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Self Directed Investor Talk: Alternative Asset Investing through Self-Directed IRA's & Solo 401k's

Do you INSTINCTIVELY KNOW that Wall Street doesn't have your best interests at heart, and that there's a better way to grow and protect your money to build wealth for generations? Then this is the alternative investments show for you. Self Directed Investor Talk is America's ONLY Podcast exclusively for Self Directed Investors (whether using a Self Directed IRA, Solo 401k, or non-retirement accounts) who trust themselves more than they trust Wall Street. You'll get innovative investment strategies, deadly accurate market analysis, and uniquely vetted profitable investment opportunities that conventional financial advisers don't even know about. You'll receive a powerful new episode every day of the week... and each episode is 10 minutes or less! Check it out right now! See acast.com/privacy for privacy and opt-out information.

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the INHERITED IRA - How To Maximize It Before AND After Inheritance! | Episode 87

How do you maximize the potential for an inherited IRA… before you inherit it?  And why does this matter for you… even if you don’t expect to inherit an IRA?  I’m Bryan Ellis… I’ll tell you right now in Episode #87…--------The inherited IRA… particularly the inherited ROTH IRA… one of my favorite topics… and one of the most powerful financial tools EVER.I got a great question last week from a listener named Christa, who said:  “I followed your advice in Special Edition #1 from back in February of 2015 where you advised to have a relative create a roth IRA and to specify me as the beneficiary.  My father set up a Roth and deposited a small amount of money into the account as you advised.  What do I do now so I can maximize the benefits of the Roth?”Great question, Christa… and wise thinking on your part.  My friends, what Christa is referring to is one of my absolute favorite strategies.  Just imagine this:  Imagine an account for which, just by virtue of performing your investments in that account, that all of your profits on those investments are 100% tax FREE – not tax deferred – but, even better than a typical Roth IRA, you can actually take those profits out at any time you want, and not be required to wait until retirement age?Yep… you heard that right.  A magical financial account that makes income taxes on investment profits just VANISH.  Pretty amazing, right?  There’s only one problem:  The only way to get one of these magical accounts is to inherit it.  And for you to inherit it, you guessed:  Somebody has to pass on to the great by-and-by.Well, Christa has been smart, and has arranged for her father to create a small Roth account and has specified Christa as his beneficiary.  Christa’s father is not only not dead… but he’s doing quite well and will be with us for some time.  Christa’s question to me is:  What can I do in the mean time to maximize the value of that account when I inherit it?I love this question, Christa.  And I’ll tell you EXACTLY what you should do.But FIRST:  Can I take a moment to brag again on my Phoenix team?  We’re about to wrap up another GREAT “passive real estate flip” where we work with a client who wants to take advantage of the hot market for flipping real estate, but who hasn’t the time or expertise to perform the flipping process for themselves.  Now, I’ll go ahead and admit… the deal I’m about to describe to you is in escrow on the resale side.  We bought this property almost 3 months ago and have fully renovated it.  It is under contract to be sold, and escrow will close on that sale in about 2 weeks.  The bottom line on this deal?  Assuming it closes on time, the cash-on-cash return will be 29.6% for a 4-month transaction.  And even if escrow is extended, we’ll still solidly be in the 20% cash-on-cash ROI range on this deal.  My guys in Phoenix are just simply extraordinary… and I’m so proud to be associated with them, and to connect my clients with them.  If YOU would like more information about what they’re doing, and how YOU could get involved in our Passive Property Flipping, please check out my free webinar right now.  You can see it at SDIRadio.com/flip… again, that’s SDIRadio.com/flip.  This particular opportunity is most suitable for clients with a minimum of $75,000 of liquid capital. So, Christa wants to know how to maximize the benefit she receives from the Roth IRA she’ll inherit sometime in the future from her father, who is currently alive and kicking, thankfully!Christa, I admire your interest in planning for optimization.Here’s something I want you to remember:  That Roth IRA belongs to your father.  It will not be yours until you inherit it after his passing.  So the first thing to consider is that you should make sure your relationship with your father is on steady ground, because at any time between now and that fateful day, your father still owns that IRA, and can change the beneficiary at any time… or he could just withdraw the money in it and use it to his liking.But assuming that your family ties are strong, here’s what you can do:Consider building the Roth IRA alongside of your father.  Remember – it’s his account, so everything done with that account will require his approval.  Depending on the size of your account, you have various options.  It’s my impression from your email that your father deposited a fairly small amount of money into the account, and do you know what?  That’s ok.  The value of an inherited Roth IRA is not in the amount of money you inherit in it – though more is always better – but it’s in the incredible tax advantages that it offers you… you know, that advantage where all of your investment profits are both entirely tax free AND available for your immediate usage without penalty.So here’s the thing:  If your father’s account is small, I recommend that you do two things:  First, to the extent it’s consistent with your father’s tax planning and financial circumstances, ask your father to add more contributions to it over time in order to grow the capital base.  The money for those contributions may even be given to your father by you… so long as you do so in a tax-compliant manner.But the other thing… the far more consequential thing… that you should do is this:  Begin to learn some investment strategies you can use that require less money, and probably more effort.  For example:  Many people will flip one or two real estate contracts each year in their IRA.  While I do fear that the IRS could change it’s stance on that particular activity in the future, in recent years, it appears that they’ve been pretty liberal about allowing that strategy.  And the strategy is simple:  You find a property that can be bought at an attractive price and get it under contract in the name of your IRA, and pay the earnest money deposit using your IRA’s funds.  You then find some other party who is interested in the property, and “assign” the contract to them for a fee, thereby getting back your earnest money and a nice profit.  It’s frequently possible to earn nice sums of money – making $5,000 to $15,000 per assignment transaction is not uncommon.BUT… it does require work.  That’s the tradeoff… if you’re dealing with a small amount of money in your Roth IRA when you inherit it, you’re going to have to focus on deals where you can substitute effort for money, to the extent that such is allowable in your IRA.There are other methods too… there’s a lot of flexibility in note investing, for example… particularly with the use of partial notes.  But that’s a topic far too big for our remaining time.And something very important, Christa:  You can NOT contribute more money to the Roth IRA after you inherit it.  No more contributions are allowed after inheritance.  You can make all of the profit you want in that account, but you can’t contribute more money to it.Bottom line, Christa:  You should spend your time right now LEARNING how to do these types deals where you can substitute effort for money in an IRA-compatible manner.  This will allow you to quickly build up your Roth IRA capital base to a point where you can do other, more substantial, deals… and really enjoy the astounding tax advantages that an inherited Roth offers.And to the rest of my listeners:  A Roth IRA… even one with a limited amount of capital… coupled with education about how to use it… is one of the most valuable things you could leave to your children and grandchildren.  Please take a moment to listen to Special Edition 1 of this show, published on February 15, 2015 for more information.  It’ll blow your mind.Have a great day my friends… and remember to check out my webinar about Passive Property Flipping for affluent investors over at SDIRadio.com/flip. Folks… invest wisely today… and live well forever! See acast.com/privacy for privacy and opt-out information.

7mins

23 Jun 2015

Rank #1

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Why It's NOT All About "LOCATION, LOCATION, LOCATION"! | Episode 125

Real estate is all about location, location, location… or is it?  Here’s how you determine EXACTLY which market is best for your portfolio dollars… along with the one thing that might matter even more than location.  I’m Bryan Ellis.  This is Episode #125.----------Hello, SDI Nation!  Welcome to the podcast of record for savvy self-directed investors like you.What is the very best market in America for real estate investing?  What about the top 5?I’ll get to that in just a moment, but first:Later today, I’ll be sending out an update to my TOP PICKS list with some great new rental properties that can be purchased FAR below retail price… seriously excellent deals, to be frank.So if you’re looking for an actual GREAT real estate deal, in a very desirable market, that you can acquire for a very attractive price – then be SURE to be on my Top Picks notification list.  To get on that list, text the word TOP PICKS with no spaces to 33444.  Again, text the word TOP PICKS with no spaces to 33444 and later today, I’ll send out the notice to you!So… which real estate markets are absolutely the best?More importantly, how does one accurately determine this information?The best approach, of course, is a crystal ball.  That’s what I use, and it’s served me very well.  HeheheheheJust kidding, of course!  I could practically hear all of my more woo-woo listeners in California going gaga in the realization that I’m one of them.   HeheheheheBut actually, I’m not.  I’m more of a hard numbers, analyze a spreadsheet, black-and-white standards sort of guy.  Not as exciting as the hocus pocus, but it works a lot better!So, short of invoking the supernatural, how do we know where real estate is likely to boom or bust?Incidentally, what I’m about to tell you is relevant for stocks, too.There are 2 general approaches to analyzing markets… regardless of what the market is.  One is called “Fundamental Analysis” and one is called “Technical Analysis”.You should have conceptual familiarity with both.  So I’ll give that to you right now.Here’s the gist of fundamental analysis:  There are some factors that tend to have an impact on asset pricing.  The most fundamental of fundamental factors is supply and demand.  Recently, there’s been a relative shortage of housing inventory in cities like Charlotte, San Antonio and San Diego.  And since people continue to want to move into those areas, prices are naturally driven higher.So, the SUPPLY of housing inventory in a market is a very, very important consideration, and it’s fairly easy to know.  The U.S. Census Bureau freely offers this data, and you can get this information from the National Association of Realtors as well.But what about the other side of the coin:  Demand?  Assuming a market isn’t oversaturated with housing, how can you know whether there will be demand for real estate there?Here again, adherents to the discipline of fundamental analysis believe that logically connected factors drive demand, and therefore pricing, of real estate markets.  Some of the most commonly relied upon fundamental factors are: See acast.com/privacy for privacy and opt-out information.

8mins

3 Sep 2015

Rank #2

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the MOST POWERFUL Financial Tool For Legacy Building | SDIRadio.com #225

Do you want to build a legacy, and not just a portfolio?  If so, there’s one financial tool that is CHEAP (under $10), easy to use, and will have a bigger impact on FUTURE GENERATIONS than anything else you’ve ever done.  And odds are, you’ve never even heard of it.  I’m Bryan Ellis.  I’ll tell you what it is and how to use it RIGHT NOW in Episode #225. ---- Hello, SDI Nation!  Welcome to the show of record for savvy self-directed investors like you, where each day you how to find, understand and profit from exceptional investments… and turn those investments into a wonderful legacy for generations to come! What a GREAT DAY to be alive, folks!  I’m so honored you’re spending some time with me right now, so let’s get right to it.  But a quick note to you, and I really hope you folks will take this seriously. Have you ever been in a situation where you were just a bit short of capital for an investment, or for your business, or anything else?  If so, I want you to check out my friends Ari and Mike at Fund & Grow. They are astoundingly good at acquiring zero interest credit of fifty to $250,000 that you can use at your discretion!  I really vouch for what they can do… it’s really amazing, and I’ve seen it work over and over with my own clients, many of whom are your fellow listeners!  To see how & why it works, just check out the short video we’ve posted at SDIRadio.com/credit.  You’ll be very glad you did. My friends, I know that many of you, like me, think in terms not only of building for your own retirement and other financial wellbeing, but also of building financial assets that will benefit future generations.  And you know, that’s a WISE thing to do.  In fact, right there in the middle of the greatest book of wisdom ever written, the Biblical book of Proverbs, is a verse that says that one thing that wise people do is to leave an inheritance for their children’s children… their grandchildren!  That means that wise people operate with an eye on making an enduring impact on at least 3 distinct generations:  Their own, their children’s generation, and their grandchildren’s generation. If you agree with that thinking, as I do… then ask yourself:  How would it impact your decisions today, if your time frame was not merely from now until retirement, or now until the end of your life… but at least now until the end of your GRANDCHILDREN’S lives?  Wow… that’s a huge, humbling and EXCITING thought, really… because time well used is the best friend of the wise investor. Now look, I’m no expert in Hebrew, the original language of that verse in Proverbs, but in the English translation of it I’m reading, there’s no indication that the inheritance that a wise person leaves to their children’s children is or should be limited to a FINANCIAL inheritance. What other kind of inheritance is there, you might wonder?  Well I’m glad you asked, my friends!  Hehehe What’s easily more valuable than any money you could leave is the benefit of your EXPERIENCE.  Don’t just leave money or assets… leave an awareness of what those assets are… why you chose them… what alternatives you considered and rejected… what factors about that asset gave you PAUSE, even though you opted to acquire it… what standards you adopted to know how long you should hold the asset… what kind of tax or legal structuring you used for the asset… what you planned to do with the cash flow generated by the asset… how the asset compares to other investments you’ve made in the past. There’s GOLD in that kind of information, my friends… PURE GOLD. Imagine if your parents or grandparents had passed on to you a journal… or many journals… that logged their thoughts about the kinds of decisions they made with their money?  There would be SO MUCH TO LEARN… even if your forebears were NOT financially successful… still, how valuable would it be to see the formation of the decisions that led them where they ended up?  Because it was THOSE decisions that affected YOU… and those decisions reverberate to your children, your grandchildren, great-grandchildren and beyond! I feel a real passion rising up in me for this notion… the notion of financial journaling…. But it’s not really just a financial thing… it’s more like LEGACY journaling… documenting the legacy that I want to leave and that you want to leave. And all it takes is to go down to the local office supply store and spend $10 on a journal.  I guess you could do it electronically, and there’d be value to that too, I suppose.  But there’s something special, I think, about handwriting. Can you imagine what it would be like to have the accumulated wisdom of multiple generations of your family to call upon?  Something to pass from one generation to the next… something that makes your family uniquely YOUR FAMILY among all of the families in the world?  Folks, nothing is more indicative of who you are, and who your family is, then how you spend your money.  Where your treasure is… what you use your money for… THAT is where your heart is.  THAT is what’s important to you… This is important stuff, folks!  And not just for investments.  For all things financial.  What if there was a history you could look back on to see when your parents considered whether to buy a home or a car or an insurance policy or even take a big vacation… how valuable would it be to know what, exactly they considered?  IMMENSELY valuable… because you’d have the benefit of hindsight, and the ability to objectively evaluate whether their decision turned out well or not. That kind of experience is PURE GOLD, my friends… absolutely priceless.  Absolutely priceless. And what about your financial RELATIONSHIPS?  Passing on knowledge of great advisors, great bankers, great attorneys, great accountants… that kind of information… those kinds of shortcuts have value of indescribable measure. This is a practical issue, too, for those of you who are interested in building not just a portfolio, but a legacy.  That’s because, unless you restrict your investments to the most plain-jane of assets, such as stocks or mutual funds, then there will be assets in your portfolio that may be unfamiliar to your children or grandchildren such that they don’t really know how to handle them.  But by WRITING DOWN what you bought, why you bought it, and how to know when it’s time to sell, you’ll be making the job EASY for them! There’s ABSOLUTE GOLD in that kind of information… and without it, that brilliant and very successful real estate deal you get into TODAY will likely be the one that your future beneficiaries will liquidate far below real value… not because they’re vindictive or foolish or anything other than that they simply don’t understand. So, that’s it, my friends… start a financial journal today.  Go to an office supply store, spend 10 bucks on a journal, and use it!  Maybe call it a legacy journal… and write down the important decisions you make and why you make them.  Then pass that information on, and teach your family to revere it as worth far more than money, because it is. Hey, that’s all for today except for one question I have for you:  Did you find today’s show helpful?  If you DID, and if you’d enjoy more shows like this, then PLEASE do this: Tell a friend about SDI Radio, ok?  That’s the best way for us to grow.  Just tell them to stop by SDIRadio.com!  And be sure to leave your comments and questions over at today’s show notes page at SDIRadio.com/225…. I’d love to hear from you! And hey… if there’s anything you’d like to hear more about, drop me a line at feedback@sdiradio.com.  My friends… invest wisely today, and live well forever! See acast.com/privacy for privacy and opt-out information.

8mins

25 Aug 2016

Rank #3

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BUFFETT'S BEST ADVICE - And You've Never Heard It! | Episode 103

What is the single most valuable piece of advice ever given by Warren Buffett?  A lot of what he says is utterly irrelevant for you and me as Self-Directed Investors, but this bit – which you’ve probably never heard before – is absolute GOLD.  I’m Bryan Ellis.  I’ll tell you what it is RIGHT NOW in Episode #103.-----------Hello, members of SDI Nation!  I’m so glad to be back with you.Last week was TOUGH, my friends!  I had one of those summer colds that really zapped a big portion of the week, and one of the things I missed most was getting to spend this time with you!  I say that totally sincerely, folks:  I feel like the luckiest man alive to get to do this show and to have your attention for a few minutes each day… so thank you for being such great listeners.And a special shout-out is in order to a few specific listeners, who have recently left 5-star reviews for this show on iTunes.  They are:Toliver5, who just discovered the show and has already listened to over 20 episodes… thank you, sir!Ccy1189, who describes what you hear each day as “informative, inspirational and innovative!”JV Crum III who describes the show as “in a class by itself”And others including Phily M, Joel Boggess, Roy Chumley, Dr. Mark C and a whole lot more of you.  Folks, I’m so eager to share Buffett’s best advice ever, but I’d be remiss if I didn’t, with the utmost respect, ask you to consider stopping by iTunes to give this show a 5-star rating.  I’ll be so overwhelmingly grateful if you can.  Thanks so much!Ok, so you regular listeners have a sense of my opinion of Warren Buffett.  On the one hand, the guy is an overwhelmingly successful investor in the equities market.  It’s simply undeniable.  His results have created substantial influence, and there is a lot to be learned from the man’s approach to investing.  His politics are shockingly simple-minded, but it’s easy enough to separate that from financial issues for our purposes.Did you know that Buffett is a proponent of the S3 model of investing that I teach here on SDI Radio?  The S3 model is basically this:  Every single investment you make must be SIMPLE and SAFE and STRONG.  Now, Buffett doesn’t call it the S3 model… but that’s really what he’s doing.  In fact, maybe I’ll do a show that really details the striking similarities.Nevertheless, it’s not investment strategy per se that is the most valuable advice he’s ever given.  Rather, it’s the “20-slot” concept.It’s rumored that Buffett once said these words:  “I could improve your ultimate financial welfare by giving you a ticket with only 20 slots in it so that you had twenty punches - representing all the investments that you got to make in a lifetime. And once you'd punched through the card, you couldn't make any more investments at all.”Think about THAT, my friends.  Think about the ability to make an investment as a strictly limited quantity… a commodity in short supply that, once exhausted, can never be replenished.Sure, that’s not actually true… or is it?  Actually… I think the real-life version of that rule may be far more restrictive than 20 slots, and I’ll tell you why in just a moment.But what’s ABSOLUTELY true is that many self-directed investors – particularly those of us in America – have a fundamental weakness:  It’s the assumption that there will always be more.  There will be more money, or more opportunities, or more time.  There will be more economic stability, there will be more strong markets, there will be more health, there will be more days to our lives.  We believe there will always, no matter what, be more.My friends, there’s a concept that is so important in the world of self-directed investing, but nobody talks much about it.  It’s the concept of STEWARDSHIP.  In truth, that’s what I would like for this show to be – the STEWARDSHIP show.  Alas, that concept is too foreign to most.Let’s separate investing and stewardship, shall we?Investing is about one objective, and only one objective:  Taking one thing, and making it into something more.  And that is a noble, praiseworthy objective.  Never, ever will you hear me denigrate the notion of investing.  It’s a good thing, an honorable thing and a necessary thing.But stewardship is about something bigger than that.  Stewardship is a step above investing on the financial hierarchy.  Stewardship absolutely includes successful investing, no doubt about it.  Even the biblical parable of the talents shows that the 2 men who invested their talents and gained more were praised, but the one who simply protected the talent and did nothing to grow it was punished as wicked.  So, wise investing is a key part of stewardship.But there’s more to it.  It’s a different perspective – a higher perspective.  Stewardship includes a few additional considerations including: See acast.com/privacy for privacy and opt-out information.

9mins

27 Jul 2015

Rank #4

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RAMSEY vs KIYOSAKI on Debt & Your Investments | Episode 78

https://SelfDirected.org/78 Dave Ramsey says "Debt is Dumb & Cash is King".  Robert Kiyosaki says there's "good debt" and there's "bad debt".  But they BOTH miss the mark... Listen in to find out how!  Text SDIRadio to 33444 for more info! See acast.com/privacy for privacy and opt-out information.

7mins

9 Jun 2015

Rank #5

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Why You Should NOT Buy Real Estate In Your IRA | SDIRadio.com #233

Is there ever a time when it is NOT wise to invest your IRA money into a great real estate deal?  You may be surprised to hear it, but the answer is, without a doubt, YES!  I’ll tell you when that’s true… and give you an extraordinary alternative.  I’m Bryan Ellis.  This is Episode #233 ---- Hello, Self Directed Investor Nation!  Welcome to another exciting edition of Self Directed Investor Radio, the show by savvy investors, for savvy investors where we help you to DECLARE INDEPENDENCE from Wall Street… and help you to build wealth for generations to come. This is is Episode #233 and you know what that means… you can find the transcript and show notes for today’s episode at SDIRadio.com/233.  And if you have questions or comments, you can post them right there at SDIRadio.com/233 or you can reach out on either Twitter or Facebook at SDITalk. My friends, a few months ago, a highly esteemed publication – none other than TheStreet.com, a major news source for the whole Wall Street crowd – asked me to begin writing for them, as there’s a very clear appetite on the part of many, many “conventional” investors to look at ways to invest their capital OUTSIDE of the monster known as Wall Street. The very first article I wrote for them – called “Avoid These 5 Traps When Buying Real Estate In Self-Directed IRA’s” – was promptly awarded an editor’s choice award, which is of course, gratifying, so thank you to the editorial team at TheStreet.com.  But that article and the 5 points within it point to a reality that is somewhat foreign to many investors like me and you who, completely reasonably, see the self-directed IRA and/or 401k as the best thing since sliced bread.  That reality is that:  Sometimes, it’s a good idea to AVOID buying real estate in your self-directed IRA. Here’s why: First, it’s actually possible you’ll pay MORE in taxes by doing so.  If you’re using a Roth IRA… no problem, your tax issue is solved.  But if you’re using a traditional account, remember that when you make withdrawals, those withdrawals are taxed at INCOME TAX rates, which are frequently MUCH HIGHER than the capital gains rates you’d likely pay if you did the same deal OUTSIDE of your IRA.  This is a complex issue, and merits some professional advice. The Second complication with buying real estate in your self-directed IRA is related to LEVERAGE… also known as getting a loan to buy property.  You absolutely CAN do that within a self-directed IRA.  But it’s complicated, and it does subject your IRA to present-day taxes based on a variety of factors we won’t dive into here.  Getting a loan to buy real estate OUTSIDE of an IRA is, by comparison, a rather simple, cut-and-dry sort of thing, so remember that if leverage is key to your strategy. The Third issue is that if you buy real estate in an IRA, you no longer get the benefit of other great real estate-specific tax advantages that render the IRA less meaningful, such as depreciation and the almighty 1031 exchange.  Those two benefits alone make it worth seriously considering doing a real estate deal OUTSIDE of an IRA rather than inside of it if you have that option. The fourth big issue for buying real estate in a self-directed IRA is connected with the notion of SWEAT EQUITY… the active investor’s best friend.  You know what I’m talking about… sweat equity is the increase in property value one receives by doing work on the property yourself rather than hiring out to expensive contractors.  But with a self-directed IRA, that issue is challenging because it’s very plausible and very reasonable for the IRS to view the work you’re doing on your IRA’s houses without being paid as a contribution to the plan beyond what’s allowed, and that can cause a big heap of trouble for you should Uncle Sam decide to have a closer look at your IRA. And the fifth big issue for buying real estate inside of a self directed IRA is this:  You’ve got the freedom to hang yourself.  What I mean is that you are, almost completely, unrestricted in your moment-to-moment activities with the assets of your self-directed IRA.  That’s a good thing… freedom is wonderful, but it can be dangerous, too.  Because if you run askew of the IRS’ rules for how your self-directed IRA can be managed – and those rules are both LEGION and sometimes indecipherable – then the IRS could pin your account with the dreaded “prohibited transaction” label which… in one way of looking at it… probably means that somewhere between half and all of the value of your IRA just went out the door to taxes, penalties and interest because the IRS is NOT PLAYING AROUND on this prohibited transactions thing. That all sounds rather ominous, doesn’t’ it?  Well… it is.  But only if you’re not well prepared for what you’re attempting to do. You see, it IS both legal and frequently wise to buy real estate in an IRA.  But there is a generalization that I’d like to recommend to you, which is: For any given real estate transaction, if you have the option whether to perform he deal EITHER inside OR outside the IRA, my recommendation is that you default to skipping the IRA and do the deal with non-retirement funds.  You’ve heard 5 reasons why so far, but here’s the really big one: Real estate is, as a legal, statutory matter, extremely tax-favored by the law… much more so than practically any other asset class… certainly more so than stocks.  What I mean is that, even without the benefit of a self-directed IRA, the tax laws are so kind to real estate investors who plan properly that you may actually end up doing BETTER for yourself financially by focusing on the two tax goldmines that exist for real estate investors, which are DEPRECIATION and the 1031 exchange. Depreciation is a tax strategy that allows many investors to take more in tax deductions than they’ve actually spent.  So it’s a great income tax shelter if you qualify for it. The 1031 exchange is another marvel of real estate tax law that, in a nutshell, allows you to buy a property, let it blow up in value and become very profitable, and then sell very profitably and pay no tax… as long as you immediately re-invest your proceeds of sale into some other real estate deal.  It’s a way to get the same type of tax deferral that traditional IRA’s offer… but without the threat of prohibited transactions or other risks that are inherent to self-directed IRAs. But I have one other parting bit of advice for you as well:  Don’t avoid a great real estate deal just because your IRA is the only place where you can fund the deal.  Absolutely not.  I’m NOT telling you that you should NEVER buy real estate in your IRA… only that you should be biased against doing so if you have other alternatives. And, of course, you need to speak with your own tax counsel about this.  The truth is I know MANY, MANY people who have very successfully navigated the requirements of owning real estate in their retirement accounts… and are very glad they did so. And, by the way… if you are looking for a GREAT real estate investment… I’ve got some thoughts for you on that, too!  Just text the word SENDBOOK to 44222 to get a free copy of our latest ebook called the SDI Guide To Real Estate Wealth for Busy Investors where you’ll learn how to build a high-quality portfolio of turnkey rental properties that build your cash flow – and your wealth – without your day-to-day involvement… just like it should be for busy investors like you!  Again, just go ahead and text SENDBOOK with no spaces, just one word, to 44222 right now. Folks, I hope you had a very merry Christmas or are enjoying a happy Hanukkah.  The coming year is going to be an exciting, exciting time for all of us, and for now, I leave you with this bit of advice… invest wisely today, and live well forever! See acast.com/privacy for privacy and opt-out information.

8mins

27 Dec 2016

Rank #6

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BETTER: Renting Or Flipping? | Episode 98

What’s the better investment:  Rental Property or Flipping?  Well, the verdict is in from a major real estate data firm.  I’m Bryan Ellis.  I’ll tell you what that verdict is, and it’s relevance for you, RIGHT NOW in Episode #98…----------Ahhhh yes… it’s a classic conflict among investors…  Take a small bit of cash flow now and for years as a pacifier while you wait for big gains… or get in for the quick but substantial hit of profit by focusing on undervalued assets. Yes, my friends, it’s the constant debate of whether it’s smarter to RENT PROPERTY or to FLIP IT.  And our friends at CoreLogic have the answer, which is:  real estate FLIPPING is definitely winning the day versus rentals.And why wouldn’t that be true in today’s market?  Real estate prices in much of the country is still undergoing a rather substantial rebound from the market carnage of 2007-2009… frankly, it’s the perfect scenario for real estate flipping, as the market itself is doing much of the work of bringing a profit for flippers.Still, there’s more to the story.  This survey was conducted among investors purchasing real estate at auction… both in live auction settings and in online auctions.  And there were 3 different types of buyers identified in the survey:  One-time buyers, Real Estate Investors, and agents or representatives of investors.One-time buyers is the only group who preferred renting to flipping.  It’s easy to see why:  One-time buyers are inherently low-volume in terms of real estate transactions and frankly, it’s not plausible to be a flipper if you’re only doing it every now and then.  That particular method of profiting from real estate doesn’t lend itself well to the casual investor.But to those professionals and serious flippers… this market remains a truly stellar environment in which to generate rather substantial short-term profits.  I guess that’s why, among real estate investors and those who represent them at auctions, the Flip vs Rental option is won by the flippers by a differential that, if it was a presidential election, would be a landslide.There’s one large generalization that can be drawn from this study, and it is:The MORE PROPERTIES a person tends to buy in a year, the more likely they are to be real estate flippers rather than buy-and-hold investors.  In fact, people who buy zero or one property per year are more likely to be landlords by a factor of about 60 to 40.  But that ratio reverses almost exactly the very moment a person buys their second property.But overall, one thing is clear:  Flipping is where the most money is being deployed among savvy, active real estate investors… and by a very, very wide margin.Why?It’s simple – there’s a lot of money in flipping.  That’s not always the case.  Look… I have a team of flippers that does GREAT work and are able to make profits in good times and bad times but, the truth is, sometimes it’s just EASIER to make money as a flipper than it is at other times.  And right now – and I expect for at least another 2-3 years – flipping is in a real sweet spot.The best evidence of that is NOT the CoreLogic report, which is just a survey that people say what they “intend” to do.  The best evidence is the RealtyTrac report that analyzes quarterly real estate flipping activity.  That report shows what actually happened… not just intentions.  And that report shows some really amazing numbers:First, it showed that the average GROSS profit for real estate flips that closed in Q1 of this year was over $72,000.  Second, and just as importantly, it showed that the gross profit margin – sell price versus buy price – was over 35%.  That means that it wasn’t mega-mansions that led to $72,000 average gross profits, but houses in the $100,000-$300,000 range… a much more palatable scale for most investors.But all of that is nebulous and imprecise… the result of studies, and not specific deals.  So let’s look at some specific deals to see what’s REALLY going on out there.My Flip team closes 1-3 flips basically every week.  One of the deals we closed last week, Barcelona Lane in Maricopa, Arizona, yielded rather typical results for my guys.  That deal had gross numbers that absolutely exceeded the average gross profit and gross ROI numbers reported by RealtyTrac.  But those are gross numbers, not net.  The numbers that really matter on the Barcelona deal are these:This deal was completed in 4 months – almost to the day.  And it returned a total NET cash-on-cash return of 29.6%.While this kind of result is far from atypical for my flip team, let’s face it… that’s an astounding result.  If you got that result from investing in the S&P 500, that would be one of the 10 best years the stock market has ever seen.  But that result is, thankfully, rather common for my flip team.My point is this:  There’s a HUGE amount of opportunity in flipping, but I do have a warning for you:  Don’t try this at home.  Flipping isn’t a game for amateurs.  Flipping is a real profession.  It requires a lot of knowledge.  It requires having highly reliable team members to do the work.  It requires having a real system in place to produce consistent profit.  Most of all, it takes experience to know which deals really make sense, and which are ticking time bombs, just waiting to wreak havoc on your portfolio.But you should NOT overlook the opportunity to get involved in real estate flipping… just not on your own.  My advice?  Work with somebody who has done HUNDREDS or THOUSANDS of these deals… don’t bite the bullet on your own.  Better yet… work with someone who has that level of experience, and who will agree to compensation based on a percentage of the profits rather than contractor fees.Where can you find such a team with vast experience and the ability to work with 3rd party investors such as yourself?The answer is simple:  Go over to S3Flip.com and I’ll tell you about a team who has done this a HUGE number of times… with an ASTOUNDING track record of success.  Did you know that my team in Arizona has bought over 13,000 houses at the foreclosure auctions?  We know what we’re doing… and have a vast amount of evidence to prove it.  So stop by S3Flip.com to check it out. Look, this isn’t just me telling you about my flip team.  This is PRESENT DAY REALITY, my friends.  A huge part of my goal for this show is to connect you – the Self-Directed Investor – with great options for self-directing your investment portfolio.  The answer to “what’s working now” is not always the same.  Flipping is not always the best choice.  Right now, it makes a huge amount of sense.And so in just a few weeks, I’m holding a live event in Phoenix called the Passive Property Flipping Summit, where I’ll gather investors together who see the promise of “Outsourced Flipping” – where you provide the capital but have no other responsibilities – and I’ll introduce you to my team, help you to understand our process, and show you how to participate in this very lucrative opportunity, without having to be a real estate flipper yourself.So if you’re interested, stop by at S3Flip.com because my friends, flipping is what’s working now.  Not only does the survey from CoreLogic show that that’s where smart money is being deployed, but the analysis of over 17,000 flips done in Q1 of this year by RealtyTrac show the numbers undeniably:  There’s very big opportunity in flipping right now… and the absolute best way for you to be connected to it is to see the “Outsource Property Flipper” training over at S3Flip.comOh… if you’re qualified to attend – which means you’ve got at least $75,000 of liquid capital to deploy – then the Passive Property Flipping Summit is free for you to attend.  But it’s basically full already.  I’m down to 15% capacity.  So check it out right now if you’re interested at S3Flip.com.My friends… invest wisely today… and live well forever! See acast.com/privacy for privacy and opt-out information.

7mins

15 Jul 2015

Rank #7

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Real Estate: The Ideal IRA Investment | SDITalk.com #300

https://SDITalk.com/300 -- Yes, it’s true: Rental property investing in your IRA or 401k can make you very, very wealthy. It’s also true that it’s stressful and time consuming to be a landlord, and financially risky to do so within the confines of the IRS’ strict rules for retirement accounts. Fortunately for you, I have the answer. I’m Bryan Ellis. This is episode #300 of Self-Directed Investor Talk. See acast.com/privacy for privacy and opt-out information.

8mins

24 Jan 2018

Rank #8

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INSPIRING: How to Make 15% EVERY SINGLE YEAR - Here's an AWESOME "S3" (Simple, Safe, Strong) Portfolio In REAL LIFE | Episode 68

Want to make 15% EVERY SINGLE YEAR?  No Way... Unless you've created an S3-Model (Simple, Safe & Strong) Portfolio Like THIS BRILLIANT INVESTOR... and your fellow listener to SDI Radio!  For more info, text SDIRadio to 33444 now! See acast.com/privacy for privacy and opt-out information.

7mins

19 May 2015

Rank #9

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Own Real Estate In A Traditional IRA? Slash Your Taxes THIS WAY! | SDITalk.com/236

Want a quick tip for saving a TON of taxes if you own real estate in a traditional self-directed IRA?   I’ve got just the thing for you now.  I’m Bryan Ellis.  This is Episode #236. ---- Hello, SDI Nation!  Welcome to the podcast of record for savvy self-directed investors like YOU where you are educated, entertained and even INSPIRED to DECLARE INDEPENDENCE from Wall Street… Our goal here is to help you find, understand and PROFIT from the very best alternative assets that money can buy. I’ve got some more tax-saving goodness for you real estate investors who use your Traditional IRA to own real estate. But before we go there… have you checked out SDITalk.com/credit?  That’s where you’re going to learn how to get up to around $250,000 of ZERO-INTEREST capital for your investments or your business.  You know those credit cards that offer a zero percent introductory offer?  Well imagine you could do that… but you could extend the “introductory” period out indefinitely.  That’s what you’ll learn how to do at SDITalk.com/credit.  They’ve set up over $2 million of zero-interest funding for your fellow listeners just since October – you know, during the past 3 months – and more than $4.1 Million in the past year, so this is for real.  Check them out at SDITalk.com/credit. Now onward, my friends… So, let’s just imagine you’re one of the MANY folks who owns real estate in your IRA.  Actually… I’ve got the perfect context for a story to explain this to you. We’re currently doing some research to check out the background of a company who has a unique angle on the turnkey rental property business.  What these people do is work with investors who want to buy a RETIREMENT HOME for themselves in their IRA in a nice location.  So what this company does is basically puts all of that together for the investor, and then monetizes the property for the owner in the form of corporate rentals.  So what you have is high quality tenants who are paying a premium rental rate, and who are likely to take really good care of the property… and then when the time comes for your retirement, you’ve got a home that you can live in, paid for by your IRA! Well, there’s just one little hitch with that. You can’t live in that house until it’s not in your IRA any more.  For it not to be in your IRA any more, it has to be distributed to you, in other words, removed from your IRA. And as soon as that happens, guess what?  You guessed it:  Taxes.  You get to pay income tax rates on the ENTIRE value of the house.  So if it’s worth $200,000 and you’re in the 30% effective tax bracket, you’ll have to come up with $60,000 just to cover the income tax due to you. Ouch.  Hey… that’s the reality… the traditional IRA is just a tool for tax deferral, not a tool for tax elimination. HOWEVER… there is something that can be done quite easily to substantially reduce that tax burden, and I will, of course, share this bit of tax brilliance with you… originally taught to me by the great one, Tim Berry, America’s top self-directed IRA attorney. So we’ve already agreed this house is worth $200,000, right? What is half of that house worth?  $100,000? Well… no, it’s not.  What can you do with ½ ownership of a house?  Maybe you’re entitled to half of the income it generates.  You’re entitled to half of the income if it’s sold.  But do you actually own the house if you o nly own half the house?  No, you don’t.  You can’t independently decide to rent it or to renovate it or the sell it or anything else like that.  You’ve got to get the OK of the other owner, too. So it’s safe to say – and is an accepted truth in tax law that our friends at the IRS would agree with – the value of half (or any proportion) of an asset is LESS than the value of half of the whole thing… and that makes perfect sense. So here’s the play: Instead of distributing the house to yourself from your IRA, distribute HALF of the house to yourself from your IRA, and then the other half at some time in the future… maybe the next day, maybe the next tax year, that’s a question for your tax advisor. But the net effect is this:  You’re ultimately receiving 100% ownership of the property, but you’re doing it in such a way that the value of the property is reduced by some factor – probably around 25% - because you’re taking it out in PIECES, which are each inherently less valuable than the whole. So that means your $60,000 tax bill just dropped by 25%... or $15,000. There, you just save $15,000 by listening to Self Directed Investor Talk.  You’re welcome!  Actually, THANK YOU!  Thank you for listening to SDI Talk.  I really appreciate you. Remember – today’s show notes page is at SDITalk.com/236.  You might check it out… it’s a totally new format that I think you’re going to find incredibly helpful. And before I let you go… We’ve got some GREAT turnkey rental property investment opportunities in several cities throughout the country, and I know MANY of you are interested in that asset class, as well you should be.  BUT… There are 7 key questions you need to make sure that you answer before you buy your first (or your next) turnkey rental property, and after you answer them, you’ve basically assured yourself of an excellent transaction.  To learn more just call my free recorded message line at (773) TURNKEY.  It’s only 2 minutes long, and nobody will answer the phone, it’s just a recording, but I think you’ll really benefit from the information.  That’s (773) TURNKEY. My friends, thank you for listening in today!  Please, spread the word about SDI Talk and remember:  Invest wisely today and live well forever! See acast.com/privacy for privacy and opt-out information.

7mins

13 Jan 2017

Rank #10

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SDI 047: CAUTION! Why Rental Property should NEVER Be The Foundation Of Your Portfolio

WHAT?  Can you believe it?  Bryan says there IS a time you should invest in Real Estate Rentals rather than Real Estate Notes - but only under THIS circumstances (listen now!) See acast.com/privacy for privacy and opt-out information.

8mins

30 Mar 2015

Rank #11

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258E: Traditional vs Roth IRA | Episode #258E

Episode #258: Traditional vs Roth IRA https://SelfDirected.org/podcast/investor-talk/episode-258 See acast.com/privacy for privacy and opt-out information.

11mins

21 Mar 2017

Rank #12

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a CD that Beats Stocks?! | Episode 111

How would you like to own a certificate of deposit with returns that actually BEAT the stock market?  Something so reliable that it’s a great way to invest that part of your portfolio that you absolutely can not afford to lose… yet you still get a great return?  Well, I’ve got something even better, and I’ll tell you all about it RIGHT NOW.  I’m Bryan Ellis, and this is Episode #111---------Hello, SDI Nation!  Welcome to the podcast of record for smart, individual investors!I didn’t get to be with you on Friday, and I really missed that!  But boy did I have a great time with some of your colleagues and fellow listeners at our Passive Property Flipping Summit.  That event was for affluent investors seeking to deploy their capital into passive real estate flipping opportunities, and it was an extraordinary experience.  The event filled up many weeks ahead of time and it was just truly wonderful to actually meet so many of you face-to-face!My friends, I’ve got some great info to share, and I’ll get to that in about 30 seconds.  But first, let me say THANK YOU for listening!  This podcast is only about 6 months old and it’s already a major force to be reckoned with because of YOU.  It’s astounding how many other shows feel the need to respond to what I say, because what I teach is completely counter to the advice given by others who have a conflict of interest.  And heck, there are a lot of shows that are now rather directly ripping off my material now.  Yes, my friends, what you’re now hearing is SHOW PREP for the other shows you listen to.  Hehehehe  You know what they say… imitation is the sincerest form of flattery!  Until the cease-and-desist letter, that is.  HeheheheheBut seriously, we’re doing so well because of YOU, and I’m SO VERY GRATEFUL to you.  Nobody would care about what I have to say if YOU didn’t care about what I have to say… and so really, YOU are the hero, the person of influence, in this situation.  And I’m so grateful to you.So, I’m going to give you some great value yet again today!Here we go:It would be great if there was a bank that would issue a CD that could beat – or even equal – the long-term average of the stock market.Well, my friends, such a CD does not exist, as you know.  But something that’s BETTER actually does exist.And before I tell you about it, let’s determine what is ACTUALLY the long-term return of the stock market.  What would you guess?  A lot of people think that number is 10% or 12%.  What do you think?Well, my friends, let’s look at the actual numbers, shall we?We’ll use a period of 80 years, because that’s the average lifespan of an American citizen.  And over the last 80 years, the compounded annual growth rate for BOTH the Dow Jones Industrial Average and the S&P 500 has been in the 6% range.Surprising, isn’t it?  Much lower than you guessed, no doubt.  But the news is worse than that.  Around 6% is what the MARKET has averaged.  The results for the typical investor in stocks has been FAR WORSE.There’s a fascinating study that’s published every year called Dalbar’s Quantitative Analysis of Investor Behavior.  Sounds like a great read, doesn’t it?  Hehehehe.  Well, there is one particular piece of information in that you MUST pay attention to:The average investor who invests in stocks does NOT achieve a 6% rate of return.  Far from it.  According to Dalbar, the average 30-year annualized rate of return is a whopping 1.9%.Yes, you heard that right:  1.9%.How could that be?  The painful truth is that you and I aren’t very good at stock picking or timing.  Remember – that magical 76 number is based on the assumption that you put money in 80 years ago, and that you leave that investment alone for the entire 80 years following.  But is that reality?  No, of course not.Folks, do you remember back as recently as 2008… a year when there were 3 SEPARATE days when the entire S&P500 fell by about 9%?  It was a bloodbath.  Or do you remember back to Black Monday – October 19, 1987 – when the ENTIRE MARKET fell by more than 20% in a single day?The ugly reality is most investors revert to their baser instincts of survival mode when such things happen.  That’s the nature of the stock market.  It encourages emotion-based decisions, which leads to buying high and selling low.  And that, my dear listeners, is why even though the long-term average for the market is about 6%... the average for people like you who invest in the stock market is less than a third of that, at 1.9%.Have your results been better than that?Then pay close attention to this:My friends, there’s a concept in statistics and finance called “reversion to the mean”.  This means that anything you’re measuring tends to return to it’s long-term average over time.  If right now you’re below average, it’s likely your results will rise.  If right now you’re performing above the average, it’s quite likely your results will revert to the mean.What’s the answer?  Let’s invest in assets that have a higher average!How about, say, 7%?  That way, we beat the stock market and the average investor!So where can you get such a result?  It’s easy:  don’t look to Wall Street.  Look to Main Street.Imagine a local guy named Joe.  Joe found a piece of real estate he can buy WAY below it’s value.  I mean… WAY below it’s value… about half.  Problem is, he doesn’t have all of the money he needs.This is an opportunity for you to get a SLAM-DUNK investment.  Here’s how it works:  You make a loan to Joe.  You lend him money at 7% interest, and so that it’s easy for him to make payments, you only require interest-only payments.Joe loves it… he’s got a really low payment and now he can do his deal, but the reason this deal is safe for you is this:You will ONLY lend Joe half of the value of the property.  If the property is worth $100,000 then you’ll lend him $50,000.  If it’s worth $300,000 then you’ll lend him $150,000.Whatever the value… you’ll lend half.And then, there’s one other thing:  If Joe doesn’t keep up his payments, you get to take that house and sell it.  And the reality is you’ll likely make a WHOLE LOT MORE money from doing that if you must.  In other words, you have a Plan “A”… where you collect 7% interest… and you have a Plan “B”, where you can make FAR MORE than that, if for any reason Plan A doesn’t work!But you know what?  Joe isn’t going to miss his payments.  Because this house is such a SMOKING-GREAT deal that he wants the profit that’s built into it.And thus, you get paid 7% interest – guaranteed – every single month.  No volatility, no complication, no trouble.  It’s just simple.  It’s safe.  It’s strong.Now, you probably don’t want to do this with all of your portfolio.  But folks, most people wisely consider about 1/3 to 2/3 of their portfolio as the “conservative” portion… the part where they just can’t afford to lose money.  You’ll want to really optimize the other 1/3 for high returns, but……For that core of your portfolio… the part that matters the MOST to your financial future… isn’t it appealing to think you could BEAT the stock market… and have NO VOLATILITY and virtually NO RISK to your money?  It’s like a REALLY AWESOME Certificate of Deposit… only the rate is much higher… and it just MAKES SENSE to you why it works!But the big problem for you is finding somebody like JOE who wants to borrow money under those terms.My friends, I can help you with that.  Actually, I can make the problem go away entirely… it becomes a totally “turnkey” opportunity for you!Want to learn more?  Join me for a special webinar THIS WEEK for Self Directed Investor Radio listeners ONLY.  I’ll tell you more about the strategy – including why it’s so incredibly safe and predictable, along with very profitable – and further, I’ll show you how to get those results in a totally turnkey manner, so you never even need to understand how to find somebody like Joe or evaluate real estate or any of that stuff.  You just get to make incredibly safe loans at a 7% interest rate and forget about everything else!To get a link where you can register for this premium webinar at no cost, just text the word RESERVE to 33444.  But there is a limited number of free passes available, and to get one, just text the word RESERVE to 33444.My friends, invest wisely today… and live well forever! See acast.com/privacy for privacy and opt-out information.

7mins

10 Aug 2015

Rank #13

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SDI 054: The UGLY Side Of The Best Asset Class For Individual Investors

I ADMIT IT:  Real estate notes are the BEST asset class for individual investors.  BUT... there's a dark side... not all notes are created equal!  Here's a sobering case study for you... SDIRadio.com See acast.com/privacy for privacy and opt-out information.

7mins

23 Apr 2015

Rank #14

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SDI 045: TOP 3 MYTHS about Retiring Abroad... And Why Uncle Sam Hopes You'll Believe Them

TOP 3 MYTHS... Uncle Sam HATES competition for your dollars... and so The Government, And The "Powers That Be" Routinely Perpetuate 3 Myths That May Have SCARED YOU From Considering Retirement Abroad.  Here's the truth, my friends! See acast.com/privacy for privacy and opt-out information.

6mins

26 Mar 2015

Rank #15

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Trump vs Hillary (1 of 3) – the IMPACT for Self-Directed Investors – RISE Act

You’re a self-directed investor.  Do you think that there’s no difference between a vote for Trump and a vote for Hillary?  Think again, my friends.  A new legislative proposal is out that directly attacks self-directed IRA’s specifically, and this leads to the CLEAR and RATIONAL conclusion that the difference between the candidates is huge.  I’m Bryan Ellis. I’ll spell it out in CRYSTAL CLEAR LANGUAGE RIGHT NOW in Episode #229. ------  Hello SDI Nation, welcome to the podcast of record where we help you to declare independence from Wall Street and build a financial legacy for future generations.  Today I’ll do that by helping you to understand what’s at stake in the upcoming presidential election that’s directly relevant to YOU as a self-directed investor.  Just a heads up… in today’s show, you’re going to hear me refer to today’s show notes page a few times.  That page is SDIRadio.com/229 and it’s got some really important, profoundly relevant things for you.  So when you hear me refer to today’s show notes page, know that I’m referring to SDIRadio.com/229. First – folks, you’ve doubtlessly heard of my friends over at Fund & Grow.  These guys are absolute magicians when it comes to helping their clients acquire zero-interest lines of credit… lines of credit that are essentially just signature loans, not even secured by real estate or anything else.  Think about that, folks… what if you could finance that real estate deal using a zero percent interest loan?  It’s a game changer, and that’s exactly what my friends Ari and Mike over at Fund & Grow do.  I say they’re magicians, but in truth, they just follow a great, great process that’s very reliable.  For people with decent credit or better, it’s totally achievable to reach $250,000 in zero-interest credit… and my friends, they’ve actually generated over $2.9 million worth of that type of credit for your fellow listeners just this year alone.  So my recommendation?  Check them out, and do it now… at SDIRadio.com/credit.  Again, that’s SDIRadio.com/credit.  You’ll be glad you did. My friends, have you heard of the poorly named Retirement Improvements and Savings Enhancements Act of 2016 – aka the RISE Act proposal?  Probably not… but as a self-directed investor, it’s HUGELY relevant to you, because it’s an all-out attempt to gut your rights to use a self-directed IRA in the ways that work best.  I’ll tell you specifically how in just a minute, but you really need to understand the background. During the presidential battle of 2012, Mitt Romney made the shocking revelation that he owned an IRA worth as much as $102 MILLION.  When I heard that, I thought WOW!  I want to be like him when I grow up!  But when certain people in Congress heard about it, all they could see was “THE RICH GET RICHER” and “THAT’S UNFAIR” and “he couldn’t do that legally”. All of these things are, of course, just the typical babblings of intellectually dishonest politicians who – let’s be honest – don’t give one little damn self directed IRA’s or about you.  What they do care about is appearing to their constituents – at least half of whom are below the average national income – that “I’m on your side and I’ll punish those rich guys who are getting rich at your expense.” It’s absolute garbage… it’s simple-minded reasoning for simple-minded constituents who have been trained by government schools, the media and our self-obsessed culture that success should be attacked rather than emulated.  If you agree with that – that success should be attacked rather than emulated – then you should stop listening to this show right now, because I’m not interested in having you as a listener. But if you understand, you agree that success is laudable, good and praiseworthy, and you agree that success leaves clues that the rest of us can follow, then listen on as I explain how we got to the threat of the RISE act that we face today. One particularly class envy-oriented senator, Ron Wyden, Democrat from Oregon, appears to have really gone bankers over the fact that some people had become very successful using their IRA’s… so much so that he demanded that the Government Accountability Office perform a study to find out how big the “problem” was, and how it was that anyone could ever build that much wealth. That last part is a legit question.  Most IRA’s have a max contribution of 6 grand per year or so, and even if you got a long-term profit rate of 8% per year, it would still take more than 90 years to get to $100 million.  Clearly, Romney isn’t 90 years old, so how’d he do it? Well, Romney didn’t break any rules.  We don’t really know what he did to accumulate such an impressive sum, but here’s my guess... and that’s all it is is a guess.  Remember that Romney was became rich as a venture capitalist specializing in business turnarounds and restructuring.  In other words, it was his JOB to find companies that were headed towards or already in bankruptcy – and thus essentially worthless – and to turn those companies around in such a way as to make a big profit.  And I suspect, after Romney had been doing this for a while and was very good at predicting which companies could be successfully turned around before it happened, he started to acquire shares of these companies in his self-directed IRA BERFORE he turned them around while they were available at very, very low prices.  You know, a company in bankruptcy is not expensive to buy.  So maybe he’s able to acquire thousands or millions of shares of a company for a few pennies per share.  He then works his magic as a turnaround expert and brings that company back from the brink of bankruptcy and causes those shares he bought for a few pennies to be worth a dollar, or 5 dollars or $100 dollars or more. And I suspect he did this many times.  And with that, it suddenly becomes very, very plausible to accumulate as much money as Romney did.  Again, that’s just my guess… only Romney really knows… but I bet it’s pretty close to this. Well, like I said, this revelation drove Senator Wyden insane with class envy. He commissions the GAO study I mentioned to you a moment ago, and what was revealed is that this issue of “mega IRA’s” like Romney’s isn’t a particularly big issue.  There’s a total of about 9,000 IRA’s in the entirety of America with a balance of greater than $5 million, most of whom are formerly high-earning retirees.  There are more than 9,000 people within 5 miles of my house.  That’s a tiny number.  So clearly, there’s nothing to see here in terms of a real problem.  Frankly in my mind, it wouldn’t be a problem if there were a million huge IRA’s… but the way I think is very different from the way Senator Wyden thinks. Which leads us to the RISE act proposal… and its connection to the Trump vs Clinton battle.  But unfortunately, we’re out of time- past time actually – in this episode.  So let’s do this:  The next episode with the Trump/Clinton connection is up and available RIGHT NOW at SDIRadio.com/230.  Again, that’s SDIRadio.com/230… so please, go there right now and check it out, because nothing could be more TIME SENSITIVE or RELEVANT to the safety and security of your self-directed IRA. My friends, invest wisely today, and live well forever! See acast.com/privacy for privacy and opt-out information.

7mins

7 Nov 2016

Rank #16

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WARNING -- How AirBnB, VRBO, HomeAway & CraigsList can HURT Your Property Values | Episode 146

Are YOU interested in investing in residential real estate?  If so, there’s one more threat to your property value that didn’t exist before a few years ago… but it’s a big one.  And you have companies like AirBNB, VRBO, HomeAway and CraigsList to thank for it.  I’m Bryan Ellis.  I’ll tell you all about it RIGHT NOW in Episode 146.----Hello, SDI Nation!  Welcome to the podcast of record for savvy self-directed investors like YOU!Imagine this:  You’ve bought a great house in Austin, Texas… or Tuscaloosa, Alabama… or San Diego, California… or Tallahassee, Florida… or Boise, Idaho… or Seattle, Washington… or any of hundreds of other cities ALL OVER America…It’s a good house in a good neighborhood.  It’s certainly a Class A property… the type of place that would be entirely suitable for you and our own family to live in.  This isn’t a war zone.  This is a place with walkable streets and obvious local pride.Your hopes are high.  You’re going to rent out that property, make a little cash flow, and build some equity.  You’re chasing financial freedom… and you’re doing it in a very responsible way.Except, the phone isn’t ringing.  It seems that nobody wants to lease that house from you.  And you just can’t understand why.That’s when you learn something interesting:  The house next door… and one several doors down… they’re listed on one of those services – like AirBNB, VRBO, HomeAway, and, of course, CraigsList – that allow home owners to rent out their houses on a short-term basis.  These services enable homeowners to begin running their own hotel service right in their own home…. The home that’s in the same neighborhood as your home.No big deal, right?That’s right… except for one thing:  Your property is located in a city that’s a common vacation destination… or home to a very popular college or pro football team… or it’s convenient to a huge venue where events are held on a regular basis like Madison Square Garden or the Georgia Dome or Staples Center…And because of that proximity, those short-term rental properties that are in the same neighborhood as your property are very, VERY popular… and because of the nature of the reason why people come to town, there’s one common theme for those short-term visitor:  They’re coming to town to PARTY.Hey, we all love a good party.  No doubt about it.  But there are limits… and when that party happens over and over… disturbing the peace in your neighborhood and making your property undesirable to renters or buyers, then that translates into a very real problem:  The potential for declining property values.My friends, this is a real phenomenon.  The latest press coverage of it was this past Friday in the New York Times… and the coverage wasn’t kind to those renting their houses out in this way.Clearly, AirBnB… maybe the biggest of the services who specialize in these short-term rentals… recognizes that there’s a problem. They’ve set up a neighbor hotline to call if there are problems.  But the reality is, there’s simply not much that AirBnB can do.Austin, Texas – a very popular destination – tried to tackle the problem by stipulating that no more than 6 unrelated people could stay in any of these homes at any one time.  But that effort was thwarted by short-term renters of these properties, who had apparently been coached to tell local law enforcement that they weren’t actually “staying” in the property, just visiting… and some others claimed to be cousins or other distant relatives, thus technically satisfying the rule in a manner that couldn’t easily be disproven by police.The net result in Austin:  Regulation has done little to stem the tide of disrespect of neighbors by users of short-term rentals.To be certain, not every AirBnB or HomeAway client is a disrespectful partier.  Far from it.  But you know that it doesn’t take too many nights of disturbed sleep for one to lose patience with this type of behavior… and quite justifiably so.What can we observe from this?One thing is that you should certainly investigate the locale where you’re considering the purchase of property to see if there are any properties nearby that are offered as short-term rentals.  Particularly problematic are the properties that are represented as suitable for 8 or more people, as the larger the group of people occupying the property, the more probable it is that the group is a traveling party.  To my way of thinking, properties like these make other nearby properties less attractive than they’d otherwise be, and certainly demand additional caution.Another thing we can conclude is that more regulation is coming to address these issues.  And reactionary regulation such as that spurred by issues like this short-term rental issue is usually poorly considered and has unintended side effects that are negative for the broader populace.  You can be sure that such regulation will ultimately restrict the rights of reasonable home owners as well, and not just those using their properties as short-term rental property.  And clearly, that’s a bad thing.One solution that I can think of is this:  Home Owners Associations.  I’m not a huge fan of home owner’s associations, because they’re frequently controlled by people with less intellectual acuity, and even less integrity, than – well, I don’t want to insult criminals or those with mental challenges – so let’s just say they’re frequently not the most high-quality people in the world.But this is a PERFECT place for a responsible Home Owner’s Association to take action.  Most HOA’s have quasi-governmental authority over the properties in their neighborhoods, usually including the right of foreclosure, as a response to rules violations.  And that is a very big stick to wield.  Why not use that authority – in a responsible way – to solve this problem on a neighborhood-by-neighborhood basis?There… problem solved for a very large swath of residential properties in America.  No need for more regulations.But bottom line, folks:  Don’t overlook this issue.  It’s an easy piece of due diligence to perform, and it could be a really big factor in the desirability, and thus the value, of that piece of property in which you’re considering investing.  Like good ole Ben Franklin told us… an ounce of prevention is worth a pound of cure!Hey… I hope you enjoyed today’s show.  If you’d like a transcript of this show, text the word TRANSCRIPT to 33444 and I’ll be happy to send it to you, free of charge.My friends, I’ve got some GREAT… really great… investment opportunities coming up that I’ll announce very soon – within 10 days, actually… and you’ll definitely want to know about these.  May I remind you that when I had 19 great investment properties available 2 weeks ago, they all disappeared within a few days?  And what I have to share with you within 10 days is just as spectacular as those opportunities – maybe even more so!So be prepared.  Text the word TOPPICKS to 33444 to get on my early notification list.  The word there is TOPPICKS spelled TOPPICKS with no spaces.  Text TOPPPICKS to 33444 now!My friends… invest wisely today, and live well forever! See acast.com/privacy for privacy and opt-out information.

7mins

12 Oct 2015

Rank #17

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Secrets of Highly Tax-Advantaged Investing | SDITalk.com/320

Secrets of Highly Tax-Advantaged Investing -- Episode #320 -- https://SDITalk.com/320For more information: text the word FLOWTEX to 833-212-2112 See acast.com/privacy for privacy and opt-out information.

42mins

5 Aug 2019

Rank #18

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Which is Better: SEP IRA or Solo 401k? | SDITalk.com #244

The Big Idea Self-employed investors have retirement account options that are FAR superior to conventionally employed people in the form of the SEP IRA and the Solo 401k.  One of them is clearly better than the other... Points To Ponder IRA's are great, but you can't contribute more than $6,500 per year to them Self-employed investors may qualify for the SEP IRA or the Solo 401k, both of which have a much larger limit - up to $60,000 per year Solo 401k is practically always a far superior alternative to the SEP IRA because: It's much easier to actually contribute to the solo 401k than to the SEP IRA You can't have a SEP IRA that's taxed as a Roth account The SEP IRA has all of the severe vulnerabilities to prohibited transactions that are present with all IRA's.  Solo 401k's are much safer and friendlier to the investor. If your advisor recommends a SEP IRA over a solo 401k, they're likely either ignorant or are being compensated to motivate you to open an IRA. Resources Episode #245 (this show) of Self Directed Investor Talk Free Webinar that shows how many SDI Talk listeners are receiving very large credit lines at 0% interest for their real estate deals or businesses.  Check it out here. Warren Buffet admits that Diversification is for the Ignorant See acast.com/privacy for privacy and opt-out information.

7mins

31 Jan 2017

Rank #19

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HIGH YIELD + EXTREME SAFETY - The Ultimate Investment? | Episode #75

can you HAVE IT ALL in your investment portfolio?  You'll learn ONE STRATEGY that is EASY to understand... is very SAFE for your principle... and offers STRONG, STRONG returns!  Please text SDIRadio to 33444 for more info! See acast.com/privacy for privacy and opt-out information.

7mins

4 Jun 2015

Rank #20