Imagine being able to create a funding source from which you could easily and quickly draw upon funds to finance any commercial real estate investment in any market. I like to call it Become the Bank . This idea can be accomplished in three simple steps.
With over $4 trillion within IRAs, 401(k)s and other qualified programs across the country, private equity funds can become available to YOU for investing in commercial real estate. First you must you learn about commercial real estate markets of opportunity, then communicate with and educate investors while you find a reputable IRA custodian Trust resource with a proven track record.
Since IRAs are an tax exempt entity, interest earned on the money loaned is tax-free or tax-deferred depending on your type of IRA. YOU Become the Bank by borrowing money from an individual IRA (not a financial institution) for investments. A savvy commercial property investor can borrow money from an individual IRA to complete an investment and pay the IRA back an amount of interest that is agreed upon in advance.
Lending institutions, insurance companies and venture capitalists have been using similar concepts to raise money for years. Commercial real estate investors can do the same thing by utilizing a self-directed IRA. Apply this concept to your commercial property investments, and you become more profitable while you stay ahead of the competition.
Become the Bank in Three Easy Steps
This commercial real estate example illustrate how this works and it also applies equally to other commercial property investments involving notes, tax liens, and private placements.
Step One. Remember, the availability of money is what is important here, not the cost of money. Find an investment property and negotiate a 75% or less loan-to-value ratio- give your investors safety for their investment. Most lenders will not even talk to you without substantial skin in the game in the financial market of today. (see our next article series) Build in an attractive rate of return to pay your investors out of the gross profit and leave yourself enough time, by writing a contingency clause in your letter of intent, then find your investors.
Step two. Present the deal to potential commercial property investors, look for business professionals of high net worth. These are often professionals that can withstand investment risk and are looking for above market passive income. It is important that you offer an attractive, preferred rate of return and structure the offer so they hold the first lien on the property. Present your private offering to qualified accredited and/or sophisticated investors. Explain the security they have in the transaction to them in your commercial property proforma. Remind your potential investors that their returns are tax-deferred depending on which type of IRA they have.
Step three. Complete steps one and two and educate your investors the investment advantages of using their self-directed IRA to invest in commercial real estate. One, two, three.
If your investors have established their accounts, and the particulars of the investment have been agreed upon, you are ready to utilize these funds to apply your investment strategy. When YOU Become the Bank YOU gain advantages previously reserved for lending institutions, insurance companies and venture capitalists:
• Multiple deals
• Increased profits
• Position yourself as a Kash King
• Get the investment before the competition
Become the Bank really means you have access to Private Equity just like a bank, then:
• Lengthy approvals are not necessary
• You reduce red tape
• You reduce potential credit risks
• Your personal funds stay in YOUR bank account
Become the Bank. Register with a private network of active Accredited Investors and Participate in High Return Commercial Real Estate Investments at: http://www.PrivatePlacementsGroup.com Access Double Preferred returns superior to bond, traditional stock and fund investments when you register with individual and institutional investors participating in qualified Global and Domestic Commercial Real Estate offerings.
Do you want to learn more about how to close deals? I have just completed a brand new free guide. Download it free here: http://www.privateplacementsgroup.com
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For more information about this property, please contact First Team Real Estate at 866-938-5812. View all our videos at www.youtube.com Company website www.firstteam.com MLS ID P730009 Beautiful Anaheim Hills View Home on Quiet Cul-de-Sac Street. 3 Bedrooms, 2.5 Baths and 3 Car Attached Garage. New Decorator Paint Inside and Out. New Covered Patio and Wrap Around View Balcony. Light & Open Kitchen was Remodeled and Redesigned with Upgraded Cabinets and Includes Double Oven with Convection, Built-in Microwave, Trash Compactor and Breakfast Nook. Living Room and Dining Room have Vaulted Ceilings. Family Room with Brick Trimmed Fireplace. Spacious Master Suite with Vaulted Ceiling, Double Sink Vanity, Walk-in Closet and French Doors Leading to Balcony with Panoramic View of Hills and Park. Newer 6 Panel Doors Throughout. All Bedrooms have Mirrored Closets with Custom Closet Organizers. Indoor Laundry Room. Garage Includes Roll-up Doors with Windows, Automatic Opener and Storage Cabinets with Workbench. Tile Roof. Low Property Tax Rate and No Mello Roos Tax. This Home is Eligible for State Tax Credits if Buyer is Eligible-Can Close Escrow Quickly.
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About Author
Richard Sorrentino ATR -
About the Author:
Private Placements Group shares investing secrets and teaches coaches, consultants, and new investment business owners how to package their investment. Richard Sorrentino ATR, is an expert at using articles like this to drive traffic to investment network websites. He says, ” Using investment strategies, I learned, I contributed to closing on a $150 million in portfolio transactions. So can you.”
