Self-Directed IRA Articles & Informational Blog

Private Equity and Venture Capital in IRA Accounts

May 1, 2019

Alternative Investments Are Becoming More Common in Diversified Portfolios

A recent PEW Charitable Trusts study shows a sharp rise in alternative asset investment (ex., private equity, venture capital, or real estate) over the past decade among large pension and trust investors. From 2006 to 2016, funds have more than doubled their allocation to alternative investments[1]. These large fund professional managers are capitalizing on the return and correlation characteristics of this asset class. A recent trend in this class has been an increase in the relative percentages of private equity and venture capital as compared to real estate holdings.

Ironing Out Wrinkles: Motivation, Movement, and Masterminds

April 8, 2019

Freedom. Happiness. Adventure. Mmm. Three of my favorite words. I don’t think I’ve ever heard anyone say, “Yeah, you know what, Chris? I’d like less of those in my life. Tell me: How can I make that happen?”

Going Above & Beyond for Family

April 1, 2019

We all have that one person we’d do anything for. This is someone we owe the world to, whether for something they’ve done or how they’ve impacted us.

To me, that person is my father, a man who’s done it all for me. He’s taught me so much about life, all while managing a poorly dealt hand with his own health. He would give the shirt off his back without thinking twice, and he has. My entire life, I wondered how I would ever repay him, and for years, I was without an answer.

Should You Consider a Solo 401(k)?

March 29, 2019

As we near the end of tax time, many real estate investors are reeling from the amount of money they owe Uncle Sam. I’m surprised they don’t spend more time doing something about it. I deal with real estate investors on a daily basis, and I’m always impressed with their creativity, independence and persistence. It has become obvious that the most successful investors leave no stone unturned. They are interested in leveraging every available resource to boost their returns. But many overlook the benefits of a Solo 401(k).

Is it Still a Good Time to Lend on Fix & Flip Properties?

For several months there has been a steady drumbeat of news showing the housing market is slowing down and prices are softening. For investors buying rental properties for long term cash flow, this is not a concern and may be a welcome development so they can buy properties at better prices. However, the fix & flip strategy is impacted by lower prices. If you’re loaning money to flippers, a decline in housing prices can be a concern.

Common Misconceptions About 1031 Exchanges

March 1, 2019

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.

How to Get Double-Digit Returns in your Self-Directed IRA Without Ever Having to Own Real Estate

February 27, 2019

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?

Chairing The Love

February 7, 2019

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!

NuView February Update

February 5, 2019

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.

Unintended Consequences of Government Policy

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: