Funding of trust deed investments and mortgages through retirement accounts can provide an excellent investment alternative for individuals that are tired of stock market fluctuations or who would like to have income generating assets in their accounts. Trust deed investments and private money loans have become a large part of the industry, with tens of thousands of trust deeds and mortgages funded on an annual basis.

If you would like to participate in this category using your self directed IRA, you can choose the trust deed investment or mortgages you would like to fund by working in conjunction with your Broker. Title to the trust deeds and mortgages would be held in the name of your TRUST Deed Investment IRA account (First Regional Bank c/f Client Name Retirement Account) with the TRUST tax identification number.

To meet retirement plan guidelines for trust deed investments, notes and mortgages, the borrower cannot be a member of the lender’s immediate family. Also, keep in mind, even private money loans should have reasonable rates within retirement accounts.

While TRUST Administration Services is not a lender or loan originator/broker, we can work with mortgage brokers and their clients or investors to make non-conventional first, second and third loans for trust deed investments within retirement or IRA accounts. The terms of the loan trust deed investments are between the investors and the borrower. Participation loans can also be held in retirement accounts.
Contact me at etedmond@sellandbuywithedmond.com to put you in touch with Trust Retirement Plan Specialist to assist with any mortgage, note or trust deed investment transaction.

BANK STOCKS CAN BE AS LUCRATIVE AS  TECHNOLOGY OR HEALTH CARE STOCKS

There are well over 800 publicly traded U.S. banks and for the savvy investor, these stocks can create returns that are as lucrative as technology or health care stocks.

Banks make their money on the business of buying and selling money. They purchase money through checking and savings accounts. They sell money by making loans or investing in securities. In addition they charge various fees and service charges that add to the profits. There are many ways to evaluate bank stocks, such as net interest margin, efficiency ratios, and assets by comparing banks with similar business models. Title to the bank stocks would be held in the name of your IRA account (First Regional Bank c/f Client Name) with the TRUST tax identification number.

PRIVATELY HELD STOCKS AND BONDS  CAN BE HELD IN YOUR TRUST IRA

Privately held stocks and bonds are investments in entities which are not publicly traded. The kinds of investors that are usually attracted to these investments normally have larger amounts of funds to invest. Private bonds may provide greater security than private stocks because asset of the company may be used to secure them. These stocks and bonds allow young start-up companies to raise capital quickly and easily.

Privately held stocks and bonds can be held in a retirement account through Trust Administration Services. Title to the stock or bond would be held in the name of your IRA account (First Regional Bank c/f Client Name) with the TRUST tax identification number.

PRIVATE PLACEMENT INVESTORS HAVE PROVEN TO BE THE SINGLE MOST IMPORTANT PLAYERS IN THE ENTREPRENEURIAL MARKETPLACE

A private equity investment can be transacted directly from your Trust Administration Services IRA. Private equity investment normally refers to any type of investment that is not tradable on a public stock exchange. Private placements can include limited partnerships, limited liability companies, and corporations who are looking to raise capital. Any income or gain realized from the investment must flow through the private equity investment and be redeposited to your IRA account. Income is tax-deferred since it is in a retirement account. Title to the private equity investment would be held in the name of your IRA account (First Regional Bank c/f Client Name) with the TRUST tax identification number.

A tax lien is a lien imposed on real estate by a governmental agency to secure payment of taxes. The tax lien may be offered to investors in the form of a tax lien certificate. The holder of the lien can receive payment on the lien from interest penalties paid by the property owner. If the property owner defaults on all tax payment deadlines, the lien owner may receive the actual deed to the property for the value of the certificate.

Liens are usually bought through auction and require cashiers check for payment. Therefore, about 10 days in advance you will need to request cashiers checks payable to the county in which the auction is being held. Use the Trust Administration Services Tax Lien Investment Authorization form to instruct us on your purchase(s). We will then overnight the cashiers checks to you. Title to the tax liens or deed investments would be held in the name of your IRA account (First Regional Bank c/f Client Name) with the TRUST tax identification number.

Many IRA holders find it is best to get several incremental checks instead of one large check. For example, if you plan to bid on $30,000 worth of liens you may end up with 15 smaller liens or five larger ones. If you have six checks for $5,000 and you end up with four liens totaling $19,000 then you would give the county four of the $5,000 checks. The county would then issue two other cashiers checks would simply be returned to us for deposit back into your IRA.

It is very important to note that the tax lien must be titled in the name of the IRA, not your name as an individual. The lien(s) would be titled First Regional Bank c/f Client Name. The lien would also reflect the TRUST address and tax identification number.

After the new liens are recorded in the name of the IRA, the original confirmation of ownership such as a certificate or deed must be sent to TRUST as Custodian. Any income or payments generated by the tax lien investment must be deposited back to your IRA account.