bryan Ellis.  This is episode #226.

 

Hello Self Directed Investor Nation!  Welcome to the podcast of record for SAVVY self-directed investors like you, where each day we help you find, understand and PROFIT from exceptional investment opportunities.

Today’s episode is a serious one, but first I’d like to share something with you from today’s sponsor, Fund & Grow.  Fund & Grow is awesome, plain and simple.  Ari & Mike, the guys who run the company, are MASTERS at helping you acquire ZERO-INTEREST lines of credit of $50,000 to $250,000 or more.  And it’s NOT THEORY in any way… I’ve seen it happen over and over and over again.  So if you need some capital for that great real estate deal, your business or anything else, reach out to them at SDIRadio.com/credit.  I recommend them because they are truly excellent at what they do.

Ok folks, the serious matter at hand today:  Let’s consider Bob, who as I mentioned to you a moment ago, recently passed away.  Bob invested through his IRA and blew it up to being worth $2 million.  A great thing, for sure!  But Bob passed away, and now his 3 adult children own it, each with an equal share.

Now if Bob’s portfolio was in stocks, mutual funds or other highly liquid assets, there’d really be no problem at all.  Each child would be able to have an inherited IRA with 1/3 of the assets of Bob’s account.  Any of Bob’s kid that doesn’t want to keep the stocks or mutual funds could sell them.  Any kid that wants to hold the assets could hold them.  Easy peasy.

But in Bob’s case, he made his fortune through real estate investing.  In fact, the entire value of Bob’s account is attributable to a single piece of real estate he bought way back in the day that appreciated massively.

And now, Bob’s 3 kids are going to own that piece of real estate… somehow.

But how?  As it turns out, Kid #1 wants to keep the real estate.  Kids 2 & 3 want the money from selling the real estate.  And Bob… for all his kindness in bequeathing this incredibly valuable account to his kids, did them no favors at all, because all he did was to stipulate that each child received 1/3 of the account.  He didn’t specify how those assets should be divided, nor did he use any strategies to make real estate – which is inherently difficult to divide – easier for his children to deal with.

And now, Bob’s kids are fighting with each other.  There’s a civil war going on in Bob’s family, and frankly, Bob’s wonderful act of generosity, coupled with his incredible lack of foresight, is clearly the cause.

What could Bob have done differently?

The most simplistic answer would be that Bob could have sold off his property and converted the account to cash before he passed on.  Cash is much easier to divide than real estate.  But even if that had been convenient for him to do, it wasn’t what he WANTED to do, because Bob believed there was a lot of upside potential to the property.

Another option is that the kids could – will probably have to, in fact – hire a lawyer to divide the property among them by re-conveying a portion of the property to each one of their inherited IRA’s.  That can work and will work if they go through this legal division process, but because there’s tension among the kids, there may well be litigation costs involved as well… certainly not what Bob wanted, or what you want for your beneficiaries.

Another option could be that maybe Bob should have titled the real estate in an LLC or trust, and have his IRA be the owner of that LLC or trust.  That way, what the kids would be inheriting would be shares of an LLC or trust… which, like cash, is much easier to divide than real estate.  In fact, Bob could have specified in the LLC or trust documents exactly how the real estate was to be managed and distributed when he was gone, to remove even more uncertainty.  That would have been wise.

Another option of great potential is this:  There’s nothing prohibiting you from explicitly dividing your account among your beneficiaries by some means OTHER than simple percentages.  For example, you could allocate Asset A to Kid 1, Asset B to Kid 2 and Asset C to Kid 3.  Obviously there are some risks here too, but this is particularly relevant and worth considering for those of you who, like me, think that involving the family in your financial decision making is a great way to help them learn from your experience.

Bottom line?  Bob failed in two ways, not just one.

The first one is obvious – he didn’t clarify how his assets were to be divided, even though he knew that real estate is difficult to divide.

The other one is less obvious – he didn’t prepare his children for what they were about to receive… they just had no real connection to or understanding of this wonderful asset Bob was leaving for them.  In so doing, Bob’s wonderful gift to them turned into something of a curse.

My friends, don’t let that happen to you or your family.  It’s actually quite simple to avoid this sort of fate, but since self-directed IRA’s are such a new phenomenon, nobody is talking about this.  But as your THOUGHT LEADER in the self-directed IRA world, I of course consider it my job to think the thoughts you should think, but aren’t yet thinking!  Hehehehe.

And in all fairness, I learned a WHOLE LOT about this topic very recently from IRA attorney extraordinaire, Mr. Tim Berry.  That guy is like a mad scientist, only he’s an IRA lawyer, and he’s REALLY, REALLY good.  If today’s episode stoked any concerns you might have about leaving assets that could cause a problem for your family, Tim is the guy you should reach out to. 

You can get his contact info on today’s show notes page at SDIRadio.com/226.

That’s also where you should go to comment on this episode.  I’d love to hear what you have to say… if you’re investing in real estate or ANY illiquid type of asset, this issue is important for YOU!   So stop by at SDIRadio.com/226 and tell me if you’ve done any estate planning within your self-directed IRA… I’d love to hear from you!

 

My friends… invest wisely today, and live well forever!

]]>
the MOST POWERFUL Financial Tool For Legacy Building | SDIRadio.com #225 the MOST POWERFUL Financial Tool For Legacy Building | SDIRadio.com #225 Thu, 25 Aug 2016 17:51:10 GMT 8:37 772cd0c6f3705bb8a00adc0e05edf231 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f5a3 Do you want to build a legacy, and not just a portfolio?  If so, there’s one financial tool that is CHEAP (under $10), easy to use, and will have a bigger impact on FUTURE GENERATIONS than anything else you’ve ever done.  And odds are,... Do you want to build a legacy, and not just a portfolio?  If so, there’s one financial tool that is CHEAP (under $10), easy to use, and will have a bigger impact on FUTURE GENERATIONS than anything else you’ve ever done.  And odds are, you’ve never even heard of it.  I’m Bryan Ellis.  I’ll tell you what it is and how to use it RIGHT NOW in Episode #225.

----

Hello, SDI Nation!  Welcome to the show of record for savvy self-directed investors like you, where each day you how to find, understand and profit from exceptional investments… and turn those investments into a wonderful legacy for generations to come!

What a GREAT DAY to be alive, folks!  I’m so honored you’re spending some time with me right now, so let’s get right to it.  But a quick note to you, and I really hope you folks will take this seriously.

Have you ever been in a situation where you were just a bit short of capital for an investment, or for your business, or anything else?  If so, I want you to check out my friends Ari and Mike at Fund & Grow. They are astoundingly good at acquiring zero interest credit of fifty to $250,000 that you can use at your discretion!  I really vouch for what they can do… it’s really amazing, and I’ve seen it work over and over with my own clients, many of whom are your fellow listeners!  To see how & why it works, just check out the short video we’ve posted at SDIRadio.com/credit.  You’ll be very glad you did.

My friends, I know that many of you, like me, think in terms not only of building for your own retirement and other financial wellbeing, but also of building financial assets that will benefit future generations.  And you know, that’s a WISE thing to do.  In fact, right there in the middle of the greatest book of wisdom ever written, the Biblical book of Proverbs, is a verse that says that one thing that wise people do is to leave an inheritance for their children’s children… their grandchildren!  That means that wise people operate with an eye on making an enduring impact on at least 3 distinct generations:  Their own, their children’s generation, and their grandchildren’s generation.

If you agree with that thinking, as I do… then ask yourself:  How would it impact your decisions today, if your time frame was not merely from now until retirement, or now until the end of your life… but at least now until the end of your GRANDCHILDREN’S lives?  Wow… that’s a huge, humbling and EXCITING thought, really… because time well used is the best friend of the wise investor.

Now look, I’m no expert in Hebrew, the original language of that verse in Proverbs, but in the English translation of it I’m reading, there’s no indication that the inheritance that a wise person leaves to their children’s children is or should be limited to a FINANCIAL inheritance.

What other kind of inheritance is there, you might wonder?  Well I’m glad you asked, my friends!  Hehehe

What’s easily more valuable than any money you could leave is the benefit of your EXPERIENCE.  Don’t just leave money or assets… leave an awareness of what those assets are… why you chose them… what alternatives you considered and rejected… what factors about that asset gave you PAUSE, even though you opted to acquire it… what standards you adopted to know how long you should hold the asset… what kind of tax or legal structuring you used for the asset… what you planned to do with the cash flow generated by the asset… how the asset compares to other investments you’ve made in the past.

There’s GOLD in that kind of information, my friends… PURE GOLD.

Imagine if your parents or grandparents had passed on to you a journal… or many journals… that logged their thoughts about the kinds of decisions they made with their money?  There would be SO MUCH TO LEARN… even if your forebears were NOT financially successful… still, how valuable would it be to see the formation of the decisions that led them where they ended up?  Because it was THOSE decisions that affected YOU… and those decisions reverberate to your children, your grandchildren, great-grandchildren and beyond!

I feel a real passion rising up in me for this notion… the notion of financial journaling…. But it’s not really just a financial thing… it’s more like LEGACY journaling… documenting the legacy that I want to leave and that you want to leave.

And all it takes is to go down to the local office supply store and spend $10 on a journal.  I guess you could do it electronically, and there’d be value to that too, I suppose.  But there’s something special, I think, about handwriting.

Can you imagine what it would be like to have the accumulated wisdom of multiple generations of your family to call upon?  Something to pass from one generation to the next… something that makes your family uniquely YOUR FAMILY among all of the families in the world?  Folks, nothing is more indicative of who you are, and who your family is, then how you spend your money.  Where your treasure is… what you use your money for… THAT is where your heart is.  THAT is what’s important to you…

This is important stuff, folks!  And not just for investments.  For all things financial.  What if there was a history you could look back on to see when your parents considered whether to buy a home or a car or an insurance policy or even take a big vacation… how valuable would it be to know what, exactly they considered?  IMMENSELY valuable… because you’d have the benefit of hindsight, and the ability to objectively evaluate whether their decision turned out well or not.

That kind of experience is PURE GOLD, my friends… absolutely priceless.  Absolutely priceless.

And what about your financial RELATIONSHIPS?  Passing on knowledge of great advisors, great bankers, great attorneys, great accountants… that kind of information… those kinds of shortcuts have value of indescribable measure.

This is a practical issue, too, for those of you who are interested in building not just a portfolio, but a legacy.  That’s because, unless you restrict your investments to the most plain-jane of assets, such as stocks or mutual funds, then there will be assets in your portfolio that may be unfamiliar to your children or grandchildren such that they don’t really know how to handle them.  But by WRITING DOWN what you bought, why you bought it, and how to know when it’s time to sell, you’ll be making the job EASY for them!

There’s ABSOLUTE GOLD in that kind of information… and without it, that brilliant and very successful real estate deal you get into TODAY will likely be the one that your future beneficiaries will liquidate far below real value… not because they’re vindictive or foolish or anything other than that they simply don’t understand.

So, that’s it, my friends… start a financial journal today.  Go to an office supply store, spend 10 bucks on a journal, and use it!  Maybe call it a legacy journal… and write down the important decisions you make and why you make them.  Then pass that information on, and teach your family to revere it as worth far more than money, because it is.

Hey, that’s all for today except for one question I have for you:  Did you find today’s show helpful?  If you DID, and if you’d enjoy more shows like this, then PLEASE do this:

 

Tell a friend about SDI Radio, ok?  That’s the best way for us to grow.  Just tell them to stop by SDIRadio.com!  And be sure to leave your comments and questions over at today’s show notes page at SDIRadio.com/225…. I’d love to hear from you!

And hey… if there’s anything you’d like to hear more about, drop me a line at feedback@sdiradio.com

My friends… invest wisely today, and live well forever!

 

]]>
Do you want to build a legacy, and not just a portfolio?  If so, there’s one financial tool that is CHEAP (under $10), easy to use, and will have a bigger impact on FUTURE GENERATIONS than anything else you’ve ever done.  And odds are, you’ve never even heard of it.  I’m Bryan Ellis.  I’ll tell you what it is and how to use it RIGHT NOW in Episode #225.

----

Hello, SDI Nation!  Welcome to the show of record for savvy self-directed investors like you, where each day you how to find, understand and profit from exceptional investments… and turn those investments into a wonderful legacy for generations to come!

What a GREAT DAY to be alive, folks!  I’m so honored you’re spending some time with me right now, so let’s get right to it.  But a quick note to you, and I really hope you folks will take this seriously.

Have you ever been in a situation where you were just a bit short of capital for an investment, or for your business, or anything else?  If so, I want you to check out my friends Ari and Mike at Fund & Grow. They are astoundingly good at acquiring zero interest credit of fifty to $250,000 that you can use at your discretion!  I really vouch for what they can do… it’s really amazing, and I’ve seen it work over and over with my own clients, many of whom are your fellow listeners!  To see how & why it works, just check out the short video we’ve posted at SDIRadio.com/credit.  You’ll be very glad you did.

My friends, I know that many of you, like me, think in terms not only of building for your own retirement and other financial wellbeing, but also of building financial assets that will benefit future generations.  And you know, that’s a WISE thing to do.  In fact, right there in the middle of the greatest book of wisdom ever written, the Biblical book of Proverbs, is a verse that says that one thing that wise people do is to leave an inheritance for their children’s children… their grandchildren!  That means that wise people operate with an eye on making an enduring impact on at least 3 distinct generations:  Their own, their children’s generation, and their grandchildren’s generation.

If you agree with that thinking, as I do… then ask yourself:  How would it impact your decisions today, if your time frame was not merely from now until retirement, or now until the end of your life… but at least now until the end of your GRANDCHILDREN’S lives?  Wow… that’s a huge, humbling and EXCITING thought, really… because time well used is the best friend of the wise investor.

Now look, I’m no expert in Hebrew, the original language of that verse in Proverbs, but in the English translation of it I’m reading, there’s no indication that the inheritance that a wise person leaves to their children’s children is or should be limited to a FINANCIAL inheritance.

What other kind of inheritance is there, you might wonder?  Well I’m glad you asked, my friends!  Hehehe

What’s easily more valuable than any money you could leave is the benefit of your EXPERIENCE.  Don’t just leave money or assets… leave an awareness of what those assets are… why you chose them… what alternatives you considered and rejected… what factors about that asset gave you PAUSE, even though you opted to acquire it… what standards you adopted to know how long you should hold the asset… what kind of tax or legal structuring you used for the asset… what you planned to do with the cash flow generated by the asset… how the asset compares to other investments you’ve made in the past.

There’s GOLD in that kind of information, my friends… PURE GOLD.

Imagine if your parents or grandparents had passed on to you a journal… or many journals… that logged their thoughts about the kinds of decisions they made with their money?  There would be SO MUCH TO LEARN… even if your forebears were NOT financially successful… still, how valuable would it be to see the formation of the decisions that led them where they ended up?  Because it was THOSE decisions that affected YOU… and those decisions reverberate to your children, your grandchildren, great-grandchildren and beyond!

I feel a real passion rising up in me for this notion… the notion of financial journaling…. But it’s not really just a financial thing… it’s more like LEGACY journaling… documenting the legacy that I want to leave and that you want to leave.

And all it takes is to go down to the local office supply store and spend $10 on a journal.  I guess you could do it electronically, and there’d be value to that too, I suppose.  But there’s something special, I think, about handwriting.

Can you imagine what it would be like to have the accumulated wisdom of multiple generations of your family to call upon?  Something to pass from one generation to the next… something that makes your family uniquely YOUR FAMILY among all of the families in the world?  Folks, nothing is more indicative of who you are, and who your family is, then how you spend your money.  Where your treasure is… what you use your money for… THAT is where your heart is.  THAT is what’s important to you…

This is important stuff, folks!  And not just for investments.  For all things financial.  What if there was a history you could look back on to see when your parents considered whether to buy a home or a car or an insurance policy or even take a big vacation… how valuable would it be to know what, exactly they considered?  IMMENSELY valuable… because you’d have the benefit of hindsight, and the ability to objectively evaluate whether their decision turned out well or not.

That kind of experience is PURE GOLD, my friends… absolutely priceless.  Absolutely priceless.

And what about your financial RELATIONSHIPS?  Passing on knowledge of great advisors, great bankers, great attorneys, great accountants… that kind of information… those kinds of shortcuts have value of indescribable measure.

This is a practical issue, too, for those of you who are interested in building not just a portfolio, but a legacy.  That’s because, unless you restrict your investments to the most plain-jane of assets, such as stocks or mutual funds, then there will be assets in your portfolio that may be unfamiliar to your children or grandchildren such that they don’t really know how to handle them.  But by WRITING DOWN what you bought, why you bought it, and how to know when it’s time to sell, you’ll be making the job EASY for them!

There’s ABSOLUTE GOLD in that kind of information… and without it, that brilliant and very successful real estate deal you get into TODAY will likely be the one that your future beneficiaries will liquidate far below real value… not because they’re vindictive or foolish or anything other than that they simply don’t understand.

So, that’s it, my friends… start a financial journal today.  Go to an office supply store, spend 10 bucks on a journal, and use it!  Maybe call it a legacy journal… and write down the important decisions you make and why you make them.  Then pass that information on, and teach your family to revere it as worth far more than money, because it is.

Hey, that’s all for today except for one question I have for you:  Did you find today’s show helpful?  If you DID, and if you’d enjoy more shows like this, then PLEASE do this:

 

Tell a friend about SDI Radio, ok?  That’s the best way for us to grow.  Just tell them to stop by SDIRadio.com!  And be sure to leave your comments and questions over at today’s show notes page at SDIRadio.com/225…. I’d love to hear from you!

And hey… if there’s anything you’d like to hear more about, drop me a line at feedback@sdiradio.com

My friends… invest wisely today, and live well forever!

 

]]>
Is YOUR WEALTH Immoral or Unethical? | Episode 224 Is YOUR WEALTH Immoral or Unethical? | Episode 224 Wed, 24 Aug 2016 16:06:10 GMT 8:12 6c5e5a9f3d4d6b2dbdf0f0611c53b3da no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f5a4 Is wealth a badge of honor… or a symbol of shame?  Practically every time Hillary Clinton or Barrack Obama open their mouths, they are vilifying the rich… while Donald Trump is clearly proud of his wealth, and promises repeatedly to bring... Is wealth a badge of honor… or a symbol of shame?  Practically every time Hillary Clinton or Barrack Obama open their mouths, they are vilifying the rich… while Donald Trump is clearly proud of his wealth, and promises repeatedly to bring wealth back to America.  Who’s right?  Is there something MORALLY or ETHICALLY either GOOD or BAD about wealth?  I’m Bryan Ellis.  I’ll spell out the answer for you RIGHT NOW in Episode #224.

----

Hello, SDI Nation!  Welcome to the podcast of record for savvy self-directed investors like you!  This is the show where you learn how to be a wise, profitable steward of your money…

Today we’re going to talk about a topic that’s important, timely and rather personal.  We’re going to address the ETHICS… the MORALITY, even… of acquiring wealth, and being wealthy.

But first, I’d like to introduce you to someone you should get to know, and I’d like to do that by asking you a question:

Have you ever been in a situation where you found a great investment, but were a bit short of capital?  If so, I want you to check out my friends Ari and Mike at Fund & Grow. They are astoundingly good at acquiring zero interest credit of fifty to $250,000 that you can use at your discretion!  Yes, it sounds unreal, but it’s totally legit… I vouch for it… I’ve seen it work over and over with my own clients… your fellow listeners!  To see how & why it works, just check out the video we’ve posted at SDIRadio.com/credit.  You’ll be very glad you did.

So… is wealth a good thing?  Is there any moral or ethical position to wealth at all?

We’re in an election year, so it’s highly relevant to see what politicians are saying about wealth.

Our outgoing president has left no doubt where he stands on that.  Remember these words of his from several years ago:  “If you’ve got a business, you didn’t build that.  Somebody else made that happen.”  That’s right, folks… there’s our president saying that those of you who have poured your blood, sweat and tears into building a business, well, guess what… you didn’t build that.  Somebody else made that happen… according to our President.  By the way… the link to the video where Obama said that is in today’s show notes page at SDIRadio.com/224.

So Obama clearly thinks that your business… your wealth… isn’t yours.  Somebody else gave it to you.  You have what somebody else built.  You’ve taken what isn’t yours… you must give it back.

Similarly, current candidate Hillary Clinton – who recently admitted she’s not driven a car since 1996 – commented that “There are rich people everywhere. And yet they do not contribute... They don't invest in public schools, in public hospitals, in other kinds of development”.  Clearly, Mrs. Clinton lumps all rich people into the category of being “takers”, not “givers”… with a clear implication that there’s something wrong, something fundamentally dirty, about wealth.

Donald Trump has the opposite opinion, clearly and proudly embracing his own wealth, and claiming that it’s his wealth that makes him politically incorruptible.

Who’s right and who’s wrong?

Well, I’m right, and I’ll be happy to tell you why.  Hehehehe

My friends, wealth and the things that comprise it… money, real estate, stocks, businesses, etc… these things are distinctly amoral… that means WITHOUT morality… neither good nor bad.  Practically all inanimate objects are completely without moral weight.

I’ll go a step further… the moral character of money or assets does not change based on how that money or those assets were acquired.  Think about a $100 dollar bill.  Is that particular bill any more or less moral than any other $100 bill?  Of course not!  And that’s true whether that bill was acquired through flipping burgers at McDonald’s, through working as a corporate CEO, or even working as a drug dealer.

Money is money.  It’s not good and it’s not bad.  Of course, if you’re a drug dealer, you’re a horrible scumbag who should be put under the jail for the rest of your life.  But that has no relevance whatsoever to the basically amoral nature of money itself.

But we’re not talking about money, really.  We’re talking about wealth… wealth is an accumulation of excess money and assets, beyond what you need to live.

So is WEALTH either good or bad?  There again, wealth is neither good nor bad.  BUT pay close attention to this:

Contrary to what the left-leaning politicians will tell you, wealth is almost always a sign of GOODNESS… a sign that somebody has done something well along the way… an indicator that somebody has worked hard, made wise decisions, and remained diligent through trial.

Allow me to say what’s profoundly politically Incorrect:  Amassing wealth PROBABLY means you’ve done something really, really well that helped a lot of people… or maybe that you helped a few people in a really profound way.

Wealth is nearly ALWAYS an indicator of those three things – hard work, wise decision making and long-term diligence.  All of those are very good traits… and wealth is a common reward for having such admirable traits.

And if you’re one of the bleeding heart types who instantly thinks of Bernie Madoff… or you get all out of what about the amount of money that CEO’s and hedge fund managers are paid… well, with all due respect… GROW UP.  I mean, come on, really!  For every crooked person who got rich, there are MILLIONS who became wealthy the right way… through hard work, wise decision making and long-term diligence.  And Madoff went to jail.  And those rich hedge fund managers… well guess what?  They’re rich specifically because they’ve made their CLIENTS rich, too… and if their clients are happy with them, why do you feel your opinion has a single iota of value?

Yes, my friends… wealth is practically always a badge of honor, and not a symbol of shame.  In nearly every single case, guilt is an inappropriate emotion as a reaction to wealth, but the appropriate feeling is gratitude.

Wealth is good.  The traits required to achieve wealth are good traits, and admirable traits.  And anybody who tells you otherwise is someone who opposes being committed to working hard, making wise decisions, and being diligent over the long term.  No, those traits don’t always lead to wealth.  But where wealth is earned, those traits are always present.

Don’t be proud of your wealth, be grateful for it.  Rather, be proud of the hard work, be proud of the wise decisions, be proud of the diligence that got you where you are.  And be grateful for the wealth that resulted from it.

And never, ever let scumbag politicians make you believe that wealth is bad or that you are bad because you’ve achieved it.  You are to be commended, and America wouldn’t be what it is without you, my financially successful friends.

My friends… invest wisely today, and live well forever!

]]>
Is wealth a badge of honor… or a symbol of shame?  Practically every time Hillary Clinton or Barrack Obama open their mouths, they are vilifying the rich… while Donald Trump is clearly proud of his wealth, and promises repeatedly to bring wealth back to America.  Who’s right?  Is there something MORALLY or ETHICALLY either GOOD or BAD about wealth?  I’m Bryan Ellis.  I’ll spell out the answer for you RIGHT NOW in Episode #224.

----

Hello, SDI Nation!  Welcome to the podcast of record for savvy self-directed investors like you!  This is the show where you learn how to be a wise, profitable steward of your money…

Today we’re going to talk about a topic that’s important, timely and rather personal.  We’re going to address the ETHICS… the MORALITY, even… of acquiring wealth, and being wealthy.

But first, I’d like to introduce you to someone you should get to know, and I’d like to do that by asking you a question:

Have you ever been in a situation where you found a great investment, but were a bit short of capital?  If so, I want you to check out my friends Ari and Mike at Fund & Grow. They are astoundingly good at acquiring zero interest credit of fifty to $250,000 that you can use at your discretion!  Yes, it sounds unreal, but it’s totally legit… I vouch for it… I’ve seen it work over and over with my own clients… your fellow listeners!  To see how & why it works, just check out the video we’ve posted at SDIRadio.com/credit.  You’ll be very glad you did.

So… is wealth a good thing?  Is there any moral or ethical position to wealth at all?

We’re in an election year, so it’s highly relevant to see what politicians are saying about wealth.

Our outgoing president has left no doubt where he stands on that.  Remember these words of his from several years ago:  “If you’ve got a business, you didn’t build that.  Somebody else made that happen.”  That’s right, folks… there’s our president saying that those of you who have poured your blood, sweat and tears into building a business, well, guess what… you didn’t build that.  Somebody else made that happen… according to our President.  By the way… the link to the video where Obama said that is in today’s show notes page at SDIRadio.com/224.

So Obama clearly thinks that your business… your wealth… isn’t yours.  Somebody else gave it to you.  You have what somebody else built.  You’ve taken what isn’t yours… you must give it back.

Similarly, current candidate Hillary Clinton – who recently admitted she’s not driven a car since 1996 – commented that “There are rich people everywhere. And yet they do not contribute... They don't invest in public schools, in public hospitals, in other kinds of development”.  Clearly, Mrs. Clinton lumps all rich people into the category of being “takers”, not “givers”… with a clear implication that there’s something wrong, something fundamentally dirty, about wealth.

Donald Trump has the opposite opinion, clearly and proudly embracing his own wealth, and claiming that it’s his wealth that makes him politically incorruptible.

Who’s right and who’s wrong?

Well, I’m right, and I’ll be happy to tell you why.  Hehehehe

My friends, wealth and the things that comprise it… money, real estate, stocks, businesses, etc… these things are distinctly amoral… that means WITHOUT morality… neither good nor bad.  Practically all inanimate objects are completely without moral weight.

I’ll go a step further… the moral character of money or assets does not change based on how that money or those assets were acquired.  Think about a $100 dollar bill.  Is that particular bill any more or less moral than any other $100 bill?  Of course not!  And that’s true whether that bill was acquired through flipping burgers at McDonald’s, through working as a corporate CEO, or even working as a drug dealer.

Money is money.  It’s not good and it’s not bad.  Of course, if you’re a drug dealer, you’re a horrible scumbag who should be put under the jail for the rest of your life.  But that has no relevance whatsoever to the basically amoral nature of money itself.

But we’re not talking about money, really.  We’re talking about wealth… wealth is an accumulation of excess money and assets, beyond what you need to live.

So is WEALTH either good or bad?  There again, wealth is neither good nor bad.  BUT pay close attention to this:

Contrary to what the left-leaning politicians will tell you, wealth is almost always a sign of GOODNESS… a sign that somebody has done something well along the way… an indicator that somebody has worked hard, made wise decisions, and remained diligent through trial.

Allow me to say what’s profoundly politically Incorrect:  Amassing wealth PROBABLY means you’ve done something really, really well that helped a lot of people… or maybe that you helped a few people in a really profound way.

Wealth is nearly ALWAYS an indicator of those three things – hard work, wise decision making and long-term diligence.  All of those are very good traits… and wealth is a common reward for having such admirable traits.

And if you’re one of the bleeding heart types who instantly thinks of Bernie Madoff… or you get all out of what about the amount of money that CEO’s and hedge fund managers are paid… well, with all due respect… GROW UP.  I mean, come on, really!  For every crooked person who got rich, there are MILLIONS who became wealthy the right way… through hard work, wise decision making and long-term diligence.  And Madoff went to jail.  And those rich hedge fund managers… well guess what?  They’re rich specifically because they’ve made their CLIENTS rich, too… and if their clients are happy with them, why do you feel your opinion has a single iota of value?

Yes, my friends… wealth is practically always a badge of honor, and not a symbol of shame.  In nearly every single case, guilt is an inappropriate emotion as a reaction to wealth, but the appropriate feeling is gratitude.

Wealth is good.  The traits required to achieve wealth are good traits, and admirable traits.  And anybody who tells you otherwise is someone who opposes being committed to working hard, making wise decisions, and being diligent over the long term.  No, those traits don’t always lead to wealth.  But where wealth is earned, those traits are always present.

Don’t be proud of your wealth, be grateful for it.  Rather, be proud of the hard work, be proud of the wise decisions, be proud of the diligence that got you where you are.  And be grateful for the wealth that resulted from it.

And never, ever let scumbag politicians make you believe that wealth is bad or that you are bad because you’ve achieved it.  You are to be commended, and America wouldn’t be what it is without you, my financially successful friends.

My friends… invest wisely today, and live well forever!

]]>
A Purpose Higher Than Profit? | Episode 223 A Purpose Higher Than Profit? | Episode 223 Tue, 23 Aug 2016 20:30:06 GMT 8:10 f615029725ec69c447d638b051f911b7 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f5a5 It’s good to build wealth… but 100 years from now, what will that mean?  Statistically, probably nothing at all.  But there’s a way to make sure your wealth both provides for your needs, and actually changes the world in an enduring,... It’s good to build wealth… but 100 years from now, what will that mean?  Statistically, probably nothing at all.  But there’s a way to make sure your wealth both provides for your needs, and actually changes the world in an enduring, powerful way.  And it all starts with a shift in perspective you can adopt today.  I’ll tell you all about it right now in Episode #223.

----

Hello, SDI Nation… welcome to the podcast of record for savvy self-directed investors like you.  Hey, today’s show is special… I’m going to dig deeper into my personal beliefs about money and wealth in a way much deeper than I’ve done in the past.

So, my friends… today isn’t about investment strategy, capital deployment opportunities or market analysis.  Rather, for just a few minutes, we’re going to talk about something more fundamental:  Financial philosophy.

Allow me to pose an important question to you:   Imagine that you were supremely successful as an investor… maybe even Warren Buffet level.  What does that do for you… and what is your “role” from that point forward, since you’ve already made more money than you could ever possibly spend?

As you ponder that question, also consider this:  Most conventional financial advisors use some variation of the “work-backwards-from-the-goal” type of strategy when advising you how to handle your money.  In other words, they’ll ask you some questions about how you want your life to look in the future.  Then they help you figure out what your chosen lifestyle will cost on a monthly or annual basis.  That information, taken together with statistical projections about your expected life span, yields a certain dollar amount you must have saved by a certain date in order to afford the lifestyle you’ve chosen.

Ok, so all of that is well and good.  But let’s say you follow the plan to the letter, and it works exactly as designed.  What have you really accomplished?  Yes, a nice life for yourself, sure… and there’s value to that.  But what have you REALLY done to leave a mark that makes the world a better place?

In the interest of expediency, I’ll dispense with any flowery verbiage here and just say it like this:  If the purpose of my life is to pay for my life… what a weak, pathetic, temporary purpose I’ve had.  Same for you.  Same for all of us.

There’s got to be more to this wealth-building thing, my friends… there’s got to be more.  If it’s just about making money… well that in and of itself isn’t particularly motivating to me, or to most.  There’s got to be more… a bigger purpose… a grand design in play.

But what’s the bigger purpose for me?  What’s the grand design for you?

My friends… there’s a very specific answer to that for each of us, and for each of us, I believe it revolves around one word:

STEWARDSHIP.

I believe that wise STEWARDSHIP of our resources should be our purposes, rather than wealth building.

The core difference is stark.

The wealth builder says:  This money is mine, and I’ll do what I can to make it grow.

A wise steward says:  This money is under my control, and I’m responsible to make sure it serves the right purpose.

Note that there’s absolutely nothing wrong with doing what you can to make money grow.  In fact, wealth building can be an important piece of wise stewardship… but they are not the same, and I propose to you that stewardship is a better model to pursue.

Stewardship says:  I’ve been entrusted with the opportunity to manage this capital for a bigger purpose.

If I’m a wise steward of resources, that means that my needs or preferences may not always be the first consideration in how money is used, managed or invested.

Wise stewardship requires that I have a perspective far beyond myself… possibly even multiple generations in the future.  One ancient proverb that’s always resonated strongly with me says that wise people leave an inheritance for their children’s children… their grandchildren!  This suggests to me that maybe I’m not being very wise unless I’m carefully considering THREE ENTIRE GENERATIONS – my own, that of my children, and that of my future grandchildren.

That’s a big, broad perspective.

But I think it goes farther than that.  Imagine this:  Imagine that you build an amazing investment portfolio of cash-flowing real estate, private notes and other such high-value assets.  Furthermore, you do this inside of your Roth IRA so that it’s all totally tax-free.

And then, something unfortunate happens… you very unexpectedly meet your life’s end, leaving that IRA to your spouse or children or grandchildren

What will they do with it?  Invariably, somebody is going to have to make decisions about how to handle those assets… will your beneficiaries have understanding of how you were investing… of the factors you considered when making those investments… will they have awareness of what made those investments so wise, and awareness of the signs to watch for to indicate that it’s time to move on from a particular investment?

Will they have awareness of the BIGGER PURPOSE you were aiming to achieve through your capital investments?

In other words, will they be prepared to be wise stewards themselves?

Or will the portfolio you’ve built be turned over to “professional” financial advisors who, for all their training, quite probably have practically zero understanding or perspective about real estate or other non-Wall Street types of investments?  Because if that’s what happens, your portfolio will be liquidated quickly… and probably for far, far less than it’s worth… and folks, there’s nothing wise about that at all.

So in closing today, my friends, I encourage you to think about these things:

Should your aim be adjusted from simply making great investments, to instead being a WISE STEWARD of your resources?

Since stewardship requires you to see yourself as MANAGER of resources rather than owner… who do you view as the OWNER of those resources you’re managing?  Maybe it’s future generations of your family.  Maybe it’s a cause that’s near and dear to you.  Maybe like me you believe your resources are a blessing from God and are His to direct.  But you’ve got to clarify who you believe is owner of those resources, which leads to #3:

And finally, whoever you decide is the owner of the resources you manage, make it a priority to clarify the purpose and values of the owner so that your stewardship hits the mark.

It’s a great thing to make great investments… in fact, it’s necessary.  But so much more rewarding – more deeply fulfilling – is for investing to be a subset of your greater role:  To be a wise steward over the resources with which you’ve been entrusted for a purpose much grander than mere provision of your own needs.

There’s beauty here, my friends.  And through it all, it remains a very good thing for you to invest wisely today, and live well forever!

]]>
It’s good to build wealth… but 100 years from now, what will that mean?  Statistically, probably nothing at all.  But there’s a way to make sure your wealth both provides for your needs, and actually changes the world in an enduring, powerful way.  And it all starts with a shift in perspective you can adopt today.  I’ll tell you all about it right now in Episode #223.

----

Hello, SDI Nation… welcome to the podcast of record for savvy self-directed investors like you.  Hey, today’s show is special… I’m going to dig deeper into my personal beliefs about money and wealth in a way much deeper than I’ve done in the past.

So, my friends… today isn’t about investment strategy, capital deployment opportunities or market analysis.  Rather, for just a few minutes, we’re going to talk about something more fundamental:  Financial philosophy.

Allow me to pose an important question to you:   Imagine that you were supremely successful as an investor… maybe even Warren Buffet level.  What does that do for you… and what is your “role” from that point forward, since you’ve already made more money than you could ever possibly spend?

As you ponder that question, also consider this:  Most conventional financial advisors use some variation of the “work-backwards-from-the-goal” type of strategy when advising you how to handle your money.  In other words, they’ll ask you some questions about how you want your life to look in the future.  Then they help you figure out what your chosen lifestyle will cost on a monthly or annual basis.  That information, taken together with statistical projections about your expected life span, yields a certain dollar amount you must have saved by a certain date in order to afford the lifestyle you’ve chosen.

Ok, so all of that is well and good.  But let’s say you follow the plan to the letter, and it works exactly as designed.  What have you really accomplished?  Yes, a nice life for yourself, sure… and there’s value to that.  But what have you REALLY done to leave a mark that makes the world a better place?

In the interest of expediency, I’ll dispense with any flowery verbiage here and just say it like this:  If the purpose of my life is to pay for my life… what a weak, pathetic, temporary purpose I’ve had.  Same for you.  Same for all of us.

There’s got to be more to this wealth-building thing, my friends… there’s got to be more.  If it’s just about making money… well that in and of itself isn’t particularly motivating to me, or to most.  There’s got to be more… a bigger purpose… a grand design in play.

But what’s the bigger purpose for me?  What’s the grand design for you?

My friends… there’s a very specific answer to that for each of us, and for each of us, I believe it revolves around one word:

STEWARDSHIP.

I believe that wise STEWARDSHIP of our resources should be our purposes, rather than wealth building.

The core difference is stark.

The wealth builder says:  This money is mine, and I’ll do what I can to make it grow.

A wise steward says:  This money is under my control, and I’m responsible to make sure it serves the right purpose.

Note that there’s absolutely nothing wrong with doing what you can to make money grow.  In fact, wealth building can be an important piece of wise stewardship… but they are not the same, and I propose to you that stewardship is a better model to pursue.

Stewardship says:  I’ve been entrusted with the opportunity to manage this capital for a bigger purpose.

If I’m a wise steward of resources, that means that my needs or preferences may not always be the first consideration in how money is used, managed or invested.

Wise stewardship requires that I have a perspective far beyond myself… possibly even multiple generations in the future.  One ancient proverb that’s always resonated strongly with me says that wise people leave an inheritance for their children’s children… their grandchildren!  This suggests to me that maybe I’m not being very wise unless I’m carefully considering THREE ENTIRE GENERATIONS – my own, that of my children, and that of my future grandchildren.

That’s a big, broad perspective.

But I think it goes farther than that.  Imagine this:  Imagine that you build an amazing investment portfolio of cash-flowing real estate, private notes and other such high-value assets.  Furthermore, you do this inside of your Roth IRA so that it’s all totally tax-free.

And then, something unfortunate happens… you very unexpectedly meet your life’s end, leaving that IRA to your spouse or children or grandchildren

What will they do with it?  Invariably, somebody is going to have to make decisions about how to handle those assets… will your beneficiaries have understanding of how you were investing… of the factors you considered when making those investments… will they have awareness of what made those investments so wise, and awareness of the signs to watch for to indicate that it’s time to move on from a particular investment?

Will they have awareness of the BIGGER PURPOSE you were aiming to achieve through your capital investments?

In other words, will they be prepared to be wise stewards themselves?

Or will the portfolio you’ve built be turned over to “professional” financial advisors who, for all their training, quite probably have practically zero understanding or perspective about real estate or other non-Wall Street types of investments?  Because if that’s what happens, your portfolio will be liquidated quickly… and probably for far, far less than it’s worth… and folks, there’s nothing wise about that at all.

So in closing today, my friends, I encourage you to think about these things:

Should your aim be adjusted from simply making great investments, to instead being a WISE STEWARD of your resources?

Since stewardship requires you to see yourself as MANAGER of resources rather than owner… who do you view as the OWNER of those resources you’re managing?  Maybe it’s future generations of your family.  Maybe it’s a cause that’s near and dear to you.  Maybe like me you believe your resources are a blessing from God and are His to direct.  But you’ve got to clarify who you believe is owner of those resources, which leads to #3:

And finally, whoever you decide is the owner of the resources you manage, make it a priority to clarify the purpose and values of the owner so that your stewardship hits the mark.

It’s a great thing to make great investments… in fact, it’s necessary.  But so much more rewarding – more deeply fulfilling – is for investing to be a subset of your greater role:  To be a wise steward over the resources with which you’ve been entrusted for a purpose much grander than mere provision of your own needs.

There’s beauty here, my friends.  And through it all, it remains a very good thing for you to invest wisely today, and live well forever!

]]>
REJECTED! Why Investors are Abandoning Wall Street During a Boom | SDIRadio.com #222 REJECTED! Why Investors are Abandoning Wall Street During a Boom | SDIRadio.com #222 Fri, 19 Aug 2016 13:36:07 GMT 7:34 3c36c8c2b0fdbce4b8d07a38bcc0ebb8 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f5a6 “Stocks keep going up, and investors keep saying no thanks”.  At least, that's what a story from the Associated Press says. What's the evidence, and why are the booming results of Wall Street being rejected so broadly?  And most importantly... what superior alternatives exist?  I'm Bryan Ellis.  I'll give you the answer RIGHT NOW in episode #222.

Hello, SDI Nation!  Welcome to the show of record for savvy self-directed investors like you, where we help you build wealth WITHOUT Wall Street!  This is Episode #222, so all of the notes and resources from today’s show can be found there at SDIRadio.com/222.

The first such resource is a really interesting AP story published today at CBSNews.com entitled “Stocks Keep Going Up and Investors Keep Saying No Thanks”.  This one caught my eye because ANYTIME a large group of people do exactly the opposite of what you’d reasonably expect them to do, you’ve got to consider the big question of WHY?

So first, the facts:

The stock market is booming, with the S&P 500 hitting an all-time high on Monday and having been on a very strong trajectory upward since February.

So what gives?  Why is it happening?

Is it because the economy is strong and everyone is investing confidently?  Hardly.  GDP grew by a HORRIBLE 1.2% in the 2nd quarter of this year, and it was even worse in the first quarter.  In fact, Obama’s economic policies are on track to make him the first president in ALL OF US HISTORY not to produce a single year of at least 3% GDP growth.  So the stock market isn’t booming because the broader economy is strong.

Is it because of improving unemployment?  It could be that, because unemployment has finally dropped below 5% for the first time since in 8 years.

Wait a minute… I take that back.  It’s definitely not unemployment, because it turns out that the dirty little secret is that there are MORE PEOPLE NOT WORKING NOW than at any point in history, with an all-time LOW in labor force participation happening this year, with no end in sight.  If you can’t reconcile the fact that there are more people totally out of the labor force than ever before, and yet the unemployment rate is going down… well, you’re not the only one.  There’s no way to reconcile those facts with one another, unless you just desperately feel the need to believe political spin.  I, for one, do not have that need.

So why’s the stock market still going up?

Without citing the highly technical justification known as hocus pocus, AKA smoke and mirrors AKA utter hogwash, it’s safe to say that the US stock market is still riding high on the lingering fumes of QE along with the fact that the U.S. market is clearly viewed as the least bad alternative in the world right now, with economic uncertainty strongly reverberating on account of Britain’s exit from the European Union and the constant reality of China’s deceptiveness about its own financial situation.  Basically, the whole world stinks economically, but the USA stinks a little less… and that’s why big-dollar investors are still pouring money into stocks here and driving up prices.

But didn’t I just tell you that LESS money is flowing into stocks?  Yes, I did… and there’s no conflict.  Where the inflow of capital has substantially slowed and even reversed in many cases is with mutual funds that invest in stocks.  That’s where investors are turning away.

That’s important because by and large, mutual funds are fueled by the capital of individual investors… so it’s the INDIVIDUAL INVESTOR – that’s you and me – who is rejecting Wall Street right at the time when it’s reaching new highs.

So what are they – what are YOU – doing instead?

This article says that some investors are merely shifting their investments around, opting for index funds rather than actively managed stock funds.  But clearly there’s something bigger than that, because a whopping $47 BILLION dollars has left stock funds altogether in the last 12 months.

Where there have been much bigger inflows is into BOND mutual funds, which are perceived as offering more safety and reliability.  But interest rates are so low right now that bonds simply aren’t producing much in the way of income, relegating the investors who are opting for bonds to a position of treating bonds like stocks, and profiting primarily from the changes in the bond prices themselves rather than from the cash flow the bonds create.

BIG EXHALE…. I don’t know about you, but all of this makes me really glad I don’t depend on Wall Street for financial security.

What could those investors be doing instead?

I have 3 quick suggestions.

  1. The simplest path to simple, safe and strong returns for them would be to do some real estate secured private lending. For example:  If you have $100,000 to invest, lend that to somebody who has $150,000 worth of real estate collateral so your money is safe, and charge them 6 or 8 or 10 percent interest.  That’s a real gimme.
  2. Another great path, which is similar in many ways to buying bonds, is to buy real estate notes that already exist and are paying. All that means is that SOMEBODY ELSE did what I just recommended to you… they lent their money to someone in exchange for collateral and a great interest rate, and now they’re selling that note – similar to a bond – to you.
  3. And for those of you who don’t quite “get” the notion of real estate-secured debt, you should consider buying a good high-yielding turnkey rental property. Right now, with no trouble at all, there are several great turnkey properties available that are fully renovated, occupied by a paying tenant with a GOVERNMENT GUARANTEE for payment of the rent and a professional, experienced property manager handling the whole thing.  That means you don’t have to be a LANDLORD, you just get to be an INVESTOR.  And as an investor, the deals I work with routinely generate 10%+ NET INCOME from cash flow alone… that doesn’t even factor in appreciation of the property.  So the numbers here can be really, really attractive.

Here’s why I mention those options to you:  You’ve got to begin thinking OUTSIDE of the Wall Street box… and look at other avenues for growing your capital that are SIMPLE, SAFE and STRONG… because Wall Street, while going through a relative period of strength at the moment, is not now and never will be SIMPLE or SAFE… and wise investors who truly respect their own capital demand all three:  SIMPLE, SAFE and STRONG.

So if that’s you and you’re looking to redeploy some of your capital into opportunities that are SIMPLE, SAFE and STRONG, I’ll be happy to help you.  Just stop by SDIRadio.com/consultation and set up a time to talk with me.  I can help you out whether you're investing on behalf of your self-directed IRA, self-directed 401k or any other capital you're looking to profitably deploy.

My friends, invest wisely today, and live well forever!

]]>
“Stocks keep going up, and investors keep saying no thanks”.  At least, that's what a story from the Associated Press says. What's the evidence, and why are the booming results of Wall Street being rejected so broadly?  And most importantly... what superior alternatives exist?  I'm Bryan Ellis.  I'll give you the answer RIGHT NOW in episode #222.

Hello, SDI Nation!  Welcome to the show of record for savvy self-directed investors like you, where we help you build wealth WITHOUT Wall Street!  This is Episode #222, so all of the notes and resources from today’s show can be found there at SDIRadio.com/222.

The first such resource is a really interesting AP story published today at CBSNews.com entitled “Stocks Keep Going Up and Investors Keep Saying No Thanks”.  This one caught my eye because ANYTIME a large group of people do exactly the opposite of what you’d reasonably expect them to do, you’ve got to consider the big question of WHY?

So first, the facts:

The stock market is booming, with the S&P 500 hitting an all-time high on Monday and having been on a very strong trajectory upward since February.

So what gives?  Why is it happening?

Is it because the economy is strong and everyone is investing confidently?  Hardly.  GDP grew by a HORRIBLE 1.2% in the 2nd quarter of this year, and it was even worse in the first quarter.  In fact, Obama’s economic policies are on track to make him the first president in ALL OF US HISTORY not to produce a single year of at least 3% GDP growth.  So the stock market isn’t booming because the broader economy is strong.

Is it because of improving unemployment?  It could be that, because unemployment has finally dropped below 5% for the first time since in 8 years.

Wait a minute… I take that back.  It’s definitely not unemployment, because it turns out that the dirty little secret is that there are MORE PEOPLE NOT WORKING NOW than at any point in history, with an all-time LOW in labor force participation happening this year, with no end in sight.  If you can’t reconcile the fact that there are more people totally out of the labor force than ever before, and yet the unemployment rate is going down… well, you’re not the only one.  There’s no way to reconcile those facts with one another, unless you just desperately feel the need to believe political spin.  I, for one, do not have that need.

So why’s the stock market still going up?

Without citing the highly technical justification known as hocus pocus, AKA smoke and mirrors AKA utter hogwash, it’s safe to say that the US stock market is still riding high on the lingering fumes of QE along with the fact that the U.S. market is clearly viewed as the least bad alternative in the world right now, with economic uncertainty strongly reverberating on account of Britain’s exit from the European Union and the constant reality of China’s deceptiveness about its own financial situation.  Basically, the whole world stinks economically, but the USA stinks a little less… and that’s why big-dollar investors are still pouring money into stocks here and driving up prices.

But didn’t I just tell you that LESS money is flowing into stocks?  Yes, I did… and there’s no conflict.  Where the inflow of capital has substantially slowed and even reversed in many cases is with mutual funds that invest in stocks.  That’s where investors are turning away.

That’s important because by and large, mutual funds are fueled by the capital of individual investors… so it’s the INDIVIDUAL INVESTOR – that’s you and me – who is rejecting Wall Street right at the time when it’s reaching new highs.

So what are they – what are YOU – doing instead?

This article says that some investors are merely shifting their investments around, opting for index funds rather than actively managed stock funds.  But clearly there’s something bigger than that, because a whopping $47 BILLION dollars has left stock funds altogether in the last 12 months.

Where there have been much bigger inflows is into BOND mutual funds, which are perceived as offering more safety and reliability.  But interest rates are so low right now that bonds simply aren’t producing much in the way of income, relegating the investors who are opting for bonds to a position of treating bonds like stocks, and profiting primarily from the changes in the bond prices themselves rather than from the cash flow the bonds create.

BIG EXHALE…. I don’t know about you, but all of this makes me really glad I don’t depend on Wall Street for financial security.

What could those investors be doing instead?

I have 3 quick suggestions.

  1. The simplest path to simple, safe and strong returns for them would be to do some real estate secured private lending. For example:  If you have $100,000 to invest, lend that to somebody who has $150,000 worth of real estate collateral so your money is safe, and charge them 6 or 8 or 10 percent interest.  That’s a real gimme.
  2. Another great path, which is similar in many ways to buying bonds, is to buy real estate notes that already exist and are paying. All that means is that SOMEBODY ELSE did what I just recommended to you… they lent their money to someone in exchange for collateral and a great interest rate, and now they’re selling that note – similar to a bond – to you.
  3. And for those of you who don’t quite “get” the notion of real estate-secured debt, you should consider buying a good high-yielding turnkey rental property. Right now, with no trouble at all, there are several great turnkey properties available that are fully renovated, occupied by a paying tenant with a GOVERNMENT GUARANTEE for payment of the rent and a professional, experienced property manager handling the whole thing.  That means you don’t have to be a LANDLORD, you just get to be an INVESTOR.  And as an investor, the deals I work with routinely generate 10%+ NET INCOME from cash flow alone… that doesn’t even factor in appreciation of the property.  So the numbers here can be really, really attractive.

Here’s why I mention those options to you:  You’ve got to begin thinking OUTSIDE of the Wall Street box… and look at other avenues for growing your capital that are SIMPLE, SAFE and STRONG… because Wall Street, while going through a relative period of strength at the moment, is not now and never will be SIMPLE or SAFE… and wise investors who truly respect their own capital demand all three:  SIMPLE, SAFE and STRONG.

So if that’s you and you’re looking to redeploy some of your capital into opportunities that are SIMPLE, SAFE and STRONG, I’ll be happy to help you.  Just stop by SDIRadio.com/consultation and set up a time to talk with me.  I can help you out whether you're investing on behalf of your self-directed IRA, self-directed 401k or any other capital you're looking to profitably deploy.

My friends, invest wisely today, and live well forever!

]]>
3 Bad Things That Happen IMMEDIATELY When You Commit a Prohibited Transaction | SDIRadio.com #221 3 Bad Things That Happen IMMEDIATELY When You Commit a Prohibited Transaction | SDIRadio.com #221 Wed, 17 Aug 2016 20:32:15 GMT 8:31 54e971c69228375e34c2104097cc22eb no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f5a7 3 things – very bad things – happen INSTANTLY, the very moment you commit a dreaded PROHIBITED TRANSACTION in your self-directed IRA, and you need to understand them.  I’m Bryan Ellis.  This is episode #221.  ----- Hello, SDI... 3 things – very bad things – happen INSTANTLY, the very moment you commit a dreaded PROHIBITED TRANSACTION in your self-directed IRA, and you need to understand them.  I’m Bryan Ellis.  This is episode #221.

 -----

Hello, SDI Nation!  Welcome to the podcast of record for savvy self-directed investors like you, where we help you build great wealth WITHOUT relying on Wall Street!  Be sure to visit SDIRadio.com/221 for today’s show notes and transcript and resources I mention in today’s episode.

Over and over again, you’ve heard me warning you about the dangers of prohibited transactions in your self-directed retirement account, and particularly in self-directed IRA’s.  But today we’re going a bit deeper.

But let’s start at the beginning:  What is a prohibited transaction

Here’s a good generalization:  A prohibited transaction results whenever you use your IRA in such a way that you, or someone related to you, derives benefit from the money or assets of the IRA outside of the context of retirement.  So if you buy real estate with your IRA and then you or your family use that real estate yourselves BEFORE it’s distributed to you during retirement, that’s a prohibited transaction.  If you borrow money from your IRA, that’s prohibited.  If you sell to or buy from your IRA, that’s prohibited.  If you use your IRA as collateral for a loan, that’s prohibited.  You get the idea.  The common theme is you’re doing something with your IRA that benefits you or a related party NOW rather than benefiting you during retirement.

But what REALLY happens when you commit a PT?  Let’s just say that you – completely unwittingly and quite surely without malice or intent to commit a PT – do something… anything… that the IRS regards as a Prohibited Transaction.  What actually happens at the moment you do the dirty deed?

Well, there are 3 distinct things that happen, and they are:

#1.  SILENCE.  That’s right… silence.  You’ll hear nothing.  You’ll see nothing.  There won’t be red flags waving or IRS agents knocking down your door.  There will be a whole lot of nothing.  That’s because the IRS – and most likely you, too – don’t even know it’s happened.  Almost nobody commits a PT intentionally, and so when it happens, you don’t even know it.  And so you continue onward… potentially for years… acting as if nothing has happened, continuing to use your IRA as before.

And it may happen that nobody ever finds out you did it.  Generally speaking the only way your error would be “found out” is through an audit of your IRA, which may happen soon, or a long time into the future, or never happen at all.  And unfortunately, there’s no totally clear statute of limitations on this stuff.  There’s case law where the IRS hit an IRA owner about 10 years after the PT.

So you commit a PT in your IRA, and you experience a whole lot of NOTHING right away.  But silence isn’t all that happens, because if the IRS later determines you’ve committed a prohibited transaction, you’ll discover the next thing that happened when you did so, which is:

#2:  Your IRA ceased being an IRA instantly.  Actually, your IRA ceased being an IRA as of January 1 on the year when you committed the PT.  So… no more deductions for your deposits.  No more tax-free sale of assets and tax-free reinvestments.  No more legal protection from things like lawsuits, bankruptcies and creditors.  Basically, your IRA just becomes a financial account that has no benefits for you whatsoever.

Here’s the problem… you don’t know this has happened.  And so you continue to use your IRA just like before… making deposits… buying assets… selling assets… the whole thing.  And you think you’re using an IRA.  But you’re not… which gives rise to the 3rd thing that happens immediately when you commit a PT, which is:

#3:  You begin accumulating taxes, penalties and interest… at a BLISTERING rate.  So maybe it’s 2016 right now and you commit a PT today, but you have no idea you’ve done so.  So 2017, 2018, 2019 come along and you make a full contribution – and take a full tax deduction – for each of those years.  That would be fine if your account was an IRA, but remember… it isn’t.  And so you’re taking tax deductions to which you’re not entitled, and the IRS is going to hit you to repay those taxes along with penalties and interest.

But that’s not the bad part.  The REALLY bad part is that every transaction you perform in your IRA from January 1 of the year you messed up, up until the present day, several years later… well, all of those transactions are FULLY TAXABLE.  But you won’t be paying taxes on them, because you think you’re using an IRA… but you’re not.  This is where the pain can reach stratospheric levels, because, as you know, it’s entirely plausible that you could be dealing with REALLY big profit margins in your IRA… and you’re expecting those profits NOT to be taxed.  But they’re wholly taxable, and you’ll have to pay penalties and interest on top of back taxes, and all of that begins to accumulate instantly when you commit your PT.

That, my friends, is why it’s COMMON for people who commit a PT to lose half or even substantially more of the value of their IRA… they commit the PT completely without awareness and they continue on acting as if they are receiving the benefits of an IRA for many years… only to discover that those benefits vanished very suddenly several years before, and the only thing that’s been growing in the mean time is NOT their retirement savings, but their debt to the IRS.  In a single moment, years of diligent saving and wise investing can be wiped out, and the IRS hasn’t shown a lot of proclivity towards mercy in these situations.  It’s a horrible situation to be in.

So my friends… when using your Self-Directed IRA, always err on the side of caution, opting to seek expert advice early in the process of each investment, so you’re not stuck dealing with the ugly fallout of this problem.  There aren’t very many attorneys who really know this stuff well… so I’ll save you a heap of trouble and recommend one to you… his name is Tim Berry and you can get his contact info over at SDIRadio.com/tim.  If you think you’ve committed a PT, you should do yourself a favor and reach out to him right away.

 

My friends, we’ve got a lot of EXCITING STUFF headed your way ont his show in the coming days, so do this:  If you’re listening on iTunes BE SURE to SUBSCRIBE to this show… it costs you nothing, but guarantees you that you won’t miss anything.  And whether you’re listening on iTunes or in any other way, be sure you’re on the SDI Private Notification list by texting the word SDIRADIO to 33444.

My friends… invest wisely today, and live well forever!

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3 things – very bad things – happen INSTANTLY, the very moment you commit a dreaded PROHIBITED TRANSACTION in your self-directed IRA, and you need to understand them.  I’m Bryan Ellis.  This is episode #221.

 -----

Hello, SDI Nation!  Welcome to the podcast of record for savvy self-directed investors like you, where we help you build great wealth WITHOUT relying on Wall Street!  Be sure to visit SDIRadio.com/221 for today’s show notes and transcript and resources I mention in today’s episode.

Over and over again, you’ve heard me warning you about the dangers of prohibited transactions in your self-directed retirement account, and particularly in self-directed IRA’s.  But today we’re going a bit deeper.

But let’s start at the beginning:  What is a prohibited transaction

Here’s a good generalization:  A prohibited transaction results whenever you use your IRA in such a way that you, or someone related to you, derives benefit from the money or assets of the IRA outside of the context of retirement.  So if you buy real estate with your IRA and then you or your family use that real estate yourselves BEFORE it’s distributed to you during retirement, that’s a prohibited transaction.  If you borrow money from your IRA, that’s prohibited.  If you sell to or buy from your IRA, that’s prohibited.  If you use your IRA as collateral for a loan, that’s prohibited.  You get the idea.  The common theme is you’re doing something with your IRA that benefits you or a related party NOW rather than benefiting you during retirement.

But what REALLY happens when you commit a PT?  Let’s just say that you – completely unwittingly and quite surely without malice or intent to commit a PT – do something… anything… that the IRS regards as a Prohibited Transaction.  What actually happens at the moment you do the dirty deed?

Well, there are 3 distinct things that happen, and they are:

#1.  SILENCE.  That’s right… silence.  You’ll hear nothing.  You’ll see nothing.  There won’t be red flags waving or IRS agents knocking down your door.  There will be a whole lot of nothing.  That’s because the IRS – and most likely you, too – don’t even know it’s happened.  Almost nobody commits a PT intentionally, and so when it happens, you don’t even know it.  And so you continue onward… potentially for years… acting as if nothing has happened, continuing to use your IRA as before.

And it may happen that nobody ever finds out you did it.  Generally speaking the only way your error would be “found out” is through an audit of your IRA, which may happen soon, or a long time into the future, or never happen at all.  And unfortunately, there’s no totally clear statute of limitations on this stuff.  There’s case law where the IRS hit an IRA owner about 10 years after the PT.

So you commit a PT in your IRA, and you experience a whole lot of NOTHING right away.  But silence isn’t all that happens, because if the IRS later determines you’ve committed a prohibited transaction, you’ll discover the next thing that happened when you did so, which is:

#2:  Your IRA ceased being an IRA instantly.  Actually, your IRA ceased being an IRA as of January 1 on the year when you committed the PT.  So… no more deductions for your deposits.  No more tax-free sale of assets and tax-free reinvestments.  No more legal protection from things like lawsuits, bankruptcies and creditors.  Basically, your IRA just becomes a financial account that has no benefits for you whatsoever.

Here’s the problem… you don’t know this has happened.  And so you continue to use your IRA just like before… making deposits… buying assets… selling assets… the whole thing.  And you think you’re using an IRA.  But you’re not… which gives rise to the 3rd thing that happens immediately when you commit a PT, which is:

#3:  You begin accumulating taxes, penalties and interest… at a BLISTERING rate.  So maybe it’s 2016 right now and you commit a PT today, but you have no idea you’ve done so.  So 2017, 2018, 2019 come along and you make a full contribution – and take a full tax deduction – for each of those years.  That would be fine if your account was an IRA, but remember… it isn’t.  And so you’re taking tax deductions to which you’re not entitled, and the IRS is going to hit you to repay those taxes along with penalties and interest.

But that’s not the bad part.  The REALLY bad part is that every transaction you perform in your IRA from January 1 of the year you messed up, up until the present day, several years later… well, all of those transactions are FULLY TAXABLE.  But you won’t be paying taxes on them, because you think you’re using an IRA… but you’re not.  This is where the pain can reach stratospheric levels, because, as you know, it’s entirely plausible that you could be dealing with REALLY big profit margins in your IRA… and you’re expecting those profits NOT to be taxed.  But they’re wholly taxable, and you’ll have to pay penalties and interest on top of back taxes, and all of that begins to accumulate instantly when you commit your PT.

That, my friends, is why it’s COMMON for people who commit a PT to lose half or even substantially more of the value of their IRA… they commit the PT completely without awareness and they continue on acting as if they are receiving the benefits of an IRA for many years… only to discover that those benefits vanished very suddenly several years before, and the only thing that’s been growing in the mean time is NOT their retirement savings, but their debt to the IRS.  In a single moment, years of diligent saving and wise investing can be wiped out, and the IRS hasn’t shown a lot of proclivity towards mercy in these situations.  It’s a horrible situation to be in.

So my friends… when using your Self-Directed IRA, always err on the side of caution, opting to seek expert advice early in the process of each investment, so you’re not stuck dealing with the ugly fallout of this problem.  There aren’t very many attorneys who really know this stuff well… so I’ll save you a heap of trouble and recommend one to you… his name is Tim Berry and you can get his contact info over at SDIRadio.com/tim.  If you think you’ve committed a PT, you should do yourself a favor and reach out to him right away.

 

My friends, we’ve got a lot of EXCITING STUFF headed your way ont his show in the coming days, so do this:  If you’re listening on iTunes BE SURE to SUBSCRIBE to this show… it costs you nothing, but guarantees you that you won’t miss anything.  And whether you’re listening on iTunes or in any other way, be sure you’re on the SDI Private Notification list by texting the word SDIRADIO to 33444.

My friends… invest wisely today, and live well forever!

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3 Critical Question To Ask BEFORE You Use Section 8 For Your Rental Properties | SDIRadio.com #220 3 Critical Question To Ask BEFORE You Use Section 8 For Your Rental Properties | SDIRadio.com #220 Thu, 11 Aug 2016 13:53:23 GMT 7:33 773e98cf058f015e1e5318cc31c226f0 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f5a8 is tougher, my friends… but I’ve got the answer for you RIGHT NOW!

Here's what you'll learn in this episode: ~ 3 Big Factors That Determine If Section 8 Is Right For YOU! ~ Why experienced property management is key to success with Section 8 ~ Why section 8 is NOT right for everyone ~ How Section 8 can eliminate problems with rental collections and reduce maintenance and vacancy costs

Resources: ~ Show Notes: http://www.SDIRadio.com/220~ Yesterday's Introduction To Section 8: http://www.SDIRadio.com/219 ~ YouTube Page: https://youtu.be/LID1UBUHq_Q ~ HUD Section 8 Info: http://portal.hud.gov/hudportal/HUD?s... ~ HUD Housing Project Info: http://portal.hud.gov/hudportal/HUD?s... Join the free SDI Private Update List by texting SDIRADIO to 33444

Invest Wisely Today, Live Well Forever!

Please check out Self Directed Investor Society here: http://www.SDISociety.org http://www.Facebook.com/SDISociety http://www.Twitter.com/SDISociety http://www.Instagram.com/SDISociety http://SDISociety.Tumblr.com

Be sure to SUBSCRIBE to our channel for more news and training for affluent self-directed investors!

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is tougher, my friends… but I’ve got the answer for you RIGHT NOW!

Here's what you'll learn in this episode: ~ 3 Big Factors That Determine If Section 8 Is Right For YOU! ~ Why experienced property management is key to success with Section 8 ~ Why section 8 is NOT right for everyone ~ How Section 8 can eliminate problems with rental collections and reduce maintenance and vacancy costs

Resources: ~ Show Notes: http://www.SDIRadio.com/220~ Yesterday's Introduction To Section 8: http://www.SDIRadio.com/219 ~ YouTube Page: https://youtu.be/LID1UBUHq_Q ~ HUD Section 8 Info: http://portal.hud.gov/hudportal/HUD?s... ~ HUD Housing Project Info: http://portal.hud.gov/hudportal/HUD?s... Join the free SDI Private Update List by texting SDIRADIO to 33444

Invest Wisely Today, Live Well Forever!

Please check out Self Directed Investor Society here: http://www.SDISociety.org http://www.Facebook.com/SDISociety http://www.Twitter.com/SDISociety http://www.Instagram.com/SDISociety http://SDISociety.Tumblr.com

Be sure to SUBSCRIBE to our channel for more news and training for affluent self-directed investors!

]]>
Section 8 for Landlords | Episode 219 Section 8 for Landlords | Episode 219 Wed, 10 Aug 2016 18:40:17 GMT 8:28 12d8359a398b9c33ed9cd60a8c38bac7 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f5a9 Want to cause a heated discussion among landlords? Just say the words “Section 8” and watch the fireworks explode! Today, I’ll tell you what Section 8 is, how it works… and why there’s not a single answer to “is it a good idea”. I’m... http://www.SDIRadio.com/219 ~ YouTube Page: https://youtu.be/LID1UBUHq_Q ~ HUD Section 8 Info: http://portal.hud.gov/hudportal/HUD?s... ~ HUD Housing Project Info: http://portal.hud.gov/hudportal/HUD?s... Join the free SDI Private Update List by texting SDIRADIO to 33444 Invest Wisely Today, Live Well Forever! Please check out Self Directed Investor Society here: http://www.SDISociety.org http://www.Facebook.com/SDISociety http://www.Twitter.com/SDISociety http://www.Instagram.com/SDISociety http://SDISociety.Tumblr.com Be sure to SUBSCRIBE to our channel for more news and training for affluent self-directed investors!]]> http://www.SDIRadio.com/219 ~ YouTube Page: https://youtu.be/LID1UBUHq_Q ~ HUD Section 8 Info: http://portal.hud.gov/hudportal/HUD?s... ~ HUD Housing Project Info: http://portal.hud.gov/hudportal/HUD?s... Join the free SDI Private Update List by texting SDIRADIO to 33444 Invest Wisely Today, Live Well Forever! Please check out Self Directed Investor Society here: http://www.SDISociety.org http://www.Facebook.com/SDISociety http://www.Twitter.com/SDISociety http://www.Instagram.com/SDISociety http://SDISociety.Tumblr.com Be sure to SUBSCRIBE to our channel for more news and training for affluent self-directed investors!]]> Best Cash Flow Market In America? See For Yourself... | Episode 218 Best Cash Flow Market In America? See For Yourself... | Episode 218 Tue, 09 Aug 2016 14:05:38 GMT 7:26 161296286711f164c8f61d8bc251d169 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f5aa THIS CITY is more famous for poverty and civil rights-era protests than for its real estate, and frankly, some of you more “snooty” investors – you know who you are hehehe – will turn up your nose at this market. But you’ll be leaving money... THIS CITY is more famous for poverty and civil rights-era protests than for its real estate, and frankly, some of you more “snooty” investors – you know who you are hehehe – will turn up your nose at this market. But you’ll be leaving money on the table, because much SMARTER MONEY has seen the cash flow opportunity here, and is SERIOUSLY jumping into it. I’m Bryan Ellis. I’ll tell you all about it right now in Episode 218.

What You Will Learn: ~ 7 really strong motivators I’ve identified in favor of investing in real estate in Birmingham ~ Why the yields from Birmingham properties are reliable, high, and long term ~ How having Section 8 tenants can be beneficial to you

There’s a LOT MORE in the video, please check it out at: https://www.youtube.com/watch?v=tCLi0zPSpI4 http://www.SDIRadio.com/218

Join the free SDI Private Update List by texting SDIRADIO to 33444

If you missed the last episode of Self Directed Investor Radio, check it out here: http://www.SDIRadio.com/217

Invest Wisely Today, Live Well Forever!

Please check out Self Directed Investor Society here: http://www.SDISociety.org http://www.Facebook.com/SDISociety http://www.Twitter.com/SDISociety http://www.Instagram.com/SDISociety http://SDISociety.Tumblr.comhttps://www.thestreet.com/author/1685512/bryan-ellis/all.html

Be sure to SUBSCRIBE to our channel for more news and training for affluent self-directed investors!

 

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THIS CITY is more famous for poverty and civil rights-era protests than for its real estate, and frankly, some of you more “snooty” investors – you know who you are hehehe – will turn up your nose at this market. But you’ll be leaving money on the table, because much SMARTER MONEY has seen the cash flow opportunity here, and is SERIOUSLY jumping into it. I’m Bryan Ellis. I’ll tell you all about it right now in Episode 218.

What You Will Learn: ~ 7 really strong motivators I’ve identified in favor of investing in real estate in Birmingham ~ Why the yields from Birmingham properties are reliable, high, and long term ~ How having Section 8 tenants can be beneficial to you

There’s a LOT MORE in the video, please check it out at: https://www.youtube.com/watch?v=tCLi0zPSpI4 http://www.SDIRadio.com/218

Join the free SDI Private Update List by texting SDIRADIO to 33444

If you missed the last episode of Self Directed Investor Radio, check it out here: http://www.SDIRadio.com/217

Invest Wisely Today, Live Well Forever!

Please check out Self Directed Investor Society here: http://www.SDISociety.org http://www.Facebook.com/SDISociety http://www.Twitter.com/SDISociety http://www.Instagram.com/SDISociety http://SDISociety.Tumblr.comhttps://www.thestreet.com/author/1685512/bryan-ellis/all.html

Be sure to SUBSCRIBE to our channel for more news and training for affluent self-directed investors!

 

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CRASH ALERT: The Hottest Market In The World Is Plummeting | Episode #217 CRASH ALERT: The Hottest Market In The World Is Plummeting | Episode #217 Thu, 04 Aug 2016 20:36:52 GMT 8:19 b4548de9fe322ec5e0d7950114d59c70 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f5ab What You Will Learn:

~ What is the hottest market in the WORLD? ~ Why has it been BOOMING for the past 15 years? ~ Why is that market crashing right now... very quickly?

Links & Resources: - http://www.zerohedge.com/news/2016-08-03/deals-are-collapsing-vancouvers-housing-bubble-has-just-burst - http://www.chpc.biz/vancouver-housing.html - http://www.cbc.ca/news/canada/british-columbia/new-figures-show-massive-growth-in-metro-vancouver-real-estate-prices-1.3524888 - http://www.bloomberg.com/features/2016-vancouver-real-estate-market/

There’s a LOT MORE in the video, please check it above or at: https://youtu.be/0eiJl69-pAg http://www.SDIRadio.com/217

Join the free SDI Private Update List by texting SDIRADIO to 33444

If you missed the last episode of Self Directed Investor Radio, check it out here: http://www.SDIRadio.com/216

Invest Wisely Today, Live Well Forever!

Please check out Self Directed Investor Society here: http://www.SDISociety.org http://www.Facebook.com/SDISociety http://www.Twitter.com/SDISociety http://www.Instagram.com/SDISociety http://SDISociety.Tumblr.com

Be sure to SUBSCRIBE to our channel for more news and training for affluent self-directed investors!

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What You Will Learn:

~ What is the hottest market in the WORLD? ~ Why has it been BOOMING for the past 15 years? ~ Why is that market crashing right now... very quickly?

Links & Resources: - http://www.zerohedge.com/news/2016-08-03/deals-are-collapsing-vancouvers-housing-bubble-has-just-burst - http://www.chpc.biz/vancouver-housing.html - http://www.cbc.ca/news/canada/british-columbia/new-figures-show-massive-growth-in-metro-vancouver-real-estate-prices-1.3524888 - http://www.bloomberg.com/features/2016-vancouver-real-estate-market/

There’s a LOT MORE in the video, please check it above or at: https://youtu.be/0eiJl69-pAg http://www.SDIRadio.com/217

Join the free SDI Private Update List by texting SDIRADIO to 33444

If you missed the last episode of Self Directed Investor Radio, check it out here: http://www.SDIRadio.com/216

Invest Wisely Today, Live Well Forever!

Please check out Self Directed Investor Society here: http://www.SDISociety.org http://www.Facebook.com/SDISociety http://www.Twitter.com/SDISociety http://www.Instagram.com/SDISociety http://SDISociety.Tumblr.com

Be sure to SUBSCRIBE to our channel for more news and training for affluent self-directed investors!

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How To Buy Stock On Margin In Your IRA | Episode 216 How To Buy Stock On Margin In Your IRA | Episode 216 Fri, 22 Jul 2016 10:00:00 GMT 6:47 2ec5ec4cecb7a9b08ffc50c0e11a7aa7 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f5ac Happy FRIDAY, SDI Nation! Hey, even if you have a self-directed IRA or 401k, you might still want to invest in stocks, which is totally kosher. But here’s the question: Can you trade stocks on MARGIN in your self-directed account? I’m Bryan Ellis.... Happy FRIDAY, SDI Nation! Hey, even if you have a self-directed IRA or 401k, you might still want to invest in stocks, which is totally kosher. But here’s the question: Can you trade stocks on MARGIN in your self-directed account? I’m Bryan Ellis. I’ll tell you the answer RIGHT NOW in Episode #216.

What You Will Learn: ~What does it mean to "trade on margin"? ~Can your self-directed IRA use a margin trading account? ~What happens to an IRA that uses a margin account?

There's a LOT MORE in the video, please check it above or at: https://youtu.be/l-O_xs-EWl8 http://www.SDIRadio.com/216

Join the free SDI Private Update List by texting SDIRADIO to 33444

If you missed the last episode of Self Directed Investor Radio, check it out here: http://www.SDIRadio.com/215

Invest Wisely Today, Live Well Forever!

Please check out Self Directed Investor Society here: http://www.SDISociety.org http://www.Facebook.com/SDISociety http://www.Twitter.com/SDISociety http://www.Instagram.com/SDISociety http://SDISociety.Tumblr.com

Be sure to SUBSCRIBE to our channel for more news and training for affluent self-directed investors!

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Happy FRIDAY, SDI Nation! Hey, even if you have a self-directed IRA or 401k, you might still want to invest in stocks, which is totally kosher. But here’s the question: Can you trade stocks on MARGIN in your self-directed account? I’m Bryan Ellis. I’ll tell you the answer RIGHT NOW in Episode #216.

What You Will Learn: ~What does it mean to "trade on margin"? ~Can your self-directed IRA use a margin trading account? ~What happens to an IRA that uses a margin account?

There's a LOT MORE in the video, please check it above or at: https://youtu.be/l-O_xs-EWl8 http://www.SDIRadio.com/216

Join the free SDI Private Update List by texting SDIRADIO to 33444

If you missed the last episode of Self Directed Investor Radio, check it out here: http://www.SDIRadio.com/215

Invest Wisely Today, Live Well Forever!

Please check out Self Directed Investor Society here: http://www.SDISociety.org http://www.Facebook.com/SDISociety http://www.Twitter.com/SDISociety http://www.Instagram.com/SDISociety http://SDISociety.Tumblr.com

Be sure to SUBSCRIBE to our channel for more news and training for affluent self-directed investors!

]]>
<![CDATA[how were SELF-DIRECTED IRA's created? | Episode 215]]> Wed, 20 Jul 2016 10:00:00 GMT 7:17 82f65408b8b79d69eb86fad3756114f1 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f5ad Washington DC Real Estate Market Analysis | Episode 214 Washington DC Real Estate Market Analysis | Episode 214 Mon, 18 Jul 2016 09:30:00 GMT 7:43 33f918d3fc4aafe143b32304ecc9412f no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f5ae <![CDATA[Why do Self-Directed IRA's even exist? | Episode 213]]> Fri, 15 Jul 2016 16:00:45 GMT 8:48 5bbd6e2492c5b17ceef6ca30f990b311 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f5af Why do self-directed IRA’s exist? The tale is replete with scandal, theft, dishonest labor unions, and the annihilated retirement savings of the employees of a once-great American company. Strap on your seat belts my friends… this is going to get... Why do self-directed IRA’s exist? The tale is replete with scandal, theft, dishonest labor unions, and the annihilated retirement savings of the employees of a once-great American company. Strap on your seat belts my friends… this is going to get a little bumpy. I’m Bryan Ellis. This is Episode #213.

What You Will Learn: ~Why IRA's were created to begin with ~How the auto industry & destructive labor unions helped lead to the creation of IRA's ~Distinction among IRA's, "self-directed" IRA's and TRULY Self-Directed IRA's

Links and Resources Mentioned: *Wall Street Journal Article about Pension Failures

My friends, have a great weekend, and remember: Invest Wisely Today, Live Well Forever!

Please check out Self Directed Investor Society here: http://www.SDISociety.org http://www.Facebook.com/SDISociety http://www.Twitter.com/SDISociety http://www.Instagram.com/SDISociety http://SDISociety.Tumblr.com

Be sure to SUBSCRIBE to our channel for more news and training for affluent self-directed investors!

This video is available at: https://www.youtube.com/watch?v=B_Jyq0kjVic

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Why do self-directed IRA’s exist? The tale is replete with scandal, theft, dishonest labor unions, and the annihilated retirement savings of the employees of a once-great American company. Strap on your seat belts my friends… this is going to get a little bumpy. I’m Bryan Ellis. This is Episode #213.

What You Will Learn: ~Why IRA's were created to begin with ~How the auto industry & destructive labor unions helped lead to the creation of IRA's ~Distinction among IRA's, "self-directed" IRA's and TRULY Self-Directed IRA's

Links and Resources Mentioned: *Wall Street Journal Article about Pension Failures

My friends, have a great weekend, and remember: Invest Wisely Today, Live Well Forever!

Please check out Self Directed Investor Society here: http://www.SDISociety.org http://www.Facebook.com/SDISociety http://www.Twitter.com/SDISociety http://www.Instagram.com/SDISociety http://SDISociety.Tumblr.com

Be sure to SUBSCRIBE to our channel for more news and training for affluent self-directed investors!

This video is available at: https://www.youtube.com/watch?v=B_Jyq0kjVic

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<![CDATA[HOT! Beaches, Bikinis & Real Estate! | Episode 212]]> Tue, 05 Jul 2016 12:56:20 GMT 8:00 eb433f93d91792c432c91f1b0ff9b1fa no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f5b0 From the beaches, to the bikinis, to the nightlife… and yes – the real estate market – this Oceanside paradise is the essence of the word HOT!  Everything about it screams YES! to many eager real estate investors.  But to the... From the beaches, to the bikinis, to the nightlife… and yes – the real estate market – this Oceanside paradise is the essence of the word HOT!  Everything about it screams YES! to many eager real estate investors.  But to the discerning eye, it appears a storm may be brewing below the surface, and you need to know about it.  I’m Bryan Ellis.  This is Episode #212.

My friends, it’s Monday, and that means it’s time for MARKET MONDAY, a new and weekly feature here on SDI Radio where we take a real estate market, consider what’s being reported about it, what the data is REALLY saying, and give you a basis to consider action… or avoidance!

And with today’s Monday Market Analysis is my business partner – and also, much to my delight, my wife – Carole Ellis, host of the Real Estate Investing today podcast, a contributor to the Huffington Post and editor of the 700,000-subscriber-strong Bryan Ellis Investing Letter.

Carole, what do you have for us today?

Bryan, you said it right.  Today’s market, Miami, Florida – the magic city – is blazing hot, and it’s real estate market has followed suit, and things could get even better as a result of foreign capital looking for safe havens in light of Britain’s recent exit from the European Union.

There’s plenty in favor of Miami real estate, as it has posted 8.6 percent appreciation in the past 12 months, and it’s showing huge construction activity during a period of time in this country when new construction is in hot demand but hard to find.  Plus, it’s MIAMI… it’s just cool to own property in a place like that.

But all may not be as it seems in this most glamorous of locales.

Here’s my gut sense of things:  It looks like the boom may have already happened and could be headed for the exits.  I base this on three indicators that are readily available, but seem to be overlooked by the press and the economists.

  • FIRST: Miami’s hot housing numbers have been heavily bolstered by LUXURY housing… and that segment is showing serious signs of weakness. Before the housing crash, the Miami luxury market was booming, and it recovered relatively quickly compared to other U.S. markets thanks to Russian, Chinese, and South American investors.  But since then, the U.S. dollar has strengthened substantially, essentially making U.S. real estate more expensive to foreign investors.  A great example is Russian capital, which funded a whopping 20% of the luxury condo purchases in Miami in 2013… but plunged to 6.6% last year… a stunning decline of two thirds!  Simultaneously, transaction volume FELL by 20%... all ominous signs.  Could the demand for a safe haven created by Brexit revive this market sector?  Sure… but for how long? 
  • SECOND: The “Boom Premise” is based on a myth. When investors (foreign and native) started buying in Miami, the premise was that Miami property was a good investment because luxury buyers (specifically monied retiring baby boomers) were quote “moving back to the city” to live in areas with rich entertainment, good healthcare options, and high walkability. Unfortunately, most of the buyers have been extremely eager INVESTORS and *not* baby-boomers. And when investors start outbidding each other in a rabid attempt to get into a market at any cost, it’s not usually a good sign for the strength of the market.
  • THIRD: Developers are not taking the hint. Although dozens of projects in Miami have been postponed or canceled since the end of last year, new construction in the area is still outpacing last year. Developers have sunk more than $4 billion into construction since January of this year, and with comparable west coast markets like San Francisco and L.A. posting a serious DEARTH of new construction, many investors are tempted to think that any new construction in a hot market is a sign of health and growth potential. However, the new construction in Miami is not, for the most part, affordable, lower-end housing but high-end housing, which further bloats an already-overbuilt sector.

So does that mean that you should cross Miami off your list completely? Not necessarily, but I believe you should view Miami as a hot-right-now market, and not an opportunity just waiting to happen.  Despite this tepid endorsement, I do see two points of opportunity in this market:

  • First, look into lower-end housing in Miami, where home prices have jumped 13 PERCENT in the last 12 months. For these properties, demand is growing along from a population of buyers who have been renting and now want to own and feel they have the wherewithal to do so. 
  • Second, remember that the Miami-Dade area has the dubious distinction of being home to more underwater properties than every other market in America, excluding only Las Vegas. So if you’ve got the skills to work directly with banks.. or even with some underwater home owners… then Miami presents a large amount of opportunity.

My bottom line on Miami:  It’s an interesting market, and there is some opportunity scattered throughout it.  But be cautious… and let the core of every investment decision you make in Miami and elsewhere be this:  Always respect your own capital!

Well said, Carole!

Here’s what I hear in that report, my friends:  if you have a particular interest in Miami, then there are some reasons to dig deeper and look closer into specific segments showing promise… but what I do NOT hear is any reason to think that Miami should be counted on for profitability if you’re buying at retail and merely hoping for continued appreciation.

In every real estate investment decision, caution should be central.  But in some markets with histories of astounding volatility – and Miami is certainly one of those – caution should rule the day.  Ask yourself these 3 questions:

Is it SIMPLE?

Is It SAFE?

Is it STRONG?

It’s got to be ALL-3 to make the grade as an SDI-Strong investment… it’s got to be ALL 3 to be worthy of YOUR capital, my friends.

Folks, happy Independence Day and God Bless America!  Enjoy the day with your family and friends, and remember:

Invest wisely today, and live well forever!

]]>
From the beaches, to the bikinis, to the nightlife… and yes – the real estate market – this Oceanside paradise is the essence of the word HOT!  Everything about it screams YES! to many eager real estate investors.  But to the discerning eye, it appears a storm may be brewing below the surface, and you need to know about it.  I’m Bryan Ellis.  This is Episode #212.

My friends, it’s Monday, and that means it’s time for MARKET MONDAY, a new and weekly feature here on SDI Radio where we take a real estate market, consider what’s being reported about it, what the data is REALLY saying, and give you a basis to consider action… or avoidance!

And with today’s Monday Market Analysis is my business partner – and also, much to my delight, my wife – Carole Ellis, host of the Real Estate Investing today podcast, a contributor to the Huffington Post and editor of the 700,000-subscriber-strong Bryan Ellis Investing Letter.

Carole, what do you have for us today?

Bryan, you said it right.  Today’s market, Miami, Florida – the magic city – is blazing hot, and it’s real estate market has followed suit, and things could get even better as a result of foreign capital looking for safe havens in light of Britain’s recent exit from the European Union.

There’s plenty in favor of Miami real estate, as it has posted 8.6 percent appreciation in the past 12 months, and it’s showing huge construction activity during a period of time in this country when new construction is in hot demand but hard to find.  Plus, it’s MIAMI… it’s just cool to own property in a place like that.

But all may not be as it seems in this most glamorous of locales.

Here’s my gut sense of things:  It looks like the boom may have already happened and could be headed for the exits.  I base this on three indicators that are readily available, but seem to be overlooked by the press and the economists.

  • FIRST: Miami’s hot housing numbers have been heavily bolstered by LUXURY housing… and that segment is showing serious signs of weakness. Before the housing crash, the Miami luxury market was booming, and it recovered relatively quickly compared to other U.S. markets thanks to Russian, Chinese, and South American investors.  But since then, the U.S. dollar has strengthened substantially, essentially making U.S. real estate more expensive to foreign investors.  A great example is Russian capital, which funded a whopping 20% of the luxury condo purchases in Miami in 2013… but plunged to 6.6% last year… a stunning decline of two thirds!  Simultaneously, transaction volume FELL by 20%... all ominous signs.  Could the demand for a safe haven created by Brexit revive this market sector?  Sure… but for how long? 
  • SECOND: The “Boom Premise” is based on a myth. When investors (foreign and native) started buying in Miami, the premise was that Miami property was a good investment because luxury buyers (specifically monied retiring baby boomers) were quote “moving back to the city” to live in areas with rich entertainment, good healthcare options, and high walkability. Unfortunately, most of the buyers have been extremely eager INVESTORS and *not* baby-boomers. And when investors start outbidding each other in a rabid attempt to get into a market at any cost, it’s not usually a good sign for the strength of the market.
  • THIRD: Developers are not taking the hint. Although dozens of projects in Miami have been postponed or canceled since the end of last year, new construction in the area is still outpacing last year. Developers have sunk more than $4 billion into construction since January of this year, and with comparable west coast markets like San Francisco and L.A. posting a serious DEARTH of new construction, many investors are tempted to think that any new construction in a hot market is a sign of health and growth potential. However, the new construction in Miami is not, for the most part, affordable, lower-end housing but high-end housing, which further bloats an already-overbuilt sector.

So does that mean that you should cross Miami off your list completely? Not necessarily, but I believe you should view Miami as a hot-right-now market, and not an opportunity just waiting to happen.  Despite this tepid endorsement, I do see two points of opportunity in this market:

  • First, look into lower-end housing in Miami, where home prices have jumped 13 PERCENT in the last 12 months. For these properties, demand is growing along from a population of buyers who have been renting and now want to own and feel they have the wherewithal to do so. 
  • Second, remember that the Miami-Dade area has the dubious distinction of being home to more underwater properties than every other market in America, excluding only Las Vegas. So if you’ve got the skills to work directly with banks.. or even with some underwater home owners… then Miami presents a large amount of opportunity.

My bottom line on Miami:  It’s an interesting market, and there is some opportunity scattered throughout it.  But be cautious… and let the core of every investment decision you make in Miami and elsewhere be this:  Always respect your own capital!

Well said, Carole!

Here’s what I hear in that report, my friends:  if you have a particular interest in Miami, then there are some reasons to dig deeper and look closer into specific segments showing promise… but what I do NOT hear is any reason to think that Miami should be counted on for profitability if you’re buying at retail and merely hoping for continued appreciation.

In every real estate investment decision, caution should be central.  But in some markets with histories of astounding volatility – and Miami is certainly one of those – caution should rule the day.  Ask yourself these 3 questions:

Is it SIMPLE?

Is It SAFE?

Is it STRONG?

It’s got to be ALL-3 to make the grade as an SDI-Strong investment… it’s got to be ALL 3 to be worthy of YOUR capital, my friends.

Folks, happy Independence Day and God Bless America!  Enjoy the day with your family and friends, and remember:

Invest wisely today, and live well forever!

]]>
REITs vs Physical Real Estate - Which is Better For You? | Episode 211 REITs vs Physical Real Estate - Which is Better For You? | Episode 211 Fri, 01 Jul 2016 12:43:51 GMT 7:40 f2a9c9b111e30576a5a5e8eded579c81 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f5b1 If you want to invest in real estate through your retirement account, isn’t the easiest way to do that to buy into a publicly-traded REIT – a real estate investment trust – rather than buying physical real estate?  This question comes from... If you want to invest in real estate through your retirement account, isn’t the easiest way to do that to buy into a publicly-traded REIT – a real estate investment trust – rather than buying physical real estate?  This question comes from Mark, an ophthalmologist in Atlanta, Georgia.  Mark – and SDI Nation – you’ll get the answer to that question RIGHT NOW.  I’m Bryan Ellis.  This is Episode #211.

 ------

Hello SDI Nation!  Welcome to the podcast of record for Savvy Self-Directed Investors like you,  where each day, we guide you to FIND, UNDERSTAND and PROFIT from exceptional investment opportunities!  Hey folks – be sure to stop by SDIRadio.com/211 – that’s the page for today’s Episode #211, where you’ll find all of the links and resources I mention on today’s show.  Or just text the word SDIRADIO to 33444 and we’ll send you all the info you need.

It’s a beautiful day in America, my friends!  The real estate portfolio of the Ellis Household expands by 3 more properties today, each of which is a single-family property that’s fully renovated, rented, managed and producing exceptional cash flow!  Well, technically, it’s not the Ellis household, as we don’t own valuable assets in our own names, nor should you.  But you get the point!  Hehehehe

Folks, I feel like the luckiest man alive to have the chance to do deals like the one we’re closing today.  Can I tell you how this deal went down?  I think you’ll appreciate it.  So one of your fellow listeners – hey Chip! – had asked to purchase a portfolio of rental properties, which we arranged for him.  Sweet deal… only about $150,000 investment, and the net yield after ALL expenses was solidly above 10%.  Well, that’s what Chip was interested in doing, but something happened in his personal life and he needed to delay that purchase for a bit.

Well, folks… ultimately that was for my benefit.  Because I looked at that deal and realized, yet again, that what I say is true:  I don’t sell assets that I wouldn’t buy.  So this package of 3 properties, well… my lovely wife Carole and I decided that they’d be an excellent addition to our own portfolio.  And fate has favored that decision so far, because the appraisals came in even higher than we expected.  So now, we’ll have 3 more properties yielding double-digit net returns… and I couldn’t be happier!

So, onward to the excellent question from Mark, an ophthalmologist right here in the ATL, Atlanta, Georgia, a BOOMING city that offers all of the wonderful things that come with a big city… but at a substantially lower cost than virtually every other big city!

Mark asks this question:  “Hi Bryan, I really enjoy your show.  I’d like to increase my portfolio’s exposure to real estate.  I have about $250,000 I’d like to invest.  I appreciate your endorsement of turnkey-rental properties and I’m seriously considering that approach, but wouldn’t it be much simpler, and just as effective, to purchase a publicly-traded REIT rather than buying physical real estate?  Thanks again for your show, I’m glad you’re back.”

Mark – thanks for a great question!

For those of you who may not be aware, a REIT – more precisely, a real estate investment trust – is a company that buys cash flow-producing real estate and, by law, must pass on 90% or more of the net income it generates to its share holders.  It’s kind of like a mutual fund that invests only in cash flow producing real estate.  And there are several REIT’s that are publicly traded, which means that all you have to do to invest in them is to call up your stock broker and place an order, and voila!  Suddenly, you’re generating real estate income without the hassle of buying or owning physical real estate.

Sounds enticing, doesn’t it?  It is!  It’s a sexy proposition if you’re looking for the benefits of real estate ownership.  Taking the REIT route is certainly simpler than owning physical real estate, and it doesn’t even require one to set up a truly self-directed IRA.  The partly self-directed IRA’s at Schwab or eTrade or elsewhere will work fine for investing in REITs.  And since you’d likely choose one of the publicly-traded REITs, your principal is quite liquid, so you could convert your investment back to cash very easily.

It’s not all roses with REITs though, Mark.  There are 4 big votes against them, in my opinion:

  • First, they can be VERY volatile. REITs slip in and out of favor very quickly, and that has a direct impact on your share price… aka, your principal investment.
  • The second big vote against them is that REITs don’t provide a real hedge against currency fluctuation like direct ownership of real estate. This is a real consideration, folks – look at what BREXIT did to the British Pound just one week ago?  Currency risk – you know it as inflation or deflation – is a very cruel beast, and direct ownership of real estate helps to hedge your portfolio against it, whereas REIT ownership does not.
  • Third: There’s very little tax flexibility with REITs.  Income is taxed as ordinary income, period… a problem if you’re a high income earner.  And you don’t get to do tax-free exchanges – such as the 1031 exchange – when investing in REITs, only with physical real estate.
  • And fourth: You’re forced to buy at retail when buying REITs.  If a REIT share is priced at $100, you’re going to pay $100.  But with real estate… not so much!  We routinely buy real estate – fully renovated – at 60 to 70 cents on the dollar.  Yes, it takes some work to find those deals, but there are plenty of them out there.  If I could buy REITs at 60 to 70 percent of their public price, I’d be very tempted… but it doesn’t work that way.

So should you invest in REITs or physical real estate?  I believe you should default to PHYSICAL REAL ESTATE unless one these two things are true about you:

  • First, If your primary concern is liquidity – meaning that you need to be able to convert your investment to cash in a matter of hours or days – then a REIT is your best choice.
  • Second, If you’re absolutely terrified by the thought of the things that go along with owning real estate, like maintenance costs or legal liability, etc., then you should invest in REITs… but ONLY after you educate yourself about those issues, all of which can be mitigated with proper planning.

So then, Mark and SDI Nation, if you’ve opted towards physical real estate, the question becomes:  WHICH property do you purchase?  Hey, if you’re a full time real estate investor, then you’ve probably got that covered.  But if not – if you’re an ophthalmologist like Mark or an engineer or an entrepreneur or whatever it is you do – and you want to continue doing that thing while enjoying all of the benefits of real estate ownership, then do this:

Stop by SDIRadio.com/211 and check out a case study of an excellent – but rather common – turnkey rental property deal.  Remember from before… the type of property where you write one check and suddenly you’re the owner of a property that’s renovated, rented, and managed without your involvement.  This particular deal is actually available… and it’s a great example of what’s possible.

My friends, have a wonderful weekend and remember this:  Invest wisely today, and live well forever!

]]>
If you want to invest in real estate through your retirement account, isn’t the easiest way to do that to buy into a publicly-traded REIT – a real estate investment trust – rather than buying physical real estate?  This question comes from Mark, an ophthalmologist in Atlanta, Georgia.  Mark – and SDI Nation – you’ll get the answer to that question RIGHT NOW.  I’m Bryan Ellis.  This is Episode #211.

 ------

Hello SDI Nation!  Welcome to the podcast of record for Savvy Self-Directed Investors like you,  where each day, we guide you to FIND, UNDERSTAND and PROFIT from exceptional investment opportunities!  Hey folks – be sure to stop by SDIRadio.com/211 – that’s the page for today’s Episode #211, where you’ll find all of the links and resources I mention on today’s show.  Or just text the word SDIRADIO to 33444 and we’ll send you all the info you need.

It’s a beautiful day in America, my friends!  The real estate portfolio of the Ellis Household expands by 3 more properties today, each of which is a single-family property that’s fully renovated, rented, managed and producing exceptional cash flow!  Well, technically, it’s not the Ellis household, as we don’t own valuable assets in our own names, nor should you.  But you get the point!  Hehehehe

Folks, I feel like the luckiest man alive to have the chance to do deals like the one we’re closing today.  Can I tell you how this deal went down?  I think you’ll appreciate it.  So one of your fellow listeners – hey Chip! – had asked to purchase a portfolio of rental properties, which we arranged for him.  Sweet deal… only about $150,000 investment, and the net yield after ALL expenses was solidly above 10%.  Well, that’s what Chip was interested in doing, but something happened in his personal life and he needed to delay that purchase for a bit.

Well, folks… ultimately that was for my benefit.  Because I looked at that deal and realized, yet again, that what I say is true:  I don’t sell assets that I wouldn’t buy.  So this package of 3 properties, well… my lovely wife Carole and I decided that they’d be an excellent addition to our own portfolio.  And fate has favored that decision so far, because the appraisals came in even higher than we expected.  So now, we’ll have 3 more properties yielding double-digit net returns… and I couldn’t be happier!

So, onward to the excellent question from Mark, an ophthalmologist right here in the ATL, Atlanta, Georgia, a BOOMING city that offers all of the wonderful things that come with a big city… but at a substantially lower cost than virtually every other big city!

Mark asks this question:  “Hi Bryan, I really enjoy your show.  I’d like to increase my portfolio’s exposure to real estate.  I have about $250,000 I’d like to invest.  I appreciate your endorsement of turnkey-rental properties and I’m seriously considering that approach, but wouldn’t it be much simpler, and just as effective, to purchase a publicly-traded REIT rather than buying physical real estate?  Thanks again for your show, I’m glad you’re back.”

Mark – thanks for a great question!

For those of you who may not be aware, a REIT – more precisely, a real estate investment trust – is a company that buys cash flow-producing real estate and, by law, must pass on 90% or more of the net income it generates to its share holders.  It’s kind of like a mutual fund that invests only in cash flow producing real estate.  And there are several REIT’s that are publicly traded, which means that all you have to do to invest in them is to call up your stock broker and place an order, and voila!  Suddenly, you’re generating real estate income without the hassle of buying or owning physical real estate.

Sounds enticing, doesn’t it?  It is!  It’s a sexy proposition if you’re looking for the benefits of real estate ownership.  Taking the REIT route is certainly simpler than owning physical real estate, and it doesn’t even require one to set up a truly self-directed IRA.  The partly self-directed IRA’s at Schwab or eTrade or elsewhere will work fine for investing in REITs.  And since you’d likely choose one of the publicly-traded REITs, your principal is quite liquid, so you could convert your investment back to cash very easily.

It’s not all roses with REITs though, Mark.  There are 4 big votes against them, in my opinion:

  • First, they can be VERY volatile. REITs slip in and out of favor very quickly, and that has a direct impact on your share price… aka, your principal investment.
  • The second big vote against them is that REITs don’t provide a real hedge against currency fluctuation like direct ownership of real estate. This is a real consideration, folks – look at what BREXIT did to the British Pound just one week ago?  Currency risk – you know it as inflation or deflation – is a very cruel beast, and direct ownership of real estate helps to hedge your portfolio against it, whereas REIT ownership does not.
  • Third: There’s very little tax flexibility with REITs.  Income is taxed as ordinary income, period… a problem if you’re a high income earner.  And you don’t get to do tax-free exchanges – such as the 1031 exchange – when investing in REITs, only with physical real estate.
  • And fourth: You’re forced to buy at retail when buying REITs.  If a REIT share is priced at $100, you’re going to pay $100.  But with real estate… not so much!  We routinely buy real estate – fully renovated – at 60 to 70 cents on the dollar.  Yes, it takes some work to find those deals, but there are plenty of them out there.  If I could buy REITs at 60 to 70 percent of their public price, I’d be very tempted… but it doesn’t work that way.

So should you invest in REITs or physical real estate?  I believe you should default to PHYSICAL REAL ESTATE unless one these two things are true about you:

  • First, If your primary concern is liquidity – meaning that you need to be able to convert your investment to cash in a matter of hours or days – then a REIT is your best choice.
  • Second, If you’re absolutely terrified by the thought of the things that go along with owning real estate, like maintenance costs or legal liability, etc., then you should invest in REITs… but ONLY after you educate yourself about those issues, all of which can be mitigated with proper planning.

So then, Mark and SDI Nation, if you’ve opted towards physical real estate, the question becomes:  WHICH property do you purchase?  Hey, if you’re a full time real estate investor, then you’ve probably got that covered.  But if not – if you’re an ophthalmologist like Mark or an engineer or an entrepreneur or whatever it is you do – and you want to continue doing that thing while enjoying all of the benefits of real estate ownership, then do this:

Stop by SDIRadio.com/211 and check out a case study of an excellent – but rather common – turnkey rental property deal.  Remember from before… the type of property where you write one check and suddenly you’re the owner of a property that’s renovated, rented, and managed without your involvement.  This particular deal is actually available… and it’s a great example of what’s possible.

My friends, have a wonderful weekend and remember this:  Invest wisely today, and live well forever!

]]>
Where To FInd Real Estate Note Investments Part 2 | Episode 210 Where To FInd Real Estate Note Investments Part 2 | Episode 210 Wed, 29 Jun 2016 17:30:36 GMT 7:19 a6f169b35eb964874ff4d6148f0bb68a no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f5b2 Real estate-secured notes are an exceptional asset class that offers the simplicity, safety and strength that wise investors seek.  And without a doubt, one of the best sources for getting the best note deals is from other individual... Real estate-secured notes are an exceptional asset class that offers the simplicity, safety and strength that wise investors seek.  And without a doubt, one of the best sources for getting the best note deals is from other individual investors.  But who, exactly… and how?  I’m glad you asked!  Today I share with you 3 key sources for acquiring privately held real estate notes.  I’m Bryan Ellis.  This is episode #210.

 ----

Hello SDI Nation, welcome to the podcast of record for savvy self-directed investors like you, where each day we help you to FIND, UNDERSTAND and PROFIT from exceptional investments.  Be sure to check out the show notes for today’s episode #210 by visiting SDIRadio.com/210.

One such resource you might enjoy is an article I recently wrote for TheStreet.com which addresses the weakness in the luxury end of one of the biggest real estate markets in the world:  New York City.  For those of you who are inclined towards focusing your investment capital on major money centers like New York City, you’ll see some really solid reasons why it’s worthwhile to expand your horizons a bit.  Again, the link to that article is on today’s show notes page at SDIRadio.com/210.

And with regard to analyzing specific markets, I have great news, my friends.  Beginning this coming week, you’ll get to enjoy “Market Monday”… one episode per week – on Monday, not surprisingly, hehehe – that highlights a particular real estate market in the U.S., and why it is – or maybe IS NOT – a suitable investment target for YOU, the self-directed investor!  This isn’t a rah-rah session… and the analysis is just as likely to motivate you to “stay out” as to “jump in”.  The point will be both to educate you about current conditions in a particular market, along with showing you some fundamental factors that are supporting – or weighing on – particular real estate markets.  So look for the first edition of SDI’s Market Monday episode this coming Monday, and if there are any particular markets you’d like for us to analyze, please drop a note to me at feedback@sdiradio.com!

So let’s return to note investing, and what is likely the single best source for acquiring them for you as an individual investor.  That source, generally, is private investors… other individuals like me and you who – for one reason or another – find themselves in possession of real estate notes.  Let’s break this group down into 3 categories:

Category #1:  These are the other individual investors who presently own real estate notes.  They may have acquired these notes because they are in the business of selling their own properties through seller financing which inherently creates a real estate note, or maybe they acquired the note in some other way.  These people are frequently easy to find because you’ll see signs or other advertisements that offer “owner financing” or “seller financing”.  Just search CraigsList in your target market area to find some of them.  This verbiage in an ad is a dead giveaway that the person selling the property is creating a note.  At that point, the relevant questions become:  Do they want to sell the note, and if so, is it a good investment?  On the first point – do they want to sell – the only way to know is to ask!  On the second point – is it a good investment – we’ll defer that question just a bit, so stick with me.

Category #2 of private note sources:  Create them yourself!  Look, this isn’t a good option for everybody, and I don’t want to suggest that it is.  But for those of you who are already landlords, the choice of monetizing your property through seller financing isn’t substantially different than monetizing it through a lease.  The big differences are that you’re getting a down payment that you keep, rather than a security deposit you must return, and that you don’t have to think about maintenance or management or landlord legal liability ever again.  So for those of you who are ALREADY actively involved as landlords – such as those of you who are active, day-to-day real estate investors – this could be a great option for you. 

And finally, there’s Category #3:  Me.  That’s right, yours truly.  My business produces a lot of very high-quality real estate notes, and we’re fond of partnering with investors on these notes.  I don’t actually sell a lot of notes outright because they are, to me, a highly desirable asset.  Instead, what I do is look for investors who can benefit from the type of cash flow that notes can produce, and basically allow them to co-invest with me so that they are entitled to receive the payments from these notes for a long period of time… and in a manner that’s incredibly low-risk for their capital.  I won’t delve into the details right now, but if you’re looking for a way to generate between 6 and 12% on your money in a really simple way by co-investing with me, just drop me a note to feedback@sdiradio.com.  Those deals are usually fairly low-dollar, requiring on average LESS than $50,000 per note, so it’s not a huge capital commitment.

So there you have it, folks:  3 great options for buying privately-owned real estate notes:  You can seek out people who are selling houses with seller financing; You can sell properties you already own with seller financing, and create a note that way; or you can just reach out to me and I’ll handle the whole shebang!

Hey, before I let you go to resume all of the important things you’ll be doing today, I’d just like to say thank you.  As long-time listeners know, I had to take a hiatus from this show for a couple of months due to some big things going on in business and life that demanded my singular focus.  My absence tugged at me every single day, because this podcast is, frankly, my favorite thing to do each day.  And so I was quite concerned that my audience may have dissipated by the time I returned.  And that’s why I’d like to say thank you… based on being back for just about a week, I’d say that SDI Nation is alive and well… and may have even GROWN during my absence!  You folks are amazing and your attentiveness is so humbling.  I know that YOU… the person who is listening right now in your car or on your phone or wherever you are… YOU are the reason for the success of Self Directed Investor Radio, and I thank you.

That’s all for today, folks.  Remember that you can catch this show on video too… We take video of my recording session each day and add some other nice content to it as well, so if you’re listening to the sound of my voice right now, but maybe you’re a more visual person, stop by SDIRadio.com/YouTube and SUBSCRIBE to the SDI Society Youtube channel so you get updates with each new episode we post.

Have a great Wednesday, folks, and remember:  Invest wisely today, and live well forever!

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Real estate-secured notes are an exceptional asset class that offers the simplicity, safety and strength that wise investors seek.  And without a doubt, one of the best sources for getting the best note deals is from other individual investors.  But who, exactly… and how?  I’m glad you asked!  Today I share with you 3 key sources for acquiring privately held real estate notes.  I’m Bryan Ellis.  This is episode #210.

 ----

Hello SDI Nation, welcome to the podcast of record for savvy self-directed investors like you, where each day we help you to FIND, UNDERSTAND and PROFIT from exceptional investments.  Be sure to check out the show notes for today’s episode #210 by visiting SDIRadio.com/210.

One such resource you might enjoy is an article I recently wrote for TheStreet.com which addresses the weakness in the luxury end of one of the biggest real estate markets in the world:  New York City.  For those of you who are inclined towards focusing your investment capital on major money centers like New York City, you’ll see some really solid reasons why it’s worthwhile to expand your horizons a bit.  Again, the link to that article is on today’s show notes page at SDIRadio.com/210.

And with regard to analyzing specific markets, I have great news, my friends.  Beginning this coming week, you’ll get to enjoy “Market Monday”… one episode per week – on Monday, not surprisingly, hehehe – that highlights a particular real estate market in the U.S., and why it is – or maybe IS NOT – a suitable investment target for YOU, the self-directed investor!  This isn’t a rah-rah session… and the analysis is just as likely to motivate you to “stay out” as to “jump in”.  The point will be both to educate you about current conditions in a particular market, along with showing you some fundamental factors that are supporting – or weighing on – particular real estate markets.  So look for the first edition of SDI’s Market Monday episode this coming Monday, and if there are any particular markets you’d like for us to analyze, please drop a note to me at feedback@sdiradio.com!

So let’s return to note investing, and what is likely the single best source for acquiring them for you as an individual investor.  That source, generally, is private investors… other individuals like me and you who – for one reason or another – find themselves in possession of real estate notes.  Let’s break this group down into 3 categories:

Category #1:  These are the other individual investors who presently own real estate notes.  They may have acquired these notes because they are in the business of selling their own properties through seller financing which inherently creates a real estate note, or maybe they acquired the note in some other way.  These people are frequently easy to find because you’ll see signs or other advertisements that offer “owner financing” or “seller financing”.  Just search CraigsList in your target market area to find some of them.  This verbiage in an ad is a dead giveaway that the person selling the property is creating a note.  At that point, the relevant questions become:  Do they want to sell the note, and if so, is it a good investment?  On the first point – do they want to sell – the only way to know is to ask!  On the second point – is it a good investment – we’ll defer that question just a bit, so stick with me.

Category #2 of private note sources:  Create them yourself!  Look, this isn’t a good option for everybody, and I don’t want to suggest that it is.  But for those of you who are already landlords, the choice of monetizing your property through seller financing isn’t substantially different than monetizing it through a lease.  The big differences are that you’re getting a down payment that you keep, rather than a security deposit you must return, and that you don’t have to think about maintenance or management or landlord legal liability ever again.  So for those of you who are ALREADY actively involved as landlords – such as those of you who are active, day-to-day real estate investors – this could be a great option for you. 

And finally, there’s Category #3:  Me.  That’s right, yours truly.  My business produces a lot of very high-quality real estate notes, and we’re fond of partnering with investors on these notes.  I don’t actually sell a lot of notes outright because they are, to me, a highly desirable asset.  Instead, what I do is look for investors who can benefit from the type of cash flow that notes can produce, and basically allow them to co-invest with me so that they are entitled to receive the payments from these notes for a long period of time… and in a manner that’s incredibly low-risk for their capital.  I won’t delve into the details right now, but if you’re looking for a way to generate between 6 and 12% on your money in a really simple way by co-investing with me, just drop me a note to feedback@sdiradio.com.  Those deals are usually fairly low-dollar, requiring on average LESS than $50,000 per note, so it’s not a huge capital commitment.

So there you have it, folks:  3 great options for buying privately-owned real estate notes:  You can seek out people who are selling houses with seller financing; You can sell properties you already own with seller financing, and create a note that way; or you can just reach out to me and I’ll handle the whole shebang!

Hey, before I let you go to resume all of the important things you’ll be doing today, I’d just like to say thank you.  As long-time listeners know, I had to take a hiatus from this show for a couple of months due to some big things going on in business and life that demanded my singular focus.  My absence tugged at me every single day, because this podcast is, frankly, my favorite thing to do each day.  And so I was quite concerned that my audience may have dissipated by the time I returned.  And that’s why I’d like to say thank you… based on being back for just about a week, I’d say that SDI Nation is alive and well… and may have even GROWN during my absence!  You folks are amazing and your attentiveness is so humbling.  I know that YOU… the person who is listening right now in your car or on your phone or wherever you are… YOU are the reason for the success of Self Directed Investor Radio, and I thank you.

That’s all for today, folks.  Remember that you can catch this show on video too… We take video of my recording session each day and add some other nice content to it as well, so if you’re listening to the sound of my voice right now, but maybe you’re a more visual person, stop by SDIRadio.com/YouTube and SUBSCRIBE to the SDI Society Youtube channel so you get updates with each new episode we post.

Have a great Wednesday, folks, and remember:  Invest wisely today, and live well forever!

]]>
Where To Find Real Estate Note Investments | Episode 209 Where To Find Real Estate Note Investments | Episode 209 Tue, 28 Jun 2016 18:39:44 GMT 7:41 c9c3ad20af97410185e7ab235d79c88b no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f5b3 We return from the detour caused by the BREXIT to focus on my FAVORITE asset class: Real Estate Notes!  Here’s the big question: Where do you find them? Join me in Episode 209 to find out what kind of note is right for you. If you missed any of... We return from the detour caused by the BREXIT to focus on my FAVORITE asset class: Real Estate Notes!  Here’s the big question: Where do you find them? Join me in Episode 209 to find out what kind of note is right for you.

If you missed any of the last three episodes leading up to today’s show, I respectfully recommend that you go back and take them in before continuing today. Everything you’ll hear today builds on that information, particularly episode numbers 206 and 207.

What You Will Learn:

  • What a real estate note is
  • Where to find real estate notes
  • How to get on the “inside” of the real estate notes game
  • Where and how to get real estate notes
  • The differences between note brokers and individual investors

Links and Resources Mentioned:

  • Episode 206: a TERRIBLE LAWSUIT that should terrify Rental Property Owners
  • Episode 207: Bryan’s Favorite Asset Class
  • Episode 208: Brexit: Does it Really Matter to You?

My friends… it’s so good to be with you again and always remember this:

Invest wisely today, and live well forever!

Social Media Links

 

]]>
We return from the detour caused by the BREXIT to focus on my FAVORITE asset class: Real Estate Notes!  Here’s the big question: Where do you find them? Join me in Episode 209 to find out what kind of note is right for you.

If you missed any of the last three episodes leading up to today’s show, I respectfully recommend that you go back and take them in before continuing today. Everything you’ll hear today builds on that information, particularly episode numbers 206 and 207.

What You Will Learn:

  • What a real estate note is
  • Where to find real estate notes
  • How to get on the “inside” of the real estate notes game
  • Where and how to get real estate notes
  • The differences between note brokers and individual investors

Links and Resources Mentioned:

  • Episode 206: a TERRIBLE LAWSUIT that should terrify Rental Property Owners
  • Episode 207: Bryan’s Favorite Asset Class
  • Episode 208: Brexit: Does it Really Matter to You?

My friends… it’s so good to be with you again and always remember this:

Invest wisely today, and live well forever!

Social Media Links

 

]]>
BREXIT - Does It Really Matter To Your Portfolio? | Episode 208 BREXIT - Does It Really Matter To Your Portfolio? | Episode 208 Mon, 27 Jun 2016 20:40:54 GMT 8:26 1238389c9fc077725fb93b8efbeacb62 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f5b4 What is Brexit?  How will it affect your portfolio?  And is it important enough to justify my delaying by one day the info I promised you about note investing?  I’m Bryan Ellis.  I’ve got all the answers for you RIGHT NOW in... What is Brexit?  How will it affect your portfolio?  And is it important enough to justify my delaying by one day the info I promised you about note investing?  I’m Bryan Ellis.  I’ve got all the answers for you RIGHT NOW in Episode #208.

 

Hey folks be sure to check out today’s show notes page at SDIRadio.com/208 or if you’re not in front of a computer, just text the word SDIRADIO with no spaces or periods to 33444 to get access to the resources from today’s show #208.

In the last episode, we talked about my favorite asset class… real estate notes.  If you didn’t hear that one, you should definitely check it out right now.  At the end, I promised to tell you where to find some of these great assets.

Well, my friends, I have not forgotten about that, but there’s been some very important economic news that’s relevant to you… and to your future decision making as a self-directed investor.

Friday last week, the world was shocked by news of the “Brexit”… that’s the pop-culturish term used to describe the decision by the people of Great Britain to exit the European Union.  A bit of context will be helpful here, because there are some really important lessons for me and you as investors in this experience, and in the fallout from it.

Back in the 90’s Europe had had enough of getting their clocks cleaned economically by the US in particular and other economic powers in general.  Thus, the idea of a European Union was pitched… a political and economic confederation intended to give Europe more power and influence to compete successfully.

Of course, as political things go, there was more to the story.  The real driving force behind the EU was an ideology known as globalism, in which political leaders ostensibly place the interests of the world at large above the interests of their own countries.  That sounds nice, but it never, ever works.  In reality, globalism is a ploy by political leaders to expand their power over the entire globe rather than just their own countries.

So the EU was formed with many major countries of Europe involved, including Great Britain, Germany, France and others.  So what happened?  What always happens when bureaucrats exert power over economies:  The EU economy weakened and weakened to where it is now hobbling along at, according to the Economist, at less than ½ % per year.  That’s pretty pathetic.

Furthermore, to implement the cultural changes needed to truly implement globalism, something else had to happen:  Unique national culture had to be diminished in each member country.  This is most easily accomplished by essentially erasing national borders and allowed unfettered immigration.

To that effect, the United Nations – that most globalist of entities – recognized that European citizens were aging out of existence with a very low rate of childbirth, and so the UN recommended the “replacement” of Europe’s dwindling population with Muslim freeloaders.  They’re not refugees, they’re freeloaders.

That’s not merely opinion.  Empirical evidence shows that the only “benefit” brought by Muslim immigration is expansion in government spending to care for them, as data from the Gatestone Institute shows that Muslim unemployment rates in Britain are about 50% for men and 75% for women.  I’m told that such behavior is actually condoned in the Islamic faith, which encourages Muslims to idly profit from the efforts of infidels – that’s what they call non-Muslims like me.

So, bottom line:  The EU is formed… they take over the economies of all of the biggest European countries… they begin importing Muslim immigrants by the millions, who promptly take up a spot on the public dole, and are paid for by the efforts of the millions of hard-working citizens who contribute to society…

…and a certain frustration has been building and building and building over time.  It was a deep, intense nationalistic frustration from people who loved their country, and who couldn’t stand that it was being overtaken by people who were there with zero regard for the law or the culture.

And so the Brits decided to unwind themselves from the EU…. And shook the world, economically and politically.

I commend them for this move.  Great Britain once was great.  It can be again.

But what does this mean for you and me?

There will be economic turbulence for a few days, but beyond that, it means a few things.  First:  elections have consequences for your money.  Remember – the Brits chose to join the EU.  Any reasonable analysis of history would have suggested that it was a terrible idea, but the idea was “fashionable”… and foolish.  That idea of globalism through the EU won the day back in the 90’s, and all of Europe has suffered since.  So folks, VOTE CAREFULLY…

Second:  Immigration isn’t an issue to be taken lightly.  With all Donald Trump’s talk of erecting a wall and freezing immigration of Muslim refugees, faux intellectuals have made it fashionable to make accusations of xenophobia when faced with anyone so “uncouth” as to support immigration limits that are clearly pro-America.  But the truth is different that the fashion, as there’s clear evidence connecting Muslim immigrants to being economic leaches and downright dangerous, as yet again evidenced by the recent accusations that 3 Muslim boys, all 14 or younger, raped a 5-year-old girl with special needs in Idaho earlier this month.  Don’t be swayed by shapeless arguments about “fairness”… your family, and their wellbeing, should ALWAYS be the primary factor you consider.

And Third:  If you’re not yet invested in hard assets – namely real estate – now’s the time.  You have to be smart about it, of course, but look at this:  Paper assets are subject to currency fluctuations, and in the past 3 days alone, the British pound has taken a HUGE BEATING… which means that paper assets – like stocks – are inherently worth LESS because their only value is in being converted to cash, and not because they have actual independent value, like real estate does.  So my friends… do yourself a favor… get serious about owning some high-quality, cash-flow producing real estate!  To that end, watch your email this week for the SDI Alert… I’ll be sending you some information about some REALLY STRONG real estate investment opportunities you’ll not want to miss.

We’re about done for the day, and tomorrow, we’ll return to discussing SOURCES for finding great note investment deals.  But… ah yes… the more astute among you might think:  “Bryan, you just told us that paper assets are subject to currency fluctuations, and now you’re telling us to invest in real estate notes.  That’s a huge conflict!”

Not so fast, my friends!  I’ll address that question rather conclusively and impressively, if I do say so myself, hehehehe, so be sure to join me here on tomorrow’s episode of SDI Radio.  And do you know how you can make sure you don’t miss it?  Just text the word SDIRADIO with no spaces or periods to 33444 and get on the FREE SDI Alerts email list.  That’s also where I’ll be sending info about some great real estate investment opportunities, so sign up now.

Folks, amidst the chaos of Brexit and the political storms that are brewing right here in America, I’d like to leave you with one great piece of fundamental advice, and that is:  Invest wisely today, and live well forever!

]]>
What is Brexit?  How will it affect your portfolio?  And is it important enough to justify my delaying by one day the info I promised you about note investing?  I’m Bryan Ellis.  I’ve got all the answers for you RIGHT NOW in Episode #208.

 

Hey folks be sure to check out today’s show notes page at SDIRadio.com/208 or if you’re not in front of a computer, just text the word SDIRADIO with no spaces or periods to 33444 to get access to the resources from today’s show #208.

In the last episode, we talked about my favorite asset class… real estate notes.  If you didn’t hear that one, you should definitely check it out right now.  At the end, I promised to tell you where to find some of these great assets.

Well, my friends, I have not forgotten about that, but there’s been some very important economic news that’s relevant to you… and to your future decision making as a self-directed investor.

Friday last week, the world was shocked by news of the “Brexit”… that’s the pop-culturish term used to describe the decision by the people of Great Britain to exit the European Union.  A bit of context will be helpful here, because there are some really important lessons for me and you as investors in this experience, and in the fallout from it.

Back in the 90’s Europe had had enough of getting their clocks cleaned economically by the US in particular and other economic powers in general.  Thus, the idea of a European Union was pitched… a political and economic confederation intended to give Europe more power and influence to compete successfully.

Of course, as political things go, there was more to the story.  The real driving force behind the EU was an ideology known as globalism, in which political leaders ostensibly place the interests of the world at large above the interests of their own countries.  That sounds nice, but it never, ever works.  In reality, globalism is a ploy by political leaders to expand their power over the entire globe rather than just their own countries.

So the EU was formed with many major countries of Europe involved, including Great Britain, Germany, France and others.  So what happened?  What always happens when bureaucrats exert power over economies:  The EU economy weakened and weakened to where it is now hobbling along at, according to the Economist, at less than ½ % per year.  That’s pretty pathetic.

Furthermore, to implement the cultural changes needed to truly implement globalism, something else had to happen:  Unique national culture had to be diminished in each member country.  This is most easily accomplished by essentially erasing national borders and allowed unfettered immigration.

To that effect, the United Nations – that most globalist of entities – recognized that European citizens were aging out of existence with a very low rate of childbirth, and so the UN recommended the “replacement” of Europe’s dwindling population with Muslim freeloaders.  They’re not refugees, they’re freeloaders.

That’s not merely opinion.  Empirical evidence shows that the only “benefit” brought by Muslim immigration is expansion in government spending to care for them, as data from the Gatestone Institute shows that Muslim unemployment rates in Britain are about 50% for men and 75% for women.  I’m told that such behavior is actually condoned in the Islamic faith, which encourages Muslims to idly profit from the efforts of infidels – that’s what they call non-Muslims like me.

So, bottom line:  The EU is formed… they take over the economies of all of the biggest European countries… they begin importing Muslim immigrants by the millions, who promptly take up a spot on the public dole, and are paid for by the efforts of the millions of hard-working citizens who contribute to society…

…and a certain frustration has been building and building and building over time.  It was a deep, intense nationalistic frustration from people who loved their country, and who couldn’t stand that it was being overtaken by people who were there with zero regard for the law or the culture.

And so the Brits decided to unwind themselves from the EU…. And shook the world, economically and politically.

I commend them for this move.  Great Britain once was great.  It can be again.

But what does this mean for you and me?

There will be economic turbulence for a few days, but beyond that, it means a few things.  First:  elections have consequences for your money.  Remember – the Brits chose to join the EU.  Any reasonable analysis of history would have suggested that it was a terrible idea, but the idea was “fashionable”… and foolish.  That idea of globalism through the EU won the day back in the 90’s, and all of Europe has suffered since.  So folks, VOTE CAREFULLY…

Second:  Immigration isn’t an issue to be taken lightly.  With all Donald Trump’s talk of erecting a wall and freezing immigration of Muslim refugees, faux intellectuals have made it fashionable to make accusations of xenophobia when faced with anyone so “uncouth” as to support immigration limits that are clearly pro-America.  But the truth is different that the fashion, as there’s clear evidence connecting Muslim immigrants to being economic leaches and downright dangerous, as yet again evidenced by the recent accusations that 3 Muslim boys, all 14 or younger, raped a 5-year-old girl with special needs in Idaho earlier this month.  Don’t be swayed by shapeless arguments about “fairness”… your family, and their wellbeing, should ALWAYS be the primary factor you consider.

And Third:  If you’re not yet invested in hard assets – namely real estate – now’s the time.  You have to be smart about it, of course, but look at this:  Paper assets are subject to currency fluctuations, and in the past 3 days alone, the British pound has taken a HUGE BEATING… which means that paper assets – like stocks – are inherently worth LESS because their only value is in being converted to cash, and not because they have actual independent value, like real estate does.  So my friends… do yourself a favor… get serious about owning some high-quality, cash-flow producing real estate!  To that end, watch your email this week for the SDI Alert… I’ll be sending you some information about some REALLY STRONG real estate investment opportunities you’ll not want to miss.

We’re about done for the day, and tomorrow, we’ll return to discussing SOURCES for finding great note investment deals.  But… ah yes… the more astute among you might think:  “Bryan, you just told us that paper assets are subject to currency fluctuations, and now you’re telling us to invest in real estate notes.  That’s a huge conflict!”

Not so fast, my friends!  I’ll address that question rather conclusively and impressively, if I do say so myself, hehehehe, so be sure to join me here on tomorrow’s episode of SDI Radio.  And do you know how you can make sure you don’t miss it?  Just text the word SDIRADIO with no spaces or periods to 33444 and get on the FREE SDI Alerts email list.  That’s also where I’ll be sending info about some great real estate investment opportunities, so sign up now.

Folks, amidst the chaos of Brexit and the political storms that are brewing right here in America, I’d like to leave you with one great piece of fundamental advice, and that is:  Invest wisely today, and live well forever!

]]>
<![CDATA[Bryan's Favorite Asset Class | Episode 207]]> Fri, 24 Jun 2016 12:15:26 GMT 8:06 dd13c8550583a11752b2eb99435a026e no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f5b5 What's a great way to diversify your real estate portfolio so you STILL get great cash flow… but without the headaches or legal risk of having a constant stream of tenants? This may be my favorite type of asset of all, my friends, and I'm going to tell you about it right now. I'm Bryan Ellis. This is Episode #207!

Hello, SDI Nation! Welcome to the podcast of record for savvy self-directed investors like you, where we help you to find, understand and profit from exceptional investment opportunities!

Check my first article for TheStreet.com, a major news website that focuses on stock market investing. It seems they wanted to get some perspective about the real estate world, and they feel that your's truly will bring them a big audience. I'm betting they're correct. Hehehe.

So, the last couple of days have been a bit downcast, I'll admit. The ugly lawsuit going on in Virginia against that landlord who made the unthinkable mistake of demanding background checks… and yesterday's discussion of the harsh reality of the fact that Uncle Sam is not on your side… well… I know that's a mouthful of bitterness to swallow.

But let's return from the land of gloom and doom to focus on what we all love: Investments that are SIMPLE, SAFE and STRONG!

Today I'm going to tell you about my favorite asset class: Real Estate Notes! But let's not bore ourselves with discussions of LTV's and interest rates and principal balances. No way! Rather, I'm going to tell you a story about a wonderful, amazing, magical golden box. Here's the story:

You are visiting Omaha, Nebraska, headquarters of Berkshire Hathaway, the investment firm made famous by super-investor Warren Buffett. You're there for Buffett's annual shareholder meeting. This event, if you've ever been to it, is totally unlike any other shareholder meeting in the world. People come in from all over the world to attend this meeting – very, very smart, well informed and well connected people attend this meeting.

They attend it because they're going to get the chance to hear from the man himself, the Oracle of Omaha… the one man on the planet who is revered as something nearly god-like in the investment world, none other than Mr. Buffett himself. Buffett always uses this meeting to give his impressions of how he's performed at Berkshire Hathaway, and he also talks more broadly about the state of the stock market, the economy, and the world.

When Buffett speak, people listen… and that's why you're there… to learn from THE MAN.

So, much to your delight and surprise, Buffett grabs you by the arm and pulls you into a private room. He says, “Look, I've got a magical box made of pure gold. This box is magical because every month for the next 30 years, it's going to spit out $1,000 cash. It just works automatically, no effort required from you. Plus, the box itself is worth $150,000 just from the gold content. I'd like to sell this box to you for only $100,000. Would you like to buy it?”

So you think it over… and honestly, it's kind of a no-brainer. You get $1,000 per month for 30 years. And the box is worth $50 GRAND more than you've got to pay for it. If that wasn't enough, it's none other than WARREN BUFFETT recommending it to you… and like the box, his reputation is pure gold. So you tell Mr. Buffett: “Yes, I'd like to buy the magical golden box.” Then he looks at you and says “GREAT! But there's one catch: In 30 years from now, I get the box back."

Well, that puts a bit of a curveball in your plans. You were secretly considering just “flipping” this magical golden box to capture as much of the $50,000 profit as you could, but it turns out, that could be difficult since Buffett gets the box back in 30 years from now.

But you put pencil to paper, you do the math, and you realize that it's still a pretty strong deal to get $1,000 per month for 30 years in exchange for $100,000 now. But then, something important occurs to you. So you ask:

“Mr. Buffett, what happens if the box stops working correctly, and doesn't continue to pay me $1,000 per month. What then?”

And with a gleam of pride in his eye, Buffett looks at you and says “NOW you've asked the right question. I promise you on my word that you'll get your $1,000 per month for the next 30 years. But if something happens, and for some reason you DON'T get your monthly payment… THEN, and ONLY THEN, can you sell the box to recoup your investment and lost profits.”

So you noodle the whole thing for a minute… and when you do, what you see is that this deal that Buffett is proposing to you is simple… because in return for investing $100,000 you get $1,000 per month for 30 years. It's safe because if for some reason your money doesn't get paid, you can sell that box, which is worth $50 GRAND more than you paid. And it's strong because – according to my trusty dusty, handy dandy financial calculator, the yield you'd be receiving on your money would be 11.63%... so that's really nice.

That's it… it's a simple, safe and strong deal… it meets that basic criteria that we espouse here at SDI Society.

So why this mythical story about a magical golden box? Because it's really just a story about how real estate notes work. A note is just a financial instrument that entitles it's owner to cash flow – payments from a mortgage. And just like that golden box, if you don't get your payments, you can sell the asset itself – the house – to get your money back.

The opportunity lies in the fact that notes are what's called “negotiable instruments”. In other words, they can be bought and sold.

You could sell the cash flow – the monthly payment stream – to somebody else for what you paid for it, or for more or for less. And if you get your payments as promised, it's all good. If not, you can sell the house attached to the note and get your money back that way.

Same deal with a note. The level of flexibility you have with these things is simply astonishing.

We won't get into the complexities right now, but let me make this clear to you: There's simply no more flexible type of financial instrument than a good real estate note, in my humble but entirely accurate opinion. Hehehehe. The options are astounding… and these instruments can easily be engineered – or even RE-ENGINEERED – to give you PRECISELY the level of simplicity, safety and strength that your portfolio needs.

But how do you find them?

Patience, my friends… patience! I'll cover that in tomorrow's episode. As for now, I have a favor to ask of you: *PLEASE* consider doing me a favor. In case you didn't know, there's now a VIDEO version of this show that's on YouTube. I'd be SO GRATEFUL if you'd visit the youtube page right now for this show – it's at SDIRadio.com/youtube – and PLEASE subscribe to the SDI Society channel there. It's free, it's simple… and I'll be truly grateful to you!

Tomorrow we'll hit the ground running with some tips on FINDING great note investments. You're going to love it. Until then, my friends: Invest wisely today, and live well forever!

]]>
What's a great way to diversify your real estate portfolio so you STILL get great cash flow… but without the headaches or legal risk of having a constant stream of tenants? This may be my favorite type of asset of all, my friends, and I'm going to tell you about it right now. I'm Bryan Ellis. This is Episode #207!

Hello, SDI Nation! Welcome to the podcast of record for savvy self-directed investors like you, where we help you to find, understand and profit from exceptional investment opportunities!

Check my first article for TheStreet.com, a major news website that focuses on stock market investing. It seems they wanted to get some perspective about the real estate world, and they feel that your's truly will bring them a big audience. I'm betting they're correct. Hehehe.

So, the last couple of days have been a bit downcast, I'll admit. The ugly lawsuit going on in Virginia against that landlord who made the unthinkable mistake of demanding background checks… and yesterday's discussion of the harsh reality of the fact that Uncle Sam is not on your side… well… I know that's a mouthful of bitterness to swallow.

But let's return from the land of gloom and doom to focus on what we all love: Investments that are SIMPLE, SAFE and STRONG!

Today I'm going to tell you about my favorite asset class: Real Estate Notes! But let's not bore ourselves with discussions of LTV's and interest rates and principal balances. No way! Rather, I'm going to tell you a story about a wonderful, amazing, magical golden box. Here's the story:

You are visiting Omaha, Nebraska, headquarters of Berkshire Hathaway, the investment firm made famous by super-investor Warren Buffett. You're there for Buffett's annual shareholder meeting. This event, if you've ever been to it, is totally unlike any other shareholder meeting in the world. People come in from all over the world to attend this meeting – very, very smart, well informed and well connected people attend this meeting.

They attend it because they're going to get the chance to hear from the man himself, the Oracle of Omaha… the one man on the planet who is revered as something nearly god-like in the investment world, none other than Mr. Buffett himself. Buffett always uses this meeting to give his impressions of how he's performed at Berkshire Hathaway, and he also talks more broadly about the state of the stock market, the economy, and the world.

When Buffett speak, people listen… and that's why you're there… to learn from THE MAN.

So, much to your delight and surprise, Buffett grabs you by the arm and pulls you into a private room. He says, “Look, I've got a magical box made of pure gold. This box is magical because every month for the next 30 years, it's going to spit out $1,000 cash. It just works automatically, no effort required from you. Plus, the box itself is worth $150,000 just from the gold content. I'd like to sell this box to you for only $100,000. Would you like to buy it?”

So you think it over… and honestly, it's kind of a no-brainer. You get $1,000 per month for 30 years. And the box is worth $50 GRAND more than you've got to pay for it. If that wasn't enough, it's none other than WARREN BUFFETT recommending it to you… and like the box, his reputation is pure gold. So you tell Mr. Buffett: “Yes, I'd like to buy the magical golden box.” Then he looks at you and says “GREAT! But there's one catch: In 30 years from now, I get the box back."

Well, that puts a bit of a curveball in your plans. You were secretly considering just “flipping” this magical golden box to capture as much of the $50,000 profit as you could, but it turns out, that could be difficult since Buffett gets the box back in 30 years from now.

But you put pencil to paper, you do the math, and you realize that it's still a pretty strong deal to get $1,000 per month for 30 years in exchange for $100,000 now. But then, something important occurs to you. So you ask:

“Mr. Buffett, what happens if the box stops working correctly, and doesn't continue to pay me $1,000 per month. What then?”

And with a gleam of pride in his eye, Buffett looks at you and says “NOW you've asked the right question. I promise you on my word that you'll get your $1,000 per month for the next 30 years. But if something happens, and for some reason you DON'T get your monthly payment… THEN, and ONLY THEN, can you sell the box to recoup your investment and lost profits.”

So you noodle the whole thing for a minute… and when you do, what you see is that this deal that Buffett is proposing to you is simple… because in return for investing $100,000 you get $1,000 per month for 30 years. It's safe because if for some reason your money doesn't get paid, you can sell that box, which is worth $50 GRAND more than you paid. And it's strong because – according to my trusty dusty, handy dandy financial calculator, the yield you'd be receiving on your money would be 11.63%... so that's really nice.

That's it… it's a simple, safe and strong deal… it meets that basic criteria that we espouse here at SDI Society.

So why this mythical story about a magical golden box? Because it's really just a story about how real estate notes work. A note is just a financial instrument that entitles it's owner to cash flow – payments from a mortgage. And just like that golden box, if you don't get your payments, you can sell the asset itself – the house – to get your money back.

The opportunity lies in the fact that notes are what's called “negotiable instruments”. In other words, they can be bought and sold.

You could sell the cash flow – the monthly payment stream – to somebody else for what you paid for it, or for more or for less. And if you get your payments as promised, it's all good. If not, you can sell the house attached to the note and get your money back that way.

Same deal with a note. The level of flexibility you have with these things is simply astonishing.

We won't get into the complexities right now, but let me make this clear to you: There's simply no more flexible type of financial instrument than a good real estate note, in my humble but entirely accurate opinion. Hehehehe. The options are astounding… and these instruments can easily be engineered – or even RE-ENGINEERED – to give you PRECISELY the level of simplicity, safety and strength that your portfolio needs.

But how do you find them?

Patience, my friends… patience! I'll cover that in tomorrow's episode. As for now, I have a favor to ask of you: *PLEASE* consider doing me a favor. In case you didn't know, there's now a VIDEO version of this show that's on YouTube. I'd be SO GRATEFUL if you'd visit the youtube page right now for this show – it's at SDIRadio.com/youtube – and PLEASE subscribe to the SDI Society channel there. It's free, it's simple… and I'll be truly grateful to you!

Tomorrow we'll hit the ground running with some tips on FINDING great note investments. You're going to love it. Until then, my friends: Invest wisely today, and live well forever!

]]>
<![CDATA[3 Tips for Rental Property Owners (The Government Isn't Your Friend!) | Episode 206]]> Wed, 22 Jun 2016 16:25:43 GMT 7:26 4590ec936bf0998bee5b7e23f6348dc3 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f5b6 Rental Property Owners face a huge enemy today:  The Federal Government, which delights in creating new rules, regulations and rulings that take power FROM property owners like you and me, and redistributes that power to tenants, “housing... Rental Property Owners face a huge enemy today:  The Federal Government, which delights in creating new rules, regulations and rulings that take power FROM property owners like you and me, and redistributes that power to tenants, “housing advocates”, and of course, to the government itself.  How do YOU shield yourself from this onslaught against your rights as a property owner?  I’m Bryan Ellis.  I’ll tell you RIGHT NOW in Episode #206.

Hello, SDI Nation!  Welcome to the podcast of recover for savvy self-directed investors like you, where you learn, in bite-sized chunks every day, how to find, understand and PROFIT from exceptional investments.

My friends, here in America, a prevailing attitudes that has been taught by our public education system and reinforced by the media to the very large group of Americans I call the “oblivious lowbrows”– these are the people who have practically zero worthwhile knowledge, skills or experience, even though some of them have some or even substantial formal education – what these people have been programmed to believe is that the true EVILDOERS of the world are those awful RICH PEOPLE whose gain is undoubtedly ill-gotten and achieved on the backs of the “working man”… These folks – the unaware lowbrows – they are convinced that those RICH PEOPLE should be punished and that property and wealth should rightfully be owned by SOCIETY rather than those conniving, manipulative rich people.

The result?

An explosion in rules, regulations and rulings that virtually never favor property owners like you and me.  A good way to know that you’re dealing with a rule, regulation or ruling that does not favor you as the property owner is this:  Does the word “Fair” appear in the name?  You can always bet that the word “Fair” in a law means that the government is shifting the balance of power AWAY from the “RICH”, and towards the millions of oblivious lowbrows in our society.

You might think this doesn’t apply to you since you don’t see yourself as “rich”.  But whose perspective determines the definition of “Rich”?  Again, it’s the oblivious lowbrows.  Take as an example of this group, a woman named Jane.  Jane doesn’t have a job, but she’s not really “unemployed” in a conventional sense… she’s got income and her basic needs are provided for.  She’s compensated – by the government – to do absolutely nothing.

Most or all of Jane’s housing, her food, and her medical care are paid for by the government.  The same for her children… in fact, the more children Jane has, the more she’s paid by the government.  And Jane knows how to work the system, too… because she’s a product of it.  Jane knows that she’s eligible for even more stipends and pay from the government if her children fail to reach a certain standard of academic or intellectual performance… and thus, she’s unmotivated to emphasize education… because it certainly wasn’t emphasized to her.

Jane is unmotivated to change anything about her life because her basic needs are being provided without her doing anything whatsoever.

Why’d I take so much time describing Jane to you?  Jane is relevant to you as a rental property owner because the rules, regulations and rulings I mentioned at the top of the show are written to motivate Jane to vote for the politicians who support the programs that support Jane.

The educational system, the media and Hollywood are willing accomplices in this process, feeding Jane and her ilk an incessant flow of propaganda that the problem is NOT Jane, it’s NOT her unwillingness to work, it’s not that she and tens of millions of others like her are happy to subsist simply by sucking at the tit of the federal government… no, what Jane is taught, and is happy to believe, is that the problem is the RICH PEOPLE who took all her money.

Yes, Jane believes that the money should be hers, and that it was somehow taken from her.

And it’s from JANE’S PERSPECTIVE that the word “rich” is defined.  You see, to me and you, “RICH” means Bill Gates.  It means Warren Buffett.  It means Donald Trump.  It means Mark Cuban or Elon Musk.

But to Jane… RICH means the person living in that nice neighborhood on the other side of town.  And guess what?  That’s YOU.  YOU are the dirty, stinking, rotten, filthy, conniving RICH PERSON that Jane despises… and YOU are target of every law that has the word “FAIR” in it… YOU are who Jane perceives as having gotten what you have by taking advantage of others… and Jane believes it whole heartedly.

My friends… are you aware of this?  My description to you just now is harsh, but dead on accurate.  If you don’t believe me, I dare you to go into a part of town that you don’t normally frequent – you know where I’m talking about – and just ask a few random people how the rich people got their money.  Then ask them this question:  “Where do the rich people live around here?”  It’s very, very likely that they’ll describe YOUR side of town.

In today’s society, YOU are the rich person that’s being targeted.  So what do you to protect yourself from the fact that your preferred method of wealth building – real estate ownership – is one of the primary vehicles under attack by Uncle Sam?

There are 3 simple suggestions I have for you:

First, make sure that your property management company is legally savvy, and that they make a concerted effort to stay abreast of the changing legal environment for property owners.  Too many of them just don’t do this at all.

Second, for those of you who buy turnkey rental properties, respect your own capital enough to ONLY work with companies that take an active interest in helping you stay up to date on developments that are profoundly relevant to you as a property owner.  Two great examples of what I mean are Episodes #90 and #205 of this show, where a year ago I gave you notice and a prediction about the disparate impact ruling from the Supreme Court, and then a year later – in yesterday’s Episode #205 – I showed you how my prediction is coming true, almost to the letter.  So if your turnkey rental property provider isn’t taking an interest in how your properties are affected, then you’ve got to question whether their motivation runs any deeper than just selling you a house.

And my third and final suggestion:  This November, vote with your brain, not your emotions.  Good lord, people… when you were 20 years old, it was fine to vote for the candidate that made you feel warm and fuzzy and idealistic.  But you’re an adult now with responsibilities.  Don’t give away your vote just because that’s how you were brought up, or because that’s how people in your area vote, or because that’s how people of your particular ethnicity vote.  Vote based on YOUR INTERESTS... and remember:  When politicians talk about taxing the rich and making new rules and regulations to benefit the common man, they’re not talking about the “common man” as you and I know him.  They’re talking about Jane… they’re talking about the oblivious lowbrows who are wholly dependent on the government… they’re talking about making our country a subsistence society… and that’s COMPLETELY OPPOSITE YOUR INTERESTS… it’s completely opposite what is necessary to make America great again.

I said I had only 3 suggestions, but I’ve got a bonus suggestion for you.  Here it is:  Consider diversifying your next real estate capital deployment AWAY from property ownership into something that’s a bit easier, more predictable… and dare I say… SMARTER than outright property ownership?  I’ll tell you more about that TOMORROW in Episode #207.

Until then, my friends, remember this: Invest wisely today, and live well forever!

]]>
Rental Property Owners face a huge enemy today:  The Federal Government, which delights in creating new rules, regulations and rulings that take power FROM property owners like you and me, and redistributes that power to tenants, “housing advocates”, and of course, to the government itself.  How do YOU shield yourself from this onslaught against your rights as a property owner?  I’m Bryan Ellis.  I’ll tell you RIGHT NOW in Episode #206.

Hello, SDI Nation!  Welcome to the podcast of recover for savvy self-directed investors like you, where you learn, in bite-sized chunks every day, how to find, understand and PROFIT from exceptional investments.

My friends, here in America, a prevailing attitudes that has been taught by our public education system and reinforced by the media to the very large group of Americans I call the “oblivious lowbrows”– these are the people who have practically zero worthwhile knowledge, skills or experience, even though some of them have some or even substantial formal education – what these people have been programmed to believe is that the true EVILDOERS of the world are those awful RICH PEOPLE whose gain is undoubtedly ill-gotten and achieved on the backs of the “working man”… These folks – the unaware lowbrows – they are convinced that those RICH PEOPLE should be punished and that property and wealth should rightfully be owned by SOCIETY rather than those conniving, manipulative rich people.

The result?

An explosion in rules, regulations and rulings that virtually never favor property owners like you and me.  A good way to know that you’re dealing with a rule, regulation or ruling that does not favor you as the property owner is this:  Does the word “Fair” appear in the name?  You can always bet that the word “Fair” in a law means that the government is shifting the balance of power AWAY from the “RICH”, and towards the millions of oblivious lowbrows in our society.

You might think this doesn’t apply to you since you don’t see yourself as “rich”.  But whose perspective determines the definition of “Rich”?  Again, it’s the oblivious lowbrows.  Take as an example of this group, a woman named Jane.  Jane doesn’t have a job, but she’s not really “unemployed” in a conventional sense… she’s got income and her basic needs are provided for.  She’s compensated – by the government – to do absolutely nothing.

Most or all of Jane’s housing, her food, and her medical care are paid for by the government.  The same for her children… in fact, the more children Jane has, the more she’s paid by the government.  And Jane knows how to work the system, too… because she’s a product of it.  Jane knows that she’s eligible for even more stipends and pay from the government if her children fail to reach a certain standard of academic or intellectual performance… and thus, she’s unmotivated to emphasize education… because it certainly wasn’t emphasized to her.

Jane is unmotivated to change anything about her life because her basic needs are being provided without her doing anything whatsoever.

Why’d I take so much time describing Jane to you?  Jane is relevant to you as a rental property owner because the rules, regulations and rulings I mentioned at the top of the show are written to motivate Jane to vote for the politicians who support the programs that support Jane.

The educational system, the media and Hollywood are willing accomplices in this process, feeding Jane and her ilk an incessant flow of propaganda that the problem is NOT Jane, it’s NOT her unwillingness to work, it’s not that she and tens of millions of others like her are happy to subsist simply by sucking at the tit of the federal government… no, what Jane is taught, and is happy to believe, is that the problem is the RICH PEOPLE who took all her money.

Yes, Jane believes that the money should be hers, and that it was somehow taken from her.

And it’s from JANE’S PERSPECTIVE that the word “rich” is defined.  You see, to me and you, “RICH” means Bill Gates.  It means Warren Buffett.  It means Donald Trump.  It means Mark Cuban or Elon Musk.

But to Jane… RICH means the person living in that nice neighborhood on the other side of town.  And guess what?  That’s YOU.  YOU are the dirty, stinking, rotten, filthy, conniving RICH PERSON that Jane despises… and YOU are target of every law that has the word “FAIR” in it… YOU are who Jane perceives as having gotten what you have by taking advantage of others… and Jane believes it whole heartedly.

My friends… are you aware of this?  My description to you just now is harsh, but dead on accurate.  If you don’t believe me, I dare you to go into a part of town that you don’t normally frequent – you know where I’m talking about – and just ask a few random people how the rich people got their money.  Then ask them this question:  “Where do the rich people live around here?”  It’s very, very likely that they’ll describe YOUR side of town.

In today’s society, YOU are the rich person that’s being targeted.  So what do you to protect yourself from the fact that your preferred method of wealth building – real estate ownership – is one of the primary vehicles under attack by Uncle Sam?

There are 3 simple suggestions I have for you:

First, make sure that your property management company is legally savvy, and that they make a concerted effort to stay abreast of the changing legal environment for property owners.  Too many of them just don’t do this at all.

Second, for those of you who buy turnkey rental properties, respect your own capital enough to ONLY work with companies that take an active interest in helping you stay up to date on developments that are profoundly relevant to you as a property owner.  Two great examples of what I mean are Episodes #90 and #205 of this show, where a year ago I gave you notice and a prediction about the disparate impact ruling from the Supreme Court, and then a year later – in yesterday’s Episode #205 – I showed you how my prediction is coming true, almost to the letter.  So if your turnkey rental property provider isn’t taking an interest in how your properties are affected, then you’ve got to question whether their motivation runs any deeper than just selling you a house.

And my third and final suggestion:  This November, vote with your brain, not your emotions.  Good lord, people… when you were 20 years old, it was fine to vote for the candidate that made you feel warm and fuzzy and idealistic.  But you’re an adult now with responsibilities.  Don’t give away your vote just because that’s how you were brought up, or because that’s how people in your area vote, or because that’s how people of your particular ethnicity vote.  Vote based on YOUR INTERESTS... and remember:  When politicians talk about taxing the rich and making new rules and regulations to benefit the common man, they’re not talking about the “common man” as you and I know him.  They’re talking about Jane… they’re talking about the oblivious lowbrows who are wholly dependent on the government… they’re talking about making our country a subsistence society… and that’s COMPLETELY OPPOSITE YOUR INTERESTS… it’s completely opposite what is necessary to make America great again.

I said I had only 3 suggestions, but I’ve got a bonus suggestion for you.  Here it is:  Consider diversifying your next real estate capital deployment AWAY from property ownership into something that’s a bit easier, more predictable… and dare I say… SMARTER than outright property ownership?  I’ll tell you more about that TOMORROW in Episode #207.

Until then, my friends, remember this: Invest wisely today, and live well forever!

]]>
a TERRIBLE LAWSUIT that should terrify Rental Property Owners | Episode 205 a TERRIBLE LAWSUIT that should terrify Rental Property Owners | Episode 205 Tue, 21 Jun 2016 18:29:06 GMT 7:33 08d828f93247c8492eeba80dd8cd4c93 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f5b7 Are you a rental property owner?  Then answer this question:  Do you believe it’s reasonable to require criminal background checks of your tenants?  Now don’t forget your answer, because I’ve got some terrifying news for you... Are you a rental property owner?  Then answer this question:  Do you believe it’s reasonable to require criminal background checks of your tenants?  Now don’t forget your answer, because I’ve got some terrifying news for you today, made possible by an insane, destructive decision by the US Supreme Court last year.  I’m Bryan Ellis.  This is Episode #205.

Hello, SDI Nation!  Welcome to the podcast of record, where we help savvy investors like you find, understand and profit from exceptional investments.

On June 26 of last year – almost exactly a year ago – I told you in Episode #90 of this very show about a terrifying Supreme Court decision that I predicted would be a horrible blight on the freedom of real estate investors in America.  The case involved an issue called “disparate impact”.  In layman's terms, this refers to a policy that disproportionately affects one group of people more than another, even if there is no intent to discriminate against anyone.

I gave an extreme example, that went like this:  You’re a landlord, and you institute a policy that you won’t rent your properties to anyone ever convicted of rape.  Seems reasoanble, right?  Well, a Supreme Court decision from last year adds in a “trump card” where your policies ae concerned:  RACE.  The way it works is this:  If your anti-rapist policies have a proportionate impact on all ethnicities, then you’re ok.  But if your anti-rapist policy has a disproportionately large impact on any ethnic group – even if the disqualifier issue (like rape) happens to be a criminal matter – then you risk being targeted by a civil rights lawsuit on the basis of a legal theory known as “disparate impact”.  Basically, the Supreme Court is telling us that your rental policy is RACIST even though there’s not a single drop of racial motivation anywhere to be found.

And that’s exactly what’s happened.  There’s a civil rights lawsuit facing a landlord who is demanding proper identification so he can run criminal background checks.  This is painful, folks.  Here's the story from our friends over at The Daily Caller...

 

INSERT VIDEO HERE

 

Can you believe it?  What you’ve got is a landlord facing a VERY expensive lawsuit because a particular group of people who are BREAKING THE LAW by not having proper ID… well, they’re suing him because they believe that more people of their ethnicity break that particular law than people of other ethnicities, and so they should receive some protection from the repercussion of that particular criminal activity.

It’s DISGUSTING.  Folks, this isn't about Latinos or African Americans or caucasians or any ethnicity.  It's about the fact that the new Supreme Court decision basically places ETHNICITY as a trump card over the law... or, at least, that's the effect that will exist if the plaintiffs win this case.  It's absolutely disgusting.

Tell me something:  Where's the discrimination?  It doesn’t exist.  But what is being violated is this landlord’s right to manage his property in a safe and responsible manner.  This whole thing is mind-blowing and terrifying, just as I predicted back in Episode #90 of Self Directed Investor Radio.

Have you ever been involved in a lawsuit?  If not, let me give you a taste of it.  I’ve only really had to deal with one big legal conflict.  A former business associate went… well, his mental condition changed, if that’s the right word for it… and he went ballistic and sued me in federal court in his home town.  My lawyers got it dismissed because it was a silly claim.  He then sued me in federal court in my home town.  Again, my lawyers got it dismissed, because it was just ridiculous.  But at the end of the day, that experience still cost me about $80,000.

Why’s that relevant to YOU?  Well, the bottom line is that the Supreme Court’s decision last year make it MUCH more likely that the kind of lawsuit being faced by Waples Mobile Home Park will come to knock on your door someday, too.  Now at this point, this is still only a lawsuit.  It could still be withdrawn, it could be dismissed or it could go to trial, which I suspect will happen.  Nobody knows how it will turn out.  There's more to every story than meets the eye, and that's probably true here, too.  But here's what's so troubling to me as a real estate investor:

It cost me $80,000 to get a frivolous lawsuit DISMISSED.  That didn’t include the cost of going to trial, because the claim against me was so silly as to be rejected outright by the judge.  Yet it still cost me $80,000 to make that happen.

And now, lawsuits like the one against Waples are MUCH easier to bring against rental property owners … directly as a function of some incredibly twisted thinking at the Supreme Court.  And if the landlord in this case WINS… which is still entirely possible… it’s practically guaranteed that he’ll have to spend tens or hundreds of thousands of dollars – at minimum – defending himself against this claim.

At the top of the show, I asked you:  Do you think it’s reasonable to do a criminal background check against your tenants?  If you answered YES – and I bet virtually every one of you did – then you’re facing a real risk.

How do you mitigate that risk?  How do you steer clear of the legal landmines that our government LOVES to place in our paths?

I’ve got the answer for that question in TOMORROW’s show, episode #206… so DON’T MISS IT.  Actually there are 3 answers… and at least one of those answers is going to anger a large segment of the real estate industry.  But hey… the truth is the truth, and you deserve to hear it.

My friends, it was really great to be with you today, and I'm so grateful for your time.  And hey, always remember this:  Invest wisely today, and live well forever!

Enjoy Self Directed IRA news & updates!

]]>
Are you a rental property owner?  Then answer this question:  Do you believe it’s reasonable to require criminal background checks of your tenants?  Now don’t forget your answer, because I’ve got some terrifying news for you today, made possible by an insane, destructive decision by the US Supreme Court last year.  I’m Bryan Ellis.  This is Episode #205.

Hello, SDI Nation!  Welcome to the podcast of record, where we help savvy investors like you find, understand and profit from exceptional investments.

On June 26 of last year – almost exactly a year ago – I told you in Episode #90 of this very show about a terrifying Supreme Court decision that I predicted would be a horrible blight on the freedom of real estate investors in America.  The case involved an issue called “disparate impact”.  In layman's terms, this refers to a policy that disproportionately affects one group of people more than another, even if there is no intent to discriminate against anyone.

I gave an extreme example, that went like this:  You’re a landlord, and you institute a policy that you won’t rent your properties to anyone ever convicted of rape.  Seems reasoanble, right?  Well, a Supreme Court decision from last year adds in a “trump card” where your policies ae concerned:  RACE.  The way it works is this:  If your anti-rapist policies have a proportionate impact on all ethnicities, then you’re ok.  But if your anti-rapist policy has a disproportionately large impact on any ethnic group – even if the disqualifier issue (like rape) happens to be a criminal matter – then you risk being targeted by a civil rights lawsuit on the basis of a legal theory known as “disparate impact”.  Basically, the Supreme Court is telling us that your rental policy is RACIST even though there’s not a single drop of racial motivation anywhere to be found.

And that’s exactly what’s happened.  There’s a civil rights lawsuit facing a landlord who is demanding proper identification so he can run criminal background checks.  This is painful, folks.  Here's the story from our friends over at The Daily Caller...

 

INSERT VIDEO HERE

 

Can you believe it?  What you’ve got is a landlord facing a VERY expensive lawsuit because a particular group of people who are BREAKING THE LAW by not having proper ID… well, they’re suing him because they believe that more people of their ethnicity break that particular law than people of other ethnicities, and so they should receive some protection from the repercussion of that particular criminal activity.

It’s DISGUSTING.  Folks, this isn't about Latinos or African Americans or caucasians or any ethnicity.  It's about the fact that the new Supreme Court decision basically places ETHNICITY as a trump card over the law... or, at least, that's the effect that will exist if the plaintiffs win this case.  It's absolutely disgusting.

Tell me something:  Where's the discrimination?  It doesn’t exist.  But what is being violated is this landlord’s right to manage his property in a safe and responsible manner.  This whole thing is mind-blowing and terrifying, just as I predicted back in Episode #90 of Self Directed Investor Radio.

Have you ever been involved in a lawsuit?  If not, let me give you a taste of it.  I’ve only really had to deal with one big legal conflict.  A former business associate went… well, his mental condition changed, if that’s the right word for it… and he went ballistic and sued me in federal court in his home town.  My lawyers got it dismissed because it was a silly claim.  He then sued me in federal court in my home town.  Again, my lawyers got it dismissed, because it was just ridiculous.  But at the end of the day, that experience still cost me about $80,000.

Why’s that relevant to YOU?  Well, the bottom line is that the Supreme Court’s decision last year make it MUCH more likely that the kind of lawsuit being faced by Waples Mobile Home Park will come to knock on your door someday, too.  Now at this point, this is still only a lawsuit.  It could still be withdrawn, it could be dismissed or it could go to trial, which I suspect will happen.  Nobody knows how it will turn out.  There's more to every story than meets the eye, and that's probably true here, too.  But here's what's so troubling to me as a real estate investor:

It cost me $80,000 to get a frivolous lawsuit DISMISSED.  That didn’t include the cost of going to trial, because the claim against me was so silly as to be rejected outright by the judge.  Yet it still cost me $80,000 to make that happen.

And now, lawsuits like the one against Waples are MUCH easier to bring against rental property owners … directly as a function of some incredibly twisted thinking at the Supreme Court.  And if the landlord in this case WINS… which is still entirely possible… it’s practically guaranteed that he’ll have to spend tens or hundreds of thousands of dollars – at minimum – defending himself against this claim.

At the top of the show, I asked you:  Do you think it’s reasonable to do a criminal background check against your tenants?  If you answered YES – and I bet virtually every one of you did – then you’re facing a real risk.

How do you mitigate that risk?  How do you steer clear of the legal landmines that our government LOVES to place in our paths?

I’ve got the answer for that question in TOMORROW’s show, episode #206… so DON’T MISS IT.  Actually there are 3 answers… and at least one of those answers is going to anger a large segment of the real estate industry.  But hey… the truth is the truth, and you deserve to hear it.

My friends, it was really great to be with you today, and I'm so grateful for your time.  And hey, always remember this:  Invest wisely today, and live well forever!

Enjoy Self Directed IRA news & updates!

]]>
Tax Inversions and YOUR MONEY | Episode 204 Tax Inversions and YOUR MONEY | Episode 204 Wed, 06 Apr 2016 18:48:39 GMT 7:25 6f7afb5bd8cc5b24ec36522ba4f40943 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f5b8 The U.S. government is on the attack again.  New rules from the Treasury department just killed an otherwise very big corporate merger, and the motivation is simple:  GREED on the part of the Obama administration.  This isn’t a... The U.S. government is on the attack again.  New rules from the Treasury department just killed an otherwise very big corporate merger, and the motivation is simple:  GREED on the part of the Obama administration.  This isn’t a political statement.  It’s all about YOUR PORTFOLIO, and I’ll tell you exactly how RIGHT NOW.  I’m Bryan Ellis.  This is Episode #204.

-----

Hello, SDI Nation!  Welcome to the podcast of record for savvy self-directed investors like you, where we have but one central purpose, and that is to help YOU make great investments that are simple, safe and strong.

That’s right, ladies and gentlemen… you are the hero in the story of your portfolio, not me and not any other person to whom you look for guidance.  Or… maybe you’re the goat in the story of your portfolio.  I certainly hope not, but good news:  My job is to make you be the hero in your portfolio forevermore.

Well, well, well ladies and gents… the U.S. treasury is at it again, directly interfering with business to the benefit of nobody but itself.  The latest action is rather disgusting, and I’ll tell you all about it after today’s Wisdom of the Ancients segment, where I tell you a short proverb, saying or quote that has stood the test of time and is deeply relevant to you and me as self-directed investors.  So here’s today’s proverb:

“My son, if you have put up security for your neighbor, if you have shaken hands in pledge for a stranger, you have been trapped by what you said, ensnared by the words of your mouth.  So do this, my son, to free yourself, since you have fallen into your neighbor’s hands:  Go—to the point of exhaustion— and give your neighbor no rest!  Allow no sleep to your eyes, no slumber to your eyelids.  Free yourself, like a gazelle from the hand of the hunter, like a bird from the snare of the fowler.”

Here’s what I’m seeing in that Proverb:  I’m seeing that just as you should be incredibly careful about making commitments, you should be incredibly aggressive and purposeful about resolving bad commitments.  This proverb says we should go to the other party, push the issue, and not rest until our liability has passed.  Be very careful about make commitments; be very quick to resolve bad ones.

What do you think?  I welcome your comments in the comments section below.

This has been a busy week for the U.S. government’s role as impediment-in-chief to the U.S. economy and citizenry.

Just a little while ago, the Department of Labor published new rules that change the relationship that financial advisors have to clients using retirement accounts.  It’s too soon to know for sure, because the rules came out just a few minutes ago, but I’ve got to tell you:  I’m skeptical.  I’ll give you more about this in the next episode.

But that’s not the focus of today’s show.  Today, we talk about TAX INVERSIONS.  Oh, don’t roll your eyes… not only is this easy to understand, but it’s important that YOU understand it since it may have already directly affected your portfolio.

So here’s the deal, here in the good ole US of A, corporations face the HIGHEST TAX RATE IN THE INDUSTRIALIZED WORLD.  35% for federal, and 4.1% is the average state rate, so a total of 39.1%.

Before I continue, I want you to understand the gravity of that.  Warren Buffet is considered to be the greatest investor who has ever lived.  His company – Berkshire Hathaway – has enjoyed average annual performance of nearly 20% per year for a very long time… an astounding feat indeed, that qualifies him for reverence and respect.

Isn’t it curious that the U.S. government taxes corporations at nearly 40% nearly twice the ROI number of the greatest investor who has ever lived?  No, the two numbers aren’t the same… but the comparison is stark and illuminating.

That super-high rate is so high, in fact, that it’s having a palpable impact on the ability of large U.S. companies to build profits.  And profit, I remind you, is the reason that one creates a company.  It’s that profit that gives value to the company’s shares.  It’s those shares in your portfolio that builds your wealth.  It’s the wealth you build that provides for the needs of you and your loved ones.  So yes, the growth of corporate profits is relevant to you, particularly if you are an investor in stocks.

So what are some of these companies doing about the massively over-priced tax bills that Uncle Sam extorts from us all?

Well, they’re moving themselves to countries that don’t punish them.

It’s called an INVERSION when a U.S.-based company acquires or merges with a company located in another country with a lower tax rate, and then shifts management and headquarters to the lower-tax region in order to be subject to a lower tax burden.

In truth, it’s not much different than the affluent retired couple who lives in New York – where taxes are ridiculously high – but who then moves to Florida for most of the year, where there is no state income tax.  It’s the same thing, and it’s totally legal.

So a tax inversion is the same thing, only it’s done by a company instead of an individual, and it involves adjusting the organization of the company such that the corporation legally shifts the jurisdiction for income taxation from a high-tax place (like the United States) to a low-tax place (like Ireland).

This is exactly what was happening with two large drug companies, Pfizer and Allergan, who had negotiated a huge $160 billion merger, only to have it targeted by the U.S. Treasury department with new rules that target inversions generally and the Pfizer/Allergan merger specifically.  The Treasury department was going to make the move so painful that the merger was cancelled and a $400 Million termination fee was paid… by choice.  That’s how punitive the new rules were going to be.

Look, I’m not an investor in those companies, so my motivation to comment isn’t financial in nature.  Rather, my concern is one of FREEDOM.

Folks, the U.S. government is not acting like a government that has the best interests of its citizens at heart, even though that’s what today’s new Department of Labor rules demand of others.  Rather, Obama and his crew are creating rules – without the consent of Congress – that directly aim to CONTROL companies by force.

This is wrong, people.  It’s wrong.  The solution is much easier:  Make America be an ATTRACTIVE jurisdiction for big companies to begin with.  Make tax rates REASONABLE.  Reduce burdensome regulations so this country is a BEACON to entrepreneurship, not merely a stop along the way to a more attractive destination.

If the U.S. government would show even one ounce of respect for the effort and risk involved in starting, running and owning businesses, and thereby use tax policy as a reasonable revenue generation rather than a PUNITIVE CAGE, then tax inversions would disappear naturally, because there’d be no reason for them to start with.

I’m sick of it, folks.  There’s got to be change at the top.

My friends… invest wisely today, and live well forever.

 

]]>
The U.S. government is on the attack again.  New rules from the Treasury department just killed an otherwise very big corporate merger, and the motivation is simple:  GREED on the part of the Obama administration.  This isn’t a political statement.  It’s all about YOUR PORTFOLIO, and I’ll tell you exactly how RIGHT NOW.  I’m Bryan Ellis.  This is Episode #204.

-----

Hello, SDI Nation!  Welcome to the podcast of record for savvy self-directed investors like you, where we have but one central purpose, and that is to help YOU make great investments that are simple, safe and strong.

That’s right, ladies and gentlemen… you are the hero in the story of your portfolio, not me and not any other person to whom you look for guidance.  Or… maybe you’re the goat in the story of your portfolio.  I certainly hope not, but good news:  My job is to make you be the hero in your portfolio forevermore.

Well, well, well ladies and gents… the U.S. treasury is at it again, directly interfering with business to the benefit of nobody but itself.  The latest action is rather disgusting, and I’ll tell you all about it after today’s Wisdom of the Ancients segment, where I tell you a short proverb, saying or quote that has stood the test of time and is deeply relevant to you and me as self-directed investors.  So here’s today’s proverb:

“My son, if you have put up security for your neighbor, if you have shaken hands in pledge for a stranger, you have been trapped by what you said, ensnared by the words of your mouth.  So do this, my son, to free yourself, since you have fallen into your neighbor’s hands:  Go—to the point of exhaustion— and give your neighbor no rest!  Allow no sleep to your eyes, no slumber to your eyelids.  Free yourself, like a gazelle from the hand of the hunter, like a bird from the snare of the fowler.”

Here’s what I’m seeing in that Proverb:  I’m seeing that just as you should be incredibly careful about making commitments, you should be incredibly aggressive and purposeful about resolving bad commitments.  This proverb says we should go to the other party, push the issue, and not rest until our liability has passed.  Be very careful about make commitments; be very quick to resolve bad ones.

What do you think?  I welcome your comments in the comments section below.

This has been a busy week for the U.S. government’s role as impediment-in-chief to the U.S. economy and citizenry.

Just a little while ago, the Department of Labor published new rules that change the relationship that financial advisors have to clients using retirement accounts.  It’s too soon to know for sure, because the rules came out just a few minutes ago, but I’ve got to tell you:  I’m skeptical.  I’ll give you more about this in the next episode.

But that’s not the focus of today’s show.  Today, we talk about TAX INVERSIONS.  Oh, don’t roll your eyes… not only is this easy to understand, but it’s important that YOU understand it since it may have already directly affected your portfolio.

So here’s the deal, here in the good ole US of A, corporations face the HIGHEST TAX RATE IN THE INDUSTRIALIZED WORLD.  35% for federal, and 4.1% is the average state rate, so a total of 39.1%.

Before I continue, I want you to understand the gravity of that.  Warren Buffet is considered to be the greatest investor who has ever lived.  His company – Berkshire Hathaway – has enjoyed average annual performance of nearly 20% per year for a very long time… an astounding feat indeed, that qualifies him for reverence and respect.

Isn’t it curious that the U.S. government taxes corporations at nearly 40% nearly twice the ROI number of the greatest investor who has ever lived?  No, the two numbers aren’t the same… but the comparison is stark and illuminating.

That super-high rate is so high, in fact, that it’s having a palpable impact on the ability of large U.S. companies to build profits.  And profit, I remind you, is the reason that one creates a company.  It’s that profit that gives value to the company’s shares.  It’s those shares in your portfolio that builds your wealth.  It’s the wealth you build that provides for the needs of you and your loved ones.  So yes, the growth of corporate profits is relevant to you, particularly if you are an investor in stocks.

So what are some of these companies doing about the massively over-priced tax bills that Uncle Sam extorts from us all?

Well, they’re moving themselves to countries that don’t punish them.

It’s called an INVERSION when a U.S.-based company acquires or merges with a company located in another country with a lower tax rate, and then shifts management and headquarters to the lower-tax region in order to be subject to a lower tax burden.

In truth, it’s not much different than the affluent retired couple who lives in New York – where taxes are ridiculously high – but who then moves to Florida for most of the year, where there is no state income tax.  It’s the same thing, and it’s totally legal.

So a tax inversion is the same thing, only it’s done by a company instead of an individual, and it involves adjusting the organization of the company such that the corporation legally shifts the jurisdiction for income taxation from a high-tax place (like the United States) to a low-tax place (like Ireland).

This is exactly what was happening with two large drug companies, Pfizer and Allergan, who had negotiated a huge $160 billion merger, only to have it targeted by the U.S. Treasury department with new rules that target inversions generally and the Pfizer/Allergan merger specifically.  The Treasury department was going to make the move so painful that the merger was cancelled and a $400 Million termination fee was paid… by choice.  That’s how punitive the new rules were going to be.

Look, I’m not an investor in those companies, so my motivation to comment isn’t financial in nature.  Rather, my concern is one of FREEDOM.

Folks, the U.S. government is not acting like a government that has the best interests of its citizens at heart, even though that’s what today’s new Department of Labor rules demand of others.  Rather, Obama and his crew are creating rules – without the consent of Congress – that directly aim to CONTROL companies by force.

This is wrong, people.  It’s wrong.  The solution is much easier:  Make America be an ATTRACTIVE jurisdiction for big companies to begin with.  Make tax rates REASONABLE.  Reduce burdensome regulations so this country is a BEACON to entrepreneurship, not merely a stop along the way to a more attractive destination.

If the U.S. government would show even one ounce of respect for the effort and risk involved in starting, running and owning businesses, and thereby use tax policy as a reasonable revenue generation rather than a PUNITIVE CAGE, then tax inversions would disappear naturally, because there’d be no reason for them to start with.

I’m sick of it, folks.  There’s got to be change at the top.

My friends… invest wisely today, and live well forever.

 

]]>
5 Important Facts About CHINESE Investors | Episode 203 5 Important Facts About CHINESE Investors | Episode 203 Mon, 04 Apr 2016 18:49:49 GMT 6:45 1a9669e833edbc5fb3191b3d0e459ac1 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f5b9 Billions are pouring into U.S. real estate from investors in China… and frequently, those dollars are going into deals that, to me and you, simply make no sense at all.  But there’s method to the madness, and I’ve discovered 5... Billions are pouring into U.S. real estate from investors in China… and frequently, those dollars are going into deals that, to me and you, simply make no sense at all.  But there’s method to the madness, and I’ve discovered 5 important things you need to know if you want to do business with investors in China.  I’m Bryan Ellis. This is Episode #203.

------

Hello, SDI Nation!  Welcome to the podcast of record for savvy self-directed investors like you!

It’s Monday, and what a great day to be alive, my friends!  Spring is a spectacular time of year and we here at SDI Radio are champing at the bit for another great week, so let’s get to it!

First, let’s hear a bit of wisdom from the ancients, shall we?  Every episode, I share with you a proverb, quote or saying that has stood the test of time, and is important for you and me as self-directed investors.  Here’s today’s proverb:  “A fortune made by a lying tongue is a fleeting vapor and a deadly snare.”

Obvious, right?  Don’t lie to get rich, right?  Well sure, but to me, there’s more to that one.  Notice that this proverb doesn’t say that you CAN’T get rich by lying.  Bernie Madoff demonstrated that skillful deception can lead to fabulous wealth.  But Madoff demonstrated the rest of the proverb too… that fortunes made through deception are both temporary and a huge trap.  So clearly, let’s don’t grow our wealth through outright fraudulent deception like Madoff.  But one step further is this:  My view of wealth is stewardship rather than ownership.  Let us take care to be people of few words, and to make sure that the words we speak are careful and true.  There’s no great legacy we can pass to our children than a heritage of honesty… and there’s no better foundation to build wealth than through being wholly truthful in the big things and the little things.

Your thoughts on this are welcomed on today’s show page over at SDIRadio.com/203.

My friends, this past Friday, Carole and I had a really interesting lunch conversation with the president of real estate services conglomerate who owns over 5 dozen companies, several of whom have likely served some of your real estate needs along the way.

I learned quite a bit from that conversation, and one topic in particular stood out to me quite clearly:  The nature of Asian investors who seek to invest in U.S. real estate.  My colleague has first-hand knowledge of the topic, having recently spent time in China and being provided with access to substantial amounts of that capital.

Here are the things that I observed from this conversation:

  1. Chinese investors prefer hard assets. By hard assets, I mean things like direct ownership of REAL ESTATE.  They seem far less interested in “structured” types of investments like mortgage notes or even hedge funds that purchase real estate.  They want REAL ESTATE – real, direct ownership of it – PERIOD.
  2. Their Primary Concern Is Not ROI: Chinese investors tend to be willing to place their capital into investments that, from my vantage point, do not make a large amount of sense.  Many of these investments are relatively low-yielding in terms of cash flow and can easily be beaten by other alternatives.  But ROI is not their primary measuring stick.  Their real measure appears to be SAFETY OF CAPITAL.  The political system in China is such that one’s wealth is essentially and ultimately the property of the government, and to get that money out of their own banking system and into hard assets held in a relatively reliable jurisdiction like the United States represents something even more valuable than a big ROI:  It represents physical safety of the capital itself.  That’s where the focus of many Chinese investors is fixed.
  3. It’s Expensive For Chinese Investors to send money to the US: There are substantial brokerage fees to which Chinese capital maybe subject.
  4. Chinese Investors Prefer Multifamily Properties: While there is an appetite for other types of real estate also, many Chinese investors prefer multi-family residential properties, as this type of property allows them to deploy larger amounts of capital more easily in a single transaction, while still investing in residential property that is, at its core, fundamentally familiar as a concept. and Finally…
  5. Chinese Investors Prefer Specific Local Markets: To the Chinese investor, not all U.S. real estate markets are the same.  That’s clearly correct, but it goes further than that.  Not even all STRONG real U.S. real estate markets are the same.  Generally speaking, Chinese investors appear to be most interested – CURRENTLY – in properties in just a few specific very large markets, with California receiving a particularly large degree of interest.

From my vantage point, I feel sympathy for Chinese investors.  What you have is, by and large, people who are very bright and have successfully monetized China’s economy, which is the biggest rival to the U.S. economy in raw size.  But China is a communist country, and so at the end of the day, the government can do anything it wants… including with the wealth of those entrepreneurs and investors who have built fortunes from their own ingenuity.  Their interest in U.S. real estate is as much a function of preservation as investment.

We here at SDI are always in search of additional ways to serve Chinese investors looking to deploy their capital into U.S. real estate.  If you have any suggestions, drop me a line at feedback@sdi360.com.

And hey – a quick note about our private real estate fund that invests in Northern California real estate.  So many of you have asked about it, so I’ll give you a bit of an update here.  The first quarter of 2016 just ended on Friday and since today is only Monday, we don’t yet have the final numbers back from the accountant.  But I’ll put it like this:  The total net return for the first quarter alone appears to be solidly in the double digits.  That’s not an annualized return… that’s just for the first quarter.  So things are going quite well, largely according to plan.

My friends… always remember this:  Invest wisely today, and live well forever!

]]>
Billions are pouring into U.S. real estate from investors in China… and frequently, those dollars are going into deals that, to me and you, simply make no sense at all.  But there’s method to the madness, and I’ve discovered 5 important things you need to know if you want to do business with investors in China.  I’m Bryan Ellis. This is Episode #203.

------

Hello, SDI Nation!  Welcome to the podcast of record for savvy self-directed investors like you!

It’s Monday, and what a great day to be alive, my friends!  Spring is a spectacular time of year and we here at SDI Radio are champing at the bit for another great week, so let’s get to it!

First, let’s hear a bit of wisdom from the ancients, shall we?  Every episode, I share with you a proverb, quote or saying that has stood the test of time, and is important for you and me as self-directed investors.  Here’s today’s proverb:  “A fortune made by a lying tongue is a fleeting vapor and a deadly snare.”

Obvious, right?  Don’t lie to get rich, right?  Well sure, but to me, there’s more to that one.  Notice that this proverb doesn’t say that you CAN’T get rich by lying.  Bernie Madoff demonstrated that skillful deception can lead to fabulous wealth.  But Madoff demonstrated the rest of the proverb too… that fortunes made through deception are both temporary and a huge trap.  So clearly, let’s don’t grow our wealth through outright fraudulent deception like Madoff.  But one step further is this:  My view of wealth is stewardship rather than ownership.  Let us take care to be people of few words, and to make sure that the words we speak are careful and true.  There’s no great legacy we can pass to our children than a heritage of honesty… and there’s no better foundation to build wealth than through being wholly truthful in the big things and the little things.

Your thoughts on this are welcomed on today’s show page over at SDIRadio.com/203.

My friends, this past Friday, Carole and I had a really interesting lunch conversation with the president of real estate services conglomerate who owns over 5 dozen companies, several of whom have likely served some of your real estate needs along the way.

I learned quite a bit from that conversation, and one topic in particular stood out to me quite clearly:  The nature of Asian investors who seek to invest in U.S. real estate.  My colleague has first-hand knowledge of the topic, having recently spent time in China and being provided with access to substantial amounts of that capital.

Here are the things that I observed from this conversation:

  1. Chinese investors prefer hard assets. By hard assets, I mean things like direct ownership of REAL ESTATE.  They seem far less interested in “structured” types of investments like mortgage notes or even hedge funds that purchase real estate.  They want REAL ESTATE – real, direct ownership of it – PERIOD.
  2. Their Primary Concern Is Not ROI: Chinese investors tend to be willing to place their capital into investments that, from my vantage point, do not make a large amount of sense.  Many of these investments are relatively low-yielding in terms of cash flow and can easily be beaten by other alternatives.  But ROI is not their primary measuring stick.  Their real measure appears to be SAFETY OF CAPITAL.  The political system in China is such that one’s wealth is essentially and ultimately the property of the government, and to get that money out of their own banking system and into hard assets held in a relatively reliable jurisdiction like the United States represents something even more valuable than a big ROI:  It represents physical safety of the capital itself.  That’s where the focus of many Chinese investors is fixed.
  3. It’s Expensive For Chinese Investors to send money to the US: There are substantial brokerage fees to which Chinese capital maybe subject.
  4. Chinese Investors Prefer Multifamily Properties: While there is an appetite for other types of real estate also, many Chinese investors prefer multi-family residential properties, as this type of property allows them to deploy larger amounts of capital more easily in a single transaction, while still investing in residential property that is, at its core, fundamentally familiar as a concept. and Finally…
  5. Chinese Investors Prefer Specific Local Markets: To the Chinese investor, not all U.S. real estate markets are the same.  That’s clearly correct, but it goes further than that.  Not even all STRONG real U.S. real estate markets are the same.  Generally speaking, Chinese investors appear to be most interested – CURRENTLY – in properties in just a few specific very large markets, with California receiving a particularly large degree of interest.

From my vantage point, I feel sympathy for Chinese investors.  What you have is, by and large, people who are very bright and have successfully monetized China’s economy, which is the biggest rival to the U.S. economy in raw size.  But China is a communist country, and so at the end of the day, the government can do anything it wants… including with the wealth of those entrepreneurs and investors who have built fortunes from their own ingenuity.  Their interest in U.S. real estate is as much a function of preservation as investment.

We here at SDI are always in search of additional ways to serve Chinese investors looking to deploy their capital into U.S. real estate.  If you have any suggestions, drop me a line at feedback@sdi360.com.

And hey – a quick note about our private real estate fund that invests in Northern California real estate.  So many of you have asked about it, so I’ll give you a bit of an update here.  The first quarter of 2016 just ended on Friday and since today is only Monday, we don’t yet have the final numbers back from the accountant.  But I’ll put it like this:  The total net return for the first quarter alone appears to be solidly in the double digits.  That’s not an annualized return… that’s just for the first quarter.  So things are going quite well, largely according to plan.

My friends… always remember this:  Invest wisely today, and live well forever!

]]>
WARNING Stock Investors - The Fed Has Nothing Left For You | Episode 202 WARNING Stock Investors - The Fed Has Nothing Left For You | Episode 202 Wed, 30 Mar 2016 20:29:57 GMT 7:00 9bab2b4483ee225f5e2609c558e05761 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f5ba Hey, stock market investors!  When members of the Federal Reserve are graphically expressing worry about the market, you’ve got to take it seriously.  And this news, my friends, is serious if you’re a stock investor. ... Hey, stock market investors!  When members of the Federal Reserve are graphically expressing worry about the market, you’ve got to take it seriously.  And this news, my friends, is serious if you’re a stock investor.  I’ll tell you all about it right now.  I’m Bryan Ellis.  This is Episode #202.

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Hello SDI Nation!  Welcome to the podcast of record for savvy self-directed investors like you!  Today’s show has one purpose:  To help YOU make great investments that are simple, safe and strong!

Let’s get started with today’s installment of Wisdom of the Ancients, where I share with you a saying, quote or Proverb that has stood the test of time and conveys truth to which you and I as self-directed investors must pay close attention.  Today’s proverb says this:  “Those who give to the poor will lack nothing, but those who close their eyes to them receive many curses.”

What does this mean to you?  To me, it means that it’s wise to live in an “others-focused” kind of way.  In other words… think of the needs of others… specifically those who are destitute.  Do you believe that the wealth you’ve accumulated was given to you solely for your benefit… or maybe, just maybe… is the reason you have that wealth to give you the chance to wisely steward resources that can be used to feed the hungry, cloth the naked and heal the sick… along with, of course, taking care of yourself and your loved ones?

That’s what that proverb means to me.  What are your thoughts?  I’d love to hear them.  This is episode #202, so you can stop by SDIRadio.com/202 – the number 2 – 0 – 2 – and share your thoughts in the comments section.

Now, on to some financial markets analysis.

The stock market is doing pretty well these days, isn’t it?  It started the year by continuing a big plunge that began late last year, but sometime in February, the direction turned and now the market is actually up for the year despite the earlier fall.

And for those of you who are in stocks, that makes me so happy!  I hope for the very best for you at all times.

But there’s cause for alarm if you’re a rational thinker.  You see, in Episode #200, which you can, of course, hear by visiting SDIRadio.com/200, I told you that the rules of capitalism are no longer the governing rules for the actions of this market.  In a healthy economy, it’s the economy itself that determines success or failure of stocks.

That’s not how things are working right now.

You see, for the past 20 years or so, the one factor that has had an outsized influence on stock prices is the Federal Reserve, a group of bureaucrats who are tasked with establishing monetary policy for the United States.  There would be precious little need for specific monetary policy if our money actually had intrinsic value.  Alas, our money is based on nothing more than confidence in our government and where the value of your money is concerned, the part of the government that decides, rather directly, what your money is worth, is the Federal Reserve.

This is important – critically important, actually – for you stock market investors.  Here’s why:  The Fed has, for the past 2-3 decades, taken as a central part of it’s mission to maintain the apparent health of the economy as measured by the U.S. stock market.

Over and over again, the Fed has intervened with the specific intent of “propping up” the economy generally and stocks specifically.  Remember the bailouts that happened as part of the great Recession a few years ago?  That money came from the Fed.

So for many years now, the Fed has been desperately using every trick in the book, like bailouts and interest rate manipulation, to keep the stock market high.  And do you know what?  Generally speaking, they’ve been very successful.

But my friends… you can’t catch fish in a dry pond.  And the Fed is out of tricks.

Note that it’s not me saying it… and it’s not just one person saying this.  But the MOST NOTABLE person sounding the alarm is none other than Richard Fisher, former president and CEO of the Dallas Federal Reserve Bank, one of the big branches of the Fed.  Fisher ran the Dallas fed for 10 years, and is currently a senior analyst at Barclay’s.  He’s a guy that’s able to speak with authority about the Fed’s role and growing impotence as a force for “good” in the market.

Fisher was on CNBC just this morning and made a very interesting comment, and the link to that interview is on today’s show page at SDIRadio.com/202.  Fisher said, essentially, that there’s nothing left the Fed can do at this point… they’ve used all of the arrows in the quiver.  He says that the Fed is “living in constant fear of market reaction and that is not the way to manage policy.”

That’s sobering.  If the Fed exists as a reactive force to the market, and if the Fed has already used up all of the tools at it’s disposal, then that’s pretty bad.

But if you take it a step further and believe, as I do, that the market run-up in stocks in the past 10-20 years in stocks is not just because the economy has been growing, but also largely because of manipulation of the capital markets by the federal reserve, then the fact that the Fed is in a reactionary mode and is wholly out of ammo is even more terrifying.

Look, I’m not predicting an immediate stock market crash.  But I ABSOLUTELY believe that the foundation of the stock market is like shifting sand… it’s a house of cards.  If you get out soon, you’ll be one of the people to have successfully “gamed” the biggest Ponzi scheme in the history of the world.

Who knows… maybe I’m wrong.  Maybe the part of the market that actually does reflect the performance of the underlying companies, and the condition of the broader economy… maybe that part of the market is what is being reflected in today’s stock valuations.  But part of me – the skeptical, “protect the money” part of me – thinks otherwise.

What about you?

Share your thoughts with me at SDIRadio.com/202!

That’s all for today.  A lot of you have been emailing me privately, asking our private equity funds.  So in the next episode, I’ll tell you a bit more about that… and that will be well timed, as we’re now at the end of Q12016, with some results to report.  Let’s just say that I’m pretty proud of what’s happened.  Hehehe

So be sure to get notified about the next episode of SDI Radio by being on our private discussion list which you can join by texting the word SDIRADIO with no spaces or periods to 33444.  Again, that’s text the word SDIRADIO with no spaces or periods to 3344.

My friends… invest wisely today, and live well forever!

]]>
Hey, stock market investors!  When members of the Federal Reserve are graphically expressing worry about the market, you’ve got to take it seriously.  And this news, my friends, is serious if you’re a stock investor.  I’ll tell you all about it right now.  I’m Bryan Ellis.  This is Episode #202.

----

Hello SDI Nation!  Welcome to the podcast of record for savvy self-directed investors like you!  Today’s show has one purpose:  To help YOU make great investments that are simple, safe and strong!

Let’s get started with today’s installment of Wisdom of the Ancients, where I share with you a saying, quote or Proverb that has stood the test of time and conveys truth to which you and I as self-directed investors must pay close attention.  Today’s proverb says this:  “Those who give to the poor will lack nothing, but those who close their eyes to them receive many curses.”

What does this mean to you?  To me, it means that it’s wise to live in an “others-focused” kind of way.  In other words… think of the needs of others… specifically those who are destitute.  Do you believe that the wealth you’ve accumulated was given to you solely for your benefit… or maybe, just maybe… is the reason you have that wealth to give you the chance to wisely steward resources that can be used to feed the hungry, cloth the naked and heal the sick… along with, of course, taking care of yourself and your loved ones?

That’s what that proverb means to me.  What are your thoughts?  I’d love to hear them.  This is episode #202, so you can stop by SDIRadio.com/202 – the number 2 – 0 – 2 – and share your thoughts in the comments section.

Now, on to some financial markets analysis.

The stock market is doing pretty well these days, isn’t it?  It started the year by continuing a big plunge that began late last year, but sometime in February, the direction turned and now the market is actually up for the year despite the earlier fall.

And for those of you who are in stocks, that makes me so happy!  I hope for the very best for you at all times.

But there’s cause for alarm if you’re a rational thinker.  You see, in Episode #200, which you can, of course, hear by visiting SDIRadio.com/200, I told you that the rules of capitalism are no longer the governing rules for the actions of this market.  In a healthy economy, it’s the economy itself that determines success or failure of stocks.

That’s not how things are working right now.

You see, for the past 20 years or so, the one factor that has had an outsized influence on stock prices is the Federal Reserve, a group of bureaucrats who are tasked with establishing monetary policy for the United States.  There would be precious little need for specific monetary policy if our money actually had intrinsic value.  Alas, our money is based on nothing more than confidence in our government and where the value of your money is concerned, the part of the government that decides, rather directly, what your money is worth, is the Federal Reserve.

This is important – critically important, actually – for you stock market investors.  Here’s why:  The Fed has, for the past 2-3 decades, taken as a central part of it’s mission to maintain the apparent health of the economy as measured by the U.S. stock market.

Over and over again, the Fed has intervened with the specific intent of “propping up” the economy generally and stocks specifically.  Remember the bailouts that happened as part of the great Recession a few years ago?  That money came from the Fed.

So for many years now, the Fed has been desperately using every trick in the book, like bailouts and interest rate manipulation, to keep the stock market high.  And do you know what?  Generally speaking, they’ve been very successful.

But my friends… you can’t catch fish in a dry pond.  And the Fed is out of tricks.

Note that it’s not me saying it… and it’s not just one person saying this.  But the MOST NOTABLE person sounding the alarm is none other than Richard Fisher, former president and CEO of the Dallas Federal Reserve Bank, one of the big branches of the Fed.  Fisher ran the Dallas fed for 10 years, and is currently a senior analyst at Barclay’s.  He’s a guy that’s able to speak with authority about the Fed’s role and growing impotence as a force for “good” in the market.

Fisher was on CNBC just this morning and made a very interesting comment, and the link to that interview is on today’s show page at SDIRadio.com/202.  Fisher said, essentially, that there’s nothing left the Fed can do at this point… they’ve used all of the arrows in the quiver.  He says that the Fed is “living in constant fear of market reaction and that is not the way to manage policy.”

That’s sobering.  If the Fed exists as a reactive force to the market, and if the Fed has already used up all of the tools at it’s disposal, then that’s pretty bad.

But if you take it a step further and believe, as I do, that the market run-up in stocks in the past 10-20 years in stocks is not just because the economy has been growing, but also largely because of manipulation of the capital markets by the federal reserve, then the fact that the Fed is in a reactionary mode and is wholly out of ammo is even more terrifying.

Look, I’m not predicting an immediate stock market crash.  But I ABSOLUTELY believe that the foundation of the stock market is like shifting sand… it’s a house of cards.  If you get out soon, you’ll be one of the people to have successfully “gamed” the biggest Ponzi scheme in the history of the world.

Who knows… maybe I’m wrong.  Maybe the part of the market that actually does reflect the performance of the underlying companies, and the condition of the broader economy… maybe that part of the market is what is being reflected in today’s stock valuations.  But part of me – the skeptical, “protect the money” part of me – thinks otherwise.

What about you?

Share your thoughts with me at SDIRadio.com/202!

That’s all for today.  A lot of you have been emailing me privately, asking our private equity funds.  So in the next episode, I’ll tell you a bit more about that… and that will be well timed, as we’re now at the end of Q12016, with some results to report.  Let’s just say that I’m pretty proud of what’s happened.  Hehehe

So be sure to get notified about the next episode of SDI Radio by being on our private discussion list which you can join by texting the word SDIRADIO with no spaces or periods to 33444.  Again, that’s text the word SDIRADIO with no spaces or periods to 3344.

My friends… invest wisely today, and live well forever!

]]>
Stock Market Rebounds -- And STILL, People are Flocking To THIS... | Episode 200 Stock Market Rebounds -- And STILL, People are Flocking To THIS... | Episode 200 Mon, 21 Mar 2016 19:51:45 GMT 8:18 888702a4472e957c5d0fc46e45757aea no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f5bb What a ride! Since the last day of last year, the stock market fell more than 10%... and subsequently got back all of that loss as of the market’s close on Friday. As a result, something interesting is happening in the self-directed retirement... What a ride! Since the last day of last year, the stock market fell more than 10%... and subsequently got back all of that loss as of the market’s close on Friday. As a result, something interesting is happening in the self-directed retirement account world that is completely COUNTER-INTUITIVE… and you need to know about it. I’m Bryan Ellis. This is episode # 200.

-----

Hello, SDI Nation! Welcome to the podcast of record for savvy, self-directed investors like you where we have one, and only one goal: To help you make GREAT investments that are simple, safe and strong.

And Today, I add a new, very brief segment to this show that I’ll call “Wisdom of the Ancients”. It’s a short quote, proverb or thought that may be directly related to wealth building, or may only be peripherally related. Regardless, it’s something that’s on my mind, and I’d like to share it with you for your own consideration, because it will contribute to helping you make great investments that are simple, safe and strong.

Today’s Wisdom of the Ancients quote is an ancient proverb that says simply: “The plans of the diligent lead to profit, as surely as haste leads to poverty.” This tells me 3 things: We must have a plan, we must be DILIGENT about that plan, and we must never be hasty. If you have any additional thoughts on this, I’d love to hear from you on today’s episode page at SDIRadio.com/200 – that’s SDIRadio.com/ two zero zero.

Folks, I had a very interesting conversation with a business development manager at a self-directed IRA company recently. It’s curious, the market he serves is very similar to – a subset, in fact – of the market that we serve here at Self Directed Investor Radio, and that’s you.

And his observation was fascinating to me.

He said, “Bryan, when the stock market started to get really bad late last year and early this year, we started to see a lot of people heading for the exits and jumping into the self-directed IRA world.”

Well, of course, this makes sense to me. The stock market is demonstrating the volatility for which it’s famous, and volatility is a bad thing. So it stands to reason that investors would be more inclined to diversify away from stocks.

But it was the rest of the conversation that I thought was interesting.

He went on to say, “But since the market has started to rebound, we’ve had an absolute FLOOD of new people opening self-directed IRA’s… people with some very large stock portfolios who are just getting out right now, as quickly as they can.”

That, my friends, is curious to me. Why would a person exit an investment that’s performing well… at least, recently?

My colleague had an explanation for that, too. He said “people tell me that now that they’ve recovered their losses, they just don’t want to stick around to see what is going to happen. They don’t have confidence in this economy and just want to get their money into something that they think is more controllable, more predictable.”

And you know, I think he’s totally right.

We’ve received substantial interest in our SDI Cash Flow Quick Start offer recently, which includes 3 high-quality, high-yielding rental properties along with a built-in strong asset protection plan and customized tax consultation… all for only $150,000.

I initially thought the reason for it was that the offer itself is so great, and while it is an extraordinary offer, the popularity is, I think, based on an external factor:

People are getting out of stocks “while the gettin’ is good”, as they say.

Over on Wall Street, they use the term “flight to quality” a lot. That means, in Wall Street parlance, the movement of capital from one asset to another of higher quality. And by higher quality, the talking heads on financial news stations generally mean things like blue-chip stocks or treasury bonds…

But never do THEY mean investments of greater substance like, for example, real estate.

Well, we all know why that is… real estate is a real asset… there’s an inherently limited quantity of it… and thus it’s virtually impossible to create illusory real estate… real estate that exist only on paper, in other words… and that type of illusory asset creation is at the heart of what’s done on Wall Street. They attempted to do that on a grand scale with real estate in the late 90’s through the early 2000’s, and our grandchildren and great grandchildren will hear stores of the great recession as a result. So in a very real sense, real estate simply doesn’t fit with the model of Wall Street, even though the value of U.S. real estate is estimated at about $23 TRILLION dollars.

That’s certainly not to suggest that one can’t make money on Wall Street. We all know that you can.

But what if there’s a better way… and it turns out that the only reason you’re naturally disposed to buying investments from Wall Street is because of MARKETING rather than REASON?

Consider this:

Right now, a wise investor can acquire high-quality, newly renovated rental properties in an EXCELLENT real estate market for about $50,000 each. And that asset has these characteristics:

  • It’s newly renovated
  • It’s occupied by a tenant
  • It’s under the care of a highly experienced property manager
  • The maintenance costs are guaranteed to be covered
  • The monthly rent is paid every single month, and on time every time, by none other than the government itself!
  • The NET cash flow is north of 10%... and that doesn’t even include appreciation or tax benefits
  • And to top it all off… they’re GUARANTEED! In other words, if after a year, you don’t like how it’s going, you can get your money back!

Can you do anything like that on Wall Street? No, you can’t.

Even if you could, folks… here’s a real issue. The stock market is not being allowed to use the rules of capitalism. In other words… there’s another factor in stock values that has grown in significance to the point of rendering the values of the companies themselves as increasingly meaningless when valuing the stocks… and let’s be clear… there’s a big distinction between the value of a stock and the value of the company represented by that stock.

What is that factor that’s throwing the value of stocks so far out of line versus the companies they represent? I’ll tell you on the next episode of Self Directed Investor Radio, which will be ready for you two days from now, on Wednesday, March 23.

But my friends… please, please, please… don’t miss the EXTRAORDINARY edition of the sister show of this podcast, called SDI Money Law, hosted by attorney extraordinaire, Tim Berry. Tim has discovered something in the law for self-directed 401k and IRA owners that is absolutely SHOCKING… this could easily be the biggest legal discovery of the past 10 years.

How do you get to hear that? Very simple: Make sure you’re on the SDI Money Law email notice list by texting the words SDIMONEYLAW with no spaces or periods to 33444 right now. Again, text the phrase SDIMONEYLAW to 33444 right now, but use no spaces or periods.

If you’ve ever been concerned about the potential for performing a prohibited transaction, or for being hit with taxes over doing a real estate flip inside your retirement account, then let me tell you…. You don’t want to miss tomorrow’s episode. Text SDIMONEYLAW to 33444 right now…

And if you’re one of the wise investors looking to take this wonderful opportunity to cut and run from the stock market and redeploy some of your portfolio into assets that are simple, safe and strong… assets that make for GREAT investments, then stop by SDI360.com/consultation to set up a time to chat with us. We’d love to help YOU make great investments that are simple, safe and strong!

My friends… invest wisely today, and live well forever!

]]>
What a ride! Since the last day of last year, the stock market fell more than 10%... and subsequently got back all of that loss as of the market’s close on Friday. As a result, something interesting is happening in the self-directed retirement account world that is completely COUNTER-INTUITIVE… and you need to know about it. I’m Bryan Ellis. This is episode # 200.

-----

Hello, SDI Nation! Welcome to the podcast of record for savvy, self-directed investors like you where we have one, and only one goal: To help you make GREAT investments that are simple, safe and strong.

And Today, I add a new, very brief segment to this show that I’ll call “Wisdom of the Ancients”. It’s a short quote, proverb or thought that may be directly related to wealth building, or may only be peripherally related. Regardless, it’s something that’s on my mind, and I’d like to share it with you for your own consideration, because it will contribute to helping you make great investments that are simple, safe and strong.

Today’s Wisdom of the Ancients quote is an ancient proverb that says simply: “The plans of the diligent lead to profit, as surely as haste leads to poverty.” This tells me 3 things: We must have a plan, we must be DILIGENT about that plan, and we must never be hasty. If you have any additional thoughts on this, I’d love to hear from you on today’s episode page at SDIRadio.com/200 – that’s SDIRadio.com/ two zero zero.

Folks, I had a very interesting conversation with a business development manager at a self-directed IRA company recently. It’s curious, the market he serves is very similar to – a subset, in fact – of the market that we serve here at Self Directed Investor Radio, and that’s you.

And his observation was fascinating to me.

He said, “Bryan, when the stock market started to get really bad late last year and early this year, we started to see a lot of people heading for the exits and jumping into the self-directed IRA world.”

Well, of course, this makes sense to me. The stock market is demonstrating the volatility for which it’s famous, and volatility is a bad thing. So it stands to reason that investors would be more inclined to diversify away from stocks.

But it was the rest of the conversation that I thought was interesting.

He went on to say, “But since the market has started to rebound, we’ve had an absolute FLOOD of new people opening self-directed IRA’s… people with some very large stock portfolios who are just getting out right now, as quickly as they can.”

That, my friends, is curious to me. Why would a person exit an investment that’s performing well… at least, recently?

My colleague had an explanation for that, too. He said “people tell me that now that they’ve recovered their losses, they just don’t want to stick around to see what is going to happen. They don’t have confidence in this economy and just want to get their money into something that they think is more controllable, more predictable.”

And you know, I think he’s totally right.

We’ve received substantial interest in our SDI Cash Flow Quick Start offer recently, which includes 3 high-quality, high-yielding rental properties along with a built-in strong asset protection plan and customized tax consultation… all for only $150,000.

I initially thought the reason for it was that the offer itself is so great, and while it is an extraordinary offer, the popularity is, I think, based on an external factor:

People are getting out of stocks “while the gettin’ is good”, as they say.

Over on Wall Street, they use the term “flight to quality” a lot. That means, in Wall Street parlance, the movement of capital from one asset to another of higher quality. And by higher quality, the talking heads on financial news stations generally mean things like blue-chip stocks or treasury bonds…

But never do THEY mean investments of greater substance like, for example, real estate.

Well, we all know why that is… real estate is a real asset… there’s an inherently limited quantity of it… and thus it’s virtually impossible to create illusory real estate… real estate that exist only on paper, in other words… and that type of illusory asset creation is at the heart of what’s done on Wall Street. They attempted to do that on a grand scale with real estate in the late 90’s through the early 2000’s, and our grandchildren and great grandchildren will hear stores of the great recession as a result. So in a very real sense, real estate simply doesn’t fit with the model of Wall Street, even though the value of U.S. real estate is estimated at about $23 TRILLION dollars.

That’s certainly not to suggest that one can’t make money on Wall Street. We all know that you can.

But what if there’s a better way… and it turns out that the only reason you’re naturally disposed to buying investments from Wall Street is because of MARKETING rather than REASON?

Consider this:

Right now, a wise investor can acquire high-quality, newly renovated rental properties in an EXCELLENT real estate market for about $50,000 each. And that asset has these characteristics:

  • It’s newly renovated
  • It’s occupied by a tenant
  • It’s under the care of a highly experienced property manager
  • The maintenance costs are guaranteed to be covered
  • The monthly rent is paid every single month, and on time every time, by none other than the government itself!
  • The NET cash flow is north of 10%... and that doesn’t even include appreciation or tax benefits
  • And to top it all off… they’re GUARANTEED! In other words, if after a year, you don’t like how it’s going, you can get your money back!

Can you do anything like that on Wall Street? No, you can’t.

Even if you could, folks… here’s a real issue. The stock market is not being allowed to use the rules of capitalism. In other words… there’s another factor in stock values that has grown in significance to the point of rendering the values of the companies themselves as increasingly meaningless when valuing the stocks… and let’s be clear… there’s a big distinction between the value of a stock and the value of the company represented by that stock.

What is that factor that’s throwing the value of stocks so far out of line versus the companies they represent? I’ll tell you on the next episode of Self Directed Investor Radio, which will be ready for you two days from now, on Wednesday, March 23.

But my friends… please, please, please… don’t miss the EXTRAORDINARY edition of the sister show of this podcast, called SDI Money Law, hosted by attorney extraordinaire, Tim Berry. Tim has discovered something in the law for self-directed 401k and IRA owners that is absolutely SHOCKING… this could easily be the biggest legal discovery of the past 10 years.

How do you get to hear that? Very simple: Make sure you’re on the SDI Money Law email notice list by texting the words SDIMONEYLAW with no spaces or periods to 33444 right now. Again, text the phrase SDIMONEYLAW to 33444 right now, but use no spaces or periods.

If you’ve ever been concerned about the potential for performing a prohibited transaction, or for being hit with taxes over doing a real estate flip inside your retirement account, then let me tell you…. You don’t want to miss tomorrow’s episode. Text SDIMONEYLAW to 33444 right now…

And if you’re one of the wise investors looking to take this wonderful opportunity to cut and run from the stock market and redeploy some of your portfolio into assets that are simple, safe and strong… assets that make for GREAT investments, then stop by SDI360.com/consultation to set up a time to chat with us. We’d love to help YOU make great investments that are simple, safe and strong!

My friends… invest wisely today, and live well forever!

]]>
<![CDATA[DONALD TRUMP vs Mitt Romney, Errick Errickson & Others for YOUR PORTFOLIO | Episode 199]]> Wed, 16 Mar 2016 18:30:36 GMT 7:43 15cca3e71a7430a15a191ca7c697e9e1 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f5bc Donald Trump racks up more primary victories, and it looks like the GOP establishment, and some Republican party types like Mitt Romney and Erick Erickson are pushing for open revolt.  What does this mean for your portfolio?  I’m Bryan... Donald Trump racks up more primary victories, and it looks like the GOP establishment, and some Republican party types like Mitt Romney and Erick Erickson are pushing for open revolt.  What does this mean for your portfolio?  I’m Bryan Ellis.  I’ll tell you RIGHT NOW in Episode 199.

----

Hello, SDI nation!  Welcome to the podcast of record for savvy, self-directed investors like you, where we have one and only one goal and that is to help YOU make great investments that are simple, safe and strong.

Yesterday was the biggest day in the Presidential primary process since Super Tuesday, and again, Donald Trump appears to be an unstoppable force on the Republican side, as is true for the gaffe-prone Hillary Clinton on the Democrat side.

So folks, let’s talk about this like adults, shall we?

I didn’t vote for Donald Trump in the primary in my home state of Georgia.  I did vote for a Republican candidate, but not Trump.  I am a conservative, but I am not a Republican.

I find the whole situation disgusting, to be honest.  What we have is a situation in which Trump, a guy who – whether you love him or hate him – has shown some incredible business acumen over the years, notwithstanding the failure of a few of his businesses.  Note again that I didn’t vote for him, but I do respect much of what he’s accomplished.  I also greatly respect the negotiations philosophy used by his team, as described in detail in the book “Trump Style Negotiation” by his attorney, George Ross.

Anyway, Trump is the CLEAR choice so far in Republican primaries.  There’s a guy on the radio here in Atlanta named Erick Erickson who sometimes gets some face time on Fox News as well.  Erickson is a good example of the foolishness that’s happening right now.  He’s pushing this notion that a majority of people on the Republican side do NOT want Trump to be president because he’s not gotten the majority of the votes in any primary.

Erickson is a fool.  He’s always previously impressed me as a pretty bright guy, but Trump is totally inside his head, living rent free, and dominating Erickson’s thoughts.  It’s a statistical improbability that ANYBODY would get a majority vote in any election when there were as many as 17 different candidates on the ballots to begin with, and in fact, most of those candidates remain on the ballots to this day, despite the fact that many of them have formally dropped out, because those ballots are set months in advance.

Who are the most popular politicians of the last 30 years?  Probably Ronald Reagan and Bill Clinton.  If Reagan or Clinton were on a ballot with 16 other candidates, those guys wouldn’t get majorities either.

This isn’t a defense of Trump, by the way.  There’s a lot about him that I think is exciting, but there’s a lot about him I think that is terrifying.

And there’s also Mitt Romney, a guy who lost the last election so badly that he should, quite honestly, be ashamed to be seen in public.  Here’s a guy who has been in numerous political races, and has lost every one of them, excepting only his victory to become governor of Massachusetts.  He didn’t run for that seat again, because his approval rating was in the 30% range, placing him at #48 among 50 governors for approval rating.  Point is, Mitt Romney is no political or leadership dynamo, yet he’s out there encouraging people to vote for any candidate but Trump, literally.

The hysteria on the Republican side has been absolutely mind-blowing, and it proves that the job of people in politics is focused on one thing:  Keeping their power.  It’s OVERWHELMINGLY OBVIOUS that Trump is the favored candidate, and yet what you have is a national party making it clear that they hope to re-assign the nomination to someone other than Trump on the basis that THEY don’t like the candidate.

It's insanity, folks.  It’s no less ridiculous on the Democrat side, where even in the states that Hillary Clinton has lost to Bernie Sanders, Clinton has garnered more delegates for the nomination.  The Republican side is full of confusion and power-brokering.  The Democrat side just seems corrupt.

Regardless of where you fall on the political spectrum, you and I as self-directed investors have some important things to think about.  What would it look like to have a Trump presidency or a Clinton presidency?  Even bigger than that… what happens if the Republican nomination is assigned to somebody other than Trump, proving that the voice of the people is irrelevant in choosing their most powerful leaders?

Nobody knows for sure what the end result of those things will be, but we can make some informed assumptions:

  • Hillary Clinton will be like Obama. There’s no evidence to think otherwise.  That means she opposes everything about business, except for the donations she receives from business people.  There will be more illegal immigration, higher taxes and bigger deficits.  But there will be plenty of entitlement programs.
  • Trump would be different from Obama in most ways, but we don’t yet know how. I suspect he could be VERY good for the economy, and I suspect he’ll have a substantive impact on stemming the tide of illegal immigration.  I also suspect he’ll end up taking positions as President that he opposed as a candidate in the name of “deal making” or “flexibility” as he calls it.

What does all of this mean for your portfolio?

It’s really rather simple:  More than ever, fundamentals matter.  Your investment choices must fit the “simple, safe and strong” mold – the S3 model that we here at Self Directed Investor Society so strongly espouse.

Why is that?  What if, for example, simplicity doesn’t matter to you… you’re totally fine with making exotic investments or using complicated strategies?

Look, some people are well suited to such, and that’s great.  Like I mentioned to you in episode 198, which you can hear at SDIRadio.com/198, the terms Simple, Safe and Strong, one thing that’s certain is that those terms are flexible, and don’t mean the same for everyone.

But the other thing you learned in that episode is that there’s this thing called Perspective, and sometimes it’s helpful to consider perspectives other than your own.  And in a political environment in which the will of the electorate is being thwarted on both sides of the aisle, it’s simply a dangerous, worrisome environment in which to operate.

And that’s why fundamentals matter so much.  No matter what the state of the economy or political turmoil, real assets have real value.  What is a “real asset”?  Sure, it’s hard assets like real estate or gold, but I think there’s a better definition, and that definition is any asset that is sufficiently valuable that there’s a market for it.

For what kind of assets is there always a market?  Assets that are simple… safe… and strong.

Fundamentals matter more than ever in an environment like we have right now.  Sometimes, you can do “cute” things in your portfolio that work out profitably.  I respectfully submit to you that now is not one of the times when it will be wise to get “cute” with your capital.  Wisdom and perspective must be your guide.

Remember:  You must respect your own capital, because nobody else will.

Folks, can I ask you to stop by iTunes to give this show a 5 star rating, if you like what you hear?  I’d be so grateful.  You can do that at SDIRadio.com/iTunes.

My friends, invest wisely today, and live well forever.

]]>
Donald Trump racks up more primary victories, and it looks like the GOP establishment, and some Republican party types like Mitt Romney and Erick Erickson are pushing for open revolt.  What does this mean for your portfolio?  I’m Bryan Ellis.  I’ll tell you RIGHT NOW in Episode 199.

----

Hello, SDI nation!  Welcome to the podcast of record for savvy, self-directed investors like you, where we have one and only one goal and that is to help YOU make great investments that are simple, safe and strong.

Yesterday was the biggest day in the Presidential primary process since Super Tuesday, and again, Donald Trump appears to be an unstoppable force on the Republican side, as is true for the gaffe-prone Hillary Clinton on the Democrat side.

So folks, let’s talk about this like adults, shall we?

I didn’t vote for Donald Trump in the primary in my home state of Georgia.  I did vote for a Republican candidate, but not Trump.  I am a conservative, but I am not a Republican.

I find the whole situation disgusting, to be honest.  What we have is a situation in which Trump, a guy who – whether you love him or hate him – has shown some incredible business acumen over the years, notwithstanding the failure of a few of his businesses.  Note again that I didn’t vote for him, but I do respect much of what he’s accomplished.  I also greatly respect the negotiations philosophy used by his team, as described in detail in the book “Trump Style Negotiation” by his attorney, George Ross.

Anyway, Trump is the CLEAR choice so far in Republican primaries.  There’s a guy on the radio here in Atlanta named Erick Erickson who sometimes gets some face time on Fox News as well.  Erickson is a good example of the foolishness that’s happening right now.  He’s pushing this notion that a majority of people on the Republican side do NOT want Trump to be president because he’s not gotten the majority of the votes in any primary.

Erickson is a fool.  He’s always previously impressed me as a pretty bright guy, but Trump is totally inside his head, living rent free, and dominating Erickson’s thoughts.  It’s a statistical improbability that ANYBODY would get a majority vote in any election when there were as many as 17 different candidates on the ballots to begin with, and in fact, most of those candidates remain on the ballots to this day, despite the fact that many of them have formally dropped out, because those ballots are set months in advance.

Who are the most popular politicians of the last 30 years?  Probably Ronald Reagan and Bill Clinton.  If Reagan or Clinton were on a ballot with 16 other candidates, those guys wouldn’t get majorities either.

This isn’t a defense of Trump, by the way.  There’s a lot about him that I think is exciting, but there’s a lot about him I think that is terrifying.

And there’s also Mitt Romney, a guy who lost the last election so badly that he should, quite honestly, be ashamed to be seen in public.  Here’s a guy who has been in numerous political races, and has lost every one of them, excepting only his victory to become governor of Massachusetts.  He didn’t run for that seat again, because his approval rating was in the 30% range, placing him at #48 among 50 governors for approval rating.  Point is, Mitt Romney is no political or leadership dynamo, yet he’s out there encouraging people to vote for any candidate but Trump, literally.

The hysteria on the Republican side has been absolutely mind-blowing, and it proves that the job of people in politics is focused on one thing:  Keeping their power.  It’s OVERWHELMINGLY OBVIOUS that Trump is the favored candidate, and yet what you have is a national party making it clear that they hope to re-assign the nomination to someone other than Trump on the basis that THEY don’t like the candidate.

It's insanity, folks.  It’s no less ridiculous on the Democrat side, where even in the states that Hillary Clinton has lost to Bernie Sanders, Clinton has garnered more delegates for the nomination.  The Republican side is full of confusion and power-brokering.  The Democrat side just seems corrupt.

Regardless of where you fall on the political spectrum, you and I as self-directed investors have some important things to think about.  What would it look like to have a Trump presidency or a Clinton presidency?  Even bigger than that… what happens if the Republican nomination is assigned to somebody other than Trump, proving that the voice of the people is irrelevant in choosing their most powerful leaders?

Nobody knows for sure what the end result of those things will be, but we can make some informed assumptions:

  • Hillary Clinton will be like Obama. There’s no evidence to think otherwise.  That means she opposes everything about business, except for the donations she receives from business people.  There will be more illegal immigration, higher taxes and bigger deficits.  But there will be plenty of entitlement programs.
  • Trump would be different from Obama in most ways, but we don’t yet know how. I suspect he could be VERY good for the economy, and I suspect he’ll have a substantive impact on stemming the tide of illegal immigration.  I also suspect he’ll end up taking positions as President that he opposed as a candidate in the name of “deal making” or “flexibility” as he calls it.

What does all of this mean for your portfolio?

It’s really rather simple:  More than ever, fundamentals matter.  Your investment choices must fit the “simple, safe and strong” mold – the S3 model that we here at Self Directed Investor Society so strongly espouse.

Why is that?  What if, for example, simplicity doesn’t matter to you… you’re totally fine with making exotic investments or using complicated strategies?

Look, some people are well suited to such, and that’s great.  Like I mentioned to you in episode 198, which you can hear at SDIRadio.com/198, the terms Simple, Safe and Strong, one thing that’s certain is that those terms are flexible, and don’t mean the same for everyone.

But the other thing you learned in that episode is that there’s this thing called Perspective, and sometimes it’s helpful to consider perspectives other than your own.  And in a political environment in which the will of the electorate is being thwarted on both sides of the aisle, it’s simply a dangerous, worrisome environment in which to operate.

And that’s why fundamentals matter so much.  No matter what the state of the economy or political turmoil, real assets have real value.  What is a “real asset”?  Sure, it’s hard assets like real estate or gold, but I think there’s a better definition, and that definition is any asset that is sufficiently valuable that there’s a market for it.

For what kind of assets is there always a market?  Assets that are simple… safe… and strong.

Fundamentals matter more than ever in an environment like we have right now.  Sometimes, you can do “cute” things in your portfolio that work out profitably.  I respectfully submit to you that now is not one of the times when it will be wise to get “cute” with your capital.  Wisdom and perspective must be your guide.

Remember:  You must respect your own capital, because nobody else will.

Folks, can I ask you to stop by iTunes to give this show a 5 star rating, if you like what you hear?  I’d be so grateful.  You can do that at SDIRadio.com/iTunes.

My friends, invest wisely today, and live well forever.

]]>
<![CDATA[GREED or AMBITION? When is a "Strong" ROI Strong "Enough"? | Episode 198]]> Mon, 14 Mar 2016 16:14:45 GMT 7:49 846104febe96657192af3126c5220240 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f5bd Is it greed, or is it ambition?  The difference is huge, but subtle.  One leads to excellence, the other to ruin… yet, they can feel very similar.   Here’s how to make the distinction, and avoid the devastation to your...

Is it greed, or is it ambition?  The difference is huge, but subtle.  One leads to excellence, the other to ruin… yet, they can feel very similar.   Here’s how to make the distinction, and avoid the devastation to your portfolio that awaits the greedy.  I’m Bryan Ellis.  This is Episode #198.

----

Hello, SDI Nation!  Welcome to the podcast of record for savvy self-directed investors like you, where we have one and only one goal:  To help you make GREAT investments that are simple, safe and strong.

One thing I’ve learned in working with you fine folks is this:  There’s some subjectivity to the words “simple, safe and strong”… and that’s really as it should be.  While there’s a baseline for those things –  sending money to a Nigerian prince, for example, is always foolish and never safe – what is true is that what you define as simple or safe or strong may be different than how I define it, and that’s ok.

Defining what those terms mean for you is really very important, and the answers simply aren’t the same for everyone.

But there’s a line in the sand that mustn’t be crossed on one of those factors:  Strength.  Strength refers to the results of your investment, such as whether it garners the ROI that you need, and whether it’s sufficiently stable for you to avoid the kind of stress that hurts your body and mind more than it helps your pocketbook.

On one side of the “strength” line is ambition.  Ambition is a good thing.  Ambition is the thing that drives us to be more, do more, and achieve more.  Ambition is what drives us to demand the best of ourselves, and that is why it’s good.  Pure ambition is an inherently good thing, because pure ambition is correctly aligned with the purpose of your life… it’s what drives you to be what you were put here to be.

So, curiously, having clarity about your life purpose is a key part of being a successful investor… if you’re doing it the SDI way.

Now On the other side of that line in the sand is something that feels a lot like ambition, but is wholly different:  Greed.  Greed is all about wanting more without being more or doing more.  Greed is not about fulfilling your life’s purpose… it’s about achieving a standard to which you falsely believe you’re entitled.

Greed and ambition are separated by a line in the sand, and that line is called wisdom.  A better word for it might be “perspective”.  Perspective is the difference between extraordinary investors like Peter Lynch and Sir John Templeton versus criminals like Bernie Madoff   The former experienced tremendous wealth because they earned it.  The latter stole billions because he believed he was entitled to it, but absolutely did nothing to earn it.

And that’s what greed is:  A sense of entitlement to something you do not deserve and have not earned.

So let’s connect this back to helping you to make great investments that are simple, safe and, particularly in today’s context, strong.  There are two points of evaluation you must consider where strength is concerned and they are:

First:  What is the cash-on-cash return?  In other words, how much money do you expect to pull out versus the amount of money you put in?

Second:  What is the stress-adjusted return?  In other words, how does the volatility of the investment make the investment more or less attractive for you?

That second part… the stress-adjusted return… is a factor that far too many investors fail to consider prior to taking an investment.  You might look at the cash on cash return, and be blinded by the financial potential, without ever considering that a 15% return that causes you overwhelming stress is far less desirable than a 7% return that’s perfectly reliable and predictable.  This is a critical consideration, my friends, and it can easily be reduced to a formula.

Let’s use an example, shall we?

Imagine that you’ve got an investment opportunity that you’ve been told will yield 15%.  Now we all know that 15% is an exceedingly attractive cash-on-cash return and makes for an excellent “headline”.  Anybody who gets that kind of return on a consistent basis is a superstar, and we all know that.

But think about that for just a moment.  Which is better:  An investment that yields 15% and is fundamentally predictable and reliable, or an investment that yields 15% in the end but is so volatile that, on any given day, it looks like you might actually LOSE your investment rather than make a huge rate of return.

The answer is clear… an investment that’s highly predictable and reliable is far better than one that’s volatile, even if the rate of return in the end is the same.

So what we’ll do is to assign a “SDI Strength” factor to each investment with 10 being perfectly peaceful and reliable and 1 being just shy of suicidally volatile.

The investment which yields 15% and is highly predictable and reliable gets an SDI Strength factor rating of 9.  The investment that yields 15% but is highly volatile gets an SDI Strength Factor rating of 5.

It’s pretty easy to compare the two investments then… just make percentages of those numbers – 9 becomes 90%, 5 becomes 50%, etc… and multiple that percentage by the rate of return.  So the highly predictable investment has a stress-adjusted ROI of 13.5%, whereas the much more volatile investment has a stress-adjusted ROI of 7.5%.

The difference is far more clear this way, isn’t it?  But that’s only an approximation.  The real difference is far more distinct, and it’s based on some mathematical relationships that will only excite the engineers and math geeks among us, of which I’m certainly one.

So let’s do this:  Rather than talking about the math, I’m going to make a little spreadsheet you can download to do it for you.  What I’ll do is make a nice little page of tools for you to use, and it will be available at sdi360.com/tools.

But give me a couple days on that, please.  Right now, my dear wife Carole is having some serious health problems, and has lost a substantial amount of hearing in both ears.  I’m desperately concerned about her and will be taking her for another round of doctor visits today and tomorrow, so please bear with me and I’ll get that posted for you within a couple of days.  And, if you’d be so kind… say a prayer for her, ok?  Thanks.

But what about the whole ambition versus greed discussion?  How does this calculation help us to clarify this issue?

The truth is that there’s no way to precisely quantify the difference between greed and ambition.  But here’s a pretty good standard:  Would you be happy if your investment yielded only the stress-adjusted return rather than the more attractive headline return?  If you’d only be happy with the “headline” return – the big number in bright lights – rather than the stress-adjusted return… well, then… you’re making an emotional decision rather than a rational… and that emotion may be greed rather than ambition.

The answer is simple, but maybe not easy:  Be patient.  Find another investment where the numbers – including the SDI Strength Factor – actually line up to achieve the goals you seek.  Because it’s not greedy to demand strong performance for your capital.  But it’s the very essence of greed to demand that your investments achieve more than they can truly be expected to achieve.

My friends… invest wisely today, and live well forever!

]]>

Is it greed, or is it ambition?  The difference is huge, but subtle.  One leads to excellence, the other to ruin… yet, they can feel very similar.   Here’s how to make the distinction, and avoid the devastation to your portfolio that awaits the greedy.  I’m Bryan Ellis.  This is Episode #198.

----

Hello, SDI Nation!  Welcome to the podcast of record for savvy self-directed investors like you, where we have one and only one goal:  To help you make GREAT investments that are simple, safe and strong.

One thing I’ve learned in working with you fine folks is this:  There’s some subjectivity to the words “simple, safe and strong”… and that’s really as it should be.  While there’s a baseline for those things –  sending money to a Nigerian prince, for example, is always foolish and never safe – what is true is that what you define as simple or safe or strong may be different than how I define it, and that’s ok.

Defining what those terms mean for you is really very important, and the answers simply aren’t the same for everyone.

But there’s a line in the sand that mustn’t be crossed on one of those factors:  Strength.  Strength refers to the results of your investment, such as whether it garners the ROI that you need, and whether it’s sufficiently stable for you to avoid the kind of stress that hurts your body and mind more than it helps your pocketbook.

On one side of the “strength” line is ambition.  Ambition is a good thing.  Ambition is the thing that drives us to be more, do more, and achieve more.  Ambition is what drives us to demand the best of ourselves, and that is why it’s good.  Pure ambition is an inherently good thing, because pure ambition is correctly aligned with the purpose of your life… it’s what drives you to be what you were put here to be.

So, curiously, having clarity about your life purpose is a key part of being a successful investor… if you’re doing it the SDI way.

Now On the other side of that line in the sand is something that feels a lot like ambition, but is wholly different:  Greed.  Greed is all about wanting more without being more or doing more.  Greed is not about fulfilling your life’s purpose… it’s about achieving a standard to which you falsely believe you’re entitled.

Greed and ambition are separated by a line in the sand, and that line is called wisdom.  A better word for it might be “perspective”.  Perspective is the difference between extraordinary investors like Peter Lynch and Sir John Templeton versus criminals like Bernie Madoff   The former experienced tremendous wealth because they earned it.  The latter stole billions because he believed he was entitled to it, but absolutely did nothing to earn it.

And that’s what greed is:  A sense of entitlement to something you do not deserve and have not earned.

So let’s connect this back to helping you to make great investments that are simple, safe and, particularly in today’s context, strong.  There are two points of evaluation you must consider where strength is concerned and they are:

First:  What is the cash-on-cash return?  In other words, how much money do you expect to pull out versus the amount of money you put in?

Second:  What is the stress-adjusted return?  In other words, how does the volatility of the investment make the investment more or less attractive for you?

That second part… the stress-adjusted return… is a factor that far too many investors fail to consider prior to taking an investment.  You might look at the cash on cash return, and be blinded by the financial potential, without ever considering that a 15% return that causes you overwhelming stress is far less desirable than a 7% return that’s perfectly reliable and predictable.  This is a critical consideration, my friends, and it can easily be reduced to a formula.

Let’s use an example, shall we?

Imagine that you’ve got an investment opportunity that you’ve been told will yield 15%.  Now we all know that 15% is an exceedingly attractive cash-on-cash return and makes for an excellent “headline”.  Anybody who gets that kind of return on a consistent basis is a superstar, and we all know that.

But think about that for just a moment.  Which is better:  An investment that yields 15% and is fundamentally predictable and reliable, or an investment that yields 15% in the end but is so volatile that, on any given day, it looks like you might actually LOSE your investment rather than make a huge rate of return.

The answer is clear… an investment that’s highly predictable and reliable is far better than one that’s volatile, even if the rate of return in the end is the same.

So what we’ll do is to assign a “SDI Strength” factor to each investment with 10 being perfectly peaceful and reliable and 1 being just shy of suicidally volatile.

The investment which yields 15% and is highly predictable and reliable gets an SDI Strength factor rating of 9.  The investment that yields 15% but is highly volatile gets an SDI Strength Factor rating of 5.

It’s pretty easy to compare the two investments then… just make percentages of those numbers – 9 becomes 90%, 5 becomes 50%, etc… and multiple that percentage by the rate of return.  So the highly predictable investment has a stress-adjusted ROI of 13.5%, whereas the much more volatile investment has a stress-adjusted ROI of 7.5%.

The difference is far more clear this way, isn’t it?  But that’s only an approximation.  The real difference is far more distinct, and it’s based on some mathematical relationships that will only excite the engineers and math geeks among us, of which I’m certainly one.

So let’s do this:  Rather than talking about the math, I’m going to make a little spreadsheet you can download to do it for you.  What I’ll do is make a nice little page of tools for you to use, and it will be available at sdi360.com/tools.

But give me a couple days on that, please.  Right now, my dear wife Carole is having some serious health problems, and has lost a substantial amount of hearing in both ears.  I’m desperately concerned about her and will be taking her for another round of doctor visits today and tomorrow, so please bear with me and I’ll get that posted for you within a couple of days.  And, if you’d be so kind… say a prayer for her, ok?  Thanks.

But what about the whole ambition versus greed discussion?  How does this calculation help us to clarify this issue?

The truth is that there’s no way to precisely quantify the difference between greed and ambition.  But here’s a pretty good standard:  Would you be happy if your investment yielded only the stress-adjusted return rather than the more attractive headline return?  If you’d only be happy with the “headline” return – the big number in bright lights – rather than the stress-adjusted return… well, then… you’re making an emotional decision rather than a rational… and that emotion may be greed rather than ambition.

The answer is simple, but maybe not easy:  Be patient.  Find another investment where the numbers – including the SDI Strength Factor – actually line up to achieve the goals you seek.  Because it’s not greedy to demand strong performance for your capital.  But it’s the very essence of greed to demand that your investments achieve more than they can truly be expected to achieve.

My friends… invest wisely today, and live well forever!

]]>
SEXY STRATEGY: the TAX SHORT SALE - It Can EXPLODE Your Portfolio! | Episode 197 SEXY STRATEGY: the TAX SHORT SALE - It Can EXPLODE Your Portfolio! | Episode 197 Fri, 11 Mar 2016 19:41:30 GMT 7:40 e1d50747379dbe993d4b58e7b3a29055 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f5be Want the sexiest, most explosive way to blow up a retirement account that you can ever imagine… and it’s hiding in plain sight?  Get ready to have your mind blown YET AGAIN, my friends.  I’m Bryan Ellis.  This is... Want the sexiest, most explosive way to blow up a retirement account that you can ever imagine… and it’s hiding in plain sight?  Get ready to have your mind blown YET AGAIN, my friends.  I’m Bryan Ellis.  This is Episode 197.

-----

Hello, SDI Nation!  Welcome to the podcast of record for savvy, self-directed investors like you, where we have one and only one purpose:  To help you make great investments that are simple, safe and strong!

And BOY-oh-BOY do I have a great strategy for you today!

Let’s take a journey into imagination, shall we?

Imagine that you’re presented with an array of dozens of locked “treasure” boxes.  You can buy any of these treasure boxes you want for $1,000.  And when you do so, if you’re able to get the treasure box opened, there’s a multiple of your investment waiting inside… maybe $20,000…. Maybe $75,000… maybe much, much more.

Of course, there’s the chance that there’s nothing inside at all.  And there’s the chance that you never figure out how to get the treasure box unlocked to begin with… and thus, your $1,000 is wasted.

Sounds like a gamble, doesn’t it?

But what if the predictability is MUCH higher?  What if a certain portion of those treasure boxes have a particular marking on the outside, which means that there’s treasure to extracted from within?

And what if, before ever ponying up your $1,000, you were able to closely inspect the lock itself, to determine with a high degree of accuracy whether you can break the lock and pull out the treasure?

Well, my friends, that’s exactly what I’m going to teach you to do today, and for those of you who are looking for a way to increase – potentially dramatically increase – the size of your portfolio, this is a special strategy… and it works particularly well for those of you using a self-directed IRA or 401k.

Here’s how it works:

There are hundreds of thousands of houses out there that have real value – they’re treasure boxes – but unfortunately, that treasure is bound up because of tax debt.  The owner of the house has some tax problems, there’s an IRS or state tax lien against them, and because of that, all of the equity in their treasure is totally ZAPPED.  It’s worth absolutely nothing.

And that’s why it’s possible to buy these houses for virtually no money at all… because they are, from a wholly objective perspective, worthless.

But why would you buy a worthless house, even if only for a small amount of money?

It’s because you know two things:

  1. What the house would be worth without those liens against it, and
  2. How to pick the lock – how to have those tax liens reduced far enough that there’s a big profit waiting in it for you!

Here’s an example that’ll really get your juices flowing:

Tim, a member of the SDI Team, recently found a property that’s worth a bit over $400k.  Unfortunately, there was about $900,000 of debt against that property, nearly all of which was tax debt.

This house was to Tim one of those treasure boxes I mentioned to you.  Because he was able to acquire title to that property for virtually no money at all.

But why would he do that?  Sure, it’s a $400,000 property… but it’s got absolutely no value.  And isn’t it just a crapshoot to invest in a property on the assumption that you’re going to be able to get the owner’s tax debt reduced?

Well sure… it would be a crapshoot if that’s all the information Tim had.  But it wasn’t.  Tim was able to determine, in advance of putting a single dime into the property, that the entire situation – the owner, their financial situation, the property location and property value, all of the pertinent details – Tim was able to determine in advance that all of those things lined up such that there would be an overwhelmingly strong probability that he’d be able to work with the IRS and state taxing authorities to either reduce the debt or just remove it from the property, such that Tim would be left with a substantial amount of equity and a strong profit potential.

So Tim’s “treasure box” gave clear signs on the outside that there was some real treasure inside, because he could see that the property was worth over $400,000.  And the lock on the treasure box – the tax liens – gave Tim enough information to know that there’s a very, very good chance that he could “get at” the treasure inside.

The net result?  Well, Tim’s received a cash offer to buy this house for $374,000.  And when it’s all said and done, he’ll pocket around $90,000 in profit…

…all from a house that most investors would see as being utterly valueless, but is anything but that.

This treasure box was stuffed with cash, and Tim was able to make a highly informed, high-probability decision whether to risk a tiny amount of capital – usually from $1,000 to $5,000 – in order to extract many, many multiples of his investment less than a year later.  He did have to get some funding to carry the property for a brief interlude, because the IRS isn’t flexible about the deadlines they set for payment arrangements.  But no matter… the numbers worked, and worked incredibly well.

Think of it, my friends… think of the potential for buying well-selected “worthless” real estate like this in your IRA or 401k…  for a TINY amount of money… and then by using some legal expertise that can be purchased for a few thousand dollars, you’re able to “pick the lock”, creating substantial equity spreads that simply did not exist before you came into the picture?

That, my friends… is brilliance in investing, and that is why you listen to SDI Radio.

And you know what?  You’ve heard of this strategy before, but under a different name.  You’ve heard the term “short sale”, right?  That’s when you ask a lender to take less money than they’re owed because, in the grand scheme of things, it makes sense for them to do that.  Well, this is a short sale, too… only with tax debt.

It turns out that it’s possible – in SOME cases – to do that with tax debt.  Just like with mortgage short sales, you can’t reduce just any tax debt.  There are certain situations where the IRS isn’t going to budge, and they shouldn’t.  But as much as we all dislike the notion of having the IRS breathing down our necks, the truth is that they’re not stupid, and in some situations, it makes sense for them to work with taxpayers who are in trouble.

And it is those situations which create this opportunity.

Want to know more?  Then be sure you’re subscribed to the SDI Radio private email discussion group by texting the word SDIRADIO with no periods or spaces to 33444.  That’s because on Monday, I’m going to email everyone on that subscriber list an invitation to a special webinar where we’ll teach you how you can profit from this strategy, without having to be an expert in any piece of it!  So again, be sure to text the word SDIRADIO with no spaces or periods to 33444.

My friends… invest wisely today, and live well forever!

]]>
Want the sexiest, most explosive way to blow up a retirement account that you can ever imagine… and it’s hiding in plain sight?  Get ready to have your mind blown YET AGAIN, my friends.  I’m Bryan Ellis.  This is Episode 197.

-----

Hello, SDI Nation!  Welcome to the podcast of record for savvy, self-directed investors like you, where we have one and only one purpose:  To help you make great investments that are simple, safe and strong!

And BOY-oh-BOY do I have a great strategy for you today!

Let’s take a journey into imagination, shall we?

Imagine that you’re presented with an array of dozens of locked “treasure” boxes.  You can buy any of these treasure boxes you want for $1,000.  And when you do so, if you’re able to get the treasure box opened, there’s a multiple of your investment waiting inside… maybe $20,000…. Maybe $75,000… maybe much, much more.

Of course, there’s the chance that there’s nothing inside at all.  And there’s the chance that you never figure out how to get the treasure box unlocked to begin with… and thus, your $1,000 is wasted.

Sounds like a gamble, doesn’t it?

But what if the predictability is MUCH higher?  What if a certain portion of those treasure boxes have a particular marking on the outside, which means that there’s treasure to extracted from within?

And what if, before ever ponying up your $1,000, you were able to closely inspect the lock itself, to determine with a high degree of accuracy whether you can break the lock and pull out the treasure?

Well, my friends, that’s exactly what I’m going to teach you to do today, and for those of you who are looking for a way to increase – potentially dramatically increase – the size of your portfolio, this is a special strategy… and it works particularly well for those of you using a self-directed IRA or 401k.

Here’s how it works:

There are hundreds of thousands of houses out there that have real value – they’re treasure boxes – but unfortunately, that treasure is bound up because of tax debt.  The owner of the house has some tax problems, there’s an IRS or state tax lien against them, and because of that, all of the equity in their treasure is totally ZAPPED.  It’s worth absolutely nothing.

And that’s why it’s possible to buy these houses for virtually no money at all… because they are, from a wholly objective perspective, worthless.

But why would you buy a worthless house, even if only for a small amount of money?

It’s because you know two things:

  1. What the house would be worth without those liens against it, and
  2. How to pick the lock – how to have those tax liens reduced far enough that there’s a big profit waiting in it for you!

Here’s an example that’ll really get your juices flowing:

Tim, a member of the SDI Team, recently found a property that’s worth a bit over $400k.  Unfortunately, there was about $900,000 of debt against that property, nearly all of which was tax debt.

This house was to Tim one of those treasure boxes I mentioned to you.  Because he was able to acquire title to that property for virtually no money at all.

But why would he do that?  Sure, it’s a $400,000 property… but it’s got absolutely no value.  And isn’t it just a crapshoot to invest in a property on the assumption that you’re going to be able to get the owner’s tax debt reduced?

Well sure… it would be a crapshoot if that’s all the information Tim had.  But it wasn’t.  Tim was able to determine, in advance of putting a single dime into the property, that the entire situation – the owner, their financial situation, the property location and property value, all of the pertinent details – Tim was able to determine in advance that all of those things lined up such that there would be an overwhelmingly strong probability that he’d be able to work with the IRS and state taxing authorities to either reduce the debt or just remove it from the property, such that Tim would be left with a substantial amount of equity and a strong profit potential.

So Tim’s “treasure box” gave clear signs on the outside that there was some real treasure inside, because he could see that the property was worth over $400,000.  And the lock on the treasure box – the tax liens – gave Tim enough information to know that there’s a very, very good chance that he could “get at” the treasure inside.

The net result?  Well, Tim’s received a cash offer to buy this house for $374,000.  And when it’s all said and done, he’ll pocket around $90,000 in profit…

…all from a house that most investors would see as being utterly valueless, but is anything but that.

This treasure box was stuffed with cash, and Tim was able to make a highly informed, high-probability decision whether to risk a tiny amount of capital – usually from $1,000 to $5,000 – in order to extract many, many multiples of his investment less than a year later.  He did have to get some funding to carry the property for a brief interlude, because the IRS isn’t flexible about the deadlines they set for payment arrangements.  But no matter… the numbers worked, and worked incredibly well.

Think of it, my friends… think of the potential for buying well-selected “worthless” real estate like this in your IRA or 401k…  for a TINY amount of money… and then by using some legal expertise that can be purchased for a few thousand dollars, you’re able to “pick the lock”, creating substantial equity spreads that simply did not exist before you came into the picture?

That, my friends… is brilliance in investing, and that is why you listen to SDI Radio.

And you know what?  You’ve heard of this strategy before, but under a different name.  You’ve heard the term “short sale”, right?  That’s when you ask a lender to take less money than they’re owed because, in the grand scheme of things, it makes sense for them to do that.  Well, this is a short sale, too… only with tax debt.

It turns out that it’s possible – in SOME cases – to do that with tax debt.  Just like with mortgage short sales, you can’t reduce just any tax debt.  There are certain situations where the IRS isn’t going to budge, and they shouldn’t.  But as much as we all dislike the notion of having the IRS breathing down our necks, the truth is that they’re not stupid, and in some situations, it makes sense for them to work with taxpayers who are in trouble.

And it is those situations which create this opportunity.

Want to know more?  Then be sure you’re subscribed to the SDI Radio private email discussion group by texting the word SDIRADIO with no periods or spaces to 33444.  That’s because on Monday, I’m going to email everyone on that subscriber list an invitation to a special webinar where we’ll teach you how you can profit from this strategy, without having to be an expert in any piece of it!  So again, be sure to text the word SDIRADIO with no spaces or periods to 33444.

My friends… invest wisely today, and live well forever!

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5 Reasons You SHOULD Buy Real Estate In Your IRA | Episode 196 5 Reasons You SHOULD Buy Real Estate In Your IRA | Episode 196 Wed, 09 Mar 2016 21:04:49 GMT 7:45 8b3ac2895de27e921fa1f941c93cce71 no https://shows.pippa.io/self-directed-investor-talk/5a429eb9968b52d22587f5bf Last episode, I gave you 5 shocking reasons that you should seriously consider NOT putting real estate investments inside of a self-directed IRA.  But there are two sides to the coin, and today I give you 5 great reasons that your IRA is a... Last episode, I gave you 5 shocking reasons that you should seriously consider NOT putting real estate investments inside of a self-directed IRA.  But there are two sides to the coin, and today I give you 5 great reasons that your IRA is a perfect home for great real estate deals.  I’m Bryan Ellis.  This is episode 196.

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Hello, SDI Nation!  Self Directed Investor Radio is here for one purpose:  To help YOU make great investments.  So let’s do that right now.

Ok, so I know, I know, I know.  If you heard yesterday’s show – which is available to you right now at SDIRadio.com/195 – I’m betting you think I’ve flipped my wig, as I spent the entire episode giving you really strong reasons NOT to use your IRA to buy real estate.  This is, after all, the Self Directed Investor Radio, where self-directed IRAs are a key focal point.

But look… the truth is that I’m primarily interested in helping you to make GREAT investments, and a big part of that is the legal structure under which you acquire your assets.  And sometimes an IRA is the perfect solution.  Other times, it’s really not.  Unlike your IRA custodian, I don’t have a bias towards any particular structure.  The only result that matters is that you make a great investment.

So today, I give you the counter argument – 5 strong reasons that your IRA is a GREAT place for your real estate investments, starting with #1:  Tax savings.

Yes, that’s right… there are a lot of taxes to be saved by properly using an IRA.  Specifically, if you’re using a Roth IRA, you could save a ton, because those profits will be 100% totally tax free… and that’s the best possible scenario.  But even if you use a traditional IRA – which has the nasty side effect of subjecting your profits to very high ordinary income tax rates rather than comparably low capital gains tax rates – it could still be tax-wise to go that route if you expect your income to be relatively low during retirement.  Honestly, it’s a murky question.  Best to get advice from your financial advisor.

So that leads us to reason #2 to use your IRA to invest in real estate:  That’s where the money is!  This one is practical, sure.  But here’s the deal:  If you’ve got a great real estate deal that requires $200,000 in capital, and the only place you happen to have the capital available is in your IRA – even a traditional one – then by all means… go for it!  You’ve got to invest that money somewhere, and you can’t pull your profits out of the IRA without penalty before retirement anyway.  So don’t generalize my tips from last episode so much that you miss a good opportunity.

Reason #3 to invest your IRA funds into real estate:  It’s called Turnkey Rental Property.  Why do I say that?  For those of you who may not be familiar, Turnkey Rental Property is a cool situation in which an investor purchases a property that’s already renovated, occupied by a paying tenant, and under the watchful eye of a competent manager.  So it’s a complete package, and on the very day you buy the property, you start collecting cash flow, and the property manager handles basically everything for you.  Why is this relevant to your ret