Latest / Massive Agent Podcast / Create More Homebuyers by Unlocking IRA’s and 401k’s w/ John Bowens

Transcript

Create More Homebuyers by Unlocking IRA’s and 401k’s w/ John Bowens · Massive Agent Podcast

0:00
SPEAKER_00: On this episode, we are talking about a very cool tool that not many people know about and very few people are using that actually lets you reach into your retirement accounts and use that money to buy and invest in real estate.
0:12
SPEAKER_00: Yeah, uh, and actually there's a way to do it where once you do, you can pay zero taxes and they it eliminates the need for a 1031 exchange.
0:20
SPEAKER_00: I know it sounds absolutely insane, it sounds crazy, but you don't know what you don't know.
0:25
SPEAKER_00: And we have an expert today on.
0:26
SPEAKER_00: We have John Bowens from Equity Trust to explain what it is, how it works, how you can use it not just for yourself, but as an agent to help your clients to access all this capital they think is locked up to actually get off the sidelines and invest in real estate.
0:43
SPEAKER_00: Super cool.
0:44
SPEAKER_00: Pay attention.
0:45
SPEAKER_00: This is a good one.
0:46
SPEAKER_01: The massive agent podcast with lead generation tips and strategies to give you more leads and sell more homes.
0:54
SPEAKER_02: I love to buy houses, I like to sell houses.
0:59
SPEAKER_01: Wait a minute.
1:02
SPEAKER_01: You're a week.
1:03
SPEAKER_01: I've had better, better, better oh I got your attention now.
1:08
SPEAKER_01: Here's your host, Dustin Brome.
1:13
SPEAKER_00: What is up, guys?
1:14
SPEAKER_00: Welcome to episode 273 of the Massive Agent Podcast.
1:18
SPEAKER_00: I cannot believe we're on 273.
1:20
SPEAKER_00: That's wild.
1:20
SPEAKER_00: I don't know why that just hit me.
1:22
SPEAKER_00: But uh, one hell of an episode.
1:23
SPEAKER_00: 273 is a banger.
1:25
SPEAKER_00: This is one hell of an episode because I nerd out over this kind of shit.
1:29
SPEAKER_00: All right.
1:30
SPEAKER_00: When I learn little hacks and tools and strategies that the wealthy use, that hedge funds use, that people use to save on taxes and to protect themselves and ultimately make more money and grow their wealth faster, I pay attention.
1:44
SPEAKER_00: I love that stuff.
1:45
SPEAKER_00: And we're gonna be sharing some of that with you so that you can use it yourself, so that you can start building financial freedom for yourself and your family, but also so you can actually reach a whole uh different group of people that you know, as buyers.
2:00
SPEAKER_00: Like there's all these people who don't think that they can get into real estate investment, yet they have all this money tied up in their retirement accounts in the in an old 401k, in a traditional IRA, in a Roth IRA, you know, some other versions of retirement accounts.
2:15
SPEAKER_00: They think that money's just locked up, and they think it's a separate thing.
2:19
SPEAKER_00: So if they're gonna get into real estate investment, they need to go get a conventional loan or they need to pay cash, they need to save up all this extra money while they have 300k sitting over there.
2:27
SPEAKER_00: Well, there's actually a way to structure things to get access, to unlock all the money in your retirement account and use that to buy and invest in real estate.
2:38
SPEAKER_00: You can even use it to lend money to others to get into real estate.
2:41
SPEAKER_00: You could invest in funds, you can even invest in crypto, you can invest in the stock market, you can do so many things with this money you think is locked up with what's called a self-directed IRA structured a certain way.
2:52
SPEAKER_00: And John Bowens is from Equity Trust, he's here today to share exactly how this works.
2:57
SPEAKER_00: John Bowens is the director of investor success over at Equity Trust, and he is big on educating people on how to do this because he himself is a real estate investor, he himself is a private moneylender, and he has been using this exact tool that we're going to explain to you.
3:13
SPEAKER_00: He's been using this for years, and I'm in the process of setting one up for myself because it's that freaking cool.
3:19
SPEAKER_00: And after speaking with some of my mentors, finding out, oh, they've been using it for years, I'm like, well, shit, it's time to get going and it's time to share it with you.
3:27
SPEAKER_00: So this is a very cool, very interesting episode for yourself and for your clients.
3:33
SPEAKER_00: You can add look, guys, you need to be thinking as a real estate advisor.
3:38
SPEAKER_00: You're not just an agent that opens doors.
3:39
SPEAKER_00: Any any jackass can do that.
3:41
SPEAKER_00: Let's be honest.
3:42
SPEAKER_00: Any jackass can open doors and write offers.
3:44
SPEAKER_00: But when you can advise people on strategies or different ways of accomplishing a goal that they weren't aware of, you're theirs.
3:54
SPEAKER_00: Right?
3:54
SPEAKER_00: They're yours.
3:55
SPEAKER_00: They are going to hire you because you you are their advisor.
3:59
SPEAKER_00: You taught them something and they feel indebted to you and they want more of it.
4:03
SPEAKER_00: So let's show you how that works.
4:05
SPEAKER_00: Really good stuff.
4:06
SPEAKER_00: I mean, eliminating the need to do a 1031 exchange, but still pay no taxes.
4:11
SPEAKER_00: Mind-boggling stuff, guys.
4:13
SPEAKER_00: Before we get into that with John, uh, and by the way, stay tuned to the end because we're going to tell you about a webinar that John and I are doing where uh on Wednesday the 22nd, Wednesday, March 22nd at 3 p.m.
4:25
SPEAKER_00: Eastern, we're going to be doing a webinar to dive even deeper on this, and it's totally free.
4:30
SPEAKER_00: It's really just like a QA thing because I had so many questions today during our interview that I'm like, shit, we need to do this and open it up to any listener, and any of you that want to come and join and ask your questions and find out how to do this yourself or how to advise your clients and your clients on how to do this for themselves.
4:48
SPEAKER_00: So that's gonna be March 22nd, 3 p.m.
4:52
SPEAKER_00: Eastern time.
4:53
SPEAKER_00: And I'll just give you the link right now, but stay tuned to the end, of course.
4:57
SPEAKER_00: Massive Agent Podcast.com slash self directed.
5:01
SPEAKER_00: MassiveAgent Podcast dot com slash self directed.
5:05
SPEAKER_00: Register for free for that training, the webinar, the QA, all of it.
5:09
SPEAKER_00: Definitely be there.
5:10
SPEAKER_00: Definitely be there and bring your questions.
5:12
SPEAKER_00: After you hear this, you're gonna have questions.
5:14
SPEAKER_00: Write them down and show up on Wednesday the 22nd.
5:17
SPEAKER_00: It's gonna be awesome.
5:18
SPEAKER_00: Uh kind of cool.
5:20
SPEAKER_00: Uh I learned that this year, 2023, by the end of this year, the Massive Agent Podcast will break one million total downloads.
5:28
SPEAKER_00: That's mind-boggling.
5:30
SPEAKER_00: We're we're gonna break a million downloads for the year, but I need your help.
5:33
SPEAKER_00: We need to increase, we need we need to get more downloads per month.
5:37
SPEAKER_00: We need to reach new people.
5:39
SPEAKER_00: So if you find this episode helpful or any episode, if you've ever found an episode of this show helpful, please share it and promote it and put a link out there, do a screenshot in your stories, put a link in a Facebook group that's you know for real estate agents, and recommend this show or a specific episode.
5:56
SPEAKER_00: Help us reach new people, and uh together you're gonna help us get to a million downloads this year, which is a pretty freaking cool milestone, something I never would have imagined five years ago when I started this thing.
6:07
SPEAKER_00: Uh what is it, March now?
6:09
SPEAKER_00: I launched I launched the podcast in January 2018.
6:12
SPEAKER_00: So five months and no, five years and two months ago, we launched it.
6:17
SPEAKER_00: Absolutely mind-boggling.
6:18
SPEAKER_00: So thank you guys for listening.
6:20
SPEAKER_00: Uh but I need your help to reach a million this year.
6:23
SPEAKER_00: Pretty exciting announcement.
6:24
SPEAKER_00: I'm excited to announce that the Massive Agent Society, my coaching group, is now open, and I have a special offer for you to save 500 bucks.
6:33
SPEAKER_00: Pretty cool.
6:34
SPEAKER_00: The the Massive Agent Society, if you're not familiar, this is my coaching group.
6:37
SPEAKER_00: This is this is the group that I personally run, I'm personally involved in.
6:41
SPEAKER_00: We don't have any other coaches.
6:43
SPEAKER_00: It's not just my face on it, and then you get other coaches.
6:46
SPEAKER_00: This is me.
6:46
SPEAKER_00: You get to work with me in a group setting, you get one-on-one access to me in more ways than just our calls do.
6:54
SPEAKER_00: Uh the goal is not just to show you what to build, you know, and what to do to build a massive brand and to get hired, and to, you know, have your social media videos bring you clients.
7:05
SPEAKER_00: Obviously, we're gonna show you how.
7:07
SPEAKER_00: There's a lot of tactics involved, a lot.
7:09
SPEAKER_00: But there's more to it than that.
7:11
SPEAKER_00: I noticed that there was a big difference between there's agents that had access to the same information, and some take it and run to massive success.
7:20
SPEAKER_00: We've had society members who rocket to a million dollars a year in income in their first year uh just by following the same playbook, yet there's others with access to the same shit that don't do anything.
7:31
SPEAKER_00: Or maybe they sell one extra home.
7:33
SPEAKER_00: So I'm like, okay, it's not the information, it's the person.
7:36
SPEAKER_00: How can we also build the person?
7:39
SPEAKER_00: And so we spend a lot of time focusing on reprogramming your mind, building the mental foundation, doing some of the deep work.
7:46
SPEAKER_00: If you remember the episode with Dustin Runyon a few weeks ago, three, four weeks ago, where we talk about the deep work on you mentally.
7:54
SPEAKER_00: We do that in our group as well.
7:55
SPEAKER_00: So we show you how we give you exercises, show you how to reprogram your mind.
8:00
SPEAKER_00: Because if you want to be making 500k a year and you're making 75, you're never gonna get there if you're thinking like and if you believe you are a$75,000 a year earner.
8:10
SPEAKER_00: You're just not.
8:11
SPEAKER_00: So to go from$75K a year to$500K a year, you have to believe deep down, you have to believe at your core that you deserve to earn$500k, that you're the type of person that should.
8:22
SPEAKER_00: And once you become in here the type of person that can earn that, you will.
8:27
SPEAKER_00: But we have to do those exercises and do that work.
8:30
SPEAKER_00: So we spend a lot of time in the group doing that as well, in addition to the tactics and strategies.
8:36
SPEAKER_00: So in addition to that, I'm excited to announce that we are rolling out we are rolling out massive agent courses, full-on courses on different topics like how to record high-quality video, where I'll show you where to put the light, what kind of light to get, what kind of camera, where to put it, how to write great hooks, all of that stuff.
8:54
SPEAKER_00: So the videos that you see me do, you can just recreate yourself.
8:57
SPEAKER_00: I'll give you the blueprint.
8:58
SPEAKER_00: So a course on how to do great video, how to use chat GPT to sell more homes, specifically how to use chat GPT, a social media course that'll show you how to add 15,000 new real users in the next nine to 12 months following a pretty simple blueprint, and so much more.
9:16
SPEAKER_00: But these courses are only for society members right now.
9:19
SPEAKER_00: They're only for society members.
9:21
SPEAKER_00: Eventually, we're gonna offer these courses by themselves, so you can just uh buy them a la carte, but for now they're only for society members.
9:28
SPEAKER_00: So if you're currently a member, fantastic, and if you're about to be, fantastic, you're gonna get these courses just added to your account, which is pretty cool.
9:36
SPEAKER_00: So to make it easier for you to become a part of this super powerful coaching program.
9:41
SPEAKER_00: Uh for the next 10 days, I'm gonna give you guys 500 bucks off.
9:45
SPEAKER_00: Anyone who is committing for a year, you're gonna get 500 bucks off the annual plan.
9:49
SPEAKER_00: Use discount code SPRING500.
9:52
SPEAKER_00: Discount code SPRING500 at checkout over on MassivagentSociety.com.
9:57
SPEAKER_00: Save yourself 500 bucks.
9:59
SPEAKER_00: When you do it annually, you don't you don't have to worry about a monthly payment, so that's always cool.
10:03
SPEAKER_00: It always sucks when you're like have a monthly payment breathing down your neck.
10:07
SPEAKER_00: You know, make sometimes you make bad decisions and you quit too early when that's the case.
10:11
SPEAKER_00: So just save 500 bucks.
10:13
SPEAKER_00: More than that, actually.
10:14
SPEAKER_00: Uh, but it's a$500 discount.
10:17
SPEAKER_00: And join for the year, you get access to everything we just talked about.
10:21
SPEAKER_00: So do that ASAP.
10:23
SPEAKER_00: Also, most agents struggle because uh so many of the little insignificant details that they think are insignificant, they fall through the cracks.
10:31
SPEAKER_00: The lead you got four months ago, the listing presentation you did two weeks ago, and never contacted again, and you forgot all about them.
10:37
SPEAKER_00: You have no idea if your leads are being contacted or not, or maybe they do for the first week and then they fall off.
10:43
SPEAKER_00: You're leaving potentially millions of dollars on the table.
10:46
SPEAKER_00: What you need is a system.
10:48
SPEAKER_00: You need a plan, you need a platform, you need follow-up boss, the CRM and growth platform used by the highest selling, most profitable agents in the industry.
10:56
SPEAKER_00: And because you're a listener of this show, follow up boss will give you a 30-day free trial, not just 14 days, but 30-day free trial, and they don't even ask for a credit card.
11:06
SPEAKER_00: None.
11:06
SPEAKER_00: So just go to massive agentpodcast.com slash follow up boss to start your trial, see for yourself why the vast majority of the top producers are all using follow up boss.
11:17
SPEAKER_00: You're gonna find out pretty quick.
11:18
SPEAKER_00: So go check that out, and then learn what to expect next in this crazy housing market and how to communicate an action plan to your clients and your prospects with keeping current matters.
11:29
SPEAKER_00: They do all the research for you, they dumb it down, tell you what it means, so you can communicate it to your clients and so you understand it yourself.
11:36
SPEAKER_00: Keeping current matters kicks ass, and you can try a free trial of KCM today by going to try KCM.com/slash BAM.
11:45
SPEAKER_00: Let's get into our pretty enlightening, pretty eye-opening, pretty fun talk with John Bowens, the Director of Investor Success at Equity Trust.
11:56
SPEAKER_00: If you if you guys are like me, this is gonna light you on fire and make sure that you register for the free QA, follow-up, webinar, training, whatever the hell you want to call it, happening on March 22nd, 3 p.m.
12:08
SPEAKER_00: Eastern time, MassiveAnPodcast.com slash self directed.
12:12
SPEAKER_00: Let's get into it right now with John Bowens.
12:15
SPEAKER_00: What's up, guys?
12:15
SPEAKER_00: I'm here with John Bowens from Equity Trust.
12:17
SPEAKER_00: John, welcome to the Massive Agent Podcast.
12:19
SPEAKER_00: How's it going?
12:20
SPEAKER_02: It's going well, Dustin.
12:21
SPEAKER_02: Thanks for having me.
12:22
SPEAKER_00: Absolutely.
12:23
SPEAKER_00: I'm excited to talk about this topic today because not many people know about it, not many real estate agents know about it, but this idea that you can actually access your retirement funds, your IRAs, your, you know, any retirement funds that you have structured a certain way and use those funds to buy and invest in real estate.
12:42
SPEAKER_00: And that's exciting, not just so we can help our clients to do that, but for ourselves.
12:47
SPEAKER_00: So why don't you tell us a little bit about how this works?
12:50
SPEAKER_00: I know that's a I mean, it's a broad question, but let's jump into it.
12:54
SPEAKER_00: I mean, how does someone get into their retirement account to buy investment real estate?
13:00
SPEAKER_02: Yeah, well, Dustin, it's rather simple.
13:02
SPEAKER_02: Think of a self-directed IRA, which is what we call this structure, as an account that allows you as an individual investor to take control and invest in the assets, in the asset classes that make the most sense for you.
13:18
SPEAKER_02: So most Americans are familiar with IRAs, 401ks, Roth IRAs, maybe a SEP IRA, maybe a thrift savings plan or a 457 deferred compensation plan, and they're familiar with investing these retirement dollars into the public markets, into individual mutual funds, maybe ETFs, maybe individual stocks.
13:42
SPEAKER_02: But in most cases, Americans with their IRAs, 401ks, and various other retirement plans, they only have exposure to the public markets.
13:51
SPEAKER_02: So you hear a lot of people talk about this 60-40 model, 60% public equities, 40% fixed income.
13:59
SPEAKER_02: In modern portfolio theory, put your money into these types of investment instruments, and everything will be okay.
14:05
SPEAKER_02: Well, the reality is not everything is always okay, especially when we look at 2022.
14:11
SPEAKER_02: I saw an article recently, Dustin, that was by CNBC, and they quoted Fidelity and they mentioned that they looked at thousands of 401ks and they reported a about 23% loss in 2022.
14:25
SPEAKER_02: And so for investors that don't have confidence in the public markets, in individual stock market-related investments, they have the ability to migrate their hard-earned retirement dollars in IRAs, 401ks, Roth IRAs, CEP IRAs, uh, 401ks from your old employers, and roll those over or transfer those monies into a self-directed IRA.
14:49
SPEAKER_02: In a self-directed IRA, that's just an industry term.
14:52
SPEAKER_02: So you don't pay taxes or penalties to move money from point A to point B.
14:56
SPEAKER_02: You're just simply moving money from one bank account to another bank account.
15:00
SPEAKER_02: In a bank account, specifically, that's going to enable you to invest in real estate.
15:05
SPEAKER_02: So our customers here at Equity Trust, and what I focus on is buying single family rental properties with self-directed IRA funds.
15:14
SPEAKER_02: So when I came to the company 15 years ago, Dustin, my mind was absolutely blown with the fact that I could own a single family rental property in my self-directed IRA, in my retirement account, and I could generate cash flow, which cash flow is tax exempt in my retirement plan, and then I could sell the property and I have no long-term capital gains tax, nor do I have recaptured appreciation.
15:37
SPEAKER_02: And Dustin, my background, I don't know if you had an opportunity to mention it, but my background was in traditional finance.
15:44
SPEAKER_02: And so academically, everything that I learned, and I'll even say I was brainwashed into thinking that the only way to save for retirement was to put my money into mutual funds.
15:56
SPEAKER_02: That's what I was conditioned to think.
15:58
SPEAKER_02: I spent thousands of dollars on education to learn that that's all I could do with my retirement savings accounts.
16:05
SPEAKER_02: Now, along the way, I was working for a real estate company, a smaller mom and pop real estate company, and I got to know the family very, very well, and I learned a lot about real estate investing, both commercial, industrial, and also residential, single-family rentals.
16:22
SPEAKER_02: And I saw this family paying a lot of money in taxes when they sold properties because they didn't always have the opportunity to do a 1031 exchange.
16:30
SPEAKER_02: And I also saw this family be very much against putting money into retirement savings accounts because what they told me was, well, John, when we put money into our SEP IRAs and our IRAs and our 401ks, we can't put our money into real estate, and that's what we're most interested in.
16:48
SPEAKER_02: And so then fast forward, I stumbled across an equity trust company 15 years ago, and I met our company founder, Dick Desich, who's widely known as the pioneer of the self-directed IRA industry.
16:59
SPEAKER_02: And Dick became my mentor and his two sons, Rich and Jeff, as well, and they taught me about how I could use my IRA retirement plan to buy income-producing real estate, how I could use my retirement plan to make loans secured by real estate, so I could lend money to real estate flippers, I could invest in real estate partnerships, multifamily real estate syndications and partnerships, private real estate investment trusts.
17:23
SPEAKER_02: And then I also learned that I could use my self-directed IRA to invest in privately held companies, venture capital, hedge funds, startups.
17:30
SPEAKER_02: I could invest in physical gold and silver, and then fast forward to about 2014, 2015, and now you can invest in cryptocurrency with your self-directed IRA.
17:41
SPEAKER_02: So I know that this podcast is very much more centered around real estate investing, and that's really been our core since the early 80s, with our company founder Dick Desich putting together one of the very first real estate transactions.
17:53
SPEAKER_02: So hopefully that gives everyone sort of an idea of what a self-directed IRA is and maybe what it's not.
17:59
SPEAKER_02: A self-directed IRA is very much an account structure that is more focused or helps you be more focused on investing in non-stock market-based investments opposed to stock market-based portfolios.
18:13
SPEAKER_00: What's really cool to me, what what excites me the most about the concept, and and I've heard about it for a few years, and it was like, oh, that's cool.
18:22
SPEAKER_00: But it's uh it's really it just opens up what you can invest in, right?
18:26
SPEAKER_00: Like my I have a Roth IRA with TD Ameritrade, I have another uh traditional with Fidelity, I think.
18:33
SPEAKER_00: They won't let me buy real estate.
18:34
SPEAKER_00: Like you said, I I have to buy stocks or mutual funds, ETFs, options, even uh with it, but I can't I can't invest in crypto, I can't invest in a single-family home.
18:46
SPEAKER_00: So this just kind of removes the the boundaries, I guess, and opens up the possibilities, all within the same type of account.
18:56
SPEAKER_02: That's that's right, Dustin.
18:58
SPEAKER_02: And to give you an example, in 2020, I bought a single-family residential rental property.
19:04
SPEAKER_02: There are actually two units in this property, so two family, and I bought it for$63,000.
19:10
SPEAKER_02: Now, mind you, this is in Cleveland, Ohio, so I know some people are probably thinking, where in the world do you find real estate for$63,000?
19:16
SPEAKER_02: Well, I'll tell you, it actually does exist, even given asset prices becoming as high as they are.
19:21
SPEAKER_02: When you're looking at motivated sellers and you're looking at motivated opportunities, these types of opportunities exist.
19:27
SPEAKER_02: Now you can really plug and play any of the numbers.
19:30
SPEAKER_02: So in 2020, I bought a property for$63,000 with my self-directed accounts.
19:36
SPEAKER_02: In fact, you mentioned traditional IRA and ROMF IRA, Dustin.
19:40
SPEAKER_02: Those are two different types of accounts.
19:42
SPEAKER_02: So for viewers out there, one is tax deferred and one is tax-free.
19:45
SPEAKER_02: The ROM is tax-free, the traditional is tax deferred.
19:49
SPEAKER_02: Now, both of these accounts, most importantly, grow what I call tax exempt.
19:55
SPEAKER_02: So all of your growth is going to be tax exempt.
19:58
SPEAKER_02: And I like to refer to this as compounding interest in the absence of taxation.
20:03
SPEAKER_02: So what we help investors do is we educate them on how they can leverage compounding interest in the absence of taxation, how you can eliminate the variable of taxation.
20:12
SPEAKER_02: And by eliminating the variable of taxation, you can increase your yield.
20:15
SPEAKER_02: And if you can increase your return on investment, you can get to your retirement goals and your financial goals in a shorter period of time.
20:22
SPEAKER_02: And that's really the big aha for a lot of the folks that work with us and take advantage of the webinars and the videos and the YouTube training and everything else we do is how to get to their retirement goals and their financial goals in a shorter period of time.
20:35
SPEAKER_02: So to rewind here, I bought this property in 2020 for$63,000 using my self-directed accounts.
20:42
SPEAKER_02: And again, traditional and Rum.
20:44
SPEAKER_02: And we bought it from a motivated seller.
20:46
SPEAKER_02: This was a landlord that wasn't doing a good job taking care of the deferred maintenance.
20:51
SPEAKER_02: They also weren't doing a very good job taking care of the tenants.
20:54
SPEAKER_02: So we had a tenant challenge and we had a lot of deferred maintenance, which means motivated seller, we were able to get the property at a deep discount.
21:00
SPEAKER_02: So we bought it for$63,000.
21:02
SPEAKER_02: Over the course of two years, while it was cash flowing, we put in about$15,000 worth of work, improvements, repairs, put a new driveway in, a lot of you know fixtures, um bathroom fixtures, kitchen fixtures, things of that nature.
21:16
SPEAKER_02: Again, these were it was deferred maintenance that needed to be shored up in the property.
21:20
SPEAKER_02: So we got the property um stabilized.
21:22
SPEAKER_02: We got good tenants in the property, we got a cash flowing, we listed it, and in May of 2022, we sold it for$115,000, and our profit back to our retirement plans was$35,000.
21:36
SPEAKER_02: It was a 32% annualized cash-on cash return.
21:40
SPEAKER_02: So I like to call this a single or double.
21:43
SPEAKER_02: Um, you know, we like to, as investors, treat investing with our self directed IRAs as a marathon, not a sprint.
21:51
SPEAKER_02: So we're looking for a lot of singles and doubles.
21:54
SPEAKER_02: We had an opportunity to sell the property, we took advantage of that.
21:56
SPEAKER_02: And the$35,000 in profit went.
22:00
SPEAKER_02: Back into our self-directed accounts.
22:02
SPEAKER_02: So it's important for viewers to understand is when you buy real estate with your IRA, cash leaves the IRA for the purchase, the IRAs pay for all the fix up and repairs, and then all profits go back into the IRA.
22:13
SPEAKER_02: The$35,000 in profit that went back to our self-directed accounts, we paid no taxes.
22:19
SPEAKER_02: So the$35,000, had we done that investment outside of our IRA, long-term, long-term capital gains tax, we would have paid about$5,000 in taxes.
22:28
SPEAKER_02: Instead, we saved on the taxes because it was in our self-directed account, which gave us more investing power for our next transaction.
22:37
SPEAKER_02: In fact, what we did is after we sold that property about 10 days later, we took that profit and the additional funds we had in our self-directed accounts and we made a$100,000 private money loan to a real estate flipper.
22:50
SPEAKER_02: This real estate investor bought, renovated, and sold a property in the course of about eight months, and we made an 8.667% return.
22:59
SPEAKER_02: It was a 13 or 14% per annum note.
23:03
SPEAKER_02: And so we made about$8,600 to$8,700 in profit, which went back into our self-directed accounts, and we paid 0% tax.
23:12
SPEAKER_02: So if you're in the private money lending business, or you want to be in the private money lending business, or you are looking to buy individual single-family rentals, or maybe you're looking to do more of a buy, renovate, hold, and then sell for a profit, in a self-directed IRA, there are these very powerful and unique tax advantages that you can take advantage of and just remember what I said before: compounding interest in the absence of taxation.
23:38
SPEAKER_02: That's what we're talking about here.
23:41
SPEAKER_00: Incredible.
23:42
SPEAKER_00: So I'm thinking for myself, selfishly, but I'm also thinking about, you know, if I'm representing a buyer or I'm wanting to attract new buyers, isn't it fair to say there's a ton of people out there with, you know, a decent amount of money in their retirement accounts that they think is not accessible.
24:00
SPEAKER_00: They think it's just it can only be in the public markets, and they're like, how do I get into real estate investing?
24:06
SPEAKER_00: Yet they have 350k over here in a Roth.
24:09
SPEAKER_00: So you're saying that by self-directing that Roth IRA, they then unlock what's in there?
24:17
SPEAKER_02: That's correct.
24:18
SPEAKER_02: Unlock, Dustin, I'm glad you used that term.
24:20
SPEAKER_02: I like that.
24:21
SPEAKER_02: You can unlock your retirement savings accounts.
24:24
SPEAKER_02: So many Americans have felt that their retirement savings accounts, their IRAs, 41ks, and other retirement plans, have been held hostage.
24:32
SPEAKER_00: Right.
24:32
SPEAKER_02: And the truth of the matter is, is you have full control.
24:36
SPEAKER_02: Now, traditional financial services doesn't always want to expose you to this.
24:41
SPEAKER_02: So, quick warning for everybody out there: if you go to your wealth management consultant and you say, Hey, I want to self-direct into real estate, they might tell you that it's too risky, it's not diversification, you shouldn't do it, it's illegal.
24:53
SPEAKER_02: They might give you every reason in the book on why you shouldn't do it.
24:57
SPEAKER_02: And what I challenge Americans to do, and what I challenge investors to do, along with real estate agents, and I've been, by the way, Dustin, training real estate agents for the last 15 years.
25:06
SPEAKER_02: I have all kinds of courses and training so that a lot of it's on YouTube that uh real estate agents can go to and they can turn their clients on to so that their clients can learn about how they can use their IRAs and potentially unlock more capital to be able to buy more property.
25:22
SPEAKER_02: So I'm glad that you brought that up.
25:23
SPEAKER_02: But what I'll tell you is Americans for years have been conditioned to thinking that the only way to invest with their retirement savings accounts is into the public markets.
25:35
SPEAKER_02: And most financial services institutions, most financial advisors and financial planners, the firms that they represent and work for can only allow them to sell you certain products.
25:47
SPEAKER_02: And I am using that term sell you, right?
25:50
SPEAKER_02: They're selling you a financial product that may or may not be in your best interest, quite frankly.
25:55
SPEAKER_02: You need to make that decision as an investor on what is in your best interest.
26:00
SPEAKER_02: Is it the public markets?
26:02
SPEAKER_02: And if it is, that's okay.
26:03
SPEAKER_02: All right, there's there's more than enough people out there that maybe shouldn't buy real estate, right?
26:08
SPEAKER_02: And should just focus on putting their money away in the public markets.
26:11
SPEAKER_02: But a lot of the folks that attend our training, and I'm sure everyone that's on today's podcast is real estate minded.
26:18
SPEAKER_02: And so if you feel you can do better investing in real estate than the public markets, then you're absolutely in the right place and you're thinking down the right path, which is how can I unlock my money from those retirement savings accounts that that they're in now and move it into a self-directed IRA environment to be able to invest in real estate.
26:38
SPEAKER_02: And the last thing I'll mention there is just a quick story, Dustin.
26:42
SPEAKER_02: Uh I ran across a gentleman in 2022.
26:44
SPEAKER_02: He's referred to me by an attorney friend of mine, and uh this gentleman was an attorney.
26:50
SPEAKER_02: Uh, he serviced the investment banking community for his entire career, which is about 30 years.
26:56
SPEAKER_02: He's been around private asset investing, including real estate, for 30 years.
27:01
SPEAKER_02: Never knew that he could use his retirement plan to invest in real estate and private equity and other private assets.
27:09
SPEAKER_02: 30 years in financial services and never knew this existed.
27:13
SPEAKER_02: So for anybody out there that's saying, why haven't I heard about this earlier?
27:16
SPEAKER_02: Why haven't I done this earlier?
27:18
SPEAKER_02: I look at it as you're you're a victim of the environment.
27:23
SPEAKER_02: You're a victim of the financial services arena as it stands today, which wants to push Americans into the status quo of traditional stocks, bonds, and mutual funds, and that's it.
27:34
SPEAKER_02: But I'll tell you, Dustin, there's going to be massive disruption over the next two years because Americans are starting to see that, hey, I don't have to rely on this model.
27:44
SPEAKER_02: I can take control and invest in all of these non-stock market-based assets, including real estate, and potentially drive a better rate of return.
27:52
SPEAKER_02: There's no guarantees, of course.
27:54
SPEAKER_02: You're in control, you're involved, and you're making all of the decisions on your own.
27:59
SPEAKER_02: But if you feel you can do better than the public markets, you're in the right place.
28:03
SPEAKER_02: So this gentleman, this investment banker, in 2022, his portfolio was down anywhere between 15 to 20% at the time.
28:11
SPEAKER_02: And he called me up and he said, John, I want to take about 20% and start investing in some real estate partnerships and some some private equity.
28:19
SPEAKER_02: And so we had that conversation.
28:20
SPEAKER_02: He said, I have a meeting with my financial advisor.
28:22
SPEAKER_02: We're going to talk through this.
28:24
SPEAKER_02: So he has this meeting with his financial advisor.
28:26
SPEAKER_02: He immediately calls me back, um, slightly frantic, and says, You know, John, um, I want to move my money as quickly as possible.
28:36
SPEAKER_02: Please tell me how I can move all of my money from my IRA, which is about$1.5 million in IRA assets.
28:43
SPEAKER_02: How can I move the entire$1.5 million into a self-directed IRA?
28:47
SPEAKER_02: So I knew that that conversation couldn't have gone well.
28:50
SPEAKER_02: And what he told me is that his financial advisor sort of just disregarded his concerns and said, hey, look, you need to just stay the course, don't make any changes, everything will be okay.
29:03
SPEAKER_02: Well, this gentleman, that did not sit well with him.
29:06
SPEAKER_02: So he went from wanting to move just 20% of his IRA portfolio to moving 100% of his IRA portfolio.
29:13
SPEAKER_02: So I tell that story because one, if you feel the same way, if you're an individual investor out there, um, you're not alone.
29:21
SPEAKER_02: Uh, number two, if you're a real estate agent and you have clients, don't be surprised if they feel the same way.
29:27
SPEAKER_02: And number three, for anyone out there that is in financial services, if you're a financial advisor, financial planner, I'm not here to disparage that profession.
29:35
SPEAKER_02: Okay, I work very closely with lots of financial advisors and financial planners across the country.
29:40
SPEAKER_02: I think a lot of them do a really great job.
29:42
SPEAKER_02: Unfortunately, there are some that don't.
29:44
SPEAKER_02: And so if you are a financial professional out there, just know that you know when someone approaches you and asks these types of questions, you may want to look at it through an open-mind lens because there could be a situation where someone says, Hey, I actually want to take all of it out under your management instead of just taking a portion of it.
30:04
SPEAKER_00: Getting control back, I think, is such a big deal.
30:07
SPEAKER_00: Uh, every day there's a new reminder of how important it is to take control over your money, your future, your finances, and not have it in someone else's care.
30:17
SPEAKER_00: Uh I mean it it's just it's crazy to me how most of society has just kind of accepted that, you know, put money into 401k, I get to choose from these ten mutual funds, and they think that's normal.
30:30
SPEAKER_00: It's just unacceptable, right?
30:32
SPEAKER_00: And so, as as real estate agents, we are a version of a financial advisor.
30:37
SPEAKER_00: We are we should be advisors to our clients, and imagine not knowing about this.
30:43
SPEAKER_00: Imagine most people who are hearing this for the first time, they can imagine that easily.
30:49
SPEAKER_00: But now that you know that this exists, how could you not share that with everybody?
30:53
SPEAKER_00: How could you not show everyone, hey, there's a better option?
30:56
SPEAKER_00: Here's more ways you can get into real estate investment without just going to get a conventional loan.
31:02
SPEAKER_00: So that's super exciting.
31:04
SPEAKER_00: And I so I love the empowerment aspect of this.
31:07
SPEAKER_00: But John, what what's the catch?
31:09
SPEAKER_00: Like, why isn't this much more common?
31:12
SPEAKER_00: Is it like crazy expensive to do?
31:14
SPEAKER_00: Is it is it really hard to put your money into investments once you are self-directed?
31:19
SPEAKER_00: Like, you know, talk to us about that.
31:22
SPEAKER_02: Yeah, so um, you know, as far as cost is concerned, it's it's very minimal.
31:28
SPEAKER_02: Um, so for example, here at Equity Trust as a custodian, we charge a maintenance fee depending on how much money is in the account.
31:35
SPEAKER_02: So, for example, an account between$100,000 to$200,000, we're only charging a$500 annual maintenance fee.
31:42
SPEAKER_02: If you have$200,000 to$300,000, we're only charging a$700 maintenance fee.
31:46
SPEAKER_02: And that includes access to a single point of contact, access to an online digital processing system, uh, processing all of your transactions and investments.
31:54
SPEAKER_02: So from a cost perspective, it's it's fairly minimal.
31:58
SPEAKER_02: Um, it's not burdensome for an investor.
32:00
SPEAKER_02: Uh a lot of folks I interact with, uh, if they have a single family rental property, for example, their rental income flowing in in five to ten days is covering their entire annual maintenance fee for that year.
32:14
SPEAKER_02: Um where some folks uh they can run a foul, if you will, of the rules is where they're trying to use their IRA for improper purposes.
32:26
SPEAKER_02: So with IRAs and other retirement plans, there are what are known as prohibited transactions.
32:32
SPEAKER_02: So the government, the tax code, 4975, and the IRS publications tell us what we can't do with our IRA.
32:40
SPEAKER_02: Now, what's interesting, Dustin, is going back to 1974, the Employee Retirement Income Securities Act was passed.
32:46
SPEAKER_02: And out of this act gave birth to IRAs, 401ks, and all the retirement accounts essentially that we see today now.
32:52
SPEAKER_02: And they created rules with respect to what you can't do with an IRA, but they don't tell us what we can do.
32:59
SPEAKER_02: So just remember that we're told what we can't do, not what we can do.
33:04
SPEAKER_02: There's a lot more that you can do with a self-directed IRA than you can't do.
33:08
SPEAKER_02: So, what can't you do with a self-directed IRA?
33:11
SPEAKER_02: Well, you can't use your IRA to invest in collectibles, you can't use your IRA to invest in alcohol, you can't use your IRA to invest.
33:19
SPEAKER_02: When I say collectibles, I'm talking about also artwork.
33:22
SPEAKER_02: So IRAs cannot invest in artwork, can't invest in life insurance policies, and your IRA cannot transact with what are known as disqualified persons.
33:32
SPEAKER_02: Disqualified persons would include yourself, your spouse, your parents and grandparents, and your children and grandchildren.
33:39
SPEAKER_02: Just remember anyone up and down the family tree.
33:42
SPEAKER_02: So the idea is that your IRA can't buy a property from your mother or mother-in-law.
33:49
SPEAKER_02: Your IRA can't make a loan to your son or daughter.
33:53
SPEAKER_02: Your IRA can't make a loan to yourself.
33:55
SPEAKER_02: Your IRA can't buy a property that you own in your LLC.
34:00
SPEAKER_02: Those are called prohibited transactions.
34:02
SPEAKER_02: So the idea is you want to be looking at new investment opportunities.
34:06
SPEAKER_02: Now, your IRA could go out and buy a single family residential rental property from a third party, cash flow comes back in, it's all tax exempt.
34:14
SPEAKER_02: In fact, for anyone that disputes this, you can go to the IRES website and there's an FAQ section that actually says that real estate is a permissible investment.
34:24
SPEAKER_02: But due to the administrative burden, financial institutions are not required to allow you to invest in real estate.
34:31
SPEAKER_02: So it's not a matter of legality, but rather a matter of choice.
34:34
SPEAKER_02: That's why you have to find an alternative non-stock market-based custodian like Equity Trust that can facilitate these types of transactions.
34:42
SPEAKER_02: So those are some of the pitfalls, if you will, or rules that that folks need to understand.
34:49
SPEAKER_02: Again, the good news is there's a lot more that you can do compared to what you can't do with the self-directed retirement plan.
34:58
SPEAKER_00: Fantastic.
34:59
SPEAKER_00: So, okay, so obviously it's not wildly expensive to get started.
35:03
SPEAKER_00: I mean, that's extremely reasonable.
35:04
SPEAKER_00: It's a hell of a lot less than we're paying in our 401ks and fees.
35:08
SPEAKER_00: Uh that's that's impressive.
35:10
SPEAKER_00: So I mean why why aren't more people doing this?
35:15
SPEAKER_00: Like, is it just a lack of education on how it works?
35:19
SPEAKER_02: Yeah, so Dustin, I I believe it's it's one lack of education.
35:25
SPEAKER_02: Um it is also uh, and I guess this goes along with lack of education, lack of information flow in mainstream media and mainstream financial services.
35:37
SPEAKER_02: So when you turn on CNBC during the day, they're not interviewing John Bowens from Equity Trust.
35:44
SPEAKER_02: They're not interested in interviewing John Bowens from Equity Trust.
35:47
SPEAKER_02: John Bowens talks about investing in the alternative markets, not the stock market.
35:52
SPEAKER_00: Right.
35:53
SPEAKER_02: There's no billboards or national television campaigns around uh alternative asset investing.
36:00
SPEAKER_02: And so it doesn't gain that popularity or notoriety, so to speak.
36:05
SPEAKER_02: Uh traditional financial services has historically dominated, and so as a result, a lot of people just aren't seeing or thinking or hearing about this.
36:14
SPEAKER_02: Now that has changed.
36:16
SPEAKER_02: So over the last 10 years, with a lot more people using you know different social media platforms, with a lot more people using the internet to do research and educate themselves.
36:29
SPEAKER_02: Um we have just over the course of the last five years, we have posted nearly a hundred YouTube videos.
36:36
SPEAKER_02: Um, we have thousands of short form videos all over different social media outlets.
36:41
SPEAKER_02: And so we have really taken a stand that we believe that every American should know that this exists.
36:49
SPEAKER_02: Does that mean that every American should use a retirement plan and invest in real estate?
36:54
SPEAKER_02: I would say no.
36:56
SPEAKER_02: Um I I would say that some people are just not gonna know how to do it, they're not gonna want to put the work into it, they're not gonna have the interest to do it, and and it's not gonna be successful for them.
37:08
SPEAKER_02: But we want to at least make sure that every man, woman, and child in this country knows that they have this option available to them.
37:16
SPEAKER_02: And that's what I've seen is very unfortunate in that most people just don't know that this exists.
37:22
SPEAKER_02: And then the people that do know that it exists don't necessarily know how it works, right?
37:27
SPEAKER_02: Or they might be told by a financial advisor or someone else that has an invested interest in the traditional markets that it's illegal or it's not diversification or other commentary that tries to dissuade those people from investing in real estate.
37:44
SPEAKER_02: And I'll conclude this comment, Dustin, with saying that I believe that we as Americans in our retirement plans, we need to be more involved in the management of our retirement savings accounts.
37:58
SPEAKER_00: Yes.
37:58
SPEAKER_02: There are way too many people out there that just go to an office, sit across from a financial advisor that's going to only be able to sell them specific investments.
38:09
SPEAKER_02: And by the way, yes, I am saying sell because that's what they're doing.
38:13
SPEAKER_02: They're selling you a portfolio of investments or they're selling you a specific investment.
38:18
SPEAKER_02: That's what they're doing.
38:19
SPEAKER_02: And I think there's a difference between selling and advising, and that's something that a lot of people don't want to talk about.
38:26
SPEAKER_02: And so I believe, again, that Americans need to understand that being more involved in the planning process with their retirement savings accounts is really, really critical and that you have the ability to be involved.
38:40
SPEAKER_02: You know, I learned a long time from uh from a mentor of mine 15 years ago that easy doesn't pay good.
38:47
SPEAKER_02: So if you want the easy, if you want just put my money away and not have to think about it, don't be upset when the market declines in a significant way because of interest rate hikes or inflation or whatever else is going on in the US economy or global economy.
39:03
SPEAKER_02: Don't be upset when you take a loss.
39:07
SPEAKER_02: Because you got to understand that the way to potentially hedge against that is to be more involved in the retirement planning process and more involved with how you manage your retirement monies.
39:19
SPEAKER_02: Too many Americans have been, I'll say, brainwashed into thinking that the only way to save for retirement is just put their money in mutual funds or traditional assets.
39:30
SPEAKER_02: A lot of people don't know that they can be involved on this level and actually go out and buy single family rental properties or private money loans, or they can go online and use these crowdfunding type websites that are set up where you can invest in all types of alternative assets.
39:47
SPEAKER_02: If you maybe don't have the ability or time to go out and buy individual properties, there are still ways that you can gain exposure to alternative investments in a very similar fashion to clicking a mouse and buying a stock or mutual fund.
40:01
SPEAKER_00: I could not agree more.
40:03
SPEAKER_00: I I used to think that way.
40:04
SPEAKER_00: I used to, you know, you read a few books and it's like, oh, mutual funds or stocks, and it's the only option, and then you start learning about real estate and you think that they're separate, right?
40:12
SPEAKER_00: You gotta just keep it all separate.
40:14
SPEAKER_00: So this is really eye-opening for me.
40:15
SPEAKER_00: I know it's eye-opening for a lot of listeners.
40:17
SPEAKER_00: What's really cool is we just heard that for our clients or for ourselves, we could use retirement funds that are locked up right now, unlock them, go buy a duplex for a hundred thousand or five hundred thousand, whatever, you buy a duplex for five hundred K, it appreciates to seven hundred K, all the cash flow and the equity that when you eventually sell all goes back into your retirement account.
40:42
SPEAKER_00: And if it's a Roth, you never pay taxes on that money ever.
40:46
SPEAKER_02: Yes, Dustin, I'm glad you brought that up.
40:48
SPEAKER_02: So a major takeaway, I think, for all of the the listeners is a Roth IRA is one of the most powerful investment vehicles, savings vehicles that I'm aware of.
41:00
SPEAKER_02: And for those of you that aren't familiar, a Roth IRA, you put money in after tax, it grows 100% tax-free, you take the money out and you pay 0% tax.
41:10
SPEAKER_02: Now, some people may not qualify to contribute to a Roth IRA because they make too much money.
41:15
SPEAKER_02: Well, you can utilize what's called a backdoor Roth contribution.
41:19
SPEAKER_02: You can look that up, backdoor Roth Contribution, where you contribute to a traditional and then you convert to a Roth.
41:24
SPEAKER_02: Or if you're somebody that has a lot of 401k money or traditional or SEP money, a lot of realtors have SEP IRAs.
41:31
SPEAKER_02: Those are all tax-deferred accounts.
41:33
SPEAKER_02: You can actually convert that money into a Roth.
41:36
SPEAKER_02: Now you got to pay taxes because you're going from tax-deferred to tax-free Roth, but you can get the taxes out of the way in the smaller seed so you don't have to pay it in the much larger crop.
41:44
SPEAKER_02: And you give you an example of this, Dustin, I have two clients, Kevin and Cynthia, they're out of St.
41:48
SPEAKER_02: Louis, Missouri.
41:49
SPEAKER_02: They're real estate investors.
41:50
SPEAKER_02: They've done over 20 real estate transactions in their Roth IRAs over the last 11 to 12 years.
41:55
SPEAKER_02: They were stock market refugees, they referred to themselves as in 2010.
41:59
SPEAKER_02: They rolled their 401ks over, converted them to Roth's, paid some tax.
42:04
SPEAKER_02: They did over 20 real estate transactions, some rentals, some seller financing, some buy and sell on lease option to purchase, a number of different strategies, also some private money lending.
42:15
SPEAKER_02: And they now have over a million dollars of assets and cash in their Roth IRAs, all tax-free.
42:22
SPEAKER_02: And they generate$130,000 in net tax-free cash flow on an annual basis.
42:28
SPEAKER_02: And so every year they could distribute$130,000 and they pay 0% tax.
42:33
SPEAKER_02: If they sell the properties, they don't have to worry about a 1031 exchange to then put the money back into another property.
42:39
SPEAKER_02: It's all tax-free in the Roth IRA.
42:41
SPEAKER_02: And they want to leave those Roth IRAs to their children.
42:44
SPEAKER_02: And if their children have children, they intend on leaving those Roth IRAs to their grandchildren because the grandchildren of the children will inherit the Roth IRA 100% tax-free.
42:54
SPEAKER_02: So Roth IRAs can also be very powerful estate planning and legacy planning tools.
43:00
SPEAKER_02: And lastly, I'll say, Dustin, it's important, I think, for folks to understand that if you have a smaller amount of money in an IRA, but you know how to go out and find good real estate deals, you can still self-direct.
43:12
SPEAKER_02: Some people think that they need to have hundreds of thousands of dollars in a Roth IRA to be able to go out and invest in real estate.
43:18
SPEAKER_02: That's not necessarily the case.
43:19
SPEAKER_02: Case in point, two clients here at Equity Trust, they choose to use their names anonymously, but they use their self-directed IRAs together as partners to buy, renovate, and sell a property.
43:32
SPEAKER_02: And so investor A and investor B came together.
43:36
SPEAKER_02: Investor A was the one who found a property to buy, renovate, and sell and make a profit.
43:42
SPEAKER_02: Investor A only had about$13,000 in some change in his Roth IRA.
43:48
SPEAKER_02: He didn't have the$75,000 for the purchase and rehab.
43:52
SPEAKER_02: So investor A partnered his$13,000 in some change Roth IRA with another equity trust investor who brought in the Remaining amount for the purchase and rehab.
44:02
SPEAKER_02: They created a very simple four-page real estate joint venture agreement and they split the profits disproportionately.
44:10
SPEAKER_02: And investor A, who only had about$13,000 in some change in the deal, he ended up making$34,000 tax-free in his Roth IRA.
44:20
SPEAKER_02: And he took a larger percentage of the profits because he's the one who found the property.
44:25
SPEAKER_02: He's the one that connected with the contractors to do the rehab.
44:28
SPEAKER_02: He, if you will, orchestrated administratively the entire transaction.
44:32
SPEAKER_02: So he grew his Roth IRA from$13,000 and some change to over$47,000, 100% tax-free.
44:39
SPEAKER_02: That deal just closed two weeks ago.
44:42
SPEAKER_02: And he won't pay a single dime of capital gains tax on that money.
44:46
SPEAKER_02: Had he done that investment in a non-Roth IRA environment, he would have paid anywhere between$10,000 to$12,000 in taxes.
44:54
SPEAKER_02: So his return on investment wouldn't have been what it was, it would be significantly less.
44:59
SPEAKER_02: And that goes back to, as I conclude here, Dustin, that compounding interest in the absence of taxation.
45:05
SPEAKER_02: If we eliminate that variable of taxes, we increase our return on investment.
45:09
SPEAKER_02: If we increase our return on investment, in the case of this investor, investor A is able to get to his retirement goals in a shorter period of time.
45:17
SPEAKER_00: Incredible.
45:32
SPEAKER_00: It gives you all the power and control.
45:34
SPEAKER_00: You don't have to find a new property within 90 days and do all that stuff.
45:38
SPEAKER_00: You can take your time, you can go faster, you can get you don't have to buy up.
45:43
SPEAKER_00: You can do whatever you want.
45:44
SPEAKER_00: You could go from real estate.
45:46
SPEAKER_00: Now let me ask you this if you're going to do real estate and crypto and stocks, can you do that all within the same IRA account, or do you need separate accounts for different asset classes?
45:57
SPEAKER_02: You can do it all under the same account.
45:59
SPEAKER_02: So here, at least the way we work as a custodian here at Equity Trust, you can open one account, you can invest in real estate, you can make private money loans, you can invest in cryptocurrency, you can invest in physical gold and silver.
46:13
SPEAKER_02: So we have clients that are uh doing the gold and silver stacking, so they're they're buying physical assets and they're storing those with a depository.
46:21
SPEAKER_02: So that's a that's a capability.
46:23
SPEAKER_02: And uh uh stocks and mutual funds, if you still want some exposure to the traditional markets, we actually have the integrated technology within your equity trust account to be able to move in and out of individual stock and mutual fund positions.
46:38
SPEAKER_00: Okay, that's incredible.
46:40
SPEAKER_00: So it it's just I used to think it was so complicated.
46:44
SPEAKER_00: I used to think that it was to do self-directed IRAs, it was prohibitively expensive because you had to have different accounts for different types of investments, but you just need one.
46:56
SPEAKER_00: You just set up one and then go to work and build the thing.
46:59
SPEAKER_00: That that's so cool.
47:00
SPEAKER_00: So I love it.
47:02
SPEAKER_00: John, obviously, there's a lot of questions that people will have, a lot of nuances, a lot of uh there's probably some rules involved.
47:09
SPEAKER_00: You can do this, can't do this, structure things a certain way.
47:12
SPEAKER_00: I'm sure there's a question about mortgages to pay for property and self-directed IRAs and all of that.
47:17
SPEAKER_00: Uh, this could obviously be a two-hour conversation, but I want to get the listeners involved.
47:22
SPEAKER_00: So John has been gracious enough to join us here on March 22nd.
47:28
SPEAKER_00: March 22nd at 3 p.m.
47:30
SPEAKER_00: Eastern.
47:30
SPEAKER_00: We're gonna do a live webinar.
47:32
SPEAKER_00: It could be QA.
47:34
SPEAKER_00: You can bring your questions, you can bring your scenarios and say, hey, how does this scenario work?
47:39
SPEAKER_00: Maybe you have a client that has a certain situation and you want to bounce that off of John.
47:44
SPEAKER_00: It is for you to for us to dive deeper on this topic and learn how to you know have more control for our own wealth, but also to serve more clients and help them to do the same thing.
47:55
SPEAKER_00: So March 22nd, 3 p.m.
47:58
SPEAKER_00: Eastern time, John's gonna be joining us live to register for that.
48:02
SPEAKER_00: Totally free, by the way.
48:03
SPEAKER_00: All you need to do is go to Massive Agent Podcast.com slash self directed.
48:09
SPEAKER_00: MassiveAgent Podcast.com slash self directed, and you can register for free.
48:14
SPEAKER_00: Hope to see you there.
48:15
SPEAKER_00: I'm gonna have a bunch of questions.
48:16
SPEAKER_00: I still do, but you know, obviously we only have so much time, so I'm excited for that.
48:22
SPEAKER_00: Thank you for doing that because uh, you know, this kind of opens a can of worms, doesn't it?
48:26
SPEAKER_00: It's like great, we can do this, but what about this?
48:28
SPEAKER_00: But what about this?
48:30
SPEAKER_00: So I assume that's normal, but uh thank you for for doing the webinar here on the 22nd.
48:36
SPEAKER_02: Absolutely, Dustin.
48:37
SPEAKER_02: Happy to do it, and you're you're right, which is thinking creatively um as investors, and I understand you know your audience are investors and real estate agents and you know, maybe some other folks in there, and uh thinking creatively and and not um falling victim to the status quo, so to speak.
48:55
SPEAKER_02: So I encourage folks to bring their questions, um, and you as well, Dustin.
48:59
SPEAKER_02: You know, feel free to bring your questions, uh, even the most challenging questions, please do that.
49:05
SPEAKER_02: And uh happy to answer those for you guys and talk about uh how to creatively use a retirement plan to invest in real estate.
49:13
SPEAKER_02: And I mentioned that joint venture example.
49:16
SPEAKER_02: There's a lot of other creative ways to be able to grow an IRA, even a smaller balance IRA.
49:21
SPEAKER_02: For those of you out there that maybe are just getting started, maybe you don't have an IRA.
49:24
SPEAKER_02: How do I set up my first IRA?
49:27
SPEAKER_02: Um, how do I make a contribution?
49:29
SPEAKER_02: I'll say for real estate agents, uh, you'll probably want to look at a SEP IRA, simplified employee pension IRA, uh, or a solo 401k, both of which we can talk about in the webinar, Dustin, which can be account types that allow folks to put a considerably higher amount in as a contribution on an annual basis compared to just an IRA.
49:51
SPEAKER_02: And then from there they can begin self-directing into real estate.
49:54
SPEAKER_02: So there's a lot of uh creative ways for self-employed individuals to really optimize and maximize their retirement savings within these vehicles.
50:04
SPEAKER_00: Oh, that's fantastic.
50:05
SPEAKER_00: Yeah, I'm looking forward to that.
50:07
SPEAKER_00: So I'm gonna be doing a I've known about self-directed for a while, and it wasn't until I met John and one of the founders, I met Rich Desich uh through a mastermind that we're both part of, and you guys kind of demystified it for me, and I'm like, well, shit, why aren't I doing this?
50:22
SPEAKER_00: So I'm gonna be having you guys set up my self-directed Roth IRA and possibly one of the others that I'm not I'll ask the questions on the 22nd, but I'm excited to do this.
50:32
SPEAKER_00: This is this is something that I don't see any downside to.
50:36
SPEAKER_00: I mean, yeah, there's a little investment to get it started and to have you guys manage it, but that happens no matter what you do, no matter where you do it.
50:43
SPEAKER_00: So uh it just makes all the sense in the world.
50:46
SPEAKER_00: John, thank you so much.
50:48
SPEAKER_00: Uh, I'm I'm excited for the 22nd.
50:50
SPEAKER_00: Anyone who wants to get started with the self-directed, we'll have a link for you that day.
50:53
SPEAKER_00: We might even have a special offer or something.
50:56
SPEAKER_00: But uh come with your questions.
50:58
SPEAKER_00: That that's the main thing.
50:59
SPEAKER_00: Come with your questions.
51:00
SPEAKER_00: Let's demystify this for you because I'm sure you still have questions.
51:03
SPEAKER_00: I still have a couple, and we'll get busy.
51:05
SPEAKER_00: So MassiveAgent Podcast.com slash self-directed gets you registered for free to that training.
51:12
SPEAKER_00: John, thank you so much for being here on the Massive Agent Podcast.
51:15
SPEAKER_00: Appreciate it.
51:16
SPEAKER_02: Thank you, Dustin.
51:17
SPEAKER_02: Look forward to seeing you and everybody on March 22nd.
51:19
SPEAKER_00: Absolutely.
51:20
SPEAKER_00: Guys, thank you for listening through to the end of that.
51:22
SPEAKER_00: Pretty incredible stuff.
51:23
SPEAKER_00: The self-directed IRA when used correctly and set up properly.
51:27
SPEAKER_00: How amazing is that?
51:28
SPEAKER_00: You don't need us to do a 1031 exchange anymore with a Roth, a self-directed Roth IRA because you don't pay taxes on anything ever again.
51:36
SPEAKER_00: So, how cool is that?
51:38
SPEAKER_00: That in and of itself is amazing.
51:40
SPEAKER_00: So, if you plan on doing any rental property investment, you want to lend money, you want to, you know, uh buy into a fund, you want to invest money into a company, stocks, crypto.
51:51
SPEAKER_00: I mean, you can buy crypto and pay no taxes on your crypto.
51:54
SPEAKER_00: That's amazing.
51:54
SPEAKER_00: So, I mean, I wish I knew about that two years ago.
51:58
SPEAKER_00: Uh I did know about it, I didn't do shit about it because I didn't think it was this easy or this simple or this accessible.
52:04
SPEAKER_00: So make sure that you're there on Wednesday, March 22nd, 3 p.m.
52:08
SPEAKER_00: Eastern time, MassiveAgent Podcast.com slash self directed to register for free.
52:15
SPEAKER_00: And we do have a limit on how many people can be in that Zoom room, so make sure that you register ASAP and save your spot.
52:23
SPEAKER_00: And uh last reminder, the society is open and save five hundred dollars by joining the Massive Agent Society.
52:31
SPEAKER_00: Use where is it here?
52:33
SPEAKER_00: Use discount code SPRING500 at checkout.
52:37
SPEAKER_00: Save yourself 500 bucks, plus it's a hell of a savings when you break down like how much you're actually paying per month over those 12 months.
52:44
SPEAKER_00: That's the way to do it.
52:45
SPEAKER_00: You guys want to save some money and just commit, get the annual 12-month plan with 500 bucks off.
52:52
SPEAKER_00: I'm excited for you guys to not just take advantage of this self-directed IRAs, but to oh, I'm very curious to see who is ready to invest in themselves, who's ready to take their career seriously, who's serious about hitting their goals this year.
53:05
SPEAKER_00: We'll see who joins the Massive Agent Society.
53:08
SPEAKER_00: Excited to see you in there.
53:09
SPEAKER_00: Thanks for listening.
53:10
SPEAKER_00: Please share this episode.
53:11
SPEAKER_00: Help us reach a million, a million downloads this year.
53:14
SPEAKER_00: Just there if you like the episode, share it with somebody.
53:18
SPEAKER_00: If you like the podcast in general, tell people about it.
53:20
SPEAKER_00: That's all we ask.
53:21
SPEAKER_00: Appreciate it.
53:22
SPEAKER_00: We'll keep coming back every week with a kick ass new episode.
53:24
SPEAKER_00: See you next time.