Self Directed IRA Investing

I get email from Alex Gurevich on different Real Estate topics and the last one he sent me was going to be where he interviewed Mr. Dick Desich the Founder of Equity Trust Company  . They are an IRA Custodian that I listed in one of my last posts.   Here’s a little blurb about Mr. Desich on Alex’s page.  I signed up and listened to the interview,  among several topics that Mr. Desich talked about, there were 2 that I think were best ideas. 

Of course the Interview was also touting Mr. Desich’s seminar where he goes into more details, which I would most likely attend if I could get the time off of work.  Here’s the link to hear it yourself…..

The 2 takeaways I liked the most from the Interview were:

1. The idea of a Private Bank.

      The idea of a private bank to me is a conceptual idea, not actually opening a physical location, in that if you and all your friends, relatives, and others that you know and trust open Self Directed IRA accounts.  Then you can Pool your money to get into bigger transactions. 

It could also work if there is one real active investor that knows a lot of other Passive investors.  The active guy, a guy like me,  he goes out and finds good secure property, Notes, or whatever the group likes.  He then pitches the deal to the passive folks and they all pool thier money to invest in it if they like it.  Of course this is just a high level overview of the Private Bank idea but I think it could have some tremendous benefits for those retirement accounts involved.  

I’m working on this myself and have done something similar where 3 different parties went together to lend money.   Now I’m working to find those folks who want to do it regularly, not just once in a while.  If my next Note deal works, I’ll go in on it 50-50 with a good friend of mine and I’ll post the details if we do it.

2. Using your SDIRA Account to help create and shelter cash even after you retire.

  To me this was a golden nugget that I really never thought about before, but it really only pertains to those with Self Directed ROTH accounts.  Before retirement you think in terms of saving and investing for when you no longer work.  No one I know of, thinks that after you retire that you can and should still invest using your IRA, eveyone thinks in terms of liquidation.  Now that you have an Self Directed IRA account why not use it and continue to do a transaction in with it so that once you gain your profit it’s all TAX Free.  Here’s an example, Mr. Desich used I believe.  Your 70 now and have to withdraw cash from your IRA, why not take that cash and invest in something you know like flipping houses and create some cash, and withdraw that new cash out of the IRA as a required distrubution.  You’re making money tax free using your IRA account. 

Here’s a link to the whole recording in case you want to hear it all.  I get nothing from it, just thought it would make a good post to my blog.

Will

This entry was posted on Wednesday, September 26th, 2007 at 11:55 pm and is filed under Book Reviews. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.