Phase 2 - Real Estate 101 (How to or one big idea)

What Is A Self-Directed IRA?

Tyler Stewert
August 23, 2021
What Is A Self-Directed IRA?

Adam Hooper: What is a self-directed IRA. How does how's that different from a traditional who can use that? Just maybe take us through 30,000 foot on, on what that means? Yeah.

Mat Sorensen: So a self-directed IRA, IRA is really a retirement account that can invest in any asset allowed by law. And a lot of people are surprised to hear, wait, my IRA could invest in a private fund that owns a large.

Real estate deal or it could buy the single family rental down the street, or it could own an Airbnb property. Yeah. Like your IRA can own that. The problem is like the financial services industry, when retirement accounts came out the Morgan Stanley's or Merrill Lynch or fidelity or whoever it is.

They realized, wait a second, people are putting lots of money into these retirement accounts. They love the tax perks. They love the tax deductions on the traditional accounts. They love getting the money out tax-free on the Roths and Americans just started saving in those accounts more than any other place.

And so if you're in the financial services industry, you want to handle those accounts and what are you going to let those accounts invest in? What you already sell. Those financial services companies already sold stocks, bonds, and mutual funds. So surprise. When you open an IRA account there, what are they going to let your account invest into what they sell?

They already do that, that's their business. So now you've always been able to buy real estate with an IRA. So a self-directed IRA is just like a industry term. It's not in the tax code, retirement accounts, all retirement accounts have been able to. Invest in real estate, let's say the problem was the institutions that handled the accounts restricted you on what you could buy.

So if you are fidelity, they're like we're a financial services company. You can buy what we sell. If your IRAs at New York life, they're like we're an insurance and annuity company, your IRA combine annuity. So you need to use with these quote unquote. Self-directed IRA custodians, which is what we are, where we provide accounts.

And we have 30 competitors, but our company directed IRA his number one, baby. And we provide those accounts to people who are like, all right, I want to invest in a real estate deal. I want to invest in a little LLC or limited partnership doing a deal. I want to buy crypto or the next startup or whatever.

You're, someone's interested in.

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