I Am sick and tired of hearing about real estate investors going to a workshop to hear from a company or an individual
That says you should never buy real estate in your IRA
I'm sick of it, and here's the truth now the title of this video is why you should buy real estate in your IRA
But you know what that's not the truth either in fact both extremes aren't true
No, one should be told to buy real estate in their IRA
And that's the only way to go and no one should be told that you should never buy real estate in your IRA
Both extremes are unfair and untrue I'm gonna break it down number one balance
balance is the key and of course we know about balance and eating healthy and
Exercise in our emotional and spiritual life, but I'm also talking about finances
Financial life our financial landscape we want to have balance in that anybody
That's telling you don't buy real estate you should just buy insurance or
You should be just doing real estate in your own name, or you should stay away from IRAs or 401ks entirely anybody
That's telling you that it's one way or the highway is wrong
We want to find balance and it makes sense right
We want to have a financial landscape and a portfolio that has a variety of tools
And strategies and investments, it makes sense it makes sense in our soul and again
We should watch out for anyone saying that there's one way to do it, but let's get specific
How about it? So let's go to the whiteboard and talk about the first topic that you're gonna hear from the naysayers and that is
Depreciation is lost in an IRA or 401k
You don't want to put real estate in an IRA or 401k because you don't get any of the write offs
It doesn't matter and let me explain
Why now when I'd work with clients we divide their lives into two sides many of you have seen this before you're putting your
Operations over here fine. We're not talking about that
We're talking about your asset side and do I want you to have real estate in your own
LLC that you own personally 100 percent down here buy your family trust and you've got your little structure
And you're getting depreciation benefits, and your LLC's here, and you might have multiple rentals and all the write-offs yes
I want you to do that I'd love everybody to be looking for real estate strategies using
1031 exchanges down the road if it works cherrylle remainder trust do installment sales
Defer taxes get write offs
Yes, all the above but does that mean that we just don't do it in our IRAs no
Let's get our IRA here and put some real estate in that as well and when they say oh
You're gonna lose the write offs. That's not the point. What's in your IRA anyway if you've got financial investments in a
Index fund it's maybe even no load or getting a five or six or seven percent return is
That the best use of your IRA money. I don't think so if you can do better with real estate
Irregardless of depreciation why don't you put your best investments in your IRA?
That's what I'm getting at the depreciation
Issue is irrelevant because you should be putting what you know best in your IRA
And if that means real estate even with or without depreciation then put it in your IRA
Now what's the real truth? Here is we peel away the onion the real truth there
Is these same promoters that are talking about not self-directing or putting real estate in your IRA?
They're saying you shouldn't even have an IRA, right
That's really what they're saying because if you can get a 10 or 20 percent rate of return with or without
depreciation why not put it in your IRA
Because when you start to ask him well, what should I put my IRA?
Well, they say you shouldn't even have an IRA anyway
Because it's controlled by the government and there's some conspiracy theory and you're never gonna have access to it
The government's gonna take it away. Are you kidding me should we talk about area 51 while we're at it guys
The government is trying to make
IRAs and 401ks better Social Security is on a life support
And we're all worried about that guys
Do you seriously think that the government's are just gonna pull away IRA is entirely?
If so, maybe move to another country because our government is not that crazy
And if you're planning your entire
Financial scheme on the conspiracy theory that the government's going to rip away your assets
Then why are you what are you planning for it seriously?
Did you see my point if you can get a great return in your IRA doing real estate?
Irregardless of depreciation then the real point is they don't want you to have an IRA at all
So why should I not have an IRA because the government is gonna take it away with some conspiracy theory I don't think so
Alright the next point
They're gonna make is is that well you're just delaying the inevitable you're gonna end up paying taxes anyway
Because it's an IRA or 401k you may be even in a higher tax bracket, or you're gonna pay taxes someday
So it's it's you shouldn't even be doing this investment inside an IRA or 401k
You should be doing it in your own name because it's gonna be a better long-term investment, okay
Let me hold hold the phones you're telling me that
Delaine
Taxes is a bad thing then the time value of money of tax deferral is a bad thing
I don't think so and you oh yeah, but we're gonna do 1031 exchanges in our LLC's
That's gonna defer the same taxes really you're gonna hang up your entire hat on the 1031 strategy. Did you see the GOP bill?
That's already working on making ten thirty one's even more difficult to complete and in every situation a 1031 fits you
This goes back to my first point
Balance find balance I want you do in real estate in ten thirty ones
But I also want you to have some deferred taxable income down the road
Even if you do pay taxes on it later. Do you know I have clients to do ten thirty ones?
I mean dude ten thirty ones for a year does everybody just end up living on rent forever
There's some people want to cash in on those rental properties down the road
Sure, they do and a CRT or charitable remainder trust doesn't work all the time
And I get it you might die and then there's stepped-up basis, or you might even die with an IRA
And there's income and respect of a decedent IRD that's right. I can talk Turkey. I'm a CPA
I'm an attorney, but guys when you do the research when you peel away the onion here
If anybody's telling you that just having an attached deferred vehicle doesn't make sense
Then their whole plan doesn't make sense because you want balance you want a little of everything
All right next can we bring up Roth if you're gonna?
Tell me that delaying the tax for some future date is just bad news
And you shouldn't be delaying tax inevitably and I can do 1031 exchanges all day long, but really
If you ever heard of the Roth IRA or the Roth 401k, let's add that into the mix because with a Roth
You're not going to have to pay the tax on that so why don't we think about?
Deferring more of our money into a Roth or a Roth 401k and as we you may say well
You can't get enough money in there to make it happen guys at our
self-directed IRA sentiment that we've done three years in a row now this last summit we had multiple people in the room with
$5,000,000 Roth's
$5,000,000 Roth 401 k's because they've been self-directing in a Roth and are never gonna pay tax on it. That's right
You can do it
You can start converting and chunking money over to a Roth and you're funding the Roth 401k with your S Corp
with a solo 401k rolling in your old IRA money doing your Roth conversions in here and a targeted format as
Well as buying insurance and as well as buying real estate in your own name and having
Balance we want a little bit of all of this going on so that we can hedge
against problems that could occur in our life, so let's talk about one of those problems a potential lawsuit are
We gonna have all of our real estate out there hoping that a Wyoming LLC or a cope entity is gonna protect us
The strategy I teach it I do it, but it's not going to be a fail-safe in every situation
There's only one asset
That's protected from a lawsuit that only you can touch by the government or in a divorce and that's the IRA or the 401k
Completely asset protected, and if there's a texting and driving accident and all heck breaks loose in your life, and there's a major lawsuit
Why don't we want to urge a Simpson eyes our IRAs and 401ks and have this part of the equation?
You mean mark I'm buying real estate getting a better rate of return than an index fund
I'm having balance with personal real estate an IRA real estate and with that balance if there's a lawsuit
This is completely protected. Well. I could lose some of that personal real estate
Exactly. We're getting asset protection at the same time
We're building wealth and diversification, and this is where insurance plays into it
I'm not at this is the point I'm trying to get out and any of you look at my record am I against insurance
No, I think cash value universal life vul whole life
But insurance should be a part of your equation when you're financially ready for the right type of policy absolutely
but
does this mean we just
Discount IRAs entirely and hyper focus on insurance no the same
arguments out there some people are anti insurance everything real estate anti
Real estate everything stock market anti this all this all no guys
Here's the theme of my point and I appreciate you putting up with my rant. This is almost a rant
I know it is and I'm sorry I get so upset and frustrated by this
If anybody's charging you huge fees to push you in one direction only in is a huge naysayer of one entire
scope of investing I
Would get a second opinion be careful before you write that big check get a balanced approach to your financial freedom
What is your landscape? This is the theme of my new book the business owners guide to financial freedom what Wall Street?
Isn't telling you this is a Wall Street theme as well watch out for self-directing
Guys I'm not saying in summary that you should buy buying real estate every day in your IRA
I'm not saying that some of you you have no business buying real estate at all you hate it
And you're not good at it
That's cool
But find a balance people that's what I'm talking about and get a second opinion
When people are charging you huge fees that you don't see anywhere else, and they're staying distant
And they're stating that you should be sticking with one mechanism or one structure. It doesn't make sense it probably feels bad inside
That's for a reason because it's bad anyway guys
Thanks for listening keep living the dream stay balanced and find your landscape your path to financial freedom
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