Entrust California News and Articles

The Niche Desperately Needed to Be Filled That No One Wants (Except Us)

Entrust California — Thu, 07 Jan 2010 11:38:00 GMT

If you drive through neighborhoods in Southern California, you notice a repetitive theme: vacant houses! In Riverside County, where I live, you can barely find a street without at least one house that is vacant or boarded up.

The backlog of bank-owned properties is enormous. Many properties sit vacant and deteriorate while the banks decide how to best deal with all the volume and increased government demands.

Real estate investors are willing and capable of taking on this “as is” inventory. As redevelopment specialists, they obtain deep discounts on these homes that need extensive repairs and fix and sell them immediately, or fix and hold them in their real estate portfolio.

Conventional lending institutions like FHA and Bank of America limit financing to investors if they do not intend to live in the property. These investors are capable of buying, repairing, and owning many more properties than the current lending rules allow. This important lending niche is being filled by loan brokers, like The Norris Group, that fund these loan requests with private money every day.

At the upcoming meeting with Entrust, I look forward to speaking to you about the current state of California real estate, the need for more “redevelopment specialists,” and the important role that private money plays in helping real estate investors solve the current real estate mess.

You’ll learn about usury laws and how working with a broker can save you time and money by prescreening investors and potential deals. Most importantly, you’ll learn how you become an important part of the solution that helps create jobs, turns around blighted neighborhoods, and gets our market back on track.

By Bruce Norris, The Norris Group

Seven Tips for Long-Distance Landlording Success

Entrust California — Thu, 07 Jan 2010 11:13:00 GMT

Who is the best person to take care of your real estate investments?

YOU!

So, how do out-of-state investors ensure that their properties are being taking care of properly? Follow these seven easy techniques and you will become a PROACTIVE property manager, just like the real estate masters we feature in Realty411 Magazine.

1. Choose the Best Local Manager, Even If It Costs More
Some apartment building owners choose a property manager based on its fee. They will choose the cheapest company to save money. Many different spiritual doctrines teach us that our true reality is often times the opposite of what it might actually appear to be.

This is also the case in the area of business. Sometimes by paying more now, we actually save money in the long run. Good property managers are worth their fee, plus some! They have a difficult job, one that is filled with constant stress. Imagine, they have to hear it from the tenants and the owners. Tenants want new appliances, new carpet, and they don’t want their rent to increase. And owners hate to spend money. They want income to surpass expenses, and they want their rents to keep up and surpass the rate of inflation.

Great property managers are worth every penny they charge. Great property managers need to be treated with respect and should be admired and rewarded.

2. Communicate Effectively and Often
Many times, investors are hesitant to purchase long distance because they have an issue with trust. The gift of trust (it’s truly a blessing to be able to let go) is a quality that can be earned through effective communication. Don’t be afraid of asking questions.

Don’t be afraid to call and check up on things. It’s perfectly acceptable and recommended to call up every so often and check on how things are going. Just remember to be courteous enough not to call the first few days of every month because this is usually the period when everyone is being worn thin.

I also like to get to know the staff. Often the bookkeeper, assistant, or receptionist can give you a quick update without even having to check in with your property manager.

An out-of-state property manager is a trusted adviser who has a fiduciary duty to serve you, just like your attorney, your financial planner, or your accountant. You therefore must feel comfortable enough to trust their judgment. If you don’t have this level of confidence that I'm speaking of, perhaps you have not found the right property manager for you.

3. Have a Team or Network in Place
Make it a point to meet people when you visit your targeted investment location, initially and thereafter. When I know that one of my buildings needs some work, I schedule it when I visit so that I can meet my handymen in person. I also like to get numerous bids and meet as many locals as possible.

I enjoy socializing when I visit my targeted investment areas—I’m not one to stay holed up in my hotel room and order room service. The more people you meet, the better handle you can have on your property. If you can, I encourage people to try to attend a local real estate investing club to meet other investors. Other local investors make wonderful acquaintances because they understand the challenges and benefits of landlording.

I like to be able to know a few independent people who can visit my properties within short notice and email me photographs when needed. Great people to have in your network are realtors or brokers, inspectors, appraisers, insurance agents, and loan officers who live in the area. Local service professionals are excellent team sources. An investor should become friendly with them.

4. Audit Your Property Regularly
I feel it is important to visit your property as often as possible. Once a year is great. Remember: It’s a tax-deductible vacation!

Perhaps your investment is not in a resort location, but the money you make out of it could very well fund your true fantasy get-a-way in the near future. I know that people who work 9-to-5 jobs might not have the extra time to audit their property. That is why I think www.CashFlowCows.com is growing so rapidly, because we take regular trips to visit our own investments as well as those of our clients.

5. Emphasize Curb Appeal
Make sure that your properties are kept clean. If you are going to spend any money on your properties, a portion of it should be allocated to spruce up its curb appeal. This can really make a positive difference, not only in the value of the property, but it will also attract more desirable tenants.

Clean and tidy people gravitate toward well-kept properties. You will have a lot less deferred maintenance if you keep up the quality level of your buildings because it will automatically attract a different level of renter than a property that has trash spread about the yard or displays graffiti that has not been bothered to be painted over.

6. Take Action Now, Don’t Wait for Tomorrow
It’s important for those interested in owning real estate to realize that they themselves must take personal responsibility for their investments. For a person to thrive in life and in business, you must be proactive. You can’t wait around for things to happen to you. You must make things happen.

If you have a vacancy, don’t just wait around for it to get rented—take action. I have actually found tenants for my out-of-state properties by using the online Craigslist. The real estate portal of www.craigslist.org offers great resources for investors. Many of my investor and real estate colleagues have also located outstanding deals on this website.

The fastest way to find a tenant is through word of mouth. If your tenants are happy, they will alert their friends or family members when a unit nearby becomes available. This is why it’s important to have a well-kept property. I also recommend having someone post a For Lease sign as soon as you know a unit will become vacant.

Another proactive way to assisting your manager in procuring a tenant is to place an ad in the local paper. The Web has really revolutionized real estate investing. You can find local newspapers online in virtually any corner of the globe (www.newspapers.com) and quickly place an advertisement online.

When it’s more challenging to fill a vacancy quickly, I resort to “specials.” My manager in Arizona recommended a 1/2 Month’s Rent off Special, which worked very well.

I also like the Low Move-in Deposit Special and the Pets OK Apartment Special. Here is my proactive property management formula:

Sign + Advertisement + Craigslist + Specials = 100% Occupancy

Having all of your units fully occupied is the name of the game in the landlording business.

7. Have a Backup Plan
The scientific theory of entropy states that the natural order of our universe is chaos—that everything left unattended will begin to fall apart. Whatever we focus our attention on will grow; whatever we neglect will begin to demise. This theory can be seen in our every day life.

If you don’t pay attention to your finances, what happens? You begin to shop needlessly or overspend compulsively. If you don’t pay attention to your apartment buildings, what can happen? Tenants might not pay the rent, the building will have a lot of deferred maintenance, or perhaps even worse can happen.

It’s important to always have backup property managers, even if you are currently happy with the team you have, just in case. By utilizing these tips, investors can feel more confident when they are ready to expand their real estate portfolio by investing outside the comfort of their own backyard.

Remember: Opportunities for real estate riches can be found around the nation. In fact, around the world.

By Linda Pliagas, California sales agent, investor, and founder of Realty411 Magazine

The 2010 Solution

Entrust California — Thu, 07 Jan 2010 11:02:00 GMT

Many successful investors have long lamented that they have not been able to take advantage of the Roth IRA. Many are sitting on significant traditional IRA funds that they have built up over the years or a rollover from an old employer’s pension plan. They are frustrated that these funds will be taxed when they withdraw them.

Ever since the Roth IRA became available in the late 1990s, there has been a $100,000 adjusted gross income (AGI) limit on converting traditional IRAs to Roth IRAs. That limit applied to both single and joint filers. For those wanting to make annual contributions to the Roth, their AGI had to be less than $120,000 (2009) if filing as single or $176,000 (2009) filing jointly to make any kind of contribution. These rules mean that many investors are denied Roth IRA accounts altogether.

Well, that’s changing. Back in 2006, Congress modified the law. Beginning in 2010, the $100,000 limit will be eliminated for converting a traditional IRA or other pension plan to a Roth IRA. That means even if your AGI is $5 million, you can still convert your traditional IRA to a Roth IRA! This is great news. And the 2010 conversion is not limited to just traditional IRAs. If you have old 401(k)s or other retirement plans from a previous employer, those can be converted as well.

Now that doesn’t mean you have to convert all your existing traditional IRA funds to a Roth. There are no limits on how much or little you can convert. You just choose how much you are willing to pay the taxes on, because whatever you convert is added to your ordinary income for income taxes.

Another big benefit of converting in 2010 is that for that one year, the income tax due on the conversion is not due until your 2011 and 2012 tax returns! That’s right: You can add 50% of your 2010 conversion amount to your 2011 income and 50% to your 2012 income for taxes. That little benefit is available only for conversions made in 2010. In other years, you will have to pay the taxes for the year that the conversion takes place.

Many of you that did not qualify to deduct traditional IRAs wisely still contributed to nondeductible IRAs over the years. Those can be converted without any tax on the initial, nondeductible contributions. You just pay tax on any earnings. This is what I have been doing since 2006 when this new law was passed.
Even if you don’t qualify to make Roth IRA contributions or traditional IRA contributions on a before-tax basis, you can still make after-tax contributions to a traditional IRA this year. Then you can convert those IRAs to Roth IRAs in 2010. And don’t forget you can also fund a non-working spouse’s IRA up to the $5,000 limit ($6,000 if age 50 or over).

Let’s look at some examples and the taxes owed. Remember, you only need to pay federal income taxes on the portion of the conversion that you haven’t already paid taxes on.

Example 1: Say you started to fund traditional IRAs back in 2006 and by 2010, you’ve got $20,000 in your account. For four years, you contributed $4,000 in nondeductible contributions—a total of $16,000. The remaining $4,000 is earnings on the account.

In this case, you would pay income taxes only on the $4,000 in earnings when you convert to a Roth IRA. That is the bad news. The good news is you’ll never have to pay income taxes on this account again.

Example 2: Same facts as above, but this time the contributions were deductible.Because you were able to deduct your contributions in the year you funded the IRA, when you convert the traditional IRA to a Roth IRA, you will owe income taxes on the entire account balance. In this case, you would have to pay income taxes on the entire $20,000 in your account.

Example 3: Here is a caution to be aware of when you have an existing traditional IRA (with tax-deductible contributions) and also a nondeductible IRA. Income tax rules require that a conversion is done on a pro-rata basis. Let’s assume you had $75,000 in a regular IRA and $25,000 in a nondeductible IRA.

If you wanted to convert $20,000 to a Roth, you’d owe taxes on $15,000, because the pro-rata share of your nondeductible contributions is only $5,000 ($20,000 x $25,000/$100,000).

The taxable portion of your conversion is calculated by first pooling all traditional, SEP, and SIMPLE contributions, and then calculating the overall percentage of tax-deferred funds. You pay taxes on that portion of your conversion as opposed to being able to designate that it’s just your nondeductible contributions that you’re rolling over.

Put another way, it’s not enough to set up a separate traditional IRA to hold your nondeductible contributions until you can make the conversion. You could convert just that one account, but for tax reporting, any other non-Roth IRAs you have must be factored in when figuring the taxable amount of the conversion, as in the example above.

OK, OK, some of you want to know if there is a workaround. Well, yes. You can roll your non-Roth IRAs into a non-IRA employer plan. You must check with your current employer about doing this with your 401(k). Be aware that many plans just plain don’t allow it (it was a recent change in the law that allowed this), and they cannot accept any nondeductible IRAs. Also, tying up these funds in your company’s 401(k) can significantly reduce your flexibility in their use.

Another, and better, approach if you have your own business is to open a Solo 401(k) and then roll your traditional IRAs into it. But not the nondeductible contributions—these you want to convert into the Roth account.

Advanced. Hum, there just might be another strategy here. Consider the person with an annual income of $200,000. This individual can’t make a regular contribution to a Roth IRA because his income is too high. But he can contribute to a nondeductible traditional IRA and then convert to a Roth under the new rules. Currently, there doesn’t appear to be any reason this cannot be done.

Dyches Boddiford is a full-time real estate investor who, along with Peter Fortunato, will be teaching a class on February 20 & 21, 2010 on using self-directed IRAs to invest in real estate. This weekend class will not only cover using your own IRA, but other people’s IRAs to invest in real estate using basic to advanced concepts.

By Dyches Boddiford, www.Assets101.com

Estate Planning for the Real Estate Investor

Entrust California — Tue, 03 Nov 2009 16:25:00 GMT

The real estate entrepreneur is unique when it comes to estate planning. Few professionals know how to structure assets for optimal transfer to heirs or seek to determine exactly what would be best for heirs. The purpose of estate planning is to preserve as much of your wealth as possible for the intended beneficiaries. Your first thought, rightly so, is to minimize state and federal estate taxes. But there is also probate, attorney, and accountant expenses, among other issues that need consideration. And do your heirs have the ability to deal with the real property? Would it be better to leave them cash or an annuity instead?

Wills and trusts are two basic instruments used in estate planning. However, they have different purposes and can lead to very different outcomes. Wills must be “probated” by a court. This simply means that the court reviews the will to assure the assets go to those intended to get them. If there is no will, the state has a plan of its own that you probably won’t like.

A will can be challenged, which can lead to a lengthy and costly legal battle. Contested wills often can drain the majority of an estate in legal and other costs before settled. The trust is often touted as a substitute for a will to avoid probate. However, it is smart to use both a trust and a will. Since the trust exists and is operated by you during your life, its terms for distribution to heirs avoid the risk of a long, drawn out and expensive legal battle in most cases. The trust also provides for incapacity should you be laid up in the hospital even before your death. In that case, a co-trustee, such as your spouse, simple takes over and continues to operate the trust. No legal wrangles getting guardianship or issues over a durable power of attorney. Other common documents you should have are a Living Will and a Healthcare Power of Attorney.

To help reduce the size of your estate, you might also consider annual and lifetime gifts while you are alive. Charitable gift contributions in some cases can take advantage of immediate tax savings as well as future tax savings. One approach if your heirs have no interest in dealing with real estate is to form a Charitable Remainder Trust (CRT). You can remain trustee on this trust during your lifetime.

Appreciated property can be contributed to the CRT, providing you with an immediate tax deduction based on the appreciated value. The amount of tax saved can be used to purchase a single-pay life insurance policy to pay your heirs after you pass away. The amount of the insurance can often approach the projected value of the property. During your lifetime, property can be bought or sold in the CRT and the transactions are not taxable. In addition, you also receive an annual distribution from the CRT, often in the 5% range.

As a real estate investor, you should consider these issues and strategies as well as others. Other strategies that can be used are the Intentionally Defective Grantor Trust, the Pre-Inheritance Trust, Family Limited Partnership, and Family Limited Liability Company. These strategies and others can be very beneficial for the real estate investor in estate planning when properly used.

If you want to learn about these topics and others, attend the 16th Annual Advanced Strategies Conference, this year featuring Estate Planning for Real Estate Investors, January 30 & 31, 2010. More information can be found at www.Assets101.com.

By Dyches Boddiford, www.Assets101.com

Required Minimum Distribution

Entrust California — Tue, 03 Nov 2009 16:18:00 GMT

General information referenced from the Department of the Treasury Internal Revenue Service (IRS) Publications, and Entrust Administration, Inc. (EAI) procedural requirements and updates.

From Entrust Compliance Corner

Required Minimum Distribution (RMD) – Internal Revenue Service.

Note: Although the Required Minimum Distributions have been waived for the year 2009, a temporary waiver has not been extended for the year 2010. However, a proposal for an extension has been submitted through legislation but has not been approved thus far (Savings Recovery Act 2009, H.R. 2021 & Retirement Account Distribution Improvement Act 2009). The approval or rejection of these bills introduced in congress will be monitored in order to properly inform account holders.

In addition, the temporary waiver of the 2009 RMD applies to distributions that are required to be removed by April 1, 2010 for individuals who reached 70 ½ in 2009. Nevertheless, 2010 RMD’s are required by December 31, 2010 unless otherwise indicated by the IRS.

If an RMD is required from your IRA, the trustee, custodian, or issuer that held the IRA at the end of the preceding year must either report the amount of the RMD to you, or offer to calculate it for you. The report or offer must include the date by which the amount must be distributed. The report is due January 31 of the year in which the minimum distribution is required. It can be provided with the year-end fair market value statement that you normally get each year. No report is required for section 403(b) contracts (generally tax-sheltered annuities) or for IRAs of owners who have died.
You are not required to take an RMD for 2009.

Procedure: How E.A.I adheres to IRS requirements for RMD reporting.

Year-end statements providing a description of assets and the accounts total value, 1099Rs reporting retirement distributions, and RMD letters reminding account holders who have reached age 70 ½ to take their required minimum distributions by year end and offering to provide information to assist in calculating RMDs are mailed to account holders by January 31 of each year.

By Derek Lewis, Compliance Officer

How a simple system turned a Mexican valet parker into a wealthy Harvard MBA.

Entrust California — Tue, 03 Nov 2009 16:10:00 GMT

The rags-to-riches story of Luis Garg: builder, investor, wealth coach and Entrust client.

His mother didn't like it at all. The oldest of her six children wasn't content with being poor and humble. Luis was definitely not going to go to Heaven with this kind of an attitude.

"Mama, quiero ir a los Estados Unidos para ser rico," he was saying. "My son, what nonsense!" she interrupted. "You can't even speak English! How can you even think of going there, and besides, getting rich will take you straight to the Devil!" she exclaimed vehemently, and then added, "Leaving your Mama, and all of your brothers and sisters...nothing good will come of this!"

But 23-year old Luis was determined. He had already packed all of his belongings into his VW bug, fixed himself some tacos for the three-day drive, and borrowed a map showing him how to get from Mexico City to Los Angeles.

Luis had a goal: to get an MBA in the USA. There were just a few obstacles to be overcome. He needed to learn English, he needed a scholarship, and he needed a university to accept him, which the elite schools had refused to do, so far. UCLA was willing to take him under the two conditions: he had to learn English, and he had to pay his own tuition and room and board.

Having arrived in L.A., no one would give Luis a real job, so he started as a valet parker at the Trader Vic’s restaurant in the Beverly Hills Hilton Hotel. No salary, but he got to have dinner in the fancy restaurant after it closed. He was one of several valet parkers, and they would generally get about $1 per car.

Studying English during the day and working at night, he was making progress. But making just $10 or $20 per day was not enough to pay living expenses, send money home to Mexico, and afford the tuition for UCLA's MBA program. Then he noticed something. Once in a while he would catch the name of a restaurant patron in conversation with someone. When the guest came to ask for his car, and Luis addressed him or her by name, the tip would be $2 instead of $1. Luis quickly realized the importance of this fact.

He started a system to learn the name and car owned by every guest whose car he had the opportunity to park. He created a table in a little notebook that he carried in his pocket while at work. When he would first receive the car, he would check the glove compartment for the car insurance papers and write down the name of the owner in his table. Then he would add a description of the person and a description of their car. Whenever he had a free moment during the day, he would study his table and memorize the entries.

After a while, every guest who came out of the restaurant to have his car delivered would be greeted by Luis in a friendly, enthusiastic tone: "Oh yes, Mr. Watson! I'll have your gorgeous silver Mercedes out for you in just a minute!" After a few weeks of implementing the system, Luis started receiving tips of $5s, $10s, and $20s regularly, especially from return restaurant clients who enjoyed his personal service every time.

But it got better than that!
Guests who remembered him would start insisting on having him park or return their cars, choosing to wait for him rather than use one of the other available valets. On some days, there would be a long line of cars waiting for Luis at the restaurant entrance, while the other valets stood there idle!

Luis was happy, now making over $4,000 a month parking gorgeous, fancy cars and having luxurious dinners every night. Having learned English in several months of daily study, he now also started UCLA's MBA program. But the other valets were not happy. Although they had some idea of how much more money he was making, they were definitely making less than they had before! At some point, they complained to him. "We don't like this at all Luis. You are monopolizing the customers. This is not fair!"

Luis was creative, and he had an idea. He created another system.
"Listen, amigos. I have a proposal. I won't park cars any more. I will just speak to the guests as a kind of valet parking host and have you guys do the parking. I'll collect the tips and pay you $2 per car." The other valets were stunned: "Wow! That sounds great! We're in!" They got busy again, making twice what they had before. But Luis was the best off. He could take care of guests twice as fast now. While he made less money per car, he could now make more than $20 in the time he had previously made $5.

With almost $8,000 per month in income back in 1972, trading the VW for his first Porsche (used) and a year of UCLA under his belt, he was a very happy camper!

To his surprise, at around this time, his family in Mexico received a letter from Harvard in the mail, inviting him to join the MBA program because they needed to cover their minority quotas, but telling him that no scholarship would be available. Luis smiled. He didn't need a scholarship any more, did he?

After graduating from Harvard, Luis continued his fascinating journey of building systems in every aspect of his work. Every system created more wealth. And his mom, dad, siblings, and later, his nephews and nieces all got to enjoy the fruits of his labor. He takes the whole extended family on a Caribbean cruise once a year —all expenses paid!

Luis Garg is the presenter of our November 19th webinar. If you'd like to learn from him and be entertained by his fascinating life stories in the process, sign up for the webinar now!

By Anushka Drescher, Your KaChing Marketing

The Acute Need for Education

Lisa Bromma — Tue, 03 Nov 2009 15:53:00 GMT

Entrust California’s first Advanced IRA Investor workshop held in October was a huge success. Dyches Boddiford and Hugh Bromma presented valuable lessons about getting the real facts on LLCs and IRAs. Everyone stayed for a great networking event, and the participants gained the knowledge and decision-making skills to help them make the right choices for their particular situation.

There is an acute need for education that is relevant for today’s investor and in pace with today’s economy. Based on the positive response from participants, Entrust is offering another Advanced IRA Investor workshop in Los Angeles on Friday, January 22, 2010.

This workshop provides a great opportunity to kick off the new year by getting the information you need to meet your 2010 IRA investing goals and strategies. The workshop explores real estate lessons from the trenches and addresses a variety of topics, including:

Advanced strategies for the real estate investor in the current market
Real estate in California this year and beyond.
Buying real estate, creating paper, and making private loans without getting burned
2010 Roth IRA conversions—learn what you can and cannot do with your IRA

Hubert Bromma, CEO of Entrust, will lead the workshop with Bruce Norris of The Norris Group. Bruce is an active investor, hard-money lender, and real estate educator with close to 30 years of experience. He has been involved in over 2,000 real estate transactions as a buyer, seller, builder, and money partner. Renowned for his ability to forecast long-term real estate market trends and timing, his 1997 report The California Comeback demonstrated his ability to understand market trends. In 2006, he issued The California Crash, an in-depth look into the California market correction and the statistics behind Bruce’s predictions. His latest report, Category 5, explains why he is not ready to call California Comeback 2 and what the real estate community should expect in the coming two years as the market continues its correction.

We are thrilled to have Bruce and Hugh together for this workshop. If you are a real estate investor who is looking for sophisticated strategies and IRA insights, put January 22 on your calendar. We hope to see you there.

Lisa Bromma
Marketing Consultant

P.S. To learn more about this workshop, visit www.entrustcalifornica.com/investor-workshop

Self-Directed Plan Administrator Opens Registration for Upcoming Real Estate Seminar

Entrust California — Thu, 29 Oct 2009 11:31:00 GMT

Entrust Administration, Inc. offers second educational seminar on January 22, 2010 with focus on current real estate market

10.29.2009 – Oakland, CA.–Entrust Administration Inc., the leader in custodial services for self-directed retirement accounts, has opened registration for its upcoming educational seminar “Real Estate Lessons from the Trenches” to be held on January 22, 2010 at the Embassy Suites LAX in Los Angeles, CA.

“The feedback from our October 9 workshop has been remarkable,” says marketing consultant Lisa Bromma. “We expect this workshop to be equally successful! We have top-notch real estate and alternative investment professionals scheduled to provide attendees the education and information they demand.”
This workshop will address a variety of topics, including:

Advanced strategies for the real estate investor in the current market
Real estate in California this year and beyond.
Buying real estate, creating paper, and making private loans without getting burned
2010 Roth IRA conversions—learn what you can and cannot do with your IRA

To register for the seminar, visit www.entrustcalifornia.com/investor-workshop or contact Entrust at (510) 587-0950 x254 or bizdev@theentrustgroup.com.

About Entrust Administration, Inc.

Entrust Administration, Inc. is the premier provider of account administration services for self-directed retirement plans. For more than 28 years, Entrust has been an acknowledged authority in the field of self-directed retirement accounts. As securing retirement becomes increasingly challenging, investors want to learn about and take advantage of a wider range of investment opportunities to attain their goals.

###

For more information, contact:
Yvonne Garcia, Business Development Coordinator
800-392-9653 x246
YGarcia@TheEntrustGroup.com.
http://info.entrustcalifornia.com/home

Choosing an IRA Custodian or Administrator for Self-Directed IRAs

Entrust California — Wed, 28 Oct 2009 16:44:00 GMT

How To Choose An IRA Custodian

The ability to make your own investment choices from a broad range of investment types is why most people choose to establish a self-directed IRA. But investors should also extend this freedom to choose investments to selecting an administrator who meets their expectations of safety, credibility, competence, and customer service. When choosing a custodian or administrator for your IRA, like choosing an investment, there’s some criteria to consider.

First, here is some background information. An IRA custodian must be a bank, credit union, trust company, savings and loan, or an entity that is licensed and regulated by the IRS as a “non-bank custodian.” The assets are always held by a bank. Banks who offer self-directed IRAs often contract out the administration, recordkeeping, and other services to third parties, often known as third-party administrators, but the custodian of the IRA never relinquishes custodial control over the IRA and the assets in it. Banks often vest the assets of IRAs in a nominee name for the benefit of your IRA. Banks have hired third parties to provide such functions for decades, even for IRAs that are not self-directed. (The relationship between the IRA customer, custodian, and third-party administrator is described in IRS form 5305.)

Depository banks are always regulated and supervised by state and national regulatory bodies. Banks that hire outside administrators are required to ensure that the administrators adopt the policies and procedures approved by the custodian. The administrator must also perform its obligations to the custodian to the same or better standard as the custodial bank. The administrator is often required to have an independent third party verify all transactions. Cash transactions are often only permitted by the independent third party, providing a level of control and oversight not found in many banks.

When choosing an IRA custodian or administrator for your hard-earned dollars, here are some things to consider:

Make sure that you receive the custodial document, form 5305, from your administrator. Do not open an account without this document.
Read form 5305 to confirm that a relationship exists between the custodian and the nominee or administrator. You might want to call the custodian to determine that the custodian has a relationship with the administrator named.
Make sure that the undirected funds in your IRA are FDIC-insured. If the IRA has more than $250,000 in cash, find out if the custodian and administrator have programs for pass-through insurance from other banks to protect cash in excess of the bank limit. FDIC insurance is backed by the U.S. government. Brokerage firms use SIPC insurance, which is not backed by the U.S. government, so there might be risk associated with cash deposits at brokerage firms.
Visit your administrator or custodian. Make sure that they have a physical address. If the custodian operates in a different state from the one it is chartered in, make sure that the state regulatory authorities permit operations from a different state. A simple phone call to the regulators should suffice.
Find out how much insurance the administrator and custodian maintain for any eventuality involving your account and the limits of coverage, for example, for errors and omissions.
Determine how long the custodian or administrator has been in business involving self-directed IRAs. Although time is not always an indicator of quality, those who have been in business for a long time have done things properly because they have subjected to regulatory scrutiny.
Information provided by a self-directed IRA administrator in print or on a website must always assure you that they sell no product or, if they do, it must be fully disclosed in their materials. Stock brokers might offer self-directed IRAs and also sell securities or insurance products. If an custodian or administrator provides you with literature from an investment provider along with their IRA package, beware. True, impartial self-directed IRA custodians and administrators cannot provide products, such as LLCs, real estate, notes, or securities, in any form.
Determine if the custodian or administrator provides regular education through the Internet or its offices. The education must be education only and not for selling investments.
If there are offers that seem to permit you to use your IRA for purposes other than retirement or appear to be to good to be true, check them out and evaluate them using an independent legal or accounting advisor.
Establish service levels for your account. Do the people responsible for handling your account know the subject matter? Does the office handling your account understand local customs for transactions?
Is the reporting for your transactions in a form that is effective for you, such as online, in real time, paper-based, 24/7 access, and so on
Are fees understandable and fully disclosed?
Watch out for providers that make efforts to disparage their competitors. In fact, many states have laws barring the entities that they regulate from espousing negative comments about another custodian or administrator. Rather than rely on the negative information, do your own independent analysis and due diligence.

By Hugh Bromma, CEO of The Entrust Group

Advanced IRA Investor Workshop Registration Extended Due to Overwhelming Response

Entrust California — Thu, 01 Oct 2009 21:15:00 GMT

This workshop is targeted toward investors and financial professionals who want to learn how to take self-direction of IRAs and 401(k) accounts to the next level.

09.30.2009 – Orange County, CA.,–Entrust Administration Inc., the leader in custodial services for self-directed retirement accounts, has extended the registration deadline for the Advanced IRA Investor Workshop due to overwhelming response from investors and industry professionals. The workshop is being held at the Doubletree Club Hotel in Santa Ana, CA on October 9, 2009.

“The interest in our workshop has been remarkable,” explains marketing consultant Lisa Bromma. “To accommodate the enthusiastic response, we have added seating and extended the registration deadline. What is clear is that investors want q, tools, and resources to take control of their finances and build wealth. We at Entrust are there to help them achieve that goal.”

This workshop is targeted toward investors and financial professionals who want to learn how to take self-direction of IRAs and 401(k) accounts to the next level. It will provide in-depth analysis of self-directed IRAs, IRS rules and regulations, and allowed and prohibited transactions—all through case studies and examples.

The workshop is an opportunity for entrepreneurs, financial professionals, CPAs, CFPs, attorneys, and real estate broker and agents who want to grow their business through self-directed retirement plans to gain an understanding of the potential of self-direction for their clients. In addition, professionals can receive 8 hours of continuing education credits.

Hubert Bromma, founder and CEO of The Entrust Group, will be conducting the workshop, sharing his decades of knowledge of this growing industry. Also presenting will be Dyches Boddiford, an expert in the IRA LLC and a professional real estate investor for over 20 years.

About Entrust Administration, Inc.
Entrust Administration, Inc. is the premier provider of account administration services for self-directed retirement plans. For more than 28 years, Entrust has been an acknowledged authority in the field of self-directed retirement accounts. As securing retirement becomes increasingly challenging, investors want to learn about and take advantage of a wider range of investment opportunities to attain their goals.

###
For more information, contact:
Yvonne Garcia, Business Development Coordinator
800-392-9653
YGarcia@TheEntrustGroup.com
http://www.entrustcalifornia.com

Generating Cash Flow Now and Later

Entrust California — Mon, 31 Aug 2009 13:47:00 GMT

Entrust California was the proud and only sponsor of the largest event for investors in 2009 held recently in San Francisco. This event featuring the three amigos, John Schaub, Pete Fortunato, and Jack Miller, gurus in the real estate and paper investing arena was a unique opportunity for us at Entrust to get a beat on the marketplaces throughout the U.S. from people who actively invest in today's market.

Now is the best time to be a real estate investor with your IRA. The opportunities in both real estate and private lending are excellent and with falling prices and great market opportunities cash flow is back!

Banks are selling real estate cheap right now. They want the real estate off their books.

We at Entrust were in full force at this event. Our local offices had the unique advantage of fully understanding the mindset of the IRA Investor using their IRA or Individual (k) to invest in real estate related investments to generate cash flow today and into the future.

Visit with your local office representative to learn more about self-directing your IRA to invest in what you know best.

###

For more information, contact:
Business Development
800-392-9653 x 254

bizdev@TheEntrustGroup.com.
www.entrustcalifornia.com

Entrust Administration, Inc. Opens Registration for Highly Anticipated Advanced IRA Investor Workshop

Entrust California — Wed, 08 Jul 2009 15:11:00 GMT

FOR IMMEDIATE RELEASE

Entrust Administration, Inc. Opens Registration for Highly Anticipated Advanced IRA Investor Workshop

Orange County, CA., June 29, 2009 -Entrust Administration Inc., the leader in custodial services for self-directed retirement accounts has opened registration for their Advanced IRA Investor Workshop. This highly anticipated workshop is being held at the DoubletreeClub Hotel in Santa Ana, CA on October 9, 2009.

"Our vision is clear", explains Marketing Consultant Lisa Bromma "we want to offer the best education and provide investors with wealth-building tools and opportunities to help them secure their retirement". This workshop will show the investor or professional how to take self-direction of IRAs and 401(k) accounts to the next level. This workshop has been designed for the savvy investor that wants to accumulate wealth and professionals that want to grow their business through self-directed retirement plans.

The workshop will provide in-depth analysis of the self directed IRA, IRS rules and regulations, as well as allowed and prohibited transactions all through case studies and examples. This is an advanced class.

Entrepreneurs, Financial Professionals, CPAs, CFPs, Attorneys, Real Estate broker/sales and advanced investors from all states are expected to gather at this one of a kind event.

Hubert Bromma, Founder and CEO of The Entrust Group will be conducting this workshop. Mr. Bromma, the expert in self-directed retirement plans will share his knowledge of this growing industry. Also presenting will be Dyches Boddiford, an expert in the IRA LLC and a professional real estate investor for over twenty years.

To take advantage of the early bird registration to attend the workshop, contact Entrust Administration, Inc. (510) 587-0950 x254 or via email at bizdev@theentrustgroup.com

About Entrust Administration, Inc.
Entrust Administration, Inc. is the premier provider of account administration services for self-directed retirement plans. For more than 28 years, Entrust has been an acknowledged authority in the field of self-directed retirement accounts. Entrust is committed to the classic American goal of financial independence, especially during retirement. As securing retirement becomes increasingly challenging, some investors want to learn about and take advantage of a wider range of investment opportunities to attain their goals. We are the leaders in self-directed plans, custodial services, and educational curriculum to build wealth with investments that clients know, understand and control.

###
For more information, contact:
Business Development
800-392-9653 x 254
bizdev@TheEntrustGroup.com.

Entrust Administration, Inc. Platinum Sponsor of Annual “I Survived Real Estate” Event To Benefit Breast Cancer

Entrust California — Wed, 08 Jul 2009 13:23:00 GMT

Oakland, CA., July 1, 2009 -Entrust Administration Inc., the leader in custodial services for self-directed retirement accounts has signed on as a Platinum Sponsor for The Norris Group's annual "I Survived Real Estate" Event to benefit the Orange County Susan G. Komen for the Cure.

"Entrust Administration, Inc. is proud to be a Platinum Sponsor for this event," explains Marketing Consultant Lisa Bromma. "We excited about the quality of the experts who will be presenting at this event and grateful to support the Susan G. Koman for the Cure. We encourage all real estate investors to attend this cutting-edge event".

This award-winning symposium will be held on September 11, 2009 at the Nixon Library in Yorba Linda. Real estate professionals will hear from a Gold Star panel of accomplished industry specialists to discuss the impact of seismic economic shifts, head-scratching regulations, challenging legislation, micro and macro industry reforms, and the accelerated pace of opportunities emerging in real estate.

As a gift to investors, Entrust Administration, Inc. is giving away 5 FREE seats to this premier event. For information on how to win tickets to attend this event, contact Contact Us at bizdev@theentrustgroup.com.

About Entrust Administration, Inc.
Entrust Administration, Inc. is the premier provider of account administration services for self-directed retirement plans. For more than 27 years, Entrust has been an acknowledged authority in the field of self-directed retirement accounts. Entrust is committed to the classic American goal of financial independence, especially during retirement. As securing retirement becomes increasingly challenging, some investors want to learn about and take advantage of a wider range of investment opportunities to attain their goals. We are the leaders in self-directed plans, custodial services, and educational curriculum to build wealth with investments that clients know, understand and control.

###

For more information, contact:
Business Development
800-392-9653 x 254

bizdev@TheEntrustGroup.com.
www.entrustcalifornia.com

Recalibrate your Retirement.

Lisa Bromma — Mon, 06 Jul 2009 13:50:00 GMT

Wishes of financial freedom. Many of us in our 50's and 60's looked forward to those lazy crazy hazy days of summer and song. To the golden parachute of a pension that will carry us well into our old age.

Unfortunately, things did not necessarily turn out as we planned. We have had to get a reality check. Not only do we need to recalibrate our thoughts of what we will do in retirement we have to get creative in order to grow that nest egg into something that will last.

I don't know about you, but I sure don't want to have my eyes clued to CNN or CNBC worrying about what the market did today or where my next dollar is coming from. All of us have a responsibility to ourselves to plan for income, cash flow, taxes, which let's face it will only get higher, and for appreciation or growth as a hedge against inflation when it comes.

If you agree with me read on.....

One way to do this is by investing in hard assets. Many of us have used our personal savings to invest in the market, but did you know you can use your IRA or 401 (k) plan to invest in great assets with the opportunity to achieve your desired financial goals?

With a self-directed retirement account you have the ability to invest in your own backyard, or in investments you believe in, understand and want to have in your portfolio. Many of those investments like real estate, gold, foreign currencies, along with the traditional investments you may already have are allowed in an IRA or 401 (k) plan.

What is self-direction? One thing it is not is investing through a major brokerage house or mutual fund company that says you are self-directing. You may think you are but what is happening is you are self-directing into their families of funds for example. You don't get to choose!

Truly self-direction is one where you identify the investment. You work with an administrator who specializes in self-directed accounts and is an expert processing and facilitating your transaction on behalf of your plan. The income from the investment that you select, goes back into your IRA. Any profit from the sale of that investment comes back into your IRA on a tax deferred or tax free basis (depending on whether the account is a traditional or a ROTH IRA or individual (k)) helping to solve the tax issue of growth that you would not necessarily have with personal funds.

This may sound complicated to some of you but it is not. Think of your IRA as another identity. One you cannot tap into until you reach the ripe retirement age that allows you the access to your cash penalty free and just in time to meet those retirement objectives.

There is so much negative news and uncertainty. Investing in assets that can create cash flow or in some cases assets that bring you security and peace of mind makes sense as part of a financial strategy.

To take the mystery and mystique out of understanding how truly self-direction in an IRA works talk to Entrust. Entrust Administration is California's choice for self directed IRA administration. With several offices throughout California and close to 30 years experience, our staff has been thoroughly trained to assist in you in this process. With continuing education both online and live instruction, now you can take advantage of the leader in self-directed plans.

Make it your personal goal to help yourself by utilizing tax enhanced tools to compound wealth. Recalibrating your retirement both in time and dollars gives you the satisfaction of saying "I am in control. I get to choose where and how to invest my hard earned dollars today for the financial freedom of tomorrow!"

by Lisa Bromma, Consultant

Advanced IRA Investor Conference

Entrust California — Wed, 24 Jun 2009 15:33:00 GMT

Attention:

Entrepreneurs, Financial Professionals, CPAs, CFPs, Attorneys, Real Estate broker/sales and advanced investors

This workshop will show you how to take self‐direction of IRAs and 401(k) accounts to the next level. This workshop has been designed for the savvy investor that wants to accumulate wealth and professionals that want to grow their business through selfdirected retirement plans.

The workshop will provide in depth analysis of the self directed IRA, IRS rules and regulations, as well as allowed and prohibited transactions all through case studies and examples. This is an advanced class. A basics IRA class is recommended.

When:
Friday, October 9, 2009

Where:
DoubleTree Club Hotel
Orange County Airport
7 Hutton Centre Drive
Santa Ana, CA 92707

DOWNLOAD WORKSHOP INFORMATION AND REGISTRATION FORM HERE (click on link)

About the presenters:

Hugh Bromma is the founder and CEO of The Entrust Group. Mr. Bromma has had a long and distinguished career in banking, M&As, and real estate. He is frequent guest on CNBC, Bloomberg, MarketWatch, and other financial programs. He also contributes to The Wall Street Journal, Forbes and many other professional publications. He is the expert in self‐directed retirement plans.

Dyches Boddiford has been a real estate investor since 1980. In 1988 he formed The Oaks Group, Inc. to handle real estate related investment activities and since 1991 has devoted full time to making his company grow. He speaks from experience in owning apartments, single family homes, mobile homes and making mortgage loans. He is also the expert in the IRA LLC.

Registration:

Early bird registrations: 6/1/09‐8/1/09

Regular Price registrations: 8/2/09(e‐coupons available to Business to Business relationships for a limited time only)

For registration details: 800‐392‐9653 x254

bizdev@theentrustgroup.com

IRS Credits and Deductions you Might be Missing

Entrust California — Mon, 01 Jun 2009 13:52:00 GMT

This month's Tax Tips:

Here are some deductions that you might want to consider when preparing your tax return. Consult your tax professional to know exactly what you qualify for.

Job Hunting
With job losses at an all-time high, there is a lot of job searching going on. Did you know that the expenses for job searching are actually tax deductible? You can also deduct moving expenses if you have to move more then 50 miles for a job.

Insurance Premiums
Self-employed individuals who are not covered by an employee plan get to deduct 100% of their health insurance premiums.

Tax Preparation Expenses
The most commonly missed deduction is for the fees and costs of filing your taxes. This includes e-filing, software, and even professional tax preparation fees. Make sure to save any receipts you get now for next year's tax return.

IRA Contribution Deadlines
Reduce your current taxable income while helping build your nest egg for retirement. Make sure you fund your 2008 contributions to your Individual Retirement Plan before April 15th. If you don't have a retirement plan, you can open one before April 15th for 2008. You have until then to maximize this benefit which allows you to put more away today then ever before! Start compounding more dollars tax-deferred or tax-free!

Don't put your all your retirement dollars all in one basket. Diversify your retirement portfolio with alternative assets such as Real Estate, Gold, Private Placements, and much more!

For more information on how to take advantage of the power of self-directed retirement plans, visit our education page. Click here

Remember that while Entrust provides excellent educational resources, we do not endorse or sell any investment products. We always encourage you to consult your legal or tax advisor.

Entrust Administration, Inc. Business Development Team
bizdev@theentrustgroup.com

Entrust Administration, Inc. Launches New Educational Website for IRA Investors

Entrust California — Mon, 06 Apr 2009 15:42:00 GMT

FOR IMMEDIATE RELEASE

Entrust Administration, Inc. Launches New Educational Website for IRA Investors

Oakland, CA., April 6, 2009 -Entrust Administration Inc., the leader in custodial services for self-directed retirement accounts has launched a new educational website for IRA investors. Investors wishing to diversify their retirement plans into alternative assets can get all the education and tools they need at this new website www.entrustcalifornia.com

"With the uncertainty in today's economy we decided to give investors more tools to take control of their retirement dollars. This new website is a vital resource for education and information," explains marketing consultant Lisa Bromma. "The website addresses the specific needs of those investors that wish to learn how to self-direct their retirement plans."

The Entrust California website is designed to provide a full range of services, education and information tailored for each of the seven Entrust offices in California. Investors can easily search for local educational events, CPE workshops for professionals or webinars. Investors will be able to sign up for free reports, e-newsletters or open a new account.

The new website will also provide a very important feature, the ability to view past webinars and learn from industry experts educating the investor on specific transactions. Entrust is focused on providing investors the educational tools needed to build wealth through self-directed retirement plans.

About Entrust Administration, Inc. Entrust Administration, Inc. is the premier provider of account administration services for self-directed retirement plans. For more than 27 years, Entrust has been an acknowledged authority in the field of self-directed retirement accounts. Entrust is committed to the classic American goal of financial independence, especially during retirement. As securing retirement becomes increasingly challenging, some investors want to learn about and take advantage of a wider range of investment opportunities to attain their goals. We are the leaders in self-directed plans, custodial services, and educational curriculum to build wealth with investments that clients know, understand and control.

###

For more information, contact:
Yvonne Garcia, Business Development Coordinator
800-392-9653 x 246
YGarcia@TheEntrustGroup.com.
www.TheEntrustGroup.com/oakland
http://www.entrustcalifornia.com/

Making The Right Choice For Your Retirement: Traditional or ROTH?

Entrust Los Angeles — Wed, 01 Apr 2009 22:43:00 GMT

With the tax deadline fast approaching, the difference between a Traditional and a Roth IRA is something that investors should take into consideration when allocating their retirement funds. While both forms of the IRA are great vehicles to save for retirement, each offers distinctive advantages. The Traditional IRA allows a person to make tax-deductible contributions (depending on income level). Why is this significant? It allows a person to deduct the amount they contribute from their income reported on their tax return as long as they are not barred by their level of income. However, tax will be paid on earnings when withdrawn from the IRA. While Roth IRA contributions are not tax-deductible, all earnings and principal are 100% tax free if all the rules and regulations are followed.

You should consult with your CPA before deciding whether to contribute to a Roth or a Traditional IRA. In general, the decision really should be based upon your tax bracket. Will it be lower or higher when you retire is the definitive question you should ask yourself. If it will be higher, then the better option would be the Roth IRA. Otherwise, it would be more prudent to select a Traditional IRA. The Roth IRA is going to make more sense in most situations but unfortunately, not everyone qualifies for a Roth. Also, the effect of potential changes in government policy regarding the tax rate and the tax advantaged status of both accounts should also be factored into the equation. There are still further distinctions between both forms of the IRA, but the bottom line is that the power and limitations of both should be studied thoroughly in determining which one best suits your long term financial needs and goals.

The most important consideration in today's economy is your tax planning. By contributing to the right IRA you have the advantage of compounding wealth on a tax deferred or tax free basis. Which is the better choice? It really is up to you!

Munzer Ghosheh, Business Development Manager
mghosheh@theentrustgroup.com

Entrust Administration, Inc. Continues its Company Expansion in California

Entrust California — Mon, 30 Mar 2009 15:44:00 GMT

FOR IMMEDIATE RELEASE

Entrust Administration, Inc. Continues its Company Expansion in California
Oakland, CA., March 30, 2009 - Entrust Administration Inc., the leader in custodial services for self-directed retirement accounts continues its company's expansion in California with the opening of three offices and the hiring of three Business Development Representatives.

"In spite of these turbulent times, business is booming as customers look for more opportunities to secure their retirement," said marketing consultant, Lisa Moren Bromma. "We are excited to announce the addition of these three new offices as well as qualified Business Development Representatives to assist customers with greater resources for education and services they need in order to facilitate transactions within their retirement accounts."

The three new offices are located in San Diego, Fresno and Bakersfield.

Susan Santinela joins Entrust Administration Inc. as Business Development Manager for San Diego. Susan has over ten years' experience working within the Financial Services industry. Her network of financial professionals, realtors, mortgage brokers, hard money lenders, CPA's, attorneys and product providers is a resource that will benefit investors.

Lance Newton joins Entrust Administration as Business Development Manager for the Central California region, with offices in Fresno and Bakersfield. He has been in the Financial Services and Real Estate industry for more than 20 years working with both individuals and professionals in the financial community, CPAs Enrolled Agents, Realtors and Real Estate Brokers, Mortgage Brokers, Asset Based Lenders and other service providers.

Lamarr Baxter was recently hired as Business Development Representative for The Entrust Group. Located in Sacramento, Lamarr brings over 20 years of varied financial experience and knowledge to provide his clients, partners, financial professionals, real estate professionals and investors with the tools required to invest in real estate related transactions with a truly self-directed retirement account.

About Entrust Administration, Inc. Entrust Administration, Inc. is the premier provider of account administration services for self-directed retirement plans. For more than 27 years, Entrust has been an acknowledged authority in the field of self-directed retirement accounts. Entrust is committed to the classic American goal of financial independence, especially during retirement. As securing retirement becomes increasingly challenging, some investors want to learn about and take advantage of a wider range of investment opportunities to attain their goals. We are the leaders in self-directed plans, custodial services, and educational curriculum to build wealth with investments that clients know, understand and control.

###

For more information, contact:
Yvonne Garcia, Business Development Coordinator
800-392-9653 x 246
YGarcia@TheEntrustGroup.com.
www.TheEntrustGroup.com/oakland
www.entrustcalifornia.com

Navigate the Note Business with your IRA.

Lisa Bromma — Sun, 01 Mar 2009 15:47:00 GMT

By Lisa Moren-Bromma

One of the strategies that is on the rise is using your IRA or 401 (k) as an opportunity to grow your portfolio with paper investments.

What is paper? Paper is an IOU, a promise being made from the person who needs the money to you, the person who is lending the money with the terms of how they will pay you back. If an investor lends money secured by an asset, the IOU will also have security document like a mortgage on a piece of real estate. If the borrower defaults, the security instrument, the mortgage, gives the investor the right to take back the property. Paper can include houses, cars, boats, planes, businesses, you name it. I have even seen cemetery paper! Paper can be secured by assets like the ones I just mentioned, or unsecured as in a loan with no collateral at all.

Private Mortgages are bought at a discount off of the face rate of the loan. Here is an example.

Sally sells her home to Sue and takes back a second mortgage for $10,000

Sally will receive $132.15 for 10 years at 10% interest. Should Sue not make her payments, Sally could foreclose and take the property back.

Sally would rather have a lump sum then take payments, however she needed to sell her home and this was one way to do it quickly. Along comes Mary who offers to buy Sally's seller financed note. However in order for it to make financial sense to Mary, she cannot pay $10,000. She offers to buy the payments for $7,000 cash today.

This is a 30% discount.

Mary gets the right to receive the payments, Sally gets cash, of course not all of it but she feels it was worth the discount. Sue makes her payments to Mary instead of Sally.

I have simplified this process to illustrate how seller financing, or buying notes at a discount works. If you would like more recommended reading on this subject, please email me.

Back in the mid to late 80's seller financing was very popular.

However, when interest rates came down, more people were able to qualify for conventional bank loans, so seller financing dried up.

Today, seller financing has made a comeback. One must be very careful when using personal or IRA funds to purchase a seller financed loan at a discount in today's market. This investment is not for everyone.

Private lending to others is also on the rise. Most people look at private lending as lending money to family or friends who need the money to say buy a car. However, there is a large potential opportunity for private lenders who want to participate in an investment by lending money that is used to acquire an asset. Or the investor is lending money to someone to start a business. There are as many ways and reasons why investors make loans to others. Many investors lend money out of their IRA or (k) plan to others to get a higher return on their money then they could get with conservative investments such as a money market account or CD.

Of course when you self-direct your IRA or Individual (k) you, the IRA owner does the work; you identify the investment, you do the research, you instruct your administrator to make the purchase on behalf of the IRA or (k), and you get the profits or income back into your retirement plan tax-deferred or in the case of a ROTH tax-free! It's no wonder that others are utilizing OPI (other people's IRA's) to help them accomplish their dreams and you have the potential to accomplish your financial goals as well.

Many investors prefer to use paper as their investment of choice. In the paper business investors evaluate which is a better return for them; 1% in a savings account or investing in paper at rates that will be higher then 1% (of course the return will be greater then 1% I am using this for illustrative purposes only)

They also ask themselves "which is better for me; greater then 1% tax deferred or 1 % that you pay tax on?" if you like they came up with 1% tax deferred, then using your IRA or (k) plan is right for you!

Investing in paper whether through lending or purchasing notes can make sense to an investor who understands what he/she is getting into, does the required due diligence necessary to protect themselves and their retirement accounts before making the investment, and sees the value of alternative investing.

If you are interested in learning more about how to invest in notes or private lending with your IRA or 410 (k) log onto www.theentrustcalifornia.com to find the office closest to you!

Lisa Moren-Bromma is the President of Ocean Park Marketing and Wise Women Investor, a professional speaker, author and consultant. To reach Lisa, email www.wisewomeninvestor.com or lbromma@theentrustgroup.com