Total Control IRA 1. Elite Pensions, LLC. How To. Available Assets

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Elite Pensions, LLC

How To

Using Real Estate

Wish you could invest in

real estate with your

retirement account to earn

tax-deferred or tax-free

income?

Investors Find Ways to Put

Pension Money Into Real Estate

““Last year, tax laws allowing individuals toLast year, tax laws allowing individuals to

set up single-participant 401(k) plans went

into effect

into effect……allowing these plans to investallowing these plans to invest

in real estate, an activity single-participant

IRA plans had long been doing.

IRA plans had long been doing. The Wall Street Journal

The Wall Street Journal –– May 21, 2003 May 21, 2003

Why the lack of knowledge

about retirement account

investing options?

“

“The reason you havenThe reason you haven’’t heard about themt heard about them [these investment alternatives] is that there

[these investment alternatives] is that there

is little profit incentive for financial

institutions, which primarily sell stocks and

bonds to IRA accounts.

bonds to IRA accounts.””

Available Assets

•

• $3.4 Trillion in Retirement

$3.4 Trillion in Retirement

Assets

•

• Less than 2% is Invested in

Less than 2% is Invested in

Real Estate.

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Elite Pensions, LLC

Stock Market

•

• The Federal ReserveThe Federal Reserve

Estimates about

Estimates about $1$1

Trillion Dollars has been

Lost in Retirement Assets

Due to Stock Market

Losses.

•

• Question: Would you rather give yourQuestion: Would you rather give your

retirement money to a company back East

to invest in the stock market, or be able to

invest it yourself locally in Real Estate?

Fact: No one cares more about

your money than you do!

Are You Currently Earning

12% in Your

Retirement Account?

How about 18%?

If you are able to earn 12% to 18%

or more investing in real estate

while earning tax free or tax

deferred income using your

Retirement account

would you want

to know how?

You Must Have the

Right Structure for Your

Retirement Account

The Structure is the

Key

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Elite Pensions, LLC

Total Control

IRA

Current Custodian New Self Directed Custodian

Businesses Financial_Markets Real Estate Financial_Paper LLC

IRA, SEP, 401K, etc. IRA, SEP, 401K, etc. rollover You act as Mgr. of LLC IRA owns LLC Checkbook Control

Account at any bank

Total Control

IRA

Businesses Financial Markets Financial Paper Professional Personal Service Start-ups Franchises Retail Public Stocks Mutual Funds Options REITS Annuities Covered Calls Futures Commodities Loans Mortgages Charitable Entities Discounted Notes Tax Liens Factoring

Your IRA can invest in…

and Real Estate…

Real Estate Investments

•

• Residential Real EstateResidential Real Estate

•

• Commercial Real EstateCommercial Real Estate

•

• Mortgage LoansMortgage Loans

•

• Hard Money LoansHard Money Loans

• • FlipsFlips

•

• DevelopmentDevelopment

•

• Construction LoansConstruction Loans

•

• ForeclosuresForeclosures

•

• More, More, MoreMore, More, More……

Life Insurance Life Insurance Contracts Contracts Collectibles Collectibles

You Can Invest Your Retirement

Account in Anything

Except!

Disqualified Parties

An IRA cannot engage in any An IRA cannot engage in any transaction with anybody or anything transaction with anybody or anything

considered

considered relatedrelated to the IRA to the IRA

Related Party

•

• IRA/ Retirement Plan OwnerIRA/ Retirement Plan Owner

•

• Ancestors of the OwnerAncestors of the Owner

•

• Offspring of the OwnerOffspring of the Owner

•

• Spouses of the aboveSpouses of the above

•

• Business entities where the Owner is aBusiness entities where the Owner is a

50% or greater shareholder

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Elite Pensions, LLC

Allowable Examples

•

• Your IRA loans youYour IRA loans you $100,000. Allowable?

$100,000. Allowable?

•

• Your IRA loans yourYour IRA loans your brother $100,000.

brother $100,000.

Allowable?

•

• Your IRA loans yourYour IRA loans your step son $100,000. step son $100,000. Allowable? Allowable?

Contribution v. Returns

•

• Contribution Limits toContribution Limits to

IRAs are $4,000/yr

($5,000/yr if over 50

years old)

•

• KEYKEY……No limit toNo limit to how much can be

how much can be

earned inside of an earned inside of an IRA IRA

Asset Protection

In a huge victory for managed and

self-directed IRA owners everywhere, the

directed IRA owners everywhere, the

Supreme Court ruled unanimously

Supreme Court ruled unanimously that that

IRAs should join pensions, 401(k)s. Social

Security and other benefits tied to age,

illness or disability, that are afforded

protection under federal bankruptcy law

and thus shielded from creditors in

bankruptcy proceedings.

IRS Protection

““The mere fact that the LLC entity isThe mere fact that the LLC entity is

disregarded for federal tax purposes does

not entitle the IRS (Service) to disregard the

entity for purposes of collection.

entity for purposes of collection.””

(IRS Internal Legal Memoranda 199930013)(IRS Internal Legal Memoranda 199930013)

1031 Exchange?

• Forget About all the Wizardry and Complexities of 1031 Exchanges

• Retirement Accounts Grow Tax Free Without Capital Gains or any Other Tax

• No More Having to Reinvest Within a Certain Time Frame

• No More Having to Reinvest in the Same Type of Asset

Create Your Own Bank

•

•Utilize Someone ElseUtilize Someone Else’’s Retirement Account tos Retirement Account to

Fund Your Real Estate Deals

•

•Show Others How They Can Earn a Good TaxShow Others How They Can Earn a Good Tax Free ROI Lending You Their Money Secured by

Free ROI Lending You Their Money Secured by

Real Estate

•

•Create a Hassle-Free, Never Ending Supply ofCreate a Hassle-Free, Never Ending Supply of Money For Your Deals

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Elite Pensions, LLC

Example 1

Buy and Hold

Dr. Ross Wants to Invest in

Real Estate with His Retirement

Account

Dr. Ross Teams Up with Jack

Daniels

Dr. Ross Invests $100K with

Jack Daniels on a Property that

is Earning 18%

Buy and Hold

Year 5

$228,776 $523,384Year 10 $1,197,375Year 15 $2,739,303Year 20

$100,000 Total Investment

Assumptions Interest rate: 18% Compounding: annual

Buy and Hold

Example 2

Short Sales and Loans

Joe Broke Wants to Invest in Real Joe Broke Wants to Invest in Real Estate Short Sales but Doesn't Estate Short Sales but Doesn't Have Money for a Down Payment Have Money for a Down Payment Dr. Ross Wants to Invest in Real Dr. Ross Wants to Invest in Real Estate but Doesn

Estate but Doesn’’t Want too Mucht Want too Much Risk

Risk

Joe Broke and Dr. Ross Team up Joe Broke and Dr. Ross Team up Joe Broke is the Point Guard on the Joe Broke is the Point Guard on the Short Sale and Creates an Short Sale and Creates an Opportunity for a Great Return Opportunity for a Great Return

Short Sales and Loans

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Elite Pensions, LLC

The Loan

Year 5 $86,408 Year 10 $373,317 Year 15 $1,612,880 Year 20 $6,968,286 $20,000 Total Investment Assumptions Loan Amount: $20,000 Interest rate: 18% Points: 2 Turns per Year : 8 Compounding: annual

Dr. Ross Provides 8 Loans a Year to Joe Broke

The Loan

$20,000 Total Investment

The Short Sale

Joe Broke and Dr. Ross Buy & Sell 8

Properties a Year Year 1 $120,960 Assumptions Purchase Price $220,000 Sales price $260,000 All fees and fix up costs $24,880 Compounding – 18% annual Year 15 $7,347,534 Year 20 $17,671,603 $0.00 Initial Investment Tax Free Growth

Year 10 $2,834,788

Who Gets What?

Joe Broke Invests $0.00 Initially in Joe Broke Invests $0.00 Initially in Real Estate

Real Estate

Dr. Ross Gets %18 Annual Return on Dr. Ross Gets %18 Annual Return on Retirement Account Investment Retirement Account Investment Secured by Real Estate with Tax Secured by Real Estate with Tax Deferred or Tax Free Growth Deferred or Tax Free Growth

The Short Sale

_{Example 3}

Buy and Hold Plus

Annual Contributions

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Elite Pensions, LLC

Buy and Hold Plus

Annual Contributions

Year 5 $371,447 Year 10 $1,221,226 Year 15 $3,165,317 Year 20 $7,612,924 $44,000 Annual Investment Assumptions Interest rate: 18% $44,000 annual contribution Compounding: annual

Buy & Hold

With Annual Contributions

The High Cost of Waiting

5% vs 18%

Why

Elite Pensions

?

•

• Elite works with the largest and best financialElite works with the largest and best financial

managers

managers •

• Charles SchwabCharles Schwab

•

• LPLLPL

•

• Elite uses top ERISA attorneys around countryElite uses top ERISA attorneys around country

to benefit you at 1/4

to benefit you at 1/4thth_{the cost}_{the cost}

•

• No Annual Percentage of Asset Fees No Annual Percentage of Asset Fees (expensive)(expensive)

•

• No Transaction FeesNo Transaction Fees

•

• ConvenienceConvenience

•

• Ability to Make Time Sensitive InvestmentsAbility to Make Time Sensitive Investments(Real(Real

Estate, tax Liens Foreign Currency Exchange, Day-Trading, etc.)

Benefits of Elite

’

s

Total Control IRA

•

• Buy and Sell Real EstateBuy and Sell Real Estate

•

• Unlimited Investment OpportunitiesUnlimited Investment Opportunities

•

• Tax Free GrowthTax Free Growth

•

• Asset ProtectionAsset Protection

•

• Truly Diversify Your Retirement PlanTruly Diversify Your Retirement Plan

You don’t have to ask anyone’s permission or approval for investments

You just write a check

Checkbook Control

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Elite Pensions, LLC

Supercharge Your IRA

1)

1) Complete the Order Complete the Order

Form

2)

2) Select Your Method of Select Your Method of

Payment

3)

3) Choose the Name of Choose the Name of

Your LLC

We