1 SELF-DIRECTED REAL ESTATE DEALS

THE SELF DIRECTED IRA Using an investment tool called a “Self-Directed IRA,” you can move beyond stocks, bonds, and mutual funds and create a portfolio that truly works for you. 2 Self-Directed Real Estate Deals

The US Social Security Administration defines Financial Security as: $3k per month at the age of 65 APPROXIMATELY ONLY 5% OF AMERICANS ACHIEVE THIS, AND ARE ABLE TO TRULY RETIRE. FINANCIAL SECURITY 5% 3 Self-Directed Real Estate Deals

Positive cash flow is tax-free or tax-deferred No time limit for holding property IRA can borrow money (leveraging your investment) Rapidly compounding ROI (due to tax- sheltered status) Self-Directed Real Estate Deals ADVANTAGES OF REAL ESTATE WITHIN YOUR IRA No Capital gains - Profits are tax- free or tax- deferred 4

FUNDING STRUCTURES OUTRIGHT Self-Directed Real Estate Deals 1 Property may be purchased 100% free and clear using funds directly from your IRA. 5

An IRA owner may choose to partner their IRA with their own personal funds or another person, entity or IRA; even with “disqualified persons.” The IRA owns a percentage of the property. FUNDING STRUCTURES PARTNERING Self-Directed Real Estate Deals 2 6

FUNDING STRUCTURES Self-Directed Real Estate Deals LEVERAGING 3 AKA Debt Financing An IRA may take on a loan (mortgage/deed of trust) Must be a non-recourse loan Typically for income producing properties with 35 to 45% down Leveraged portion of the investment may be subject to UBIT (Unrelated Business Income Tax) 7

INVESTMENT OPTIONS Subject To’s Raw Land Seller- Carrybacks Farm Land Mortgages Deeds of Trust REITS Foreign Real Estate Wholesaling Self-Directed Real Estate Deals 8

BUYING YOUR FIRST PROPERTY Ensure Correct Title of Your IRA Investment Request Funds to Purchase IRA Investment Your Administrator Remits Funds and Retains Records Maintain Your IRA Investment Sell Your IRA Investment Self-Directed Real Estate Deals 9

IRA TITLING Self-Directed Real Estate Deals Remember you and your IRA are two separate entities, and as such, the property needs to be titled in the name of the IRA. Titling is the name, or “title”, that is used to reference your IRA. It is important to reflect your IRA as purchaser on investment documents, rather than your personal name. 10

For example, if your IRA is with iPlan Group and your name is John Smith, then the buyer in the contract would read: iPlan Group, Agent For Custodian, FBO John Smith IRA IRA TITLING Self-Directed Real Estate Deals 11

THE POWER OF COMPOUNDING INTEREST Self-Directed Real Estate Deals 12

THE PRIVATE IRA BANK CONCEPT 13

By working with a Self-Directed IRA lender, you may tap into hidden wealth by creating an individualized loan; you work with the lender directly to determine the terms of the loan, interest rate, security etc. THE PRIVATE IRA BANK CONCEPT 14

LOAN AMOUNT TERM COLLATERAL THE FOUR PARTS OF A MORTGAGE INTEREST RATE The Private IRA Bank Concept 15

EXAMPLE (insert name) (insert location) 55 & 53 Years old 10 Years from retirement $350K in Retirement accounts Inexperienced in managing investments DO NOT want an active role The Private IRA Bank Concept 16

Current Principal$350,000 Annual Addition$13,000 Years to Grow10 Interest Rate9% $1,026,085 FOR RETIREMENT! EXAMPLE The Private IRA Bank Concept 17

$1,026,085 at Retirement 9% = $92,347 Annually $7,695 a month income (without even touching the principal) EXAMPLE The Private IRA Bank Concept 18

EXAMPLE The Private IRA Bank Concept Mortgage = Trust Deed They became THE BANK 6-18 Month Mortgages = Trust Deeds Loan Amount Term Interest Rate Collateral 19

STEP ONE Establish Credibility, Learn to Self-Direct First Hand Move an old IRA or 401(k) into a Self- Directed Account Complete your first deal Get potential investors excited by showing them the highlights of your deal. The Private IRA Bank Concept 20

STEP TWO Find an Investor or investment Partner Friends The Private IRA Bank Concept Associates Business acquaintances Relatives not related through lineal descent Real estate investor meetings & networking 21

STEP THREE Negotiate a Deal Find an investment property The Private IRA Bank Concept Present the deal to potential investors Offer an attractive rate of return and explain how the investment is secured (first lien position) Highlight tax- deferred or tax- free growth using IRA Point out reduction in ROI when using money outside of an IRA 22

STEP FOUR Get Your Deal Funded Instruct your investor to establish a Self-Directed IRA with iPlan Group iPlan Group works with your investor to move their existing IRA funds into their new IRA Determine the terms of the loan and create a Promissory Note & Mortgage/Deed of Trust The Private IRA Bank Concept Submit Promissory Note Investment Authorization Form along with a copy of the note documents to iPlan Group iPlan Group funds your loan from the Self-Directed IRA 23

SELF-DIRECTED IRA BASICS 24

TAX-DEFERREDTAX-FREE Traditional IRARoth SEP IRACESA SIMPLE IRAHSA Individual 401(k) ACCOUNT OPTIONS Self-Directed IRA Basics 25

FUNDING OPTIONS Transfer Direct Rollover Distribution Rollover Conversion Contribution Regular Contribution QUADRO Inherited Account Self-Directed IRA Basics 26

COLLECTIBLES ArtworkCoins RugsAlcoholic Beverages and certain other tangible personal property AntiquesLife insurance MetalsSubchapter S-Corporations GemsStamps “The IRS does not review or approve investments. The IRS does not advise people on how to invest in their IRAs.” – IRS Publication 3125 PROHIBITED INVESTMENTS Self-Directed IRA Basics 27

PROHIBITED TRANSACTIONS Generally, a prohibited transaction is any improper use of your IRA account by you, your beneficiary, or any disqualified person, such as: Borrowing money from your IRA Self-Directed IRA Basics Selling property to your IRA Receiving unreasonable compensation for managing it Using it as security for a loan Buying property for personal use (present or future) 28

DISQUALIFIED INDIVIDUALS The IRA holder and his or her spouse The IRA holder’s lineal descendants, ascendants and their spouses Fiduciaries (Investment advisers and managers) Any corporation, partnership, trust, or estate in which the IRA holder has a 50 percent or greater interest Anyone providing services to the IRA, such as the trustee or custodian Self-Directed IRA Basics 29

Matthew Tillack iPlan Group Sales Manager ext Schedule a Free IRA Strategy Session: THANK YOU FOR ATTENDING OUR PRESENTATION 30