Quote:
Originally Posted by BGCarrera32
explain please...?
Danke
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Here's an exerpt from a summary document I've put together after researching this subject:
I hope it helps
Transfer the 401k / IRA to a Custodian (Entrust, Pensco trust, Sunwest Trust, etc)
Custodian verifies that the 401k/IRA funds qualify for transfer to investment purchase and to ensure the 401k/IRA funds are compliant with all laws and can be used for investment purchase.
Custodian verifies these account funds by using the name and institution where your funds have been. Ex: Ag Edwards, Edward Jones, Wachovia, Merrill Lynch etc.
Custodian pays typically less than .05% interest while they hold these funds while you look for an investment.
Upon opening escrow on an approved investment, Custodian requires a “letter of direction” form you directing them. (For R/E to your escrow # and transaction).
During the close of escrow Custodian transfers the account balance into the escrow account to be applied to the purchase and closing of escrow
There are several ways of doing this, some create a LLC and manage their R/E from there. some use the format above..
google "self-directed IRA"
I have a "how to" word document I've put to gether on the subject for some friends and investors, if you want it PM me your email address and I'll send itto you.
There are some good reference materials, websites and additional sources there for learning more about the process and what qualifies as an investment.
I will also say, check with your CPA or tax accountant regarding which plan works best for you.
My Fiance and I are doing it now, managing it ourselves and will not create our own LLC until we have substantial holdings to justify the cost and maintanence of a LLC.
I aldo have multiple investors that are buying in on pools of pre sold REO pools with this money and gettting an avg return of 30-40% in 120 days
I've been doing it for them, like I said now it's my turn!
