My Favorite Deal


$3,000 turned into $53,000 Selling a real estate contract for $50K


Reviewing the different client investments at the conclusion of the year I was able to identify 2 excellent uses of the “truly” self-directed IRA’s.


Kate, a mother of five and a real estate agent in New Jersey, was able to grow her Roth IRA from $3000 to $53,000 in three months. The following table summarizes the investment.


Date Activity


15-Aug Kate opens self-directed Roth IRA $3K cash contribution


9-Sep 10-Sep


Kate Finds a Property to buy for $200,000


Kate fills out Buy Direction letter, CAMAPlan FBO Kate's IRA signs contract with 180 days to close and sends $3000 to the Escrow agent


15-Nov Kate finds a Buyer for the property for $250,000


16-Nov


Kate fills out Sell Direction letter- Buyer sends a check to CAMAPlan FBO Kate's IRA for $53,000 and the contract is assigned to the new buyer


Account Value $ 3,000


$ 3,000 $ 3,000 Asset $3K Cash $3K Cash


$0 Cash $3K RE contract


$ 3,000


$0 Cash $3K RE contract


$53,000


Cash $53,000 Contribution $3K Earnings $50K


Cash Invested $3,000.00 --Profit $50,000


Return on Investment 1667% ($3K/$50K) in 3 months time Annualized return 4 X 1667 = 6667%


Kate had only two comments: “I didn’t have to pay any taxes, a savings of $15,000 but I wish I would of used my Coverdell IRA because my daughter is going to college next…


…Oh well, I will do my next investment with my Coverdell”


“I like the Roth and Coverdell because I am optimistic, and I believe I will have more wealth when I am in retirement than I do now. I prefer to pay the taxes on the seeds and not the crop. All the money in my Roth is mine, and all the money it makes for me is mine, none of it goes back to the government..”


ATTENTION KREIA MEMBERS


Try to Make Your Best Deals a ROTH IRA Deal for TAX FREE PROFIT and TAX FREE INCOME for LIFE!


Join Me For Your Saturday Workshop www.KREIA.com


J. Michael Grinnan CPA


KREIA Discount 502-657-6333


Mike@JMGCPA.com www.JMGCPA.com


9900 Corporate Campus Dr, Suite 3000 Louisville, KY 40223


Copyright MMXI Kentuckiana Real Estate Investors Association•PO17592 • Louisville, KY• (502) 276-1810 www.KREIA.com DISCLAIMER: KREIA does NOT pre-qualify, evaluate, endorse, guarantee or warranty any particular deal, service, company, or person. The Kentuckiana Real Estate Investors Association recommends you perform your own due diligence & seek appropriate legal, accounting, or other professional advice before making any investment. KREIA is a Member of National Real Estate Investors Association.


Saturday Workshop with Carl Fischer – Feb 25th 8:30-4:00pm Register Now! www.KREIA.com Members $49 / 2 for $79


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