Jackee Knight Corporate Training Director - STC IRA
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Jackee Knight
Corporate Training Director
2021 © STC, Inc.
STC is a retirement plan administrator only and does not
provide legal, tax, or investment advice.
STC is not a registered investment advisor and does not
represent or sell securities or investments of any kind.
STC does not represent or endorse any investment
opportunities that may be shared in this presentation.
We recommend you consult with your legal, tax and investment
advisors prior to making any investments.
2021 © STC, Inc.
▪ Self-directed Retirement Accounts
▪ Short Sales
▪ Foreclosures
▪ Partnering with 1031 Exchange Property
▪ Tax Liens
▪ Precious Metals
▪ Investing in Privately Held Businesses
▪ STC Services
▪ Q&A
2021 © STC, Inc.
▪ What is a Self-directed Retirement Plan?
▪ You may choose any allowable type of asset
▪ Includes non-traditional assets like real estate
▪ You manage your retirement plan’s investments
▪ You have control
2021 © STC, Inc.
▪ True Diversification
▪ Include non-traditional assets
▪ real estate
▪ mortgages & notes
▪ private business
▪ You choose and control the investments
▪ Increase your buying power through leverage
▪ You may be able to experience a higher return on your investment
2021 © STC, Inc.
▪ Traditional IRA
▪ Roth IRA
▪ SEP
▪ SIMPLE
▪ 401 k – former employer
▪ 403 b – former employer
▪ TSA – former employer
▪ TSP – former employer
▪ Solo 401(k)
2021 © STC, Inc.
A sale of real estate in which the lender agrees to accept
less than what is owed to release their lien against the
property that secures the loan.
Can be:
• 1st Lien on Home Mortgage
• HELOC Lien
• Lien for Second Mortgage
2021 © STC, Inc.
1. Be the ‘Bank’
Make a loan to an individual who is doing the short sale
2. Own the property in your retirement account
2021 © STC, Inc.
✓ Owner cannot make payments
✓ Owner has no other assets to satisfy debt
✓ Property value is less than loan balance
✓ Investor’s offer is equal to or greater than auction
would provide
2021 © STC, Inc.▪ MLS listings
▪ Newspaper foreclosure listings
▪ Lis Pendens from the courthouse
2021 © STC, Inc.▪ Occurs when owner is in default and a Notice of
Default has been filed in the courts
▪ Most states have a judiciary website you can
search for property in foreclosure
▪ shows names, addresses, amount of debt owed on
mortgage
2021 © STC, Inc.▪ State Judiciary Website
▪ Go to the Courthouse in area of interest
▪ Request ‘pending litigation’ of active foreclosures
▪ Search newspaper ads for auctions
▪ Look for “Trustee Sales”
▪ Go to Auctioneer Websites
2021 © STC, Inc.▪ Does the State of the foreclosure property
have a Foreclosure Law?
▪ Any restrictions on purchasers?
▪ Do you have a real estate attorney who is proficient in
foreclosure law?
▪ What is the foreclosure process?
▪ Does the property owner have the right of redemption?
2021 © STC, Inc.▪ Real Estate Owned by Bank
▪ Contact local realtors who have properties listed
as bank-owned
▪ Go to bank websites to locate their listings
▪ Bank website will give you agent contact information
2021 © STC, Inc.▪ IRC Section 1031
▪ Allows an owner of property to sell the property and
purchase ‘like-kind’ property without incurring any
immediate tax liability
▪ Federal Capital Gain Tax
▪ State Capital Gain Tax
▪ Depreciation Recapture Tax
▪ Retirement Account Earnings – tax-deferred
2021 © STC, Inc.Property A
Personal Retirement
Funds Funds/LLC
1031
Exchange
Property
2021 © STC, Inc.▪ Qualified Intermediary
▪ Like-Kind & Eligible Property
▪ Avoiding Taxable Boot
▪ Identification & Exchange Periods
2021 © STC, Inc.▪ What are tax liens?
▪ The purchase of the right to collect on a
delinquent taxpayer’s debt.
▪ They generate high interest rates
▪ They are senior liens
▪ They are a foreclosable lien
2021 © STC, Inc.▪ How Investors make money
▪ Earn statutory interest
▪ Potentially take Title to the property
2021 © STC, Inc.▪ Bidding Processes
▪ Lottery
▪ Round-Robin
▪ Statutory Bidding Requirements
▪ Contact County Treasurer’s Office for process
2021 © STC, Inc.▪ Different requirements and procedures for different
jurisdictions
▪ Proof of Funds
▪ Deposits
▪ ACHs
▪ Know your jurisdiction’s requirements
▪ Purchases must be in IRA LLC’s name
2021 © STC, Inc.▪ Initially only gold & silver U.S. American Eagle
coins allowed
▪ 1998 legislation now allows:
▪ Gold, silver, platinum and palladium bullion meeting
certain fineness standards
2021 © STC, Inc.▪ STC accepts certain:
▪ Gold coin & bullion
▪ Silver coin & bullion
▪ Platinum coin & bullion
2021 © STC, Inc.▪ STC Investment Process:
▪ Place order with Precious Metals Broker/Dealer
▪ Receive Itemized Invoice
▪ Fax/Email Invoice & Request to Transfer Funds
▪ STC pays invoice & receives precious metals for retirement
account owner
▪ Stored in Bank Safe Deposit Box
▪ Offers secure safekeeping and easy access
2021 © STC, Inc.▪ Fund partial or whole ownership of the business
▪ Pro rata share of net income flows into retirement account
▪ Ownership vs. Operation
2021 © STC, Inc.▪ Evaluating a business
▪ Consider working with a Business Broker with expertise
▪ Risk vs. Reward
▪ Small privately held company, 25-35%
▪ You are purchasing the future stream of cash flows the
business will generate
2021 © STC, Inc.▪ Leverage – seller financing
▪ Seek competent counsel on potential tax consequences:
▪ UBIT
▪ At time of sale
2021 © STC, Inc.▪ Loan to Business Owner:
▪ Start-up working capital
▪ Fund inventory purchases
▪ You set terms of the loan
▪ % interest or % of profits
2021 © STC, Inc.▪ Offers maximum flexibility
▪ Provides additional asset protection
▪ ‘Checkbook control’ over retirement funds
▪ Immediate response to investment opportunities
▪ Simplifies asset titling
▪ Ease of pooling
2021 © STC, Inc.Retirement Plan LLC Structure
Self-
Current Transfer or Directed Investor
Custodian Rollover #1
Custodian
Father
Membership
Interests
Retirement
Funds
Retirement Investor
Plan #2
Daughter
LLC
Investment
#3
Investor
#3
Investment Investment Personal
Funds
#1 #2 Co-investors at inception of
purchase transaction
2021 © STC, Inc.▪ Retirement Account LLC structure setup
▪ Protected ‘checkbook control’
▪ CPAs & attorneys to answer technical questions
▪ Guidance on transaction compliance
▪ Handle all the ‘back office’ support
▪ Maintain LLC financial statements
▪ Supervise regulatory reporting
▪ Oversee annual valuation
2021 © STC, Inc.Do you…
▪ want to open a self-directed account now?
▪ have clients or colleagues who would be interested in
self-direction?
▪ need more information?
2021 © STC, Inc.▪ Website: www.stcira.com
▪ Corporate Office: 866-682-3683
▪ Jackee Knight: jknight@stcira.com
2021 © STC, Inc.You can also read
