Savvy Sanibel and Captiva real estate investors are always looking for deals, and now may be the best time. The Golden Rule of real estate investing has not changed – the profit is made by purchasing at the right price and not over paying. The rule on Sanibel and Captiva has never been truer. For buyers getting property at the right price, the tax laws have never been more favorable. Read the rest of this entry »
Investors often think they cannot make deals happen because they don’t have the experience or complete capital to drive an investment. However, through the past couple of weeks I have seen more and more individuals coming together to form partnerships for sound investment opportunities.
For example, I have had discussions with many investors interested in real estate investing, however are involved in a different profession. This may discourage them from traveling down a path in which they are unfamiliar. This is a valid concern. Read the rest of this entry »
A client recently asked me what the return on a CD would yield her. After speaking with a local bank, I was informed that this rate was currently in the range to 0.5% to 1.5%, depending on the duration and size of the CD. With interest rates so low, many of our clients are searching for secure investments that yield higher returns. Some clients have found the solution in notes. Notes are an extension of credit from our client (the lender) to a borrower. The purpose of the note is to provide written evidence of the amount of the loan and the terms under which the loan must be repaid. Notes provide a stated rate of return which is generated from the interest a borrower must pay on the loan. Interest rates on notes can be explicitly stated to be as high as 18% in accordance with Florida’s Usury Laws. If the borrower is using the loan for a business venture, a client may also elect to be compensated by receiving a percentage of the profits associated from the venture in addition to an explicit interest rate being charged on the loan. This arrangement can legally yield a return on investment that is far above the 18% cap enforced by Florida Usury Laws. Read the rest of this entry »
The one investment type that has remained constant among our clients over the years is LLC investments. An LLC is a legal organization that provides the tax advantages of a partnership while limiting the legal liability of the individual partners in the same way a corporation does. LLCs are considered securities in some states and may be required to meet the standards of securities offerings.
The majority of our clients do not form a company (i.e. LLC) when they invest their IRA funds. 90% of the transactions that Entrust Freedom handles are straight purchases directly from the IRA. That is to say that the IRA account purchases the asset in the name of the administrator (Entrust Freedom, LLC FBO Client Name, Client Acct #).
Sometimes, however, an LLC can be a great choice for control of the IRA, especially when there are multiple business partners. We will discuss the advantages and disadvantages below. Read the rest of this entry »
Recently I sat down with a potential new client who was very interested in opening up a Self Directed IRA. The reason he became very interested in opening up a Self-Directed IRA was because he did not understand the current investments in his IRA. His current IRA was invested in the stock market through various mutual funds, bonds, and stocks. Like many individuals he had no real idea as to what those stocks and bonds were or why they were going up and/or down. He wanted the opportunity to invest in something that he understood, something that was familiar to him. He didn’t want to keep losing or gaining money in his IRA without knowing why. For this individual the investment that was familiar to him was Real Estate. He and his wife are both clients now and have several properties in their IRA’s and couldn’t be happier. Read the rest of this entry »
Any Employer 401(k) Plan can be modified to allow real estate, LLC, Gold and other private investments. It is easier than you might think. Let Entrust show you how to do it.
Alternative investments have always been part of a balanced IRA account, but many investors do not realize that any 401(k) plan can be modified to hold Self Directed Assets. While any asset can be held in an Individual Retirement Account, typically many non-traditional assets like real estate, futures, precious metals and private LLCs are not what come to mind first when setting up a business retirement account.
