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Investing in Real Estate Through Your Strategic Affluence 401k This material is copyright © 2013 by SSEN LLC and is used under license by Strategic Affluence.

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Presentation on theme: "Investing in Real Estate Through Your Strategic Affluence 401k This material is copyright © 2013 by SSEN LLC and is used under license by Strategic Affluence."— Presentation transcript:

1 Investing in Real Estate Through Your Strategic Affluence 401k This material is copyright © 2013 by SSEN LLC and is used under license by Strategic Affluence LLC. This presentation is not to be construed as legal or professional advice and is subject to terms and conditions posted at http://www.StrategicAffluence.com

2 The Purposes Of This Video Are… To help you understand the mechanics of investing in real estate through your Strategic Affluence 401k To help you avoid the common errors involved in buying real estate inside your Strategic Affluence 401k To expose you to some very creative ways to using your Strategic Affluence 401k to profit from real estate This material is copyright © 2013 by SSEN LLC and is used under license by Strategic Affluence LLC. This presentation is not to be construed as legal or professional advice and is subject to terms and conditions posted at http://www.StrategicAffluence.com

3 Buying Real Estate In Your Strategic Affluence 401k Conceptually, buying real estate in your Strategic Affluence 401k is very similar to buying real estate inside of an LLC… …except that your profits are probably tax free! This material is copyright © 2013 by SSEN LLC and is used under license by Strategic Affluence LLC. This presentation is not to be construed as legal or professional advice and is subject to terms and conditions posted at http://www.StrategicAffluence.com

4 Buying Real Estate In Your Strategic Affluence 401k All ongoing expenses relating to the real estate investment must be paid out of your Strategic Affluence 401k bank account. This material is copyright © 2013 by SSEN LLC and is used under license by Strategic Affluence LLC. This presentation is not to be construed as legal or professional advice and is subject to terms and conditions posted at http://www.StrategicAffluence.com

5 Buying Real Estate In Your Strategic Affluence 401k Likewise, all income or gains relating to your real estate investment must be returned to your Strategic Affluence 401k bank account. This material is copyright © 2013 by SSEN LLC and is used under license by Strategic Affluence LLC. This presentation is not to be construed as legal or professional advice and is subject to terms and conditions posted at http://www.StrategicAffluence.com

6 Buying Real Estate In Your Strategic Affluence 401k When acquiring a piece of real estate for your Strategic Affluence 401k, the “buyer” on the purchase and sale agreement should reflect that the purchaser is the trustee of the Strategic Affluence 401k on behalf of the plan. This material is copyright © 2013 by SSEN LLC and is used under license by Strategic Affluence LLC. This presentation is not to be construed as legal or professional advice and is subject to terms and conditions posted at http://www.StrategicAffluence.com

7 Rule #1 For example: If your name is Richard Hoffman, your plan is called the Hoffman 401k PSP, and you are the trustee of the plan, then you should execute documents for your plan like so: Richard Hoffman, Trustee of the Hoffman 401k PSP This material is copyright © 2013 by SSEN LLC and is used under license by Strategic Affluence LLC. This presentation is not to be construed as legal or professional advice and is subject to terms and conditions posted at http://www.StrategicAffluence.com

8 Rule #1 Of course, you should confirm this with your own legal counsel before actually risking any money or accepting any legal liability. This material is copyright © 2013 by SSEN LLC and is used under license by Strategic Affluence LLC. This presentation is not to be construed as legal or professional advice and is subject to terms and conditions posted at http://www.StrategicAffluence.com

9 “Gotchya” #1 Avoid contracting properties in your own name, and then assigning to your plan. This material is copyright © 2013 by SSEN LLC and is used under license by Strategic Affluence LLC. This presentation is not to be construed as legal or professional advice and is subject to terms and conditions posted at http://www.StrategicAffluence.com

10 “Gotchya” #2 If your property needs rehab, repair or any type of labor, you can not do it yourself. You must hire an unrelated third party to perform all work. This is not allowed and can cause big problems. This material is copyright © 2013 by SSEN LLC and is used under license by Strategic Affluence LLC. This presentation is not to be construed as legal or professional advice and is subject to terms and conditions posted at http://www.StrategicAffluence.com

11 “Gotchya” #3 Do you need to establish utility or other services for the benefit of the property? If so, all such services must be established in the name of the Strategic Affluence 401k plan. This material is copyright © 2013 by SSEN LLC and is used under license by Strategic Affluence LLC. This presentation is not to be construed as legal or professional advice and is subject to terms and conditions posted at http://www.StrategicAffluence.com

12 Seller Financing – Ultimate Leverage! Remember: It Is Completely Acceptable to Purchase Real Estate In Your Strategic Affluence 401k Using Owner/Seller Financing, In Which The Seller Takes Some Or All Of The Purchase Price In The Form Of Payments. This material is copyright © 2013 by SSEN LLC and is used under license by Strategic Affluence LLC. This presentation is not to be construed as legal or professional advice and is subject to terms and conditions posted at http://www.StrategicAffluence.com

13 Seller Financing – Ultimate Leverage! This Allows You To Finance Your Transactions Without Any Third Party Lenders Involved In Any Way! This Type Of Creative Real Estate Strategy Is Worth Learning If You’re Not Familiar With It, So… This material is copyright © 2013 by SSEN LLC and is used under license by Strategic Affluence LLC. This presentation is not to be construed as legal or professional advice and is subject to terms and conditions posted at http://www.StrategicAffluence.com

14 Seller Financing – Ultimate Leverage! …Some great resources for learning how to structure seller financing can be found at: http://www.Strategic Affluence401k.com/sellerfinancing This material is copyright © 2013 by SSEN LLC and is used under license by Strategic Affluence LLC. This presentation is not to be construed as legal or professional advice and is subject to terms and conditions posted at http://www.StrategicAffluence.com

15 Contract Flipping Contract Flipping is one of the best “fast-cash” methods of being in the real estate business. This material is copyright © 2013 by SSEN LLC and is used under license by Strategic Affluence LLC. This presentation is not to be construed as legal or professional advice and is subject to terms and conditions posted at http://www.StrategicAffluence.com

16 Contract Flipping The way it works is this: Imagine there’s a property worth $300,000. On behalf of your Strategic Affluence 401k, you negotiate a purchase price of $200,000 and put down an “earnest money” deposit of $1,000 from your Strategic Affluence 401k… This material is copyright © 2013 by SSEN LLC and is used under license by Strategic Affluence LLC. This presentation is not to be construed as legal or professional advice and is subject to terms and conditions posted at http://www.StrategicAffluence.com

17 Contract Flipping You then offer that contract to another real estate investor for an “assignment fee” of $15,000… This material is copyright © 2013 by SSEN LLC and is used under license by Strategic Affluence LLC. This presentation is not to be construed as legal or professional advice and is subject to terms and conditions posted at http://www.StrategicAffluence.com

18 Contract Flipping This means that the new investor gets the property for $215,000 (which is still a great deal), and your Strategic Affluence 401k gets a nearly instant profit of $14,000 (difference between purchase and resale price, minus your $1,000 earnest money)! This material is copyright © 2013 by SSEN LLC and is used under license by Strategic Affluence LLC. This presentation is not to be construed as legal or professional advice and is subject to terms and conditions posted at http://www.StrategicAffluence.com

19 Contract Flipping If you’re not familiar with flipping real estate contracts, some great resources for learning this strategy can be found at: http://www.Strategic Affluence401k.com/contractflipping This material is copyright © 2013 by SSEN LLC and is used under license by Strategic Affluence LLC. This presentation is not to be construed as legal or professional advice and is subject to terms and conditions posted at http://www.StrategicAffluence.com

20 WARNING This material is copyright © 2013 by SSEN LLC and is used under license by Strategic Affluence LLC. This presentation is not to be construed as legal or professional advice and is subject to terms and conditions posted at http://www.StrategicAffluence.com

21 Warning About Contract Flipping If your Strategic Affluence 401k flips many contracts each year, the IRS may classify this as an active business, and you’ll have to pay income taxes on the profits. This material is copyright © 2013 by SSEN LLC and is used under license by Strategic Affluence LLC. This presentation is not to be construed as legal or professional advice and is subject to terms and conditions posted at http://www.StrategicAffluence.com

22 Warning About Contract Flipping Some advisors have recommended to limit yourself to 3 or 4 flips per year, and that may be good advice. This material is copyright © 2013 by SSEN LLC and is used under license by Strategic Affluence LLC. This presentation is not to be construed as legal or professional advice and is subject to terms and conditions posted at http://www.StrategicAffluence.com

23 Warning About Contract Flipping The truth is, we simply don’t know at what point the IRS begins to categorize a retirement plan as participating in an active business where contract flipping is concerned. This material is copyright © 2013 by SSEN LLC and is used under license by Strategic Affluence LLC. This presentation is not to be construed as legal or professional advice and is subject to terms and conditions posted at http://www.StrategicAffluence.com

24 Warning About Contract Flipping So just take it easy with this one! This material is copyright © 2013 by SSEN LLC and is used under license by Strategic Affluence LLC. This presentation is not to be construed as legal or professional advice and is subject to terms and conditions posted at http://www.StrategicAffluence.com

25 Buying Real Estate In Your Strategic Affluence 401k There are many other real estate strategies we’ll cover in our ongoing calls, our live events and webinars, so be sure to stay tuned! This material is copyright © 2013 by SSEN LLC and is used under license by Strategic Affluence LLC. This presentation is not to be construed as legal or professional advice and is subject to terms and conditions posted at http://www.StrategicAffluence.com


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