2. Disclaimer
Team Realty and Investment Solutions, LLC is
a licensed Florida real estate brokerage. This
presentation is designed to illustrate types of
investments you can do through a self-directed
retirement account. As always, we recommend
you consult with your attorney, accountant and /
or other competent professional counsel about
your specific situation prior to making any type
of investment. It is important you clearly
understand benefits and risks of investing in
real estate or any other investment.
4. About Brian Woods
I am the Broker – Owner of Team Realty and Investment
Solutions, LLC. My experience as a real estate professional and
investor spans over 10 years.
Several years ago, I learned about the power of investing in real
estate within a retirement account. I have taken this a step further
and been sharing this information with others as an excellent
source of funding for real estate deals and receiving a higher
return on investment than traditional investments.
Self-directed retirement accounts are one of the many non-
traditional ways I help people in real estate.
5. Overview
• The Big Challenge Facing Investors Today
• What is a Self-Directed IRA?
• What Can a Self Directed IRA Invest In?
• Power of Combining Real Estate and IRAs
• Types of IRAs and Retirement Plans You Can
Self-Direct
• Huge Tax Savings Through Retirement Plans
• Making Your Child or Grandchild a Millionaire
6. What is a Self-Directed IRA?
• An Individual Retirement Account (or IRA) is a
personal savings account that provides Tax-Deferred
or Tax-Free savings.
• A self-directed IRA is any type of IRA that allows you
to invest in assets other than just stocks, mutual
funds and CDs.
• Most brokerage firms and banks don’t offer this
service because they do not have a financial
incentive to do so.
7. How does an IRA benefit me?
• Tax-free or tax-deferred growth
• Power of compounding interest
• Huge tax deductions
• Protects your hard earned assets
• Essential estate planning tool
8. Compound Interest
“The most powerful force in the universe is compound interest”. –
Albert Einstein
• Begin at age one
• One time contribution of $5000
• Assume a 10% rate of return
At age 65, the account will be worth…
10. What Can I Invest in?
• Stocks, Bonds, Mutual Funds
• Raw land
• Single family homes/Condos
• Apartments/duplexes
• Commercial property
• Equipment Leasing
• Real Estate Notes / Mortgages
• Tax Liens
• Foreign Currency
You are only limited by your
Own Creativity
11. Two Investment Paths
• Active
• Invest directly in the asset of your choice (real estate, tax
liens, equipment)
• Passive
• Loan your investment funds to another party to invest
14. But Wait There’s More…
•Not limited to just one investment
•It’s easy to turn your money around again
•Invest in whatever you want, whenever you want
15. Common Pitfalls
1. Self Dealing
2. Disqualified Individuals
3. Prohibited Transactions
4. Collateralizing your IRA
16. Self Dealing
• No Buy or Sell to/from your IRA
• No personal benefit
17. Disqualified Individuals
• You
• Your Spouse
• Your Parents
• Your Grandparents
• Your Children
• Your Grandchildren
• Spouses of Children/Grandchildren
• Beneficiaries & Fiduciaries
19. Collateralization
• IRA cannot be used as collateral for a loan
• Debt must be Non-Recourse
• No personal guarantee of loan
20. Which IRA is Right for Me?
• Do you want tax free income for the rest of
your life or do you want a tax deduction
today?
• Do you want to pay taxes on the seed or the
crop?
21. Which IRA is Right for Me?
Personal Accounts Small Business Accounts
•Traditional IRA •SEP IRA
•Roth IRA •Simple IRA
•Health Savings Account •Individual 401(k)
•Coverdell Education Account •Roth Individual 401(k)
•Safe Harbor 401(k)
22. Benefits of IRA for
Children & Grandchildren
• Children can have an IRA: Traditional, Roth, SEP or
SIMPLE
• Make your child or grandchild a millionaire using
compound interest
• Pay for education expenses with a tax-free Education IRA
(known as the Coverdell Education Savings Account)
• Use your knowledge and expertise to earn higher rates of
return than just the market and provide for the future
23. What Should I Consider
When Choosing a Custodian?
Equity Trust has the Knowledge and Experience you Need
• Founded by a Real Estate Investor
• Over 35 years of experience
• Over 145,000 clients & growing
• $10 Billon in Assets
• Extensively Trained Staff
• Handled over 525,000 calls in 2008
• Process over 250 real estate deals every day
• Highly regulated
24. The Absolute Best Value
Equity Trust gives you the most value for your money
Industry’s Only All-inclusive Fee Schedule
No Transaction Fees
No Check Fees
No Distribution Fees
No Limit on Transactions
Pay One Fee per Year and do as many investments as you want
25. Your Silent Partner
“Good ol’ Uncle Sam”
• Real estate profits in 1 year $15,000
• Less federal income tax 28%
• Less state income tax 6%
• Less city income tax 2%
Total 36%
Check written to the IRS = - $5400
26. Your Silent Partner
“Good ol’ Uncle Sam”
• Real estate profits in 1 year $15,000
• Less federal income tax 28%
• Less state income tax 6%
• Less city income tax 2%
Total 36%
Total put in your pocket
$5,400
27. How Do I Find Out More
Brian Woods
Broker
Team Realty and Investment Solutions, LLC
561-459-4361
blwoods@teamrealtydelivers.com