Using Financing to Increase your Returns
EDS NQ Retirement Benefit Analysis
Can I get the lump sum now?
$34,764 lump sum.Answer: No. It's a non-qualified benefit so the earliest I can receive it if 55, or if terminated.
Real Estate Investing in an IRA
American Real Estate Investments
Home Union
Putting your hard-earned IRA assets into a “self-directed” IRA can be a very good idea to grow long-term, tax-deferred or tax-free assets. But it doesn’t work for everyone.
With taxes going up for most people, you might be paying more attention to your tax-deferred retirement investing options, such as your Individual Retirement Account (IRA). And with property prices going up, you might ponder whether you can invest those IRA funds in real estate to both defer (or eliminate) taxes and earn a fair rate of return.
Here are a few things you should specifically consider if you think using an IRA to buy investment properties could work for you.
If you wanted to buy a rental property, you would open an IRA custodial account, transfer cash from an existing IRA account — or possibly 401(k) — into the custodial account and then purchase real estate under the IRA account name. Very specific rules outline what you can and cannot do in funding and managing the investment, so make sure to get good advice on those rules.
You can also buy and sell real estate in a self-directed IRA if you are in the flipping business, but there are limits on how many you can do per year. The profits on any transaction would be tax-deferred or tax-free and allow your IRA to continue to grow with those tax advantages.
You can’t get a traditional mortgage loan in an IRA, so you really need to have enough money in your IRA to purchase properties for cash if you plan on having the property as a long-term rental.
Home Union
Putting your hard-earned IRA assets into a “self-directed” IRA can be a very good idea to grow long-term, tax-deferred or tax-free assets. But it doesn’t work for everyone.
With taxes going up for most people, you might be paying more attention to your tax-deferred retirement investing options, such as your Individual Retirement Account (IRA). And with property prices going up, you might ponder whether you can invest those IRA funds in real estate to both defer (or eliminate) taxes and earn a fair rate of return.
Here are a few things you should specifically consider if you think using an IRA to buy investment properties could work for you.
Eligible properties
The real estate you buy must be a business property, not a personal residence, second home or occasional rental. Also, you can’t use your IRA to buy a property you already own; it has to be a new purchase directly into the IRA.If you wanted to buy a rental property, you would open an IRA custodial account, transfer cash from an existing IRA account — or possibly 401(k) — into the custodial account and then purchase real estate under the IRA account name. Very specific rules outline what you can and cannot do in funding and managing the investment, so make sure to get good advice on those rules.
You can also buy and sell real estate in a self-directed IRA if you are in the flipping business, but there are limits on how many you can do per year. The profits on any transaction would be tax-deferred or tax-free and allow your IRA to continue to grow with those tax advantages.
IRA investing concerns
You can’t get a traditional mortgage loan in an IRA, so you really need to have enough money in your IRA to purchase properties for cash if you plan on having the property as a long-term rental.
There are also costs to administering the IRA, so factor those into your calculations when penciling out any real estate investment. And you cannot write off losses or depreciation from any investment property in an IRA, so there won’t be the traditional tax savings you’d get on rental properties. Lastly, if you fail to comply with any of the rules, it may kill your IRA and cause you many tax penalties.
Financial considerations
Don’t put all of your IRA eggs into one basket. Too many people don’t properly diversify their retirement assets — present company included. It would be smart to talk to a financial adviser on how to allocate all your investment savings into different assets, based on your age and risk tolerance.
If you want to use your IRA to buy real estate, you need to understand what you can and can’t do. More key information can be reviewed at udirectIRA, which is a self-directed IRA custodian. And as always you also should get professional guidance from an accountant and lawyer.
Good luck!
Don’t put all of your IRA eggs into one basket. Too many people don’t properly diversify their retirement assets — present company included. It would be smart to talk to a financial adviser on how to allocate all your investment savings into different assets, based on your age and risk tolerance.
If you want to use your IRA to buy real estate, you need to understand what you can and can’t do. More key information can be reviewed at udirectIRA, which is a self-directed IRA custodian. And as always you also should get professional guidance from an accountant and lawyer.
Good luck!
What will I be doing?
Unordered Tasks
NoneOrdered Tasks
Sell Eden 2
Calculate financial model for Eden2 saleManage Eden 2 Renovation
Sell Eden2
Gratefully receive the profit
Pay tax in New Zealand
Move the money to USA
Setup Optimax Investment LLC
Create financial plan to buy 5 propertiesCreate Optimax Investment LLC
Put money in a self directed IRA and use it to buy investment property
Buy 5 Rental Investment Properties
Research propertiesCreate a budget
Create a timeline
Buy the first investment property
Buy the second investment property
Buy the third investment property
Buy the fourth investment property
Buy the fifth investment property
Mallorca Modern Homes
Create the Mallorca Modern Concept
Develop the ConceptLearn how to manage a construction project
Create a budget
Create Mallorca Modern LLC
Create the First Mallorca Modern Home
Create an onsite officeFind a lot
Create the high level 3D design my self
Hire an architect to finalize the plan
Get the planning permission
Hire a landscaper
Project Manage the building process
Get the home build
Hire an estate agent
Sell the home
Scale the Mallorca Modern Business
Identify lots for two or three homesDevelop multiple homes
Identify lot for ten homes
Build gated community of ten homes
Identify Learning Gaps
What is My Personal Wealth Building Creed?
I will build wealth continuously and safely.
I will build wealth by placing integrity and ethics first at all times.
Building wealth allows me to become more of who I want to be.
I qualify for amazing opportunities, happily receive money, gratefully take profits, and accumulate weath rapidly.
Why is this the perfect vision for me?
I have a Professional qualification in design
I have local knowledge of Vista/Bonsall/Fallbrook to identify stunning locations
I love this area!
I use my design skills to design house and landscaping
I use my project management skills to manage the projects
I use my skill with numbers and spreadsheets to manage cash flow and equity
I have local knowledge of Vista/Bonsall/Fallbrook to identify stunning locations
I love this area!
I use my design skills to design house and landscaping
I use my project management skills to manage the projects
I use my skill with numbers and spreadsheets to manage cash flow and equity
Who will I work with?
Catherine Dooley
Alpha Studio
Debra Carl Landscape
That Hutton - Luxury Real Estate Broker Thad Hutton Homes
Win-Win homes - Builder
Mitch Royal - investor/consultant/advisor
Alpha Studio
Debra Carl Landscape
That Hutton - Luxury Real Estate Broker Thad Hutton Homes
Win-Win homes - Builder
Mitch Royal - investor/consultant/advisor
Why will I succeed?
Experience
- Bought 3 homes in New Zealand and the USA in totally different markets and market conditions
- Sold one home at a profit despite the recession
- Designed and renovated an old german row house into a stylish apartment
- Remodelled two different homes
- Industrial Design Degree
- Travelled to more than twenty countries observing how people live and what they want from their environment
- 15 years project management experience
What is my vision?
30 Second Elevator Pitch
I am a data driven real estate investor with a multi-million dollar portfolio of property investments in high performing markets across the USA. I'm also the founder and owner of Mallorca Modern, a property developer of contemporary Mediterranean style homes in the perfect climate and beautiful landscapes of North San Diego county.By End of 2016
- Create a plan to get Eden 2 financial records in order, manage the renovation process and then sell Eden2
- Create a plan to buy an data driven investment property through HomeUnion
- Execute the plan to get Eden2 financial records in order, manage the renovation process and then sell Eden2
- Execute the plan to buy a data driven investment property through HomeUnion
- While doing steps 1-4, plan Mallorca modern in detail
- Increase my knowledge of being a real estate investor and developer.
What am I?
I am an investor and property developer.
I am:
- Analytical
- Great a planning
- Great at data collection and presentation
- Makes decisions based on the data in the plan
- Makes decisions on a 'sense' for good investments that is part gut feeling, part experience, part intuition
- Looks for opportunities all the time in the markets
- Creates a mental map of why different places and properties will be a good investment
- Aware all the time of real estate markets and opportunities
- Portrays confidence, clarity, and execution skills to others
- Aware of multiple aspects of what it takes to succeed.
- Ability to take a long term view
- Ability to take short term, decisive action
- Ability to create a plan and engage other people to execute pieces without them knowing the whole
- Handle paperwork, contracts, agreements
- Negotiates for the best price
- Ability to articulate a big vision to investors, architects, contractor buyers and real estate agents
- Ability to focus on small details to investors, architects, contractor buyers and real estate agents
- Ability to develop trust with investors, architects, contractor buyers and real estate agents
401K to 100k in 2014
Date Committed: 1/1/2013
Target Date: 12/31/2013
Goal Achievement State: Complete -6 weeks late
Goal Achievement Plan:
1. Monitor 401K balances and stock graphs daily
2. Enter trades at technical entry
3. Exit profitable trades at technical exit points
4. Monitor progress to monthly goals in Global Financial View
Monitoring:
2/28/2014 - Ahead by $600
5/10/2014 - Behind by $3400
6/30/2014 - Behind by $1355
9/30/2014 - Behind by $2339
12/31/2014 - Behind by $3127
Actual Date Achieved: Feb 9 2015 - 6 weeks late
4. Monitor progress to monthly goals in Global Financial View
Monitoring:
2/28/2014 - Ahead by $600
5/10/2014 - Behind by $3400
6/30/2014 - Behind by $1355
9/30/2014 - Behind by $2339
12/31/2014 - Behind by $3127
Actual Date Achieved: Feb 9 2015 - 6 weeks late
410K to $125,000K by Dec 31 2015
Date Committed: 2/10/2015
Target Date: 12/31/2015
Goal Achievement State: Missed
Goal Achievement Plan:
1. Monitor 401K balances and stock graphs daily
2. By commission free Fidelity funds at technical entry of RSI below 20
Target Date: 12/31/2015
Goal Achievement State: Missed
Goal Achievement Plan:
1. Monitor 401K balances and stock graphs daily
2. By commission free Fidelity funds at technical entry of RSI below 20
3. Exit trades at 4 or more percent profit with duration between 30 to 60 days
4. Exit trades at technical exit of RSI above 80
5. Monitor progress to monthly goals in Global Financial View
6. Update this goal tracker quarterly with graphic from Global Financial View
7. Financial target includes HP 401k match of 4 percent of salary.
8. Maintain 401K contribution of 6% of salary
Monthly Performance Target:
Monitoring:
2/29/2016
Monitoring:
6/30/2014 - Missed by $11, 623
Monitoring:
9/30/2014 - Missed by $14, 623
Monitoring:
12/31/2014 - Missed by $14,310
4. Exit trades at technical exit of RSI above 80
5. Monitor progress to monthly goals in Global Financial View
6. Update this goal tracker quarterly with graphic from Global Financial View
7. Financial target includes HP 401k match of 4 percent of salary.
8. Maintain 401K contribution of 6% of salary
Monthly Performance Target:
Monitoring:
2/29/2016
Monitoring:6/30/2014 - Missed by $11, 623
Monitoring:
9/30/2014 - Missed by $14, 623
Monitoring:
12/31/2014 - Missed by $14,310
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