The vehicle Private Money Partners use to fund my real estate acquisitions is the infamous Self-Directed IRA. I educate them on how a Self-Directed IRA structure allows them to hold any other investment asset they can imagine, other than a few exceptions. Which means it is possible to fully diversify their retirement assets across a much broader spectrum of the economy than most people think possible.
The freedom the law allows when it comes to Self-Directed IRA investments means that they do not need to rely on their broker or financial advisor to invest. They can choose to ‘self-direct their IRA’ and stay in control instead of putting others in charge of their money.
This means breaking free of their financial advisor, mutual fund manager, broker or other Wall Street employee or salesperson, and taking a more direct managerial role in their own retirement investing.
They are still using the same underlying Self-Directed IRA structure. But by bypassing Wall Street, they can expand their ability to diversify into a nearly infinite array of alternative asset classes and investments.
The result: Greater potential diversity, and greater potential risk-adjusted returns.
********************************* If you are reading my blog for the first time, let me inform you that… My company buys single-family houses and I write this blog weekly which is primarily directed to educate 1 group of individuals:
Individuals who are losing their shirt as a result of the “roller coaster” volatility of the stock market and low paying rate of other traditional investments, i.e. people that are looking for an opportunity that’ll provide a secured place to put their money to get it working for them to earn better than average returns.
However, often times, homeowners that need to sell their house, stop by to take a peek because they are curious and wondering how and/or where we get the funding to purchase houses. And if they stick around long enough, they begin to understand why individuals partner with us to provide the funding which empowers us to be able to purchase real estate on a continual basis. Simple, it’s because we teach them a secured way to earn better rates of return than they are currently earning.
So everybody wins. It’s a WIN-WIN-WIN !!!
Request your FREE Education Kit if you are interested in learning how passively investing in real estate may help place you in a better financial position.
Disclaimer: This site is intended for educational purposes only. I am not an accountant, attorney or licensed financial planner. While the information I’m writing here is based on many years of experience buying houses that doesn’t really constitute professional advice (since everyone’s experiences and situations are different).