Quest IRA PPT July 2016

Quest SDIRA Trillion $
Mixer
By Kenn Renner

www.BuyAustin.com| Kenn Renner | 512-423-5626 | Kenn@BuyAustin.com

HGTV’s House Hunters

Forbes List - America's Fastest
Growing City
 1. Austin, Texas
 MSA: Austin-Round Rock, TX
 2015 Population growth rate: 3.15%
 2016 (Projected) pop. growth rate: 1.56%
 Job growth rate: 3.28%
 Unemployment: 3.34%
 2015 Gross Metro Product growth: 3.22%
 Median pay: $66,000

Forbes Best Places to Invest
 7. Austin, Texas
 MSA: Austin-Round Rock, TX
 Pop.: 1,943,299
 Avg. Home Price (Q3 ’14-Q3 ’15): $281,355
 Pop. Growth (’11-’14): 9.0%
 Jobs growth (annual): 3.3%
 Unemployment (Sept. ’15): 3.3%
 Annual price growth: 12%
 Over (+) or under (-) priced by: 13%
 Three-year home price growth forecast: 27%
 Average Home Price: $281,355

Texas A & M – Texas Summary
 Overall construction activity HOT but slowing
 Austin upward trend in permits – Dallas,
Houston permits slowing but still #1 in Nation
 Texas – 3.6 months of inventory – Nation 5.6
mos.
 Appreciation – strong statewide – Austin #1
 Statewide New home 19% more price per
square foot than a resale home…

Austin Summary – ABOR stats
 14482 home sales in the first half of 2016
 Up 6.1% over 2015 making for a record year
 Median price up 8.2% over June 15
 2.4 months of supply – sellers market!
 5856 Active listings - skewed by builder
inventory
 4486 active “Resale” listings
 Shortage will continue for the “NEAR”
forseeable future

 It’s estimated 10,000 “Baby
Boomers” per day will turn 65 for
the next 20 years
Info source credits: Forbes, Texas A & M University,
Accuplan and North American Savings Bank

 Up to 75% of the Baby Boomer
population do not have the
resources to retire at 65 and
beyond

 Most will be forced to continue to
work after 65 years of age

 Retirees face skyrocketing
healthcare cost and diminished
Social Security and Medicare
benefits

 Inflation/Cost of living increases
will threaten to erode their fixed
retirement income

 Over $4.7 trillion in IRA assets
(Most invested in Wall Street)

 Over $4.7 trillion in combined IRA
and 401k funds with only 1%
invested via self-directed
retirement accounts

 Up to 90% of the population is
unaware of a SDIRA

 The majority of those funds are
invested in mutual funds with
brokerage firms

 Less than 1% is invested in
alternative assets

 You can diversify your retirement
with tangible assets such as real
estate

Dow Jones Average Past 20
Years

Simple Wealth Building
Strategy
 Acquire 10 homes in 10 years
 Pay them off in 20 years
Disclosure and Disclaimer: Kenn Renner, Renner Realty, Inc are not attorneys, CPAs nor Financial Planners.
Please seek the appropriate professionals for legal, tax and financial advise and guidance.

Simple Wealth Building
Strategy
 10 x $200k = $2 million
in 20 years
 $4 million ±
 $1000/mo positive
 $12,000 x 12 = $144,000*
• Example is in no way a guarantee of a return
as all investments have risk and results will vary – do
your due diligence and consult with appropriate professionals.

Simple College Tuition Plan
 Buy one single family home
 Pay off in 15 years
 Sell to pay for college

SDIRA Case Studies
 New SFR in East Austin
 Price $175,000

Case Study – SDIRA loan
30%DP
$175,000 Sales Price
$52,500 Down Payment
$5000 CC and Prepaids
$57500 Cash to Close
$122500 Loan Amount
$783 P&I @ 4.625% (20 yr)
$320 Taxes
$50 Insurance
$50 Management
$20 Dues
$1223 Payment + Management
$1,223 Payment + Mgmt
$1,500 Rent
$277 Positive p/month
x12 1st
year
$3,324 Cash Flow
$12,000 Appreciation*
$15,324 Net Gain
26.6%1st
Year*
•Example is in no way a guarantee of a return
your due diligence and consult with appropriate professiona

Case Study – straight up
25%DP
$175,000 Sales Price
$43750 Down Payment
$5000 CC and Prepaids
$48750 Cash to Close
$131250 Loan Amount
$626 P&I @ 4.0% (30 yr)
$320 Taxes
$50 Insurance
$50 Management
$20 Dues
$1066 Payment + Management
$1,066Payment + Mgmt
$1,500 Rent
$434 Positive p/month
x12 1st
year
$5208 Cash Flow
$12,000 Appreciation*
$17,208 Net Gain
35.2%1st
Year*
•Example is in no way a guarantee of a return
your due diligence and consult with appropriate professiona

 A non-recourse loan is one which
the IRA/SEP account holder is
not personally liable for
repayment of the loan

 The security instruments allow no
recourse against the individual
account holders or the balances
of your IRA/SEP funds

 In the event of default/foreclosure
the lender can only recover the
property and your equity

 All net proceeds go back to the
IRA tax free

NASB
 Single Family Homes – 30-40%
 2-4 Units – 40%
 Condominiums – 40%
 Multi-Family (5+ units) – 40%

NASB
 NASB offers a 3, 5 and 10 year
ARM or a 10, 15 or 20 year fixed
option
 These are both principal and
interest payments

Perfect Marriage
 SDIRA Purchase w/ SDIRA
Private Lending
Info source credits: Forbes, Texas A & M University, Accuplan and North American
Savings Bank

Join me most every
Saturday for Real Estate
investment presentations
at convenient locations
around Austin…
512.423.5626 call/text
By Kenn Renner

Free Consultation &
For a copy of this PPT
Kenn @ buyaustin.com
512.423.5626 (Call/Text)
Quest SDIRA Bootcamp
By Kenn Renner

Quest IRA PPT July 2016

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