Advanta IRA Trust - Real Estate IRAs

AdvantaIRA Increases Staff in SWFL

admin — Tue, 21 Feb 2012 21:48:53 +0000

For Immediate Release

February 21st, 2012 – AdvantaIRA Trust, LLC is proud to announce the hire of Miami’s Regional Sales Manager, Kevin Collins. Kevin is from Fort Lauderdale, FL and brings over twelve years of financial services experience to his new role. He has direct knowledge of various alternative asset classes including real estate, secured notes, managed futures, and hedge funds. Kevin will work out of the company’s new South Florida office and focus on expanding the firm’s footprint in the Dade, Broward, and Palm Beach markets.

AdvantaIRA is committed to the classic American goal of financial independence, especially during retirement. As secure retirement becomes increasingly challenging, some investors want to learn about and take advantage of a wider range of investment options to attain their goals. We are the leaders in self-directed IRAs and real estate IRAs, custodial services and educational curriculum that help clients to build wealth with investments that they know, understand and control.

For further information about AdvantaIRA, call us at (239)-333-1031, or visit the company website at www.AdvantaTrust.com.

2012 New IRA Contribution Rules

admin — Tue, 14 Feb 2012 21:58:59 +0000

Each year the IRS adjust the rules and limits for IRA’s, 2012 is no different. For any individual who holds an IRA staying up to date on the rules is crucial. Not knowing the rules can result large fines, penalties, and possible the loss of the IRA tax shelter benefits.

For Traditional IRA’s in 2012 nothing has really changed. Contribution limits continue to be $5,000 for individuals under 50 and a $6,000 for individuals over the age of 50. Individuals over the age of 50 are allowed to contribute an extra $1,000 as a ‘catch-up’ contribution because they are closer to retirement age.

For Roth IRA’s the contribution limits for 2012 have stayed the same as they were in 2011. For individuals under the age of 50 the contribution limit is $5,000 and for those over the age of 50 it is $6,000. For those individuals who have both Traditional and Roth IRA the maximum contribution amount can be split amongst the two. They do not need to be split equally between the IRA’s but they cannot exceed an individual’s maximum contribution limit.

The Roth IRA Income contribution limits have changed for 2012. The income limits have gone up allowing for more individuals to qualify to make contributions to Roth IRA’s. For single, heads of households or married filing separately with AGI of between $110,000 to $125,000, Roth contributions are reduced or phased out. They are no longer eligible to make contributions if their income exceeds $125,000.

For joint filers, or qualified widows/widowers with AGI of between $173,000 up to $183,000, Roth contributions are phased out, and they are no longer qualified to make contributions if their AGI exceeds $183,000.

For married filing separately with AGI of less than $10,000, Roth contributions are phased out, and they are no longer eligible to make Roth contributions if their income exceeds $10,000.

For SEP IRA’s the contribution limits have stayed the same as they were in 2012. The maximum contribution limit for a self-employed individual is 25% of their salary of $50,000 whichever is smaller. Also for SEP IRA’s there is no catch up contribution amount for individuals over the age of 50.

For SIMPLE IRA’s much like SEP IRA’s the contribution limits have not changed in 2012. The maximum contribution for an individual is $11,500 with a catch up contribution amount of $2,500 for individuals over the age of 50.

To learn more about the different types of IRA’s and their rules and guidelines please contact Advanta IRA Trust at 239.333.1031. Or go to advantatrust.com, there you can learn about IRA’s through articles, blogs, or webinars.

Advanta IRA does not sell any products, or give any investment advice. Advanta IRA provides clients with education and the tools to make educated investment decisions.

Advanta IRA Opens Miami Office – Self Directed IRA Specialist

admin — Wed, 01 Feb 2012 21:20:11 +0000

For Immediate Release – February 1st, 2012- AdvantaIRA Trust, LLC is excited to announce the expansion and opening of their newest office in the Miami area. AdvantaIRA specializes in Self Directed IRAs specifically real estate IRAs and private lending in IRAs. Advanta has been in business in Florida for over 9 years with offices in Fort Myers and Gainesville. The new South Florida office will be located at 950 South Pine Island Road,. AdvantaIRA prides itself on tremendous service and enthusiasm to help clients meet their financial goals. The new office will be led and managed by Kevin Collins, an experienced professional in the Alternative Asset Industry. The Miami phone number is 786-275-5870

For more information on AdvantaIRA Trust and the services they offer go to www.AdvantaTrust.com

Romney’s IRA is Self-Directed

daveowensfl — Fri, 20 Jan 2012 00:32:57 +0000

There was an interesting article in today’s Wall Street Journal that detailed Presidental hopeful Mitt Romney’s IRA and what he owns in it. Low and behold Mitt has a self-directed IRA. Mitt holds several private and alternative investments. Most notably in his portfolio is a Bain Capital shares or membership interest.

Mr. Romney has a excellent tax planning team that has layered his investments for liability protection and tax sheltering. The article was correct on many key facts. The article pointed out the IRAs that own businesses are subject to UBIT tax. They were not sure if Mr. Romney was paying UBIT becasue of the offshore corporation that was set up for asset protection. I would assume he is not paying UBIT because that is the way the law does not require if if you own an offshore corporation.

Mr. Romney has been very successful and I assume he is a good investor. He is smart to use a self-directed IRA that gives him the flexibility to invest in alternative assets like Bain Capital. I am sure there are other private assets in his IRA including private stocks, notes and other LLCs. What is in your IRA?

Most rich people don’t get rich because they are lucky, typically they are smart and work hard. Smart investors use self-directed IRAs, shouldn’t you? To learn more about self-directed IRAs and their benefits, call me.

Dave Owens is the President of AdvantaIRA Trust, LLC and can be reached at 239-333-1031.

For Immediate Release – Freedom is now AdvantaIRA Trust

admin — Sun, 01 Jan 2012 18:12:25 +0000

Dear Friends,

I just wanted to send some great news. Effective tomorrow, we will be transitioning to a new and better business structure. For the last nine years, we have been affiliated with a company out of California where we shared resources, systems and marketing. Because of the economy and other factors, we have mutually agreed that it is in our best interest to operate separately. Effective December 31st, we will be known as AdvanatIRA Trust, LLC. Our goal is to continue as the leader in Self-Directed IRAs.

You will be happy to know the new AdvantaIRA is very strong. Over the last nine years, we have grown to over 3000 active clients and we administer over $290 million in client assets. We are looking forward to our new ventures in the future. We are implementing new computer systems and websites, and all should be complete in January.

In addition to our Gainesville office, we will also be opening a new office in Miami around late January 2012. It is an exciting time for us. We want to assure you of our commitment to excellence in customer service. We have attached a flyer announcing our big changes.

As part of our “Re-Grand Opening” we are having a drawing to give away a Kindle Fire to one of our friends who register as a Facebook Friend or join our Linkedin group. The links are below:

Facebook Link – http://www.facebook.com/#!/AdvantaIRA

LinkedIn – http://www.linkedin.com/groups?about=&gid=4196572

If we can answer any questions for you or your clients regarding Self-Directed IRAs, please feel free to call us at any time.

Happy New Year!

Season’s Greetings from Uncle Sam

kelseydineen — Mon, 12 Dec 2011 00:49:55 +0000

It’s the Most Wonderful Time of the Year… time for tax invoices! Now is the time of year that our local counties start mailing those much loved property tax invoices to real estate owners. Recently, we have seen a huge spike in the number of tax invoices submitted for payment. As Real Estate is one of the most popular investments in self-directed retirement plans, we expect to see many more. Have you received your early holiday present this year? If you have a retirement plan invested in real estate, chances are that you already have. Many clients have called in with questions in regards to property taxes and how or if they should pay them. Firstly, if you have invested in Real Estate using your retirement plan, keep in mind that all expenses associated with the property must be paid by the retirement plan. Vice versa, all income produced by the property would return to the retirement plan as well. When you receive your property tax invoice, take a look in your records to verify what percent of the property your retirement plan owns. In many cases the retirement plan owns 100% of the property, which means that the plan is responsible for paying 100% of the tax amount due. The process to submit a tax invoice for payment by your retirement plan is very simple. The retirement plan account holder would simply fill out our payment authorization form (to show that we had the account holder’s permission to pay the invoice) and mail, fax or email it in to us along with the tax invoice. Upon receipt of the payment authorization form, we would then cut a check out of the account and place it in the mail. There are also other scenarios that you might encounter, for example, sometimes there are tenants in common, (meaning that the property is owned by more than one party, with each having a percent ownership). If there are multiple owners for one property, each party is responsible for paying its share of the tax invoice. A common situation is if an IRA holder owns 50% of a property personally and his IRA account owns the other 50%. In this case, the bill must be paid 50% by the IRA holder personally and 50% by the IRA account. We understand that this time of year is very hectic for most individuals. If you have any questions on paying a tax invoice or on buying real estate in an IRA, please feel free to contact us at 239-333-1031. AdvantaIRA Trust, LLC is a self directed IRA administrator. We do not advise clients, we educate them. We believe that individuals should have the freedom to direct their own accounts and invest their retirement funds in what they know best, be it real estate, private mortgages, notes, precious metals, private stock, etc. We offer specialized knowledge in the field of self direction and allow our clients to invest with confidence, knowing that they have an advisor with their best interests at heart… themselves.

Notes in an IRA – Solid Returns in a Weak Economy by Dave Owens, CPA, CES

daveowensfl — Fri, 02 Dec 2011 15:47:52 +0000

“Dave, what can I invest in to get some better returns?” – This has to be one of the most common questions I get. Who wants to get 1 percent on a CD? Everyone wants the perfect investment. While I don’t sell products and I don’t get a commission, I will tell you a solid investment for the Self Directed IRA investor is private lending. All interest paid to the private note is tax free to the IRA (or lender in this case).

What is investing in notes or private lending? While no investment is guaranteed, notes give investors the ultimate control. Let me give you a quick example of private lending with an IRA. Most investors do not know that you can be
the bank. Your IRA account can lend money to non-related parties.

Typically, the rates are higher than market interest rates and the lender controls the deal. When I say control, I mean as the investor, the IRA will make all the decisions on the loan and control every aspect. For example, assume your IRA wants to make a loan to investor Jim. Jim wants to borrow money to buy a piece of real estate. As the IRA owner, you will control:

How much to lend
Interest Rate
Terms or Length
Down Payment
Security Interest
Appraiser on the collateral
What attorney to use to close
What inspector to use

The IRA as the lender holds all the cards and controls the deal. I wrote a hard money checklist if you would like to download it. It is not an all-inclusive list, but it will help you get started. Your IRA can secure a mortgage on the property as collateral, so there is relative safety in this loan. Typically, IRA investors will demand a substantial down payment (30-50%+).

For your information, an IRA can do an unsecured loan. Unsecured loans are common, but they are usually smaller loans. You can also trade notes, which is an entire industry.

If you would like more information on private lending, download our guide to private lending at http://www.entrustfreedom.com/investments/private-lending/ or call us at 239-333-1031.

AdvantaIRA Holds Royal Palm Square Food Drive

daveowensfl — Fri, 02 Dec 2011 15:44:49 +0000

For immediate release – December 3, 2011 – AdvantaIRA Trust, LLC is proud to assist in organizing the Royal Palm Business Association Food Drive for the Harry Chapin Food Bank. Over 25 local businesses in the Royale Palm Square Blvd Area of Fort Myers are collecting food for the holidays. The final collections will be December 15. If you would like to make a donation please stop by the main drop off point at 1520
Royal Palm Square Blvd #320 in Fort Myers. AdvantaIRA and its staff will come to your office for pickup if you would like to contribute. No Hunger for the Holidays is the theme of this year’s
food drive.

For further information about the AdvantaIRA contact Amy Blanco, or visit the company website at www.advantaTRUST.com or call (239)-333-1031.

South Florida Leads the Way in Real Estate IRAs

daveowensfl — Tue, 22 Nov 2011 21:14:37 +0000

Self-Directed IRAs offer investors unique opportunities to diversify and purchase tangible assets in retirement accounts. Several Real Estate IRA companies have combined efforts to track investment purchases of
real estate or real estate type assets in IRA accounts in Florida. Real estate type assets would include notes/mortgages (private lending), tax certificates or LLCs that purchase real estate.

Our data shows that South Florida leads the way in real estate purchases. SWFL is particularly hot right now. Extremely low prices have allowed investors to gobble up these great deals. Also, investor unhappiness in the traditional
markets has made alternative assets a hot commodity.

Before you invest in a real estate IRA, please understand the prohibited transaction rules and who is a disqualified party to your IRA. There is no personal use of the real estate in an IRA, even for maintenance purposes.

If you would like more information on Real Estate in your IRA, go to http://www.entrustfreedom.com/investments/real-estate/. Entrust Freedom, LLC is expanding and effective January 1, 2012 will become a member of the AdvantaIRA Group. Please call us at 239-333-1031 to get started in Real Estate IRAs today.

Banks offer Once-in-a-lifetime Opportunities for Private Investors

daveowensfl — Thu, 13 Oct 2011 14:58:28 +0000

The old saying goes opportunity is the mother of invention, and it definitely holds true for investors in today’s economy . The bank’s pain can be an investor’s gain. We have seen many IRA investors purchase bank foreclosures or REOs, but there is another opportunity with a large upside available to investors.

Many banks have decided not to hold their troubled debt properties to foreclosure, and have opted to instead sell the note and mortgage as an asset. These troubled debts are usually sold at a deep discount, offering the investor great opportunities. Different scenarios for the investor include restructuring the debt with the borrower, or holding the note to complete the foreclosure process. While this investment strategy is not for the new investor, it can be a smart move if you get professional due diligence on the asset.

Let me give you a recent example. An IRA investor contacted a regional bank to purchase some notes they were trying to sell. The note balance on the purchased note/mortgage property is $700,000 with the property fair market value of
$500,000. The note purchase price for the IRA investor was $300,000, which is a 50+% discount on the note. The new IRA owner renegotiated the note with borrower and both parties are happy.

There is motivation for the bank to sell these notes, especially if the note was acquired because of bank failure. Typically, the FDIC will guarantee all notes purchased from failing banks up to 80% of the loss on the sale of the note. The acquiring bank has limited exposure, and can now move troubled debt off their balance sheet quicker.

Here is another scenario we have seen with an IRA investor. A client purchases a note with a balance of $1,500,000 for $1,000,000 but the property had a FMV of $1,700,000. The note was in default, and the bank had filed foreclosure.
The investor continued the foreclosure and ultimately took title to the property. The investor immediately listed and sold the property for $1,600,000 netting a $600,000 gain for the IRA.

Investments like the ones mentioned above are not for the faint of heart, but for serious investors that have consulted with their tax and legal counsel. A self-directed IRA administrator does not give financial or tax advice.

There are opportunities for small investors to participate in these bank distressed notes. Many private equity firms like Silverleaf Advisors specialize in the techniques listed above. These companies will do all of the collateral and legal due diligence and will handle 100% of the day to day management. Silverleaf engineers and manages the foreclosure process to and has successfully reduced the foreclosure time to maximize returns. Doug Hannah of Silverleaf states, “Our company handles the leg work for our investors, so they don’t have to be an experts in purchasing notes. After purchasing over 125 notes, banks continue to bring us additional product as qualified buyer of these instruments.
Firms like Silverleaf have capitalized on these markets early and netted very positive returns for their investors over the last 3 years.

Self Directed IRAs offer a unique opportunity that allow investors to purchase different types of assets. With a traditional IRA, you are locked in to certain types of investment like a stocks or bond. If you have a self directed IRA, you have the
option to purchase sophisticated assets like troubled bank notes.

If you would like more information on Self Directed IRAs, please feel free to contact Dave Owens at 239-333-1031 owens66@entrustfreedom.com.