�The Denver Realty Company is dedicated to promoting alternative real estate investments by providing the information, tools, and partnerships that can help our investors achieve their full financial potential. Our system enables our investor clients to select from a much greater breadth of real estate investment choices." 

Key Benefits of self-directed IRA owned Real Estate investments:

• Never Pay Capital Gains or Transfer Tax again on your Real Estate Investments
• Buy properties using business credit instead of personal credit by setting up a customized LLC
• Less Restrictive (Non-Recourse) Financing for your LLCâ�™s Real Estate purchases

 

When you choose The Denver Realty Company as your agent, you will find a company that bases its reputation on your financial future. Not only will we use our knowledge of the local real estate market to help you identify properties that are an excellent investment value but we will coordinate the set-up of your investment through legal professionals who have been helping clients achieve their financial goals for over ten years.  

The Denver Realty Company and its affiliates can take the secrets the millionaires have been using since 1963 to help our hard working investor clients buy more properties.

• Buy more properties and keep the mortgages off of your personal credit.
• Work with tighter margins because there are no capital gains.
• Equip yourself with the investment strategies that the affluent have been taking advantage of for years.
• Gain asset Protection while creating Wealth.
• Created by the IRS. Section 408 of the Internal Revenue code and IRS publication 590, pages 40 and 41.

If you are an investor that is looking for ways to minimize your Real Estate tax liabilities with methods used by the ultra wealthy, please contact us.  

This is a question that is frequently asked by investors. The fact is many investors are under the mistaken belief that their IRAs are limited to purchasing traditional investments such as stocks, bonds and mutual funds. What many potential investors don�t know is that Real Estate has been an allowed investment since the day IRAs were created. 

While the concept of using retirement plans to invest in real estate has been around for more than 40 years, the concept hasn�t received large attention. The traditional investment community has had control of over 97% percent of all retirement accounts. Firms working within the traditional investment community make their money from managing and setting up traditional IRA accounts (stocks, bonds) and lack financial incentives to recommend real estate opportunities to their clients.  

As the stock market continues to decline and corporate scandals and corruption are continually exposed, many investors are seeing their retirement accounts cut in half, further delaying their retirement plans. They want more control over their money and want to diversify their portfolios with tangible investments such as real estate. 

Here is a quote from the New York Times:

�Real estate has always been allowed in IRAs, but few people seemed to know about this �option� until the stock market began to decline. Financial institutions, meanwhile, had little incentive to recommend something other than stocks, bonds or mutual funds.�  

The IRS website states the following:

� . . . because of administrative burdens, many IRA trustees do not allow IRA owners to invest IRA in real estate. IRA law does not prohibit investing in real estate but trustees are not required to offer real estate as an option.�  

The Denver Realty Company will provide you the information and tools you need to invest your hard earned money in the Real Estate market. Instead of limiting your investments to stocks, bonds and mutual funds, you can further diversify your portfolio by investing in Real Estate with your IRA and 401k 

In the past, you had to find your own investment property, trustee, attorney and perhaps a management company to collect rents and maintain the property. The Denver Realty Company simplifies the process by coordinating the set-up and management of your IRA owned investment property for you, saving you time and money.  

At The Denver Realty Company a large part of our job is to collaborate with preferred legal experts to best meet your personal needs. These legal experts will educate you regarding the self-directed IRA rules. 

For more information please visit the Internal Revenue Service�s website (www.IRS.gov). Request Publication 590. Pages 40-41 explain which investments are not allowed (collectibles, life insurance, s-corporation stock, etc.). Real estate is NOT mentioned as a disallowed investment just as stocks, bonds, and mutual funds are not mentioned as disallowed investments. 

Why now?

There are 13.1 Trillion Dollars sitting in dormant 401ks, IRAs and other retirement vehicles that could be used for tax free investing in real estate. The self directed industry is growing at a rapid pace and is expected to see upwards of $2 trillion enter the market over the next two years. Some of the latest numbers show over 45 million IRA holders in the U.S. The same date shows that less than 4% of those funds are held in non-traditional assets. The percentage of funds held in non-traditional assets is expected to increase significantly over the next 5 years as more and more individuals and their financial advisors attain a greater awareness of self-directed IRAs. 

Real estate IRA investing opens up a large range of alternative investments for individuals who are knowledgeable about real estate investing or who work with knowledgeable advisors, sponsors, or brokers. Investing in real estate may serve as a means to diversify your retirement portfolio to hedge against the cyclical changes in the stock market, economy and bank and government-based investments. 

A self-directed IRA is technically no different than any other IRA or 401k. What makes self-directed IRAs unique are the available investment options they provide to investors.  

There is an emerging and growing trend among Individual Retirement Account owners to invest retirement funds into Self-Directed IRA LLCs in order to purchase real estate. 

Experience shows real estate investments have a greater potential to protect against loss of principal when the transaction is structured properly. Additionally, these investments will often generate better than market rate returns when, as now, the real estate market is seeing home prices set at their lowest levels in years.  

What you can do in an IRA with real estate

Through The Denver Realty Company�s relationship with a preferred Denver based law firm, buyers seeking to invest in the real estate market may achieve significant money saving benefits.  

By using a specifically designed IRA or 401k to invest in real estate our clients may:

• Avoid purchasing investment property with personal credit.
• Realize substantial tax savings by not paying capital gains tax on the profits, unless the client elects a distribution from the plan.
• Gain strong asset protection of those funds held inside the LLC against lawsuits.

 

With proper advisement and counsel you will learn investment guidelines and boundaries of IRAs and understand exactly what is permitted and what is not when it comes to IRA funds. You will understand the flexibility of the IRS tax code as well as the increased protection against liability exposure to creditors and litigation the RETIRA investment strategy provides.  

This program offers you the freedom to control your future with the confidence and security the wealthy have utilized for decades, enabling you to achieve your investment and retirement goals with unique tax advantages while remaining in compliance with IRS guidelines.  

Prior to going forward with the purchase of an investment property, The Denver Realty Company will refer buyers to a Denver based law firm that has been helping clients successfully achieve their investment goals for many years. The law firm will assist you in designing a structure and strategy that can provide you with a substantial and modern asset protection plan for today�s volatile financial atmosphere. 

What can�t you do with an IRA?

• Your IRA cannot directly or indirectly buy real estate from a "disqualified person".
• Who is a disqualified person or entity?
  • The IRA owner;
  • The IRA owner's spouse, descendant (e.g., son), or ascendant (e.g., mother);
  • The spouse of a descendant of the IRA holder;
  • A fiduciary of the IRA or person providing services to the IRA (e.g., the trustee or custodian);
  • An entity at least 50% of which is owned (or at least 50% of the beneficial interests are held) by a combination of the above (e.g., if you and your spouse own 50% of an LLC, that LLC is a disqualified person with respect to your IRA). A 10% owner, officer, or director or highly compensated employee of such an entity is also disqualified.
• You cannot have your IRA enable an investment for yourself or another disqualified person. In other words, if the IRA's investment is deemed essential to accomplishing a transaction in which both you and your IRA invest, then the transaction would be considered a prohibited transaction.
• Your IRA cannot purchase a real estate asset and then have a disqualified person use it while it is in the IRA. For example, you cannot buy a vacation home and use it partly for personal use, even though you might rent it to unrelated persons the rest of the year.

 

      However, there are several exceptions to these restrictions permitted by the IRS.  

What is Non-Recourse Loan and how does it work?

A non-recourse loan is secured by a pledge of collateral, typically real property, but for which the borrower is not personally liable. In other words, the lender cannot claim more than the collateral as repayment in the event of default.  

Non-recourse debt is typically limited to 70% or 90% loan-to-value ratios, so that the property itself provides "overcollateralization" of the loan. The purpose of non-recourse debt is to require lenders to underwrite their loans on a sustainable and prudent basis since the lender is in the first-loss position with these loans. 

Since the lender cannot go after the borrower for the difference, these are riskier loans and therefore carry a higher rate-cost trade-off than recourse loans. Since the strength of the loan rests on the value of the property itself, the lender will usually choose the appraiser and will solely make the determination of whether it presents a good risk to the transaction.  

�The Denver Real Estate Company will work with you to ensure your entire transaction is set-up properly. A properly set-up transaction is one that ensures the rental income received from the property easily covers the monthly mortgage payment. The Denver Realty Company is a full service real estate company including a property management company that provides property management services to its investor clients at competitive rates. We will help you to locate investment properties that are expected to provide both reliable and adequate rental income in the today's market as well as excellent growth in equity in tomorrow's market." 

With so many exceptional deals going on right now throughout the nation, this is a tool you should have in your arsenal for real estate investing. 

Non-recourse lenders have very stringent liquidity and down payment requirements for IRA holders who look to use non-recourse loans to fund their real estate purchases. As a general rule, a non-recourse lender will require an IRA account holder to have between 10% to 30% of the purchase price of the property vested within their IRA account.  However, traditional investment property lenders are now requiring between 10% to 30% down payments on investment properties; therefore the additional requirements imposed by the IRA investment program are not insurmountable for most investors. 

There are general restrictions on the types of properties that non-recourse lenders will fund as well. Cash-flowing residential or commercial structures are preferred. The logic behind this policy is to protect the lender from suffering a loss in the event the lender must reclaim the property.  

Benefits of a Non-Recourse Loan

If the borrower defaults, the lender/issuer can seize the collateral, but the lender's recovery is limited to the collateral. If the property is insufficient to cover the outstanding loan balance (for example, if real estate prices have dropped), the lender simply absorbs the unpaid balance.  

Since the borrower cannot be held personally liable to make the lender whole in the event of default, there is no reason for the borrower to personally qualify for the loan. 

Investors who purchase an asset with a down payment and the proceeds from a nonrecourse loan realize the following benefits:  

• Just as in any traditional investment (i.e. stocks, bonds etc.), in the event the investment turns sour the investors are not apt to lose more than the down payment and payments already made on the loan.
• A non-recourse loan does not allow the lender to pursue anything other than collateral. The bank is out of luck even if the sale proceeds do not repay the loan.
• The opportunity to create a lending solution very unique to the circumstance, that is, a non-recourse small residential investment loan specifically tailored for the investor purchasing single family and multi-unit investment properties using funds from their independent retirement account and qualifying only on the strength of their IRA and the property itself.
• This powerful real estate investment tool is an excellent investment strategy for retired investors who do not need or want to financially commit themselves to the loan beyond the minimum down payment and monthly payments which, when the transaction is structured properly, will easily be covered by monthly rent received.

 

Since the securities act as collateral for the loan and because it is a private loan, you will realize many benefits:

• No credit verification
• Asset/Equity based financing
• No income or revenue verification
• No government imposed regulations/red tape

 

Each lender will have their own list of approved property types and, as with any type of leverage or financing, there will be different loan products available from traditional fixed-rate mortgages to ARM programs. No matter what type of investment property you choose, there's sure to be something out there to suit your particular investment goals.  

Also be aware that there are fees associated with a non-recourse loan, just like any other mortgage.  

Closing costs, inspection fees, certifications, and recording fees will vary between lenders, so ask the lenders you interview for a complete schedule of fees that could apply to your particular loans with their firm. 

It is possible to use leverage in your IRA to acquire real estate, just as you would if you wanted to make an acquisition outside of your retirement accounts.  

Not everyone will qualify for this non-traditional lending source due to the liquidity requirements, but it's useful to know that the strategy is available.  

Whether it's something you can immediately utilize or a plan for your self-directed real estate IRA funds in the future, it's another way to use the strength of your retirement accounts to diversity your retirement portfolio.  

• Investors â�“ Beginners or Advanced
• Home Owners â�“ Needing Alternative Purchasing Solutions for Additional Investment Opportunities
• Retirees â�“ Wanting to use their use IRA or 401k to diversify their portfolio
• You donâ�™t need to use or have a current IRA or 401k. You just need sufficient funds to place into an IRA account.

 

With this proven system specifically tailored for your IRA investment goals, your assets can be protected from the liability of lawsuits and will come with certain tax advantages.  

You have the freedom to make choices necessary to succeed and achieve your goals. When you set up a RETIRA account you will have the freedom to negotiate your investment transactions simply by issuing a check. By using a specifically designed structure, your IRA is assigned to a self-directed custodian, with unlimited financial products. You are named as the manager and have the only signature authority.  

To add, real estate owned outside an IRA usually passes through probate and is subject to the �death tax�, one of the most expensive, most controversial taxes in our country. Assets inside an IRA are passed to beneficiaries outside of probate as a nontaxable event, and the receiving beneficiary can take required minimum distributions based on their life expectancy (the �stretch IRA� concept) which further defers (and reduces through inflation) taxes. 

We will refer out investor clients to a Denver based law firm that will assist investors in the formation and design of a custom tailored LLC owned by an IRA. It is the IRS approved self-directed IRA custodian and the specially designed LLC that achieve beneficial results. This is an innovative IRS approved, new type of LLC. The LLC is formed and owned entirely by your IRA as found in IRA section (408) and IRS publication (590).  

 

Key Features of a 1031 Exchange 

• Investors must identify a replacement property within 45 days of the sale of the current property
• Replacement property must be purchased (closed) within 180 days of the sale of current property
• Replacement property must be of equal or greater value to current property
• Both properties must be â�œlike kindâ��
• Personal Credit is required to leverage the transaction
• Restrictive Loan Conditions
• Deferred Tax

 

Key Features of a Self-Directed IRA 

• No Replacement property needed
• No Timeline for replacement property
• No â�œtrading upâ�� - buying more expensive replacement properties
• No refinance charges or closing cost in â�œtrading upâ��
• Investors can sell the current property based on market conditions rather than artificial timelines.
• No Personal Credit
• Less restrictive Non-Recourse Loans
• No Tax

 

Ask Yourself: 

Do you want invest in real estate without paying taxes?

Do you want to build an investment portfolio like the wealthy?

Are you disappointed with the returns or worried about the safety of your Individual IRA/401k?

Have you suffered losses in the value of your IRA/401k Account? 

Do you need to rollover your IRA/401K plan?  

• As more investors, homeowners and retireeâ�™s are becoming educated about retirement strategies - Self-directing IRA investments in real estate is growing.

 

• No one would invest in a home without learning as much as possible about the property prior to the closing. For the same reasons no one should make investment decisions without first exploring all their available options. 

 

• Do some homework and free up additional capital to start growing your real estate investments tax-free!

 

• Investing in a property with your IRA can be a great way to increase your available funds, build your investment portfolio, and reach your financial goals!

 

• This program is for veteran and beginner investors, as well as homeowners and retirees. These tax-free earnings are exactly what everyone has been looking for.

 

• Self-directed IRA allow owners to invest tax-free in investments that the owner knows and understands, and through the power of compounding interest this program will create true wealth for you and your family.

 

• Consult The Denver Realty Company to learn as much as you can to maximize your investment's tax benefits.

 
 

�There will never be a better time to invest in Real Estate then in today�s market,� Rob McKenzie � Billionaire Real Estate Investor. 
 

 
 

We Base Our Reputation on Your Success 

Using a Professional Agent

The Denver Realty Company - Your Buyer Experts

Real estate agents have access to services that will help you find the right home sooner than you could on your own. An example of such a tool is the Multiple Listing Service, MLS. Using MLS, your agent can efficiently search a large database of properties to find the homes that match your needs.  

A quality real estate agent will not only save you time but will save you money by protecting your interests. 

You could shop for a home by checking newspaper ads, visiting open houses, driving through neighborhoods looking at for sale signs and visiting new home developments.  

But you�d be at a serious disadvantage because listing agents work for the seller and have agreed to protect the seller�s interests.  

Even though they may appear to take a neutral stance, their first priority lies with the seller, not the buyer. For example, it�s possible for two different buyers to purchase identical houses in a new development and pay two different prices.

 

The Denver Realty Company will represent your interests by:

• Negotiating with the seller to competitively price your home.
• Working with you and your lender in efforts to get you into a loan with competitive terms.

.  

Exclusive Agreements 
While it may seem logical to have several real estate agents working for you in order to get the best results, the opposite is true. Experience shows that you are better off working with one agent exclusively.  

When you enter into an exclusive buyer agency agreement with The Denver Realty Company, you hire a professional who will represent your best interests. A quality agent will give you all the information you need to buy a home.  

This includes disclosing information about the property and negotiating the best price and terms. Additionally, it doesn�t cost you anything to work with an agent when buying a home because the real estate commission is paid out of the seller�s closing costs.  

A quality Real Estate Agent is one who represents and protects your interests during every step of the First Time Home Buying process.  

�I welcome the opportunity to work with you�. � Michael Mancha, Owner