2. Disclaimer
Quest IRA, Inc. does not provide tax, legal or
investment advice or endorse any products,
services or investments of any type
All information and materials are for
educational purposes only. All parties are
encouraged to consult with their attorneys,
accountants and financial advisors before
entering into any type of investment.

3. Being a real estate investor means
understand the use of money

4. Money means different
things to different people in
different stages of life.

5. In order to understand money we have to
understand peoples needs, and match the
needs with the proper tools.

6. Eats is the main bucket.
The one we all know.
This is the most
expensive use of money.

7. Other uses of money

8. You need to match
the need of money to
the proper tool that
allows maximum use
of the money.

9. What is a “Self-Directed” IRA?
An IRA in which the IRA owner directs all investments in
the account. There is no legal distinction between a “selfdirected IRA” and any other IRA except with a truly selfdirected IRA the account agreement allows the broadest
possible spectrum of investments.

10. What are the benefits of self-direction?
Diversification

11. What are the benefits of self-direction?
IRA Investor
IRS

12. What are the benefits of self-direction?
Social investing!

13. What are the benefits of self-direction?
Take control of your retirement and
invest in what you know best!

14. Types of Plans
• Traditional IRA
– (including rollovers)
• Roth IRA

15. Types of Plans
Employer plans:
• SEP IRA
• SIMPLE IRA
• Individual 401(k)
• Roth 401(k)

16. Types of Plans
Special plans:
• Coverdell Education
Savings Account (ESA)
• Health Savings Accounts
(HSA)

17. What types of plans can be self-directed?
ALL of the above accounts
can be self-directed!

18. Restrictions on IRAs
People Restrictions
Transaction Restrictions
Investment Restrictions

19. People Restrictions on IRAs
Disqualified Persons = Those persons who
cannot benefit from or enter into transactions
with your IRA or other plan.

20. People Restrictions on IRAs
You
Mr. Ira
Think of your IRA as Mr. Ira

21. People Restrictions on IRAs
NO
You
NO
Mr. Ira
Disqualified persons may not enter into
transactions with Mr. Ira

22. People Restrictions on IRAs
Mr. Ira
Fiduciary
Disqualified Persons

23. IRA
Fiduciary “F”
(includes IRA Owner)
Member of F’s
Family
Corporation “C” if F
owns
(directly or indirectly)
50% or more of vote or
value of stock
F’s Spouse
Officer or Director
of C
F’s Ancestor
F’s Lineal
Descendant
“LD”
10% or
more
partner or
joint
venturer
with C
LD’s
Spouse
Highly Compensated
Employee of C (10%
or more of wages)
10% or more
shareholder of C
Partnership “P” if F
owns
(directly or indirectly)
50% or more of
capital or profits
interest in P
10% or
more
partner or
joint
venturer
with P
Person with
management
or administrative
functions of P
Highly
Compensated
Employee of P
(10% or more of
wages)
10% or more
partner of P
Trust or Estate “T” if
F owns
(directly or indirectly)
50% or more of
Beneficial interest in
T
10% or
more
partner or
joint
venturer
with T
Trustee of T
Highly Compensated
Employee of T (10%
or more of wages)
10% or more
beneficial interest
owner of T

24. Prohibited Transaction Restrictions
Any direct or indirect
Sale, exchange, or lease

25. Prohibited Transaction Restrictions
Any direct or indirect
Lending Money

26. Prohibited Transaction Restrictions
Any direct or indirect
Goods, Services, or Facilities

27. Investment Restrictions
Life Insurance Contracts

28. Investment Restrictions
Collectibles

29. Investment Restrictions
Collectibles are defined as:
• Any work of art;
• Any rug or antique;
• Any metal or gem;
• Any stamp or coin;
• Any alcoholic beverage.
An exception exists for certain U.S. minted gold, silver and
platinum coins, coins issued by U.S. states, and gold,
silver, platinum or palladium bullion.

30. What can I invest in with my IRA?

31. What investments are
you knowledgeable
about?
You can buy that
in your IRA!

32. Investment Choices
•
•
•
•
•
•
•
•
•
•
Single family and multi-unit homes
Apartments
Condominiums
Commercial property
Unimproved land
Foreclosures
Limited liability companies
Limited partnerships
Unsecured/secured loans
Joint ventures

33. Investment Choices
•
•
•
•
•
Foreign property investments
Deeds of trust and mortgages
Tax liens
Options
Debt Financed Property
• Must be a non-recourse loan
• Will generate taxes payable on the profit from
the IRA to the extent that the property is debt
leveraged.

34. If you are a investor you should have
an IRA so you can talk about it

35. Steps to Purchasing Real Estate
Assets in a Retirement Plan
1.
Open a self-directed IRA
2.
Contribute or move funds
into the self-directed IRA
3.
Locate an investment
4.
Complete the proper documentation to purchase the asset
(Buy Direction Letter, Private Placement Instructions, Note, etc…)
5.
“Read and Approve” all the documents prior to closing

36. Steps to Purchasing Real Estate
Assets in a Retirement Plan
6.
After your approval of all documents, Quest signs the closing
documents and funds your transaction
7.
Asset is recorded in the name of your IRA, for example:
Quest IRA, Inc. FBO John Smith IRA #12345-11
8.
All expenses come from your IRA and all income stays in your IRA

37. Case Study: Rental Property
John Wood and his associate Jay Wright want to purchase an
office condo for $250,000 within their SEP IRAs.
1. They each transfer $150,000 from their IRA brokerage accounts to
their Quest SEP IRAs to purchase the property.

38. Case Study: Rental Property
2. John and Jay make an offer to purchase the office condo in the name
of their SEP IRAs, as follows:
Quest IRA, Inc. FBO John Wood SEP IRA account #12345-31 and
Quest IRA Inc. FBO Jay Wright SEP IRA account # 23456-31.
3. John and Jay each complete a Buy Direction Letter (Real Estate).
They send the Buy Direction Letters and the contract which has been
“read and approved” by them to Quest.

39. Case Study: Rental Property
4. Quest signs the contract and sends it to the title company along with
an earnest money deposit of $10,000 ($5,000 from each account).
5. At closing, John & Jay review and approve all closing documents, then
the title company sends them to Quest for signature.
6. Quest signs the closing documents and wires the SEP IRA funds to
the title company to close (1/2 from each account).

40. Case Study: Rental Property
7. The title company records the deed and the 2 IRAs are now the
owner of record, as follows:
Quest IRA, Inc. FBO John Wood SEP IRA account # 12345-31
(as to an undivided 50% interest) and
Quest IRA, Inc. FBO Jay Wright SEP IRA account #23456-31
(as to an undivided 50% interest)

41. Case Study: Rental Property
John hires a property management company to oversee the unit.
1. The property management company finds a tenant to lease the
unit.
2. Rents and expenses are handled by the property manager.
3. Office condo has a positive monthly cash flow of $850 ($425 for
each SEP IRA) which is tax deferred.

42. Case Study: Rental Property
4. The property management company submits the net rent proceeds
to Quest for the benefit of John and Jay’s SEP IRAs.
5. John & Jay track their accounts via their online statements.

43. Case Study: Rental Property
Two years later, tenant offers to purchase the property for $395,000.
1. A sales contract is prepared for $395,000 and submitted to Quest for
signature after having been “read and approved” by John and Jay, along
with a Sell Direction Letter (Real Estate).
2. On day of closing, John and Jay review and approve all closing
documents. Quest then signs the documents and returns them to the title
company. Proceeds, after closing costs, are wired back into their SEP
IRA accounts.

44. Case Study: Rental Property
Realized Return for each SEP IRA
Initial investment
$125,000
Cash flow over 26 months ($425 x 26)
$ 11,050
Gains from Sale ($187,500* - $125,000)
$ 62,500
Proceeds to each SEP IRA after sale
$198,550
* Net proceeds after closing costs
Tax deferred gain of $73,550 (59%) over 26 months!

45. Case Study: Rental Property
Key Points to Remember
•
John and Jay’s IRAs pay no taxes on the gains. They can reinvest the
full amount of their profits on the next deal, free of taxes.
•
If the accounts involved were Roth IRAs, Roth 401(k)s, or in some cases
a Coverdell ESA or an HSA, the gain is TAX FREE FORVER!

46. Case Study: Rental Property
Key Points to Remember
•
John and Jay are in total control of the process from beginning to end, but
Quest is the actual buyer and seller of the property.
•
John and Jay did not take money from their IRAs to buy property and put
the money back into their IRAs – the IRAs simply bought an asset and
later sold it at a profit.

47. Case Study: Rental Property
Key Points to Remember
•
IRAs can partner with other IRAs or even non-IRA money.
•
All expenses and proceeds must be split in accordance with their
ownership percentages.
•
John and Jay could have had the checks deposited directly into their
IRAs instead of hiring a property management company.

48. Ways to profit NOW
O.P.I.
OTHER PEOPLE’S
IRAs

49. Borrower’s Perspective:
Making Money NOW
Create your own private financing source

50. Borrower’s Perspective:
Making Money NOW
There are TRILLIONS of dollars
in retirement accounts!

51. Borrower’s Perspective:
Making Money NOW
At every gathering there are MILLIONS
of dollars available for investment.

52. Borrower’s Perspective:
Making Money NOW
“Let me help you recover your stock market
losses with loans secured by real estate.”

53. Borrower’s Perspective:
Making Money NOW
Emphasize that as a real estate investor you are
helping the economy recover by improving
property values and that their investment is a
socially responsible one.

54. Borrower’s Perspective:
Making Money NOW
Provide the prospective lender with the details
of the transaction, including your price and
comparable sales to show value.

55. Borrower’s Perspective:
Making Money NOW
Have a “success book” available!

56. Ways to profit NOW
Partnering

57. Ways to profit NOW
Sales

58. Ways to profit NOW
Investment Capital

59. Spread the knowledge,
then use their money!

60. The big problem when starting

61. Special offer! VIP program
1) Real Estate
• Check vesting on sales contract
• Makes changes to sales contract – correct vesting and address
• Contact title company to introduce our selves
• Contact title company to get information on closing make ourselves the point of
contact
• Help client review the title commitment
• Help client review the closing documents.
• We make sure the closing documents are correct before we send them to the
client.
• Fill out the Direction of investment for them
• We tell them where to sign read and approve. If they don’t want to write read and
approve, we stamp it and create a line for them to sign
• We email the FED REF# to the title company as soon as we have it so they can
track the wire info
• Be in contact with the client’s RE Agent for communication purposes
• Execute and overnight the original closing documents prior to closing
• Follow up with the Title Co./Attorney’s Office to make sure the recorded Deed is
mailed back to Quest

62. Special offer! VIP program
2) HUD Real Estate
•
•
•
•
We do all of the above for Real Estate plus
Get on the phone with client/ realtor to make sure offer is placed correctly on HUD website
We contact HUD immediately after offer is accepted to make sure everything is correct and where
we need to send contract and earnest money
We spend more time with HUD clients to make sure nothing is dropped because we know how easy
it is to lose a deal because of HUD
3) Notes
•
•
•
•
•
•
•
•
Fill out the Direction of investment for them if they need help
We review the promissory note to make sure vesting, maturity date and interest rate all match to
the direction of investment.
We review the deed of trust note to make sure vesting, maturity date, interest rate all match to the
direction of investment
We make sure the property matches the direction of investment
We contact the title company to make sure they have the docs and if they have any questions
We help the client review the HUD and make sure our fees are on there
We email the FED REF# to the client/title company/ borrower as soon as we have it so they can
track the wire
We follow up with the Title Co./Attorney’s Office to make sure the original Note and recorded Deed
of Trust is mailed back to Quest

63. Special offer! VIP program
4) Private Entities
• Fill out the Direction of Investment for them if they need help
• We review the Operating agreement to make sure they are no disqualified
individuals to the IRA.
• We review the subscription agreement and check for vesting, managing members,
address, tax identification number
• We try to help out with the questionnaire but of course, we can’t provide tax,
legal, investment advice.
• We contact the company they are investing in to introduce and see if they have
any questions
• We email the FED REF# to the company as soon as we have it so they can track
the wire
• We mail the signed original agreement to the company along with the private
placement instruction letter via USPS the same day we fund the investment

64. How can I get more information?
For More Information:
www.QuestIRA.com
800-320-5950
Nathan@QuestIRA.com