FAQ

Here are some frequently asked questions answered by Michael Austin, President:

I have been searching for an investment provider for many months, but I cannot find a group nor the investment vehicle, why you?

There are many reasons to submit your information and be a part of our investor client base. First we are very structured and we know what we want. Structured in that we track all our investor’s goals and we invest funds only after heavy research based on our experience. We are familiar with self directed investing and we have modeled the business around that, opposed to some that dabble in it and take shots at buying real estate only if they are lucky enough to find the opportunity. We seek out the opportunities each day and we aggressively and proactively manage. There are no part time efforts here. Because we do this each and every day, full time, we can find better investments and get you the returns that you are hoping for.

I found a residential property to invest in my area, why not just do this?

Many do this, and this is ok , but it’s a little harder than you might think and what if there are better opportunities in commercial?  Questions arise: Did I buy right? Will I have enough money in the account for the purchase and reserves? What contracts do I use? How will I personally manage the property? How will I rent it? The biggest one here is finding the right investment at the right price. This is a process that takes time and patience and this is what we do based on years of knowing what to look for.

I have lost so much money out of my retirement, I cannot take any more chances. Good idea but no thanks I will ride it out.

We are not suggesting that you take all your retirement and invest with us. You can still diversify. We suggest investing some of the SEP or IRA funds with us. Your broker cannot normally help you diversify out of the public markets because they sell what they are approved to sell. Most do not offer what we offer. We offer a private hands on approach to owning real estate. You know EXACTLY what you own. You can touch and feel it. Additionally, hard as it may be, NOW is the time to buy, but many cannot, since, unlike other down real estate markets, this time the banks are not offering much in the way of financing. This is a double opportunity for us to band together and seek out that great buy.

Is this strategy legal and time tested and how do I start?

Yes it’s legal and time tested. There are certain prohibited transactions such as “self dealing”. Start by contacting one of the large custodians. Links can be found on our site. It’s easy; just follow their advice and steps on how to set up a new account. Your IRA funds will come in and out of this custodian account directed by you.

Is this type of investment guaranteed?

No it is not, but neither are the equities and debt vehicles in today’s stock market. We feel this a great time to invest so there is some protection there. When you invest with us, you are participating in a separate single asset LLC, with all of its own accounting and reporting, with no commingling whatsoever. You will also have a list of co-investors (assuming they do not need to keep this information private) and their percentages of ownership, no blind partnerships. You do not own a share in a blind pool, you are rather a member owning a portion of a specific property. Initial funds are wired directly to escrow from your custodian account, escrow statements are made available as well as copies of all accounting and tax reporting forms.

What returns can I expect? And does Self Directed IRA Corp participate?

Generally anywhere from 6% to 13% plus. See the Investment Examples Tab for some of the returns that we are suggesting. And yes we do participate on the upside. Depending on the investment, we may be entitled to receive a certain percentage of profit after preferred members are paid, and after a certain return is achieved. Each investment plan is outlined in more detail in a separate offering memorandum.

What reports will I receive?

You will receive, complete due diligence, the  LLC operating agreement, quarterly reporting, end of the year reporting, and K1 statements after the tax returns are completed each year.

How do I know my Sep or IRA funds are invested as planned?

We track all funds through each LLC checking account, you will have full access to any reports such as escrow statements, and any accounting software reports that you or your accountant may require.

What are the best values today?

It is hard to say, that is why we look at both equity and debt in retail, office and industrial and sometimes residential. For example, a top performing retail property may be acquired for a low, low price, from a reluctant Seller only due to problems elsewhere in his portfolio. This property could be purchased below replacement cost. Or how about a large distribution facility that was just built but lease up was delayed. Now the bank owns it. That bank may need to move it off the books and may be willing to sell below its loan. Sometimes properties are purchased well below what it cost to build and maybe under the current loan balance. We do not seek out problem properties, we seek properties subject to temporary situations, then we better those situations by use of time or property management and leasing skills, without the need for bank loans- pretty powerful in today’s market!