Guide to Using a Self-Directed IRA to Purchase Real Estate

Team Rhoden

Guide to Using A Self-Directed IRA to Purchase Real Estate

Rachel Rhoden Principal Broker Team Leader 541-771-6251 785 NW 3rd St Prineville, Or 97754 rachel@teamrhoden.com

About Rachel I am dedicated to providing you with a level of customer service that makes this process as comfortable as possible! I was born and raised in Prineville, Oregon. My husband and I own a 320 acre farm/ranch and grow alfalfa, raise correinte cows and have a barn full of spoiled horses and together have raised two great boys and are lucky to have the best daughter in law around. I have 35 years experience of outstanding customer service through my locally owned business and in 2008 I began my real estate career and I have loved every second of it . I am a top producing agent and truly love my career! I constantly research the market and property values so your home is priced effectively from day one. I'll make sure that the public knows your home is for sale by using innovative advertising and marketing techniques, social media and video to attract potential buyers. As a buyer I can help you find a great property from a residential home in town to a ranch or commercial/income producing property. I am committed to meeting your needs and representing you, and your interests, throughout the entire transaction. I take great pride in my work so rest assured I will go that extra mile to understand your short and long term needs and together work towards accomplishing your goals.

CDPE, 203k, ABR

Our Mission

Real estate begins with property, but it doesn’t end there. Our mission is to create lifelong relationships.

We believe that working hard at something you love to do, with people you trust, is one of the greatest experiences in life.

Real Estate Is What We Do! We offer extensive real estate knowledge and unsurpassed experience as one of the area’s top team of brokers with more than 40 years of experience. Well known in the industry for professionalism and loyalty, we have built a solid reputation for putting our clients’ goals first while bringing a highly personalized approach to each and every transaction.

Meet The Team Jered Rhoden 541-771-6252 jw@teamrhoden.com I have lived in Central Oregon my entire life, own a 320 acre farm/ranch with my wife and have two grown boys and one daughter in law. I have worked in the timber industry for over 20 years, own my own semi and have hauled cattle, logs and heavy equipment. As a kid I took 4-H animals to fair, mostly beef show cattle.

I also spent a lot of my time on my grandfathers ranch in Mitchell, Oregon where we offered fee hunting with full guide service for elk. It was also a working cattle ranch that I was fortunate enough to help out with. I enjoy researching ranches and farm properties for buyers and sellers and learning the uniqueness of each one. When I am not working I love hunting and camping with the family and team roping with my boys.

Kenzie Carnahan 541-419-4312 kenzie@teamrhoden.com

Hi, my name is Kenzie. I was born and raised in Prineville, OR. I’m a dog mom of 3, a wife and a coffee lover!

Our home is a family ranch where we wear many hats. We grow alfalfa, look after our beloved horses, and take care of our roping steers. It's not just a place to live; it's a way of life.

I am hands-on in all aspects, from irrigation to feeding and cleaning pens. And when it's time for some roping action, you'll often find me calling the shots as the "chute boss" at the arena.

I am proud to join Team Rhoden! I’m ready to help you with your home buying and selling needs! As a proud member of the Cascade Hasson Sotheby’s family, I carry the values of hard work, integrity and outstanding client service into everything I do.

Client Testimonials What Some Of Our Happy Clients Have To Say There are times in life where we meet people that we think are going to be momentary in our quest to accomplish an important goal. When we met Rachel Rhoden, in our quest to buy a home, we immeditaley knew she was going to be more than momentary in our lives. In our first meeting we found that we were blessed to be sitting with a professional that cared far more the people she was serving than the sale she could make. That care continued throughout the process of finding our home and completing the purchase.

Rachel went above and beyond is so many ways to find our home.

If you are looking to buy or sale your home we would highly recommend you look up Rachel Rhoden. you will be blessed just like we were.

Harley McCormick Overall fantastic experience. Mrs. Rhoden was very knowledgeable and any time I had a questions she was quick to respond. Provided great recommendations and made the overall experience of finding and purchasing a new home way less stressful than I feared it would be. Very happy that I had the opportunity to meet her and would most definitely recommend her to anyone moving to the area!

Peter Brian Schlott

I have used Rachel on 1 home sale and 2 home purchases. Not to mention, countless viewings. She patiently put up with every question, no matter how dumb :) or complex, and made sure I was comfortable with everything that was new to me as a first time, single home buyer. When I asked her opinion---and expertise from her many years in the real estate field---she gave it. And it made all the difference, for both my knowledge gain, making sure I didn't do anything I'd regret or didn't understand, and in getting what I wanted. I would not go with anyone BUT Rachel, moving forward in my real estate transactions. She is genuine, trustworthy, ethical, and just "good people." Forever thankful for her putting me in my first and second homes, helping me navigate such large life hurdles, and putting up with me and my many texts! I highly recommend Rachel! ori G My husband and I love Rachel. She is awesome to work with. Males things easy and smooth. Goes way above and beyond to help in anyway she can. She's amazing!

D. Hardman

Client Testimonials What Some Of Our Happy Clients Have To Say

Real Estate Investors Where To Start Guide 1. Establish a Self-Directed Ira Account with a Reputable Company and Begin the Funding Process.

It is important that you complete this before you begin looking for investment properties to ensure you that you can meet any funding deadlines. There are several self directed IRA companies but the one I am familiar with and will refer to is Equity Trust Company simply because I use this one myself and have had great experiences with them. You can open an account online or by phone at 855673-4721. If you chose to use Equity Trust Company you can set up your account easily at myEQUITY online management system. I AM NOT AN AFFILIATE OF EQUITY TRUST COMPANY but I have and do use it so it is my best reference.

2. Execute Your Real Estate Offer With A Knowledgable Broker In The Use of Self Directed IRA’s Be sure that the purchase and sales agreement and all supporting documents are title properly. The self directed IRA company should have a guideline or example of how you should take title, ie: Equity Trust Company Custondian FBO (for the benefit of) (account owners name)

3. Request The Earnest Money Deposit Earnest money MUST always be paid from your account based on your percentage of ownership in the property. You cannot use personal funds to pay earnest money for an asset your self-directed IRA account is purchasing.

4. Send The Investment Documents Send a copy of the fully executed documents to the personal representative assigned to your transaction and make sure they have all of the title company’s contact information. The title company if they are familiar with the process will handle much of the transaction with the IRA company and will send a copy of the recorded deed to them once the transaction closes and records.

Vocabulary: Disqualified Persons A “Disqualified Person” is prohibited from receiving any direct or indirect benefit from your IRA. A benefit may be the sale, exchange or lease of any property, lending money, or furnishing of goods or services. Consult with your tax advisory if you have questions about who may be a “disqualified person” with regards to your IRA. Great Grand Parents &

Their Spouses

Grand Parents &

Their Spouses

Parents &

Their Spouses

Fiduciary

Account Owner Children & Their Spouses

Grand Children &

Their Spouses

Great Grand Children &

Their Spouses

Spouse

Service Provider

The Life Cycle Of A Real Estate Transaction Using a Self-Directed IRA Make Offer Find a property and get an offer accepted.

Asset Settlement After the deed is recorded the title company will send a copy of the deed to the liaison showing ownership of the investment in your account

Earnest Money Submit a request for earnest money to be disbursed from your account Personal representative A liaison will be assigned to work with you and your escrow team

Funding When the final signatures are received by the liaison they will sign and return them to escrow and funds will be sent to escrow for closing

Final Review Docs are reviewed and the final direction of investment is sent for your final review and siging

Financing a Loan From Your IRA You can take on a loan to purchase real estate The loan must be a Non-Recourse Loan This means the only collateral securing the loan is the property being purchased with the loan Other assets held in the account or the account holder personally cannot be held liable in the event of default on the repayment of the loan Mortgage payments of the loan must be paid from the account Bill payments must be submitted to the the IRA account to send a payment for the mortgage A recurring bill can be set up for automatic payments Items needed to submit for a debt-financed purchase Direction of investment form Non-Recourse loan documents Promissory Note (must include non-recourse verbiage) Deed of Trust/Mortgage All loan documents must be signed by the account holder A settlement statement or HUD showing the correct titling and funding amount as well as any documents that require the IRA company’s signatures