Looking to learn how to buy and sell real estate with your self-directed IRA? Looking for an untapped money source for private money loans? Looking to turbo-charge your retirement. Well you need to check this out.

1. The IRA Multiplier
by Lamarr Baxter

2. Private Lending In You IRA –
Allow Your IRA To Become
The Bank

3. Roth IRATraditional IRA SEP
Plan Types
SIMPLE One (k) aka (Solo K) Roth One (k)

4. Benefits of Self-Direction
Invest in what you know and understand
Take control of your retirement account
Choose from an extensive range of investment types
Minimize your risk and maximize your returns by truly diversifying
investments
Perform your own due diligence

5. Possible IRA Investments
• Real Estate
• Mortgages, Notes, Unsecured
Loans
• Tax Lien Certificates
• Stocks, Bonds, Mutual Funds
• Extraordinary Investments
• Security Agreements & Notes
• Private Placements
• Certificates of Deposit
• Tangible Asset Deeds
• Corporate Stock
• Accounts Receivable
Financing
• Precious Metals
• LPs & LLCs
• Auto Paper
• Trust Deeds
• Like & Unlike Exchanges
• Contract Options
• Building Bonds
• Commercial Paper
• Commodity & Option
Exchanges
• Commodities / Futures
• Leases
• Joint Ventures
• Factoring

6. Self-Dealing – Rules of the Road
• The IRA owner may not loan money for
an investment held by the IRA. Instead, a
3rd party must service the loan.
• The IRA owner may not receive a current
benefit from any investment in the IRA.
• The IRA is a trust. Assets in the IRA must
be vested in the name of the custodian or
their nominee for the benefit of the IRA.
– American Estate &Trust, FBO Lamarr Baxter
IRA #12345

7. Benefits to Working with Other People’s IRAs
• Easier to buy mortgages or make a private loan using
IRA funds than to purchase real property. The
perception is that there is less to worry about with
paper than a hard asset that needs maintenance.
• You can set up fractional interests to achieve lending
or acquisition requirements.
• Work with multiple investors–each
receives a fractional share of the
underlining security for the note.

8. The IRA and the Investment
• With a self-directed IRA, the IRA owner selects the
investment and is the ultimate decision maker. The IRA
owner must perform his or her own due diligence.
• No requirement to record a document or get title
insurance for a property. The IRA can state what it needs
to feel protected. What would you do?
• The IRA can make both secured and unsecured loans.

9. Comfort Level for the IRA Investor
Do not assume that because there are people you know,
they feel comfortable doing business with you. Expect
and be prepared for:
• Know the usury rules in the state in
which the note is created.
• Know the lending laws in the state in
which the loan is granted (securities
laws).
• Structure a security interest that is
marketable in case the IRA needs to sell
its interest to raise cash.

10. IRA Lending
• Borrower & Lender - Keep the LTV at a reasonable
rate.
• Borrower - Provide background on yourself, the
investment, and your history in the business. Have a
plan to explain how much money you need, for what
purpose, when the money is needed, and how you plan
on paying the IRA back.
• Borrower - A personal guarantee helps make someone
feel better about you if they don’t know you. IRA
owners are especially concerned about having an exit
strategy and protecting their IRA.

11. Borrowing as an LLC
• An LLC structure can be detrimental to an
IRA:
– Might not allow a change in ownership.
For an IRA to be cashed out, the LLC
might have to be dissolved.
– Can violate Blue Sky laws
– Undivided interests. Makes your job
communicating with an advanced IRA
investor more difficult because an LLC
make the deal not liquid.

12. Case Study
Lisa’s IRA agrees to lend
$100,000 to Pete, secured by a
single-family house in Kansas.

13. Note Secured by Real Estate
• Lisa’s IRA is the source of funds for Pete’s purchase.
• Lisa submits an Investment Direction Letter to
Accuplan to start the transaction.
• Lisa directs Accuplan to send the money on behalf of
Lisa’s IRA.
• The Note is made payable to American Estate & Trust
FBO Lisa’s IRA.
• Security (deed) is endorsed over: Assignment
• Payments are made to Lisa’s IRA based on terms of
the note.
• If Pete defaults, Lisa’s IRA forecloses and takes the
Kansas property. Expense of foreclosure comes out of
Lisa’s IRA.

14. Collateral Sources
• Subject Property via Deed of Trust (preferably 1st
position and low LTV)
• Other Real Property (Cross-Collateralization)
• Co-signer willing to pledge personal and/or real
property as collateral
• UCC-1
• Accounts Receivables (Factoring)
• Automobile w/ clear title (Require Full coverage
insurance)

15. Due Diligence
• Check out the condition of property and neighborhood
• Screen borrower (verify credit, income source, assets
and references)
• If loaning to “flippers” verify past performance on
previous properties ( i.e. timelines and profits)
• Have title company perform a COMPLETE title search
for liens and/or clouds on title

16. Checklist
• Secure a relationship with Title/Escrow Company
• Secure a relationship with a Licensed Appraiser
• Secure a relationship with a Loan Servicer (if long
term loan)
• Make sure YOUR appraiser performs the appraisals
using BEFORE “Repair Value”
• Have COMPLETE Title searched performed at
borrowers cost
• Secure Title Insurance at borrower’s cost
• Monies should be granted the ONLY through the
Title/Escrow company AFTER there Deed of Trust has
been recorded

17. Working with OPM
in today’s market is
more challenging.

18. Where Do I Find The Money?
• Business Brokers
• Investment Networking functions
• Consultants who work in unique industries
• Investment Seminar and Workshops
• Recently terminated and/or laid off individuals
• Friend and relatives
• Visit your local real estate investment club meetings
• Visit and join online investment forums
• Publish online classified ads relative to real estate and
investments

19. How Do I Ask For The Money?
• Be prepared to sell yourself and the investment
opportunity
• Present a professional, polished and brief investment
summary describing the investment opportunity (i.e.
projections, term, yield, exit strategy, etc…)
• Compare your investment opportunity to their
traditional investment vehicles
• Emphasize the collateralized security component of a
loan secured by a deed of trust
• Demonstrate you are an expert in your area of
investment
• Offer a competitive yield

20. Questions?
Accuplan Benefit Services
Lamarr Baxter
Director Of Business Development
lamarrbaxter@accuplan.net
www.accuplan.net/norcal
Phone: 916-509-7150
Fax: 916-405-4000