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Invest for Success!

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By Dr. Albert Lowry

You no doubt want to be a successful investor, but you need to know how to move beyond the wishing stage. I have some tips to help you get started and learn what to do to keep yourself on the right path. We’ll take a step-by-step look at how you too can go from just a dream of being a real estate entrepreneur, to having your own real estate portfolio that is your key to financial freedom for life.

First, you must set goals. Don’t just think about them, but instead put them in writing. The act of writing has the effect of making your goals more real and getting them into the subconscious part of your brain, so that they are always there in the background, motivating you.

Another important point to understand to prepare yourself for success, is that risks and sacrifices are involved. You already know that just about anything that has big potential rewards means that you need to push yourself out of your comfort zone, and this is no different.

Simply put, if you don’t make the effort, you won’t experience the reward. Here’s the level of effort that I suggest: at least one hour per day devoted to studying real estate investing concepts and their real-world applications.

On weekends especially, you have the opportunity to explore the real estate market in your own area by touring neighborhoods, looking at houses, networking with people, and building up a base of knowledge about prices, amenities, desirable areas, and more. You’ll sacrifice the time that you would have spent napping or watching TV, but the potential payoff is long-term financial independence for yourself and your family.

As I mentioned, there is risk involved. Any investment that can make money for you can also lose money. That’s a fact of life, but there are ways to tip the balance sharply in your favor. You can protect yourself by ensuring that contracts are written to your advantage, by paying attention to both what is in a contract, and also what’s not. It is imperative that you read and understand everything that is contained in the contract, including all clauses, and also foresee any contingencies that are not mentioned. You may even choose to have a real estate attorney to help you review property contracts to be sure that there are no “gotchas.”

Now, I promised that I would provide you with step-by-step instructions to Invest for Success. This is a quick thumbnail sketch of the 7 steps involved in the process and important points to know. You’ll tailor a plan for yourself, but this will give you a good start.

  1. Develop a simple plan. Keep your real estate portfolios local and plan to focus on single family homes at the beginning.
  2. Learn your market. We touched on this earlier because it’s important to know prevailing costs per square foot, develop the capability to assess quality, and have a good working knowledge of which amenities are desired in your area. That will give you the ability to spot bargains. Using a mentor who has succeeded in real estate investing can help you fast-track this process.
  3. Think like a businessperson. Like any business, you will want to buy at wholesale and sell at retail. You’ll make businesslike assessments of each property to determine whether it should be held for rental income or sold for resale profit.
  4. Learn to identify hidden bargains and act quickly. Acting quickly does not mean acting impulsively, though. You still will carefully structure your contracts with contingencies and the option to assign the contract, which will protect your interests and profit potential. If your plan is to flip, be sure beforehand that no “major surgery” on the property is required. Any improvements you plan to make should be visibly beneficial and have the potential of raising the rental price or the resale value.
  5. Learn landlording. Even if you plan to turn the task over to a professional management company, you still need to know the fundamentals of how to manage properties and tenants. Otherwise, how will you know whether a management company is doing a good job for you, or not?
  6. Establish trade accounts with companies such as building supply stores. This will enable you to save money, get into the loop with local tradespersons and other real estate professionals, and build your line of credit. It will also help you establish good bookkeeping, which gives you a sound basis for business decisions on your properties. I suggest keeping a daily log for your expenses. You’ll be glad you did when you’re doing your recording keeping, and at tax time.
  7. Borrow money for your investments. You can use banks, 50/50 partners, or private individuals. When you use seller-assisted financing, creative financing terms are often possible, such as shared future appreciation on the property or no-money-down deals.

In summary, decide what you’d like to do, and ensure that you have the proper knowledge and formula for success to make it happen. Remember that nothing at all happens for you unless you take action, so why not get started on your dream today?

Your partner in prosperity,

Dr. Albert Lowry

The Millionaires Investment Group

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Michael Poggi, President of The Millionaires Investment Group, llc. Professional investor, National Speaker, Educator, Consultant and Motivator shares his vast knowledge of how YOU can benefit personally and professionally by learning about the hottest opportunities in investment Real Estate AND turn key business franchise opportunities inside WALMART, all tax free!!!

WHO IS THE MILLIONAIRES GROUP ?

20 year old investment network started by Michael Poggi – Focused primarily on finding investment strategies in many sectors including Real estate, turnkey franchises, private lending and much more. The group is composed of accredited investors, Private institutional funds, IRA investors. There are over 1800 Active Investors Nationwide and 10,000 Members. They teach secrets about investing tax free using IRA’S and 401k plans. Investors like you partner with the group and with other members if needed in new construction, the hottest turn-key proven franchises, and vacant lots in resort communities using cash, IRA’S and 401 K plans.

Things to know:

There’s a secret that the richest Americans use to create and keep their wealth. They use tax-deferred or tax-free dealings in real estate and other exceptional investments. If you own an IRA, or if you are thinking of opening an IRA, you have the same opportunity to unlock that secret and build wealth for yourself.

Smart investors are earning 15 to 20%, or more, inside their Self-Directed IRAs. The money in their IRAs compound tax-deferred or even tax-free for as long as the IRA is in existence.

Most people realize that they need to save for retirement, but have a tendency to place this on the bottom of their “to do” list. It’s hard to think about the future when the daily issues of life are enough to fill our time. The sooner you start planning, the better off you will be. What do you have to look forward to?

The senior population is dramatically increasing, especially as the baby-boomers enter retirement age. These seniors are living a healthier lifestyle with better medical care, leading to a longer life. A longer life span means more money is needed to provide a comfortable lifestyle in those later years. Where will this money come from?

Social Security benefits will barely account for enough to provide for even basic necessities. If you have other income, up to 85% of those benefits can be taxed by the federal government. If you begin taking the benefits before age 66, your benefits will be lowered permanently. With the increasing number of retirees pulling money out of the Social Security system, there are concerns that the system will run out of money for future generations. Can you depend on Social Security for all of your expenses?

What is a Self-Directed IRA?

A Self-Directed Individual Retirement Account is an IRA that requires the account owner to make investment decisions and investments on behalf of the retirement plan. IRS regulations require that either a qualified trustee or custodian hold the IRA assets on behalf of the IRA owner. Generally the trustee/custodian will maintain the assets and all transaction and other records pertaining to them, file required IRS reports, issue client statements, assist in helping clients understand the rules and regulations pertaining to certain prohibited transactions, and perform other administrative duties on behalf of the Self-directed IRA owner for the life of the IRA account. Self-directed IRA accounts are typically not limited to a select group of asset types (e.g., stocks, bonds, and mutual funds), and most truly self-directed IRA custodians will permit their clients to engage in investments in most, if not all, of the IRS permitted investment types. Some of the additional investment options permitted under the regulations include, but are not limited to, real estate, franchises, partnerships, private equity, etc. Self-directed IRAs, by allowing a wide range of investment choices, improve the account owner’s opportunities to diversify their IRA portfolio(s).

Why should I have a Self-Directed IRA?

The government is running out of money and encourages people to provide for their own retirement by offering HUGE tax advantages to anyone investing through an IRA. With a self-directed IRA, you can invest in real estate, something most people can’t do with a traditional IRA.

A self-directed IRA allows you to invest your funds yourself into investments like solid long term real estate, which means you can earn a lot more for your retirement than you would with a traditional IRA.

Four Basic Facts about Self-Directed IRA Real Estate Investments.

  1. Limited custodial participation and reduced custodial fees. Means you have more control and can earn more money.

  1. The difference between traditional IRAs and self-directed IRAs is the breadth of options for investing. Traditional IRAs only permit investment options in approved stocks, mutual funds, bonds, and CDs which are usually not the best choices.

  1. A self-directed IRA allows you to have complete control over your funds, with most people opting to be custodians of their accounts.

  1. Self-directed IRA real estate investments can be very profitable if handled and managed correctly, which is why many people decide to pursue these alternatives to constrained, traditional IRA investing. Before setting up a self-directed IRA, you should contact us for help with the right type of IRA and the right investment strategies.

Self Directed IRA real estate investments make good sense. Not everyone has them, because not everyone is aware it is possible to have them. If your financial advisors only advise you to put your IRA money into stocks and bonds, you may not know anything about Self Directed IRA for real estate and businesses.

You may be someone who doesn’t have the time to spend educating yourself on other areas that the IRS allows you to invest your tax-free or tax-deferred retirement funds. In this article, you can learn a few things about investing your IRA money in real estate and businesses.

There are eight things you need to know when considering investing in real estate with a self directed IRA. They are listed below:

1. Your IRA cannot purchase property that is already owned by you or a disqualified person. A disqualified person is your spouse, parents, grandparents or great grandparents, children and their spouses, grand children and great grand children and their spouses. There are a few others, which you can find in IRS Code Section 4975.

2. You (or any disqualified person from the list above) cannot receive indirect benefits from property owned by your IRA, such as taking a vacation in resort property or renting office space in commercial property that your self-directed IRA owns.

3. Your IRA needs to be titled in the name of the IRA, NOT in your personal name.

4. The real estate in an IRA doesn’t have to be 100% funded from your IRA. You can partner with a friend or family member. For example, let’s say you found some property for your self-directed IRA real estate account, and you need $100,000 in order to purchase it. However, your IRA account only has $25,000. In this case, your friend could provide the other $75,000. Your friend would own 75% of the property and your IRA would own 25%.

5. If your self-directed IRA uses financing to purchase real estate, the loan must be a non-recourse loan, and your IRA must pay unrelated business income tax or UBIT.

6. All expenses, such as maintenance, improvements, property taxes, and any other expenditure to own and/or maintain the property must be paid from the self-directed IRA. No personal funds may be used for any expenses.

7. All income from the IRA must also go back into the IRA account. You may not deposit any money, such as rental income into your personal account.

8. You will need someone like us to help you fill out all the paperwork required by the IRS. We are very familiar with each of the points above. We can help you through the entire process, even the most important part of finding the right investment strategies to bring you great returns. You can find your own properties, franchises or strategies, but unless you have lots of experience and you are an expert, your best bet is to leave that part to the professionals like us. We have several investment strategies available for you to participate in either with us as a partner or on your own.

CALL OUR OFFICE FOR MORE INFO TO HELP YOU GET STARTED

THE MILLIONAIRES GROUP

954-306-3586

WWW.THEMILLIONAIRESGROUP.COM