There are several common misconceptions about the Internal Revenue Code 1031 exchange process.  To keep investors on the right track and focused on what is important to that investor, let’s clear up a few of these most common misconceptions:

Misconception #1:  To execute a 1031 exchange the investor may only file a form with the IRS and as long as the seller doesn’t utilize, spend or touch the proceeds from the sale of the property they are relinquishing, the investor can perform an exchange at any time.

Wrong!  THIS IS FALSE.   The investor may not have actual nor constructive receipt of the sale proceeds.  This action will trigger a taxable event.  Investors need to use a special non-related “middleman” called a Qualified Intermediary [“QI”] or Accommodator who is required to hold the sale proceeds for them and who then uses those proceeds to buy any replacement property at their express direction. Once the sale of the property the investor is relinquishing closes, funds must be directed to the investor’s QI until the purchase or “up-leg” portion of the exchange is completed.

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Finding the right vehicle for investing your IRA funds can be challenging. With the wide range of investment strategies, it’s hard to know which vehicle will provide the highest yield with the lowest amount of risk.  Many self-directed IRA owners chose more common investments such as single-family fix and flips or rentals as their main investment vehicle for their IRA. While those provide decent returns, there is still an element of risk and liability because you have to physically own the asset. Not to mention you’re now dealing with tenants, taxes, and the cost of unexpected repairs on the property. While there is nothing wrong with these vehicles of investing, what if I told you there was an easier way to put your IRA money to work that offered security, collateralization, and double digit returns without ever having to own real estate?

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Two years ago, Brad and Jen Sumrok attended a gala held by Chair the Love – a Florida based 501(c)3 whose mission is to provide wheelchairs and mobility related items and services to those in need locally and abroad. They were so moved by the charity’s purpose and overwhelming need for wheelchairs, that the Sumroks decided to take action, in hopes of spreading the message further. They began promoting Chair The Love through their business, Brad Sumrok Apartment Investor Mastery, and with the generous donations from their students, coupled with the Sumrok’s pledge to match the donations, they were able to raise the $42,000 (and then some) needed to deliver a full container of 280 wheelchairs to those in need!

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A business partner of mine called me a few weeks ago, and after catching up, learned he was heading to the small county airport nearby to sky jump.  He had never talked about it, and although I shared my opinion, he disagreed with my hypothesis that the risk certainly outweighed the short feeling of euphoria caused by dropping like a stone before his parachute would open (hopefully).

Our clients often hear similar remarks from friends, suggesting that self-directing is somehow illegal, and if not, certainly dangerous.  They say the safer approach is sticking to stock market solutions, reducing risk through mutual funds, and better than that, index funds.  Yet, the number of IRA clients that self-direct with NuView are growing at a rate approaching 20% per year, and collectively, their asset values are growing as well.

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Government policies have a strong influence on the economy and markets.  Those policies can accomplish both their intended results, but also create unintended consequences.  The specific government policies that we are referring to include zero interest rates, quantitative easing, excessive growth of government spending in excess of tax collections and GDP growth, tax cuts, tariffs, and restrictions on foreign governments.  All of these policies may have good intentions but they do not occur in a vacuum.  We believe there are three unintended or ignored consequences:

• Government and corporate debt have exploded
• Inflation may begin to accelerate leading to stagflation
• The dollar’s international reserves status is threatened

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Introduction

Making a career out of investing in real estate is not exactly the easiest thing. Like a lot of investments, real estate investments tend to start out small before progressing into something bigger. However, this progression could take years and for the ambitious real estate investor, the idea of spending years of their career investing in turnkey rental properties doesn’t seem too appealing. Fortunately, real estate investors can gain the financial momentum to fast track their career via a concept known as real estate syndication For real estate investors looking to learn more about real estate syndication, this article will provide a complete guide to the concept to help them broaden their knowledge.

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We know that keeping your financial future secure is one in every of the foremost vital goals of any prudent investor.  Throughout economic uncertainty, social unrest, or worldwide crisis, gold and silver are crucial assets and fundamental investments of a well-balanced diversified portfolio.

Some gold drivers to keep your eye on in 2019 are broken into four categories below:

• Wealth and economic expansion
• Market risk and uncertainty
• Opportunity cost
• Momentum and positioning

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I remember as a boy when my Grandmother Anna lived off her bank CDs. She earned a fair interest rate back then while enjoying predictable monthly payments.

Those days seem to be long past, but if you are looking for a low risk secured investment with predictable monthly payouts similar Grandma Anna’s CDs, perhaps becoming a Whole Note Passive Real Estate investor is your solution.

If you are like me, you may have never heard of Whole Note Passive Investing.  Several years ago, I learned and wish I had would have had this knowledge in my twenties when I was just starting out.

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I have a friend, Craig, who is a local custom builder and has been part of all the ups and downs of the construction industry here in Florida.  I thought it was a challenge operating a Trust Company until I heard about his issues; when times are good, it is extremely difficult to find subcontractors such as framers, roofers, electricians, concrete pourers and others.  When times are bad, you just don’t have buyers, yet you still have to pay your staff regardless.   While Craig has successfully navigated his business for over 30 years, I’m most impressed at his dogged tracking of his retirement planning.

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You’ve set up a self-directed IRA account at Nuview Trust Company and you have or are in the process of deciding how to invest your IRA funds.  For many investors they are interested in having exposure to real estate as part of their IRA portfolio.  Through your self-directed IRA you may choose to invest directly in buying or owning a piece of real estate, while abiding by the limitations set for IRAs (generally restricting you from buying something for personal use or from transacting with certain members of your family).  For many investors they choose to invest in a “fund” that is limited to real estate investments to achieve exposure to real estate.

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