You may be wondering why I haven’t blogged about real estate investing in a while. There’s a very good explanation video at Nabers.TV for you to check out.
The Most Elusive & Dangerous Self-Directed IRA Practice – Part 2
November 16, 2010 By 9 Comments
In the last post, you learned about how doing an active “entrepreneurship-ish” deal inside your IRA is an open invitation for the IRS to tax the hell out of you.
In this post, you’ll learn the solution.
- The solution is not to avoid doing active deals.
- The solution is not to stop pursuing massive profits or to lock away your talents and skill to be unused.
The solution is to structure both your active entrepreneurship and your passive investment activity in a way that that puts you in the most control. Put another way, avoid giving the IRS an open invitation to tax attack you.
I bet you can guess where this is going (one commenter had a pretty good [Read more...]
The Most Elusive & Dangerous Self-Directed IRA Practice
November 14, 2010 By 11 Comments
There’s something that most “successful” Self-Directed IRA investors do that can spin them out of control and get them into trouble.
I say “successful” in quotation marks because I’m talking about the particular kind of Self-Directed IRA success that is sexy enough to be frequently written about.
What is this dirty deed that leads to massive profits and the potential implosion the very same Self-Directed IRA that got those profits?
Entrepreneurship.
Bad Entrepreneur!
Yep. Entrepreneurship is so powerful that it seems to be the source of all aggressive wealth creation. So where’s the danger?
Let me explain. Some of the most [initially] profitable Self-Directed IRA stories sounds something like this…
Joe, a Self-Directed IRA investor, knows how to work real estate deals into profits. So he buys and sells real estate in his Self-Directed IRA. Sometimes he involves bank financing. Sometimes he involves private financing and partnering.
But one thing is for sure: Once Joe purchases a property, the work has just begun. He has a system. He only buys properties that meet a certain criteria. After the closing, he usually has repairs and/or remodeling work done.
And his system works. He’ll put $30k or $40k of his Self-Directed IRA money into a deal and get $80k to $100k out, often less than a year or two later.
First, applaud Joe for [Read more...]
Is the Health Care Bill a Distraction From What’s Next?
March 24, 2010 By 11 Comments
Everyone is talking about health care. “How could the politicians do this with a strong majority of American in opposition?”
This video provides some insight into the never-ending string of government takeovers, and seeing the whole picture is alarming. One lesson from all of this is that complaining doesn’t work. Neither does disapproving. What does work is being prepared to defeat government takeover attempts.
Discussed in the video is what I believe is one of the most fundamental characteristics for a free society. Enjoy!
