What is a Self Directed IRA?

A Self Directed IRA, referred to after this as "ICO", is a special purpose limited liability company, which is either fully or partially owned by a self directed individual retirement account (IRA). Since the self directed IRA owns the ICO, IRA funds can be legally transferred to the ICO in exchange for member units (shares) of the ICO. After this funding, both traditional and non-traditional investments may be purchased by the ICO instead of directly in the IRA.

Self Directed IRA Brochure
Self Directed IRA Presentation
Self Directed IRA Standalone Player
(for later viewing)

NAFEP Audit Support Warranty

The Self Directed IRA Helps Your Clients By:

  1. Very few IRA custodians permit direct ownership of real estate or other non-traditional investments in an IRA, so indirect investment via the ICO is usually the only choice.
  2. When an ICO sells real estate or other investments, the capital gains are deferred through the IRA, like any other IRA investment. The headaches of 1031 exchanges are never necessary.
  3. Ownership of the property in an ICO allows the client, as manager, to have direct, hands-on control of and investment decisions over ICO assets, including control of the checkbook. Custodian involvement and hassles are eliminated, regardless of whether the investments are in securities, real estate or other assets.
  4. An ICO can use its IRA funding as a down payment for a real estate purchase, with the ICO financing or borrowing the balance. But an IRA cannot directly participate in such a financing arrangement.
  5. Since the client controls and handles all ICO transactions, the custodian for the self directed IRA can be paid an inexpensive, flat fee, typically under $200 per year
  6. Litigation threats which accompany investments such as real estate are substantially reduced. This is done by isolating the investment inside the ICO, and away from the rest of the client's IRA funds and estate.
  7. Continues to provide deferral of income and gains inside the IRA.

How Will the Self Directed IRA Help Your Practice?

  1. You will be able to engage clients which you couldn't before, because you can offer them a superior way to manage and invest IRA funds.
  2. You will be able to invest some of those IRA funds in traditional investments, and gain access to the client's non-IRA funds and other estate planning needs.
  3. You potentially get two clients from each ICO. If the clients use their ICO money to purchase real estate, there must be a real estate seller. The real estate seller is an excellent prospective client for a private annuity, which in turn requires investment management.
  4. Real estate agents will find the clients, sell the ICO and bring the client to you. The agent has two potential sales from each ICO.
  5. Put on "tax advantaged real estate investing" seminars. Discuss the ICO for the buyers and the private annuity for the sellers. Get real estate agents to deliver the audience, they win either way.

Broker-Dealer Compliance Notice:

If you have received approval from you B-D to engage in NAFEP business, you should provide your B-D with information relating to the ICO product prior to engaging clients and get approval for this product.
Your B-D may need to review this product for compliance prior to engaging in any business for the ICO.

NAFEP and Asset Exchange Strategies Joint Relationship

NAFEP is offering this product only through a joint partnership with Asset Exchange Strategies (AES). AES has been engaged in the sales and marketing of ICOs for several years. They have helped thousands of clients leverage their IRAs through an ICOSM product.

AES will provide NAFEP CEAs with top level sales, marketing and technical support in the sale and delivery of this product. NAFEP will be provide the legal counsel, LLC setup, and document preparation services. ICO rules are so complex, that we need an expert, AES in this case, to directly help every client with set up, funding and operation. This service is beyond the capability of NAFEP to teach and support our individual members to handle. Rest assured that AES will work complementary to, and never in competition with you. NAFEP simply could not offer this powerful investment tool without AES' third party help.

For more information on the Premier IV ICOSM product Self Directed IRA Product Click the link, or call:

Dan Cordoba (CEA®)
with AES at
(512) 528-0801.
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