Total Control IRA 1. Elite Pensions, LLC. How To. Available Assets

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1 How To Wish you could invest in real estate with your retirement account to earn tax-deferred or tax-free income? Using Real Estate Investors Find Ways to Put Pension Money Into Real Estate Last year, tax laws allowing individuals to set up single-participant 401(k) plans went into effect allowing these plans to invest in real estate, an activity single-participant IRA plans had long been doing. Why the lack of knowledge about retirement account investing options? The Wall Street Journal May 21, 2003 Available Assets The reason you haven t t heard about them [these investment alternatives] is that there is little profit incentive for financial institutions, which primarily sell stocks and bonds to IRA accounts. January 26, 2003 $3.4 Trillion in Retirement Assets Less than 2% is Invested in Real Estate. (LA Times May 20, 2003) Total Control IRA 1

2 Stock Market The Federal Reserve Estimates about $1 Trillion Dollars has been Lost in Retirement Assets Due to Stock Market Losses. Fact: No one cares more about your money than you do! Question: Would you rather give your retirement money to a company back East to invest in the stock market, or be able to invest it yourself locally in Real Estate? Are You Currently Earning 12% in Your Retirement Account? How about 18%? If you are able to earn 12% to 18% or more investing in real estate while earning tax free or tax deferred income using your Retirement account would you want to know how? The Structure is the Key You Must Have the Right Structure for Your Retirement Account Total Control IRA 2

3 Total Control IRA Current Custodian IRA, SEP, 401K, etc. rollover New Self Directed Custodian IRA, SEP, 401K, etc. Total Control IRA Your IRA can invest in Businesses Financial Markets LLC You act as Mgr. of LLC Account at any bank Real Estate IRA owns LLC Checkbook Control Financial Paper Businesses Professional Personal Service Start-ups Franchises Retail Public Financial Markets Stocks Mutual Funds Options REITS Annuities Covered Calls Futures Commodities Financial Paper Loans Mortgages Charitable Entities Discounted Notes Tax Liens Factoring and Real Estate Real Estate Investments Residential Real Estate Commercial Real Estate Mortgage Loans Hard Money Loans Flips Development Construction Loans Foreclosures More, More, More You Can Invest Your Retirement Account in Anything Except! Life Insurance Contracts Collectibles Disqualified Parties Related Party An IRA cannot engage in any transaction with anybody or anything considered related to the IRA IRA/ Retirement Plan Owner Ancestors of the Owner Offspring of the Owner Spouses of the above Business entities where the Owner is a 50% or greater shareholder Total Control IRA 3

4 Allowable Examples Your IRA loans you $100,000. Allowable? Your IRA loans your brother $100,000. Allowable? Your IRA loans your step son $100,000. Allowable? Contribution v. Returns Contribution Limits to IRAs are $4,000/yr ($5,000/yr if over 50 years old) KEY No limit to how much can be earned inside of an IRA Asset Protection In a huge victory for managed and self- directed IRA owners everywhere, the Supreme Court ruled unanimously that IRAs should join pensions, 401(k)s. Social Security and other benefits tied to age, illness or disability, that are afforded protection under federal bankruptcy law and thus shielded from creditors in bankruptcy proceedings. IRS Protection The mere fact that the LLC entity is disregarded for federal tax purposes does not entitle the IRS (Service) to disregard the entity for purposes of collection. (IRS Internal Legal Memoranda ) 1031 Exchange? Forget About all the Wizardry and Complexities of 1031 Exchanges Retirement Accounts Grow Tax Free Without Capital Gains or any Other Tax No More Having to Reinvest Within a Certain Time Frame No More Having to Reinvest in the Same Type of Asset Retirement Roth s Never Pay Tax Again Create Your Own Bank Utilize Someone Else s s Retirement Account to Fund Your Real Estate Deals Show Others How They Can Earn a Good Tax Free ROI Lending You Their Money Secured by Real Estate Create a Hassle-Free, Never Ending Supply of Money For Your Deals Reciprocate and Get Great Growth With Your Own Retirement Account Total Control IRA 4

5 Example 1 Buy and Hold Buy and Hold Dr. Ross Wants to Invest in Real Estate with His Retirement Account Dr. Ross Teams Up with Jack Daniels Dr. Ross Invests $100K with Jack Daniels on a Property that is Earning 18% Buy and Hold Buy and Hold Year 5 $228,776 Year 10 $523,384 Year 15 $1,197,375 Year 20 $2,739,303 $100,000 Total Investment Assumptions Interest rate: 18% Compounding: annual Example 2 Short Sales and Loans Short Sales and Loans Joe Broke Wants to Invest in Real Estate Short Sales but Doesn't Have Money for a Down Payment Dr. Ross Wants to Invest in Real Estate but Doesn t t Want too Much Risk Joe Broke and Dr. Ross Team up Joe Broke is the Point Guard on the Short Sale and Creates an Opportunity for a Great Return Dr. Ross Facilitates a Loan from His IRA for the Down Payment which Provides a High Fixed Return Fully Collateralized by Real Estate Total Control IRA 5

6 The Loan Dr. Ross Provides 8 Loans a Year to Joe Broke The Loan Year 5 $86,408 Year 10 $373,317 Year 15 $1,612,880 Year 20 $6,968,286 Assumptions Loan Amount: $20,000 Interest rate: 18% Points: 2 Turns per Year : 8 Compounding: annual $20,000 Total Investment $20,000 Total Investment The Short Sale Joe Broke and Dr. Ross Buy & Sell 8 Properties a Year Year 1 $120,960 Assumptions Purchase Price $220,000 Sales price $260,000 All fees and fix up costs $24,880 Compounding 18% annual Year 10 $2,834,788 Year 15 $7,347,534 $0.00 Initial Investment Tax Free Growth Year 20 $17,671,603 Who Gets What? Joe Broke Invests $0.00 Initially in Real Estate Dr. Ross Gets %18 Annual Return on Retirement Account Investment Secured by Real Estate with Tax Deferred or Tax Free Growth The Short Sale Example 3 Buy and Hold Plus Annual Contributions Total Control IRA 6

7 Buy and Hold Plus Annual Contributions Buy & Hold With Annual Contributions Year 5 $371,447 Year 10 $1,221,226 Year 15 $3,165,317 Year 20 $7,612,924 $44,000 Annual Investment Assumptions Interest rate: 18% $44,000 annual contribution Compounding: annual The High Cost of Waiting 5% vs 18% Why Elite Pensions? Elite works with the largest and best financial managers Charles Schwab LPL Elite uses top ERISA attorneys around country to benefit you at 1/4 th the cost No Annual Percentage of Asset Fees (expensive) No Transaction Fees Convenience Ability to Make Time Sensitive Investments (Real Estate, tax Liens Foreign Currency Exchange, Day-Trading, etc.) Benefits of Elite s Total Control IRA Buy and Sell Real Estate Unlimited Investment Opportunities Tax Free Growth Asset Protection Truly Diversify Your Retirement Plan Checkbook Control You don t have to ask anyone s permission or approval for investments You just write a check Plus The Best Benefit of All What More Could You Ask For? Total Control IRA 7

8 Supercharge Your IRA 1) Complete the Order Form 2) Select Your Method of Payment 3) Choose the Name of Your LLC We ll Take it from There Total Control IRA 8