The Power of the Self-Directed IRA with Kyle Moody from American IRA

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This is the no Closer show where you get the latest developments in distressed note investing and learn the secrets of how you can control millions of dollars worth of property for panties on the dollar.

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To support you in achieving the same. Now here's your host CEO of We Close Nodes, Scott Carson.

Good morning, good afternoon and good evening. Hey. Welcome to this episode of the Note Closure Show. As always, Scott Carson jacked up. Today for you is a kind of a cool day here in Austin. We're going to see some freezing rain maybe, but it's going to be a hot day here on next day or so when Texas plays and wins their playoff game. But we'll get to that later on. Yes. You guys know I'm an avid football fan about the investment that people put into it. But you guys also are out there. It's the first of the year. You've got some New Year's resolutions to invest more, to save more. Don't know where to get started. Maybe what you've been putting into your, you know, the little piggy bank isn't working for you. Maybe shoving in your mattress and then using it because you're using to go buy things or burying it in the backyard in your grandma's can of tomatoes isn't helping as well. So we want to focus on ways for you to put your money start saving your money for retirement and ways that you can use it to be buying real estate, to be buying some one of the most effective strategies for building and growing wealth out there, bar none. This is a must have if you're an investor of any sort is opening up your self directed. IRA and I know we haven't had anybody on from a few folks on there, but I wanted to, I've been really excited to get this guy on and it's been a struggle. I'm just giving him shit to get him on here. He is Kyle Moody. He is the business vault guy over at American IRA who do a tremendous job, great customer service. They're huge fans. I got a chance to hang out with him and his whole team at fincon a while back and just really jacked up. But we are honored to have Kyle on here today. What is going on? Kyle, how you doing bud?

Hey man, thanks for the introduction of my delay in, in in getting to you. And you know, I, I would like to think that the delay would have been for, you know, some vacation time, enjoying the holidays. But really, no kidding, it has been since we met at fincon. It's been how busy we've been since then. Uh, December was my busiest, uh, December of uh, I, I think in all the years that I've been here. And so it was really just trying to schedule some time to make this happen. But I tell you man, the bomb we've already formed already getting to talk some football, getting ready to talk some snow and everything else. It's, it's definitely going to be something that you're going to start getting your own day of the month on, on my calendar. So we want to, it's gonna, it's gonna be a lot easier for us to get together so. And yes. And we're appreciating you sending all the uh, the snow and ice that you're getting ready to send our way. It's supposed to hit us here. What they're saying is sometime uh, tomorrow Canute, so.

Well, you know, gotta love that. January, early February. I don't count winter over till after Valentine's Day for the most part for us here because right. Texas likes to freak out. We get a half inch of ice and everybody starts freaking out. That's why I work from home. But no, I know you've been busy, you know, complete just giving, giving you a little bit here. But that's the great thing. I know that you guys have been so busy since fincon and it was such a great event. We did a whole series on interesting people we met fincon and we're glad to have you on here. And yeah, we stopped a little bit the first year because I think a lot of folks wait to the first year to really tackle most of their new goals for the year. You know, they think about it, they get through the holidays but when they start seeing things, they get those quarterly statements or they, from the credit cards or see their investment savings going down, balances going down, they decide to do something and that's, that's why we're such big fans of self directed IRAs. We've used IRAs, we've got lot of our coaching students that are using IRAs to, to buy notes, buy real estate. They're leveraging other people's money in IRAs to create win win with their financial friends. Let, you know, let's, let's talk a little bit about it. I know we'll get into more of it but you know, you guys have been around for a while and you're doing a great job in what you're, you're doing and I'm a big believer you and I Had that conversation, you know, about. Not every IRA company is created equally. Right.

Correct.

And you guys, customer service is number one. And we, I've seen it from the very get go since we met you guys. So why don't we talk a little about American IRA and where it come from? Because you haven't heard about them. You definitely need to start paying attention to this company.

Really appreciate that. And one thing I'll, I'll tell you that you had touched on right before talking about the company itself is, you know, getting people started. I think our busy time has really been having a lot of conversations with folks. And yes, I think they, they were waiting till January to pull the trigger on some things. There was a big day that happened in early November. I think a lot of people were waiting to see which way, you know, it can be political. I mean, your money can be very political. And I think people were really waiting to see what was going to happen in November. And then there really has been a lull. I mean I, I'm on the phone a lot. I talk to folks and, and not just in niche areas, I mean all across the country, all walks of life. And people said, well, let's just see what it's going to kind of be like in January. And so you kind of get the, after January 20th and everything. So then in between that you got a couple, uh, three holidays, you've got a lot of expenditures, uh, kids coming home after maybe first semesters in college and everything. Everybody has something going on.

Right.

And you know, on the sales end, you know, not always the easiest part of it, but I hear it all. And after eight years, at least in this realm, you know, I, I am, I, when I speak, when I give somebody answers on stuff, it's not me advising or giving any suggestions or opinions on anything because I'm not permitted to do that. We're not fiduciaries. However, I'm really speaking what all the other investors that I, thousands that I speak with every year, I'm basically regurgitating, you know, what they got going on and now how they're actually able to see. Wow, I wish I would have gone ahead and done this sooner or I'm glad or I, I'm glad I'm with American IRA now. I wish I would have been with them first or started sooner with them. And that gives me some, you know, a lead in to really talk about our company and, and what the biggest thing right now that I can say about American ira. Yeah, we're, we're probably one of the cheapest in the industry and how we have our fee structure. We can, you know, talk about numbers later if you want, if you want folks to hear that. But you know, quite honestly, Scott, there is five words that have summed up our success lately, especially within the past couple years with folks, and that's we pick up the phone. We pick up the phone. It is not a phone tree system. It is not a call center. It is our office. When people get a call from me, it's coming from my direct number and I. And if they don't have it on their caller id, I give it to them so they know that they can call me back. They know they can use that number to refer folks directly to me. They get my email address. When they call into our office, they get Vivian on the phone, our receptionist. And people love Vivian, okay? And, and they kind of get offended sometimes if they don't get to talk to Vivian on the phone. And, and we say, well, you know, she, she's at lunch or we had to, you know, unlatch her from her chair and let her go on vacation. But if she's not there, somebody else picks up the phone. The customer service, the customer comes first. That's just the way it is. Appreciate you saying that. You've actually had some of your students that have come through and they've already reported back to you. Good stuff. So that's always great for us to hear, you know, and to be able to share to everybody. But I'm gonna just, just pop out some things right here that'll show you really quick a little bit about the company. And yeah. So American IRA is now, you know, one of the first things you heard me say a second ago is that we are not advisors, we're not fiduciaries. If you feel with any company that you've ever spoken with that you have felt advised after you get off of a phone call, quite honestly, you're not supposed to feel that way. But so we though we do not answer questions until somebody is 110% on lock with it. You are going to get educated on things that maybe not always what you want to hear, but what you really need to know when you're going to be using your hard earned retirement dollars. We are headquartered in Asheville, North Carolina. I am remote, I'm a couple hours east of that in the Triad of North Carolina back here in my hometown. But I was actually in the Asheville area for 20 some years. Back and forth to the office every couple of weeks and they're Actually going to get hit with the, the white stuff. A lot more being in the mountains there than we are here, uh, in the triad. But uh, anyway, American IRA, we were formed, founded 20 years ago by Jim Hitt who is our founder and CEO and he is still reachable and I love being able to text and, and call him daily if I need to. He's been a great mentor and who has taught me just about everything I know in the business. And when you have just a wizard mind that he has to be able to form this company because it was again all about the clients and how he could share his knowledge with a low fee base that's actually never changed and then build his staff around that same mantra. It's great to be around now on our 20th year, we were sad we couldn't celebrate and you know, toast the, raise the glasses and toast the Champagne on the 20th year because that is actually when Hurricane Helene hit our office and hit, hit the Asheville area. And so we were out for, for about a week and a half on that one, but got everybody back to work and never really missed a beat with our clientele and we're pretty, pretty happy about that. Another thing about us that you know, sets us apart, no annual fees on cash only IRAs. And what that really means is that when you open up your account with American IRA until your first movement of funds or unless or until we start holding an asset that you might be transferring in from another company, if it's a only IRA and you're a brand new client, you might not do anything with that thing for, you know, a couple of months with that first movement of money, that's when we'd assess your, your annual fee and those fees are flat. So whether you choose our flex plan or whether you decide to go with an unlimited plan that you know, really fits your level of activity of what you're going to be doing with your account either way, you'll notice that if you bring in, you know, five figures and you grow it to seven figures, guess what? It is still just that low fee you had when you came in the door, whether it was a few months or a few years before. So we're really happy about that. You can hold unlimited cash and on and assets at no extra cost. You'll find companies out there that will do percentage base. I, I had two calls today. They asked me that, hey, do you guys do a percentage base? Do you do quarterly? Do you do AUM or assets under management? And quite frankly I tell folks, look, if, if I Got to start, you know, breaking out a calculator to figure out what my fees are going to be. They're going to be expensive, right? So, so with us there's, you can have as much cash as you want in that account. You can have as many assets as you want as. And those assets, you know, may outweigh that cash after a while to put you into the millions and it's not going to cost you a dime more. And we're really happy about that with, with the meetings like, or the conferences that we met you at @fincon and a lot of the conferences across the country that we attend and then also a lot of our regional areas if, if a lot of your group has probably heard of those, the real estate investors associations, we hit a lot of those. And I'm actually on the board of one now here in my triad area and I'm really proud of that. Jim was actually our founder, was actually the original president of a RIA group in Asheville when it started. Gosh, it was at least 20 years ago. We've already talked about this. No phone trees or call centers. It is people in the office and what we really like to give folks, we just call it what it is. It's that small, small town bank feel. So that, you know, though we're just under a billion in assets, you know, north of probably 7,000 clients across the the country. It is not, it does not make us big enough where we don't know who you are when you're calling in. And it doesn't mean that when you call in that you're not going to have any idea who you're speaking with. You know, everybody's together in the office. It's one big team, you know, you know, one team, one goal and that's the clients. And so you're going to know who you're translating. Transaction specialist is that you need to ask for when you're calling in and working your deal. We actually do have the checkbook IRAs. I always say that that's the kind of the, the street term of them but it is an IRA owned LLC where your IRA is the single member to that llc. We have a sister in house affiliate company that can put those together for you for less than usually what attorneys are going to do it. So we're proud of that. That's yet another company that we own. And then you also see there the assets that we have under custody. A little bit about me. If we've got another hour and a half to go.

We got Some time. We got some time. Yes, sir.

Good. Yeah, this is, this is actually my, I'm going into my eighth year here. I, I knew of American IRA because I managed on the property management end. I ran a property management company for a larger umbrella team, but I, where they were out of the triad. I ran their office in Asheville and that's actually how I got to know of self directed IRAs. I mean, because it was new to me. And Jim, our CEO, you know, he came to me as actually one of my clients at the time and he was recruiting me for a couple of years and I was like, no, I can't do it until, you know, one time I was like, oh, all right, I'll come take a look at your new office. Which was just literally right around the corner. I could walk to his office, which was funny. But anyway, started, you know, after graduate school. I was in Washington D.C. in the financial services industry for, for about four years. Came back to North Carolina. I knew I wanted to get back to the great state here and that's where I had gotten into. Had, had been a director of a department, a couple departments in the county government. But then when I wanted to go ahead and get into more something private, that's where I started my real estate career. I did real estate, residential and commercial sales. Also did that in the, the project or excuse me, the property management arena as well. And that has all led to where we are now. So still keep. It's funny, we were talking about this the other day. I still keep my, my license up. I was with a group of brand new licensees the other day and they were like, holy cow, what is the deal with the exam in North Carolina? I said, well, it's a good way to weed, you know, folks out. But it's actually known around the union to be one of the, the hardest tests there are. And that's why we pay that 40 or 45 bucks every year because nobody wants to take that test again. So that's a, that's a little bit about me and a little bit about the company.

Well, that's great. I mean it's, it's always nice when you talk to somebody who's got the real estate experience, the background, can speak the language. A lot of folks, there's people we've talked to before that, you know, they didn't understand a note deal or they didn't understand the investment aspect of it. Then you're trying, it's like kind of trying to describe a deal, but you're once talking English, the only ones talk Latin. They don't know the intricacies of what's going on with the deal. And that's always good to have that. And then obviously, you know, a lot of folks, you know, I think I heard the last number was at about 40% of self directed Iraq accounts are sitting in cash, not making anything, they're just sitting there. And people are losing money each month on the quarterly fields or the assets and matches fees and stuff like that. That really shrinks their portfolio. So kudos to you guys for those couple things right there alone to help help investors out.

I think one of the things too. Not really. I appreciate that. I think one of the things too that we do is that, you know, I, I like to educate. I mean that's why we're here, right? I believe educate first and then the business is going to follow if you do it the right way. But I think on the education level, very rarely do I see folks, at least, you know, folks that I bring in as my clients. I don't see them just sitting around and waiting. They're using their accounts. I mean we really see a lot of activity with our clientele. I'll be out at meetings and they'll stop me and they'll say, hey man, did you see the cool thing that I did with my account? I'm like, well unfortunately that's the difference in the sales and the operations side is that, you know, I'm in my lane, you know, working and doing what I'm doing. I don't get to see what, you know, all the folks in the transactions department see. And I tell you, I'm going to go ahead and tell you there are things that I can give you a good working knowledge to carry on the conversations of stuff because there's so much of them. They're, they're, I'm fielding so much stuff. But that transactions team, man, when they are locked in and they're working the files or whatever, the intricacies of that really, the different levels of it. I can't say enough about our transactions team and the compliance team and, and the things that they really help. There's some that are a breeze, there's some that are very, very. It's a, it's an onion, it's layered so much and, and they knock it out. And, and so that's a. Whenever our staff gets to see this, you know, I always tell them, hey, look guys, you know, talk about you. I really do. And here's proof because they, they really do. They're amazing our staff from, you know, me and the getting folks in the front door all the way through. When someone is getting their funds moved to make their investments, I mean it can't be a better place to represent.

Well, that's good too because you mentioned, you know, the staff understanding things that's. There's nothing more frustrating when you're trying to get a deal closed within 7 days or 14 days or soon and you're dealing with a different individual that has no idea what's going on. They're looking at a call sheet and notes from taking in on the thing. They have no idea about the deal. Can't tell you how many times we've help people try to get deals closed and we're talking to a different person. Got a resend in the documents, got to retell them what the whole story is because something didn't get done in a timely fashion and you can't ever find the right individual. And that's what I love about you guys. Like a small town bank, you know, who doesn't like the small town bank feel?

Exactly.

You want to go, everybody knows your name too. You know that kind of, I mean.

You know, it's almost a mix between the bank and, and Cheers. I mean, you know, somebody like Norm walks in the door, they're gonna feel like Norm walking in the door, I'm telling you.

Right. Well then also too, what I like too is that you guys also have that checkbook IRA access and understanding that not a lot of companies want to mess around with that. You know, they want to try to keep it one way or another. So embracing that is a good thing because that does make it a lot easier for a lot of folks to close and stuff. Just making sure that the investment is an approved investment. They're not co mingling personal stuff with the IRA in a lot of cases.

Right, exactly. Exactly. Yeah. You know, folks, they won't really unders. They don't know because a lot of folks are coming to us and they're brand new, but they might not know that we're offering that LLC option. And so that is one thing that now I don't, I'll tell you this, I don't bring it up unless they bring it up to me because if they are totally green to a self directed ira, I am not going to muddy the waters in, in talking about the llc. And you know, there, there are folks and look, I came from a lifetime in the car business. I mean My dad, 82 years old, still in the car business. No Kidding. Every day with all of his, you know, guys that started doing this, you know, 50 years ago. And, and so there's a, there's a certain type of, you know, sales level on things. Well, things are different when you get to what I do. I'm not your money manager. I'm again, not being the fiduciary. Call me the worst salesman on the face of the planet, but I'm not going to close you on something just to get a number. Self directed IRAs are not for everyone. And if I feel that, I'll let them know. Look, it's okay to go ahead and go to a credit union or a bank, get that Roth or get that, you know, IRA built up for a few years and then come to me or go to some of these, you know, places where you truly understand that your money, if you're not working it, it's not going to grow. With a self directed account, if you want to learn about it, I will totally educate you on that. You can watch programs like this and, and you'll be able to get that knowledge up to where it's truly going to work for you. But as long as I know that somebody is educated now, if they bring up the LLC and they want to go that route, then we're gonna, we're gonna talk about it. And then I've got to make sure they understand specifically how it works, the flow. You gotta have the IRA put together before you get the LLC created. You know, you can't get the cart before the horse. I've already set up my llc. Great, use that one for something else because it's not going to be able to be used in your ira. So just making sure that there's understanding on that. Along with the LLCs is also the solo 401ks. People forget that we have that in our name. American IRA self directed IRAs and solo 401ks. And so those two things are just as important as the IRA, the LLC and the solo K. Totally, totally correct.

An IRA LLC is not necessary for a lot of deals. There's a lot more, not so I'll say a lot more, but more bookkeeping, more things to be careful about. Speaking of the different account that you have, I don't know if you see. Yeah, there we go. We should be good here. Look at that. The nice little fly you guys. But let's talk about some of the different contribution limiting amounts. Let's see here. I'm trying to get to page two of this thing here. This is just page one. 1 well, I guess there's just one.

Page, but yeah, this, this, this does look familiar. Yeah, this is. This, this one's got some fun stuff on it for this year.

Yeah. So let's dive into. Because the contribution amounts have gone up a little bit, which has been good, giving people an opportunity to suck more away in their IRA and other accounts. Let's just talk with the, let's just talk the smallest amount. ESAs, educational savings account, educational areas. What's the amount that people can put into that in 2020.

What? Yeah, and that's one thing I wanted to talk to you about on this is that there's, you know, a lot of things that have not changed. The smaller accounts, you know, those, the, the, the, the, the Coverdales, as, as you'll hear those, you'll be able to hop on and see the changes on that. Some of the things that we have on here are really the things that people are using all the time, both the traditional and the Roth, which, believe it or not, there's no change on those this year. It's still going to be, uh, 7,000 for anybody and under. And then you still get the thousand dollar catch up if you are 50 and, and older. The, the really cool thing that we saw this year and I was like, did I read that right? And I really wanted to make sure that, you know, really before we put this out, it's like, are you kidding me? That's interesting because, you know, as if these numbers aren't confusing enough or if you try to go to the IRS website and read it. Well, there's something that if you're having trouble sleeping at night, just read that code, right. A couple paragraphs and that's crickets. But the, the 401k plans, that is really interesting this year. So, you know, it has, it has increased for anyone, you know, under 50 has, has gone up just 500 bucks. So it's gone from, you know, 23,000 to 23 5. And, and, and if you don't know what we're talking about yet, I'm going to go ahead and lay this out here because there are some folks that are probably going to be listening to Scott, that you're going to be the entrepreneurs. You may have already quit your 9 to 5. And you know, when you had your 9 to 5, if you had a 401k that you were contributing to there, then, then the man was also kicking in the match. If you, if you had that chosen right, well, imagine there's no more man. All right, you are yeah, you are the man or the, or the one. And so it is now totally up to you. You got your entrepreneurial business going and now you're starting to, you know, make some flow that's coming in. And but hey, you don't have a 401k plan, right? So just like the insurance, you're, you're putting all this stuff together, right? So the solo 401k plan is actually the most powerful retirement vehicle out there. Much higher contribution limits. I mean, when you hear me talk about it going from 23,000 to 23,5 for anyone that' under 50, that's only your employee contribution. Okay? You're also the employer. We'll get to that in a second. But jumping into the employee contribution, what that looks like is this again, talking about how the IRS has it laid out. When you read it. Here's, here's really how it summarizes 100% of the first $23,500 you make, you're able to put away as your contribution into your solo 401k employee bucket. Okay? Now the great thing about a solo 401k as well is that it has a built in Roth component to it. So you can either convert when you get those traditional funds in, or you can actually contribute both Roth and traditional funds. And you'll just let our office know how you're going to be doing that when that happens. Now for anyone. Now this is where some of the differences are going to take place. Anyone who is 50 and older has a $7,500 catch up that they can put away. Okay? So now 100% of the first $31,000 that they make can go in that employee bucket. And again, traditional Roth, that's going to be between you and your CPA and whatever you want to do. Remember, we will never tell you what to do or how much to do or what that's going to look like or the tax implications on anything. We're just putting the money where you direct us to put it, where it gets creative. Now is that if you see in there what's called that super ketchup. Now, it doesn't mean for folks that are everybody over 59 or 59 and a half because I'll get that call. Hey, call the 59 and a half rule. No, there's not 59 and a half rule. But anyone 60, 61, 62 and 63 is able to their catch up now is 11,250 bucks. So you know, I didn't do the math on that. So whatever the 23 five is, plus the. What is that going to be about 35, 35,000. Yeah, 35,000 that you can do. And, and so you. That that's what you're going to do. I guess you get the 64 and then it goes back down to the 7,500. So I thought that was kind of cool. And I was in a tax thing as well where somebody was presenting this and they had some other ways to look at it. But this is the one we're sticking with here, is that you've got the catch up and the super catch up. Now remember again, that's just for the employees. And then there's the second half of that. Well, what's. What, what is it called? There's a couple of ways to look at this for any of you. They're going to be sole proprietors, LLCs. If that's the way you're filing, okay, then you're going to be able to match. Now here comes in the match like what you would have had with a 9 to 5. Remember, you're doing it. You're both now. So that's going to be a 20% of your net earnings. All right. Is how you're gonna be able to do that match. If you are an S corp, then you're gonna be able to do 25% of your gross. Okay. So you'll never hear me give, you know what that actual dollar amount is on that back end because that can change at any time. And, and I never want to say, well, Kyle said I could. Now you'll never hear Kyle said it is, it is just as you're going to have the totals as they're put together is what you're able to make as your, your contributions. Any right there I will tell you that can really get broken down. And that is in the IRS code. We put that out there for folks you're not going to want to call and ask us about these RMD ages. That really is going to be something that, if, if that breakdown of that age and what that chart looks like there, if it's a concern to you, we never get asked those questions. But we want to put it out there for once in a while we'll get that question. But that is going to be something that you're going to have with your tax professional on exactly what that, that RMD is going to look like. Hey, if you're still like my dad at 82, still working, making the taxable income, being able to make the contributions all by the way, you know, taking distributions as well, you're going to want to make sure that you've got your tax professional that is getting that all squared away for you.

So good. Such great stuff. Yeah, you can sock away quite a bit depending on your structured LLC s corps on top of that solo 401k stuff. But it's always good, you guys to pick up the phone and call and talk to somebody if it's the right type of tool for you. Great for solo entrepreneurs. But if you've got employees, if you've got staff, there is a solo 401k good thing or a bad thing. If you, you know, if you've got employees the longest, don't you have to have. If you've got staff, you also have to offer that to them too. Is that correct or no?

Well, well, actually when it comes to the Solo 401k, depending on the staff, it could be a non thing. Yeah. So solo 401ks, you got to meet really two main criteria to see if you can do it. You got to have your own company. Okay. You can't have any full time employees. All right. There's some exemptions to this if it's you. And a spouse, if he or she is helping with the business, makes a little bit of coin on that, it doesn't count. Or if they're a partner, they're exempt for that. They can also have their own solo 401ks. And then you take those big dollar amounts and double that. If the math works out. I mean, if it makes the sense that you're making, you know, the, the two high two plus or three plus, then somebody's maxing that thing out. Double that. Right. I mean, I think it's now like the 76 range or something like that. And again, how. You'll see. I'll never get that. Give that total number because we want people to make sure that they're getting that total number squared away each year. And usually you do see folks saying, hey, yeah, end of the year going into that Q1, I want to make sure that I'm talking to my CPA about this. Now. If you do have employees, if you, if they are part time garnering less than 1,000 hours a year, then you can still qualify for the Solo 401K. If it's not your spouse, if it's a highly compensated employee or a partner, then you can still qualify for that. Again, always still bounce it off your tax pro. If there is something out there, there's other plans. And I'll Just give you those names really quick that if you do have full time employees depending on the size of your company and you want it to kind of, you don't want it to break the bank on what you're offering. Because if you have a sep plan, okay the, the set plan is something that you can offer but really whatever you're given to yourself or contributing to yourself, you're also allowing that same amount to your employees. So again depending on, you know, if you got a company that's really killing it may make sense for you. I came off of a simple plan when I was doing property management as simple as out there and you know, small business plan still. But it allows you to offer that one. And the great thing about that one is I think the, the max is that you're just that you're really have to do again the max is like 3% of wages. So that one can make a lot of sense. You know you can put that in somebody's benefit package and everything out there. So solo 401ks again it's only for anyone who has their own company company, no full time employees. But you got to remember too I think people forget about this one. Not just in solo case but in any plan out there is make sure that you know you've got the earned taxable wages, just passive income. Just saying that something is stated dividends. That's not going to allow you to make the contributions. We're not going to know the difference but the IRS and your CPA may. So you want to make sure that you know that's all squared away. And if you don't have that set up your CPA will be able to say okay look, maybe set up your. If you've got you know, 100 rental properties or something, set up the management portion of that. Let that be really your W2 way that you're able to put in your contributions. Now you've, you're making the pool of money. The contributions come in allow you to put that money into the account and then that allows you to move forward to make your investments.

Yeah, such important to have that money professional talking with you and reviewing because everybody's different obviously everybody's different. What you rank for, what you qualify for, definitely talk with your tax and attorney and all your professional team. That's the great thing too is being able to because we've been with folks like hey it's hard to get somebody in the phone as they're hectic talking about explaining different options and being able to install it and that's what's so great about being able to get you guys on the phone, hey, we can talk, have a team call, go through. Hey, here's what we're setting up. Here's what we need to do. What do we need to put in place to make this the most effective way for us as investors or entrepreneurs out there? Right, Kyle?

Absolutely. I tell folks all the time, hey, look, I know that it's going to be tough enough for you to get your CPA on the phone and that may actually be, you know, anytime between now and, I mean, heck, even after April 15th. But you're obviously going to have some questions or even they're going to have some questions. Not every CPA will really understand self direction. And that's also another thing I say is that, look, hey, find an attorney, find a CPA who really does understand the nuances of self direction because it is different. Okay? Though it seems new and might feel like a fad to some people, it's been around since 1974 at the emergence of ERISA. Right? So we've been doing, you know, we've met. And so, you know, I, I, I tell folks, you know, hey, look, if you, if you're with your pro, if you're with your financial advisor who is begging you not to take a quarter of the portfolio that he's managing or she's managing, but you know, you want to do this type of investing anyway, let's all get on the phone. I will totally educate everybody on why it makes sense for all of us to have the mutual client. Client's going to do what they want to do anyway. And I would rather them go to somebody who again has the education, their knowledge at hand, than just the closing for a one more account. Okay? I mean, that's, that's really the importance here is that people feel comfortable with the phone call. They've had, their initial phone call, the second or third they've had, and then they're going to notice that it's going to transcend not just from the sales team, but throughout their experience with the entire company.

One of the things that is great about that putting everybody together is obviously it's being able to unify that path, that direction that you want to go and being able to have everybody at the same on the same marching orders, hey, what are we doing with this versus trying to figure out, Because a lot of times we've seen people where, hey, one team member is suggesting this and this contradicts what another person is saying to get the Two together. The minds together. Oh, okay, this makes sense. We'll adjust it that route. That's, that's the beauty of being able to talk to somebody there directly who knows the heck they're talking about. Now let's talk a little bit about folks that are leaving that job. Their goal is maybe looking at retiring. They're looking to do a rollover or rolling the money into the account. That's something you guys do a lot of as well for folks out there, right?

Absolutely. You know, the question that we will get a lot is, okay, so how does my money go from my 401k that I haven't touched in 4 years to this end of this investment that I'm trying to make with Scott? Like, okay, well no, let's, let's break this down. And I tell folks, don't do what I did. When I was learning this business from the ground up and learning every single department of how things went, my CEO used to pick on me when he was like, this is how a graduate student reads a, you know, reads a self directed IRA book. He was like, look at these notes in the margins and everything. And it used to embarrass the heck out of me. Don't overthink it to the point that it can scare you away. Okay? Self directed IRAs, like I said, they're not for everyone. But don't let the things that we're going to be there to walk you through so that you understand it. You're not going to do this by yourself. There's things that you, the decisions you have to make are yours. We can't tell you what account to pull from, how much to bring over to us. We're not going to steer you on that. We can't. Okay, but you're not going to be alone and how this is going to work. And here's how it goes, Kyle. I got a 401k from a company I haven't, I separated from there four years ago or hey, Kyle, I've got two or three of these 401ks. All right? You know one thing I tell folks, okay, who holds that 401k or all those 401ks in each of those 401ks? Do you know if all your funds are all traditional funds in there? Were there a smattering of Roth dollars as well? A little bit of both? Or you don't know or at this point you don't care? Right. And so because you'll find that this morning, great guy on the phone record or had just Retired young from a very prominent company. And he said, but I, I, I'm, I'm new to all this. I don't know. And he was apologizing. He didn't know what he, I was like, hey, look, that's what we're here for. But it is good to know who's holding your funds and what kind are they. Okay, because now that lets me know. Okay, do, do you need a traditional, a self directed traditional, or do you need a self directed Roth? Or if you think that you need to combine those, then you need a little bit of both. And the great thing is, is that, you know, some folks think, oh God, I don't want to have all these separate accounts. I got, you know, an IRA over here, I've got this other IRA over here, and I've got these two 401ks, and they're predominantly traditional funds. Well, the great thing is every single one of those can consolidate into one self directed ira. I'm to not going to say four different accounts. I'm going to put you into one, one vehicle. All right? There's the car sales coming out, and I put you into this one. That's going to be, it's going to be your platinum, though. It's going to be your top of the line because it's going to be, it's going to allow you to put all of those accounts into one, to invest in all of the same asset classes. You'd want to do either with the Coverdell, the hsa, the sep, the simple, the Roth, or the traditional. Okay? So that's going to be a rollover coming from the 401k plans. All right? It's, it's unlike, I call it the four plans, a 401K, a 457, 403B. If you're military, thank you for your service, and you're going to have a tsp. Okay? Sometimes people will come to us with a psp, the profit sharing plan. All of that can roll into your self directed IRA or your self directed Roth. Now, if you've already got an IRA with a provider, a lot of people will say, well, I've got a rollover ira. Well, you've got a traditional Iraq, okay? It's really what you've got. All right? So that lingo, that terminology, we kind of smooth that out for folks. They'll say, hey, I've got this IRA and I need to do a rollover. Well, you can do a rollover, but you can Also only do one rollover every 365 days or you're going to get in trouble with the irs. Okay, so if you ever have the chance to do a transfer, but you do a rollover, then you've burned your rollover. So if it's going to go from like, to like IRA to IRA Roth, the Roth SEP to sep, SEP to traditional. Okay, since that's an IRA plan, then that's going to be a transfer. And it is going to be as easy as you filling out the application. And then the second step, after the application has been completed and your account is established, our staff's going to get the respective paperwork to you, whether it's going to be the rollover or the transfer. If it's a rollover over, your outbound custodian is going to be the one that's going to initiate the movement of those funds. They're going to wire that or send in a check, however you tell them you want that to come to us. If it's a transfer.

I have to ask you a question about that real fast here. What do you see as time frame on that transfer? I've seen some banks and some lenders take six weeks to send a physical check via Pony Express and some others have done it a lot faster. The wire train for what it's actually.

Carry, it's actually carrier pigeon in the shop. Yeah, yeah. And then they let us know by smoke signals. It's like what? I, you know, my, I, I didn't bring my blanket in today, but it's like my matches won't work. So really it's a good question. Rollovers are actually going to be quicker. Those are faster. Because you know, really that, that administrator, they maybe you're separated from the company, they don't care. They say, hey, what are the wiring instructions? What's your new account number? What's the company name? The address? Boom. And that's going. And if they wire that, I mean we can have that in, in a few days. Okay. Now I think after Covid, two things really slowed down, but I've seen it pick back up a little bit more. You're right though. On a transfer, I heard a horror story of, you know, a guy talking about two months. I'm like, ah, two months. Generally what I'm going to see on a transfer, on when I say I, I mean our processing team. Yeah. But generally I tell folks this, look, if you're doing a transfer from the Fidelities, from the Merrills, the Morgan Stanley's or whatever, and it's going from IRA to IRA plan, on, you know, two and a half to three and a half weeks. Hey, if it takes four, it's, it's probably going to be the outlier. I don't see it taking that long. Hey, but if it happens in two weeks, great. Everybody's high fiving and you're able to move forward. What's really cool that we do at American Iraq, not only we're going to process your paperwork, but maybe if you're in the middle of, or wanting to start a note deal or you want to start a real estate deal or something like that. Okay, well, obviously you're not going to have the funds there yet to make the investment for us to move the money. But we're going to go ahead and work with you to actually knock the paperwork out in tandem while you're waiting on that. It helps speed up that process from the time. Let's, let's imagine that this is basically a phone call because this is really what my phone calls sound like, right? People asking these questions. If we're having this phone call and somebody is actually, hey, Kyle, we're going out this weekend. We think that we're going to ink the deal on this. Well, a, be careful on how you ink it because it's got to be nuanced in the vested in the name of your retirement account, not you personally. Don't hand somebody 500 bucks in cash or you know, a cashier's check of your own. You can't use your money. It's got to come from the retirement account. Right? So I always tell folks, get the application in first, get that account established, even get it, you know, partially funded if you need to. And then when you get ready to do the deal, then, then you can really get the skin in the game the correct way. But from imagining that this is a phone call, I tell folks, hey, look, you know, the way that I see timing go, my knowledge and how long something can take in the real estate days, transactions from back in the day plan on at least 30 days. We're coming off of three back to back holidays, maybe 35 to 40. 40. Okay. Anybody can make a mistake, you know, somewhere in that paperwork. If it's not perfect on our end, we will return that and then the clock starts over. Okay, Four day turnaround time though, with us. So we get it in, you know, both getting it in, getting everything through compliance and getting your money moved, you know, should be about a four day turn on that. But still plan for about anywhere from 30 to 40 days. And, and you should be okay. On that. Well, that's opening the account and, and getting it funded and doing your investment. And getting the investment funded. So it, we, we can generally work on that pretty well.

Yeah, that's the thing. I'm glad you brought that up. It's definitely, you know, don't wait till the last minute trying to set this up. It takes 30. I've seen as far as six months before from one fund who drug their feet. Yeah, just a. It's a nightmare for the, the investor to get it done. But he was glad to be done of Wells Fargo. Oh, I'm sorry. That company, they've dealt with.

Hey, really quick, I'll tell you this, when it does come to those companies like that, there are certain companies out there and they're going to make you get what's called a medallion stamp or medallion guarantee stamp. That I'm going to go ahead and tell you that is not an American IRA thing. We're going to have it on our form because if you're with one of those companies, they're going to make you do it. So we at least give you the heads up on it. It's kind of a pain to get from what I understand, but it's just what they're going to require. And I'll go ahead and apologize from our end, even though it's not us. But, but yeah, that can slow. I think sometimes they kind of. Or they'll say, oh, you can't move that money in there. Yeah, it's their money. They can really do whatever they want to with it. They can't touch it a certain way because it's retirement funds. But yeah, so let the folks have their funds and let it roll over to us.

Yeah. When you have the Chase is the bank of America. The world is farther than Citibanks. That's. I've. As an ex banker for Chase and Bank One, we'd have people come in, have to get the dang medallion stamp out of it, you know, safe to get it done. And yeah, I'm like, this is just, it's just stupid. It's just a way to drag their feet to get stuff done, get some more of that money sitting in an escrow in an account, making interest on it for the most part. But anyway, let's talk about if somebody's looking out there, because we got a lot of folks that are starting off. They're, you know, what's the amount that they need to start to start off a Roth IRA or traditional IRA to get the thing rocking and Rolling and something they can put into on a monthly or annual basis.

Yeah, so you already saw when we were talking about the, the contribution limits if somebody is, you know, fresh, whether they've ever had something before. Love the, love the, the gumption of the folks that are right out of college, they got their first job and they want to start putting something together. I mean, seven and $8,000 isn't going to get you a house. Okay, seven and $8,000 Isn't going to get you in a lot of places because I mean it's not really going to be 7 or $8,000. Our minimum cash balance that we at least have to hold in the account at all times is 750, 1500 in a, in a self direct, in a solo 401k. And then you've got your annual fee. So you're going to have about you know, maybe five grand to play with if you're under 49 or under. So most of our clients are either a diversifying from or moving over that entire 401k portfolio or they have an existing account where they're diversifying out of that. Now of course having an amount that you can do an all cash deal. Great. We're not going to talk about those folks because that's already the, the no brainer. What I do get is, well, what, what do I do if I've only got a $50,000 account? Well, okay, you got to be a little bit more creative in what you can do. I mean, hey, is there you know, a note that you can do for 20? Is there a note that you can do for 25? You know, do one, let that you know, pay back in and I don't know what your guys term times are but you know, if that comes in and you know, two, three, four, you know, six months, okay, boom, do another one. You've grown that account a little bit because remember, it's in a non interest bearing trust account. And that's why, you know, depending on what you're doing, you're going to have set numbers on everything. But if somebody just wants to do a, you know, they got 50 grand, they want to do a, you know, $40,000 loan to their neighbor down the street who wants to put in a really nice bathroom or something. Hey look, those rates and terms and everything or you're having a meeting of the minds with, with the neighbor, right? You know, if it's more than what the bank will charge, but they'd rather, you know, pay you instead of the bank then, then by all Means, you know, that you just made something on a, you know, a four, you know, five or six month, you know, turn or you know, full balloon at the end, whatever it's going to be. And so keep those things in mind even. You know, we've seen a lot of clients that will even build in the fees to American IRA into the note, just call it points. And, and everybody moves on with their lives, Right. So there's that wholesaling deals, a lot of things you'll see folks get in for, you know, just on the paper. What's that going to cost you? You know, a couple of digits, 100 bucks, 500 bucks. You turn a five figure profit though, then see, now you're going, oh, wait a minute, you do two or three of those a year. Well, now your IRA is a different ball game. And really quick somebody will say, hey, because this, this question will come up, well, Kyle, wait a minute. If I can only put seven grand in and I've already done that and now I've got a twelve thousand dollar profit, that's nineteen grand. What am I going to do? Well, your profits have nothing to do with your contributions. There's no ceiling on those profits. Profits. And then as you grow those and grow those or as you partner your account with other folks, you get into syndication deals, joint ventures on certain things, partnering with other IRAs. I'm not going to get into the weeds on this, but if you partner with disqualified parties, even being yourself, you can do that, but only at the time of acquisition. You can do those types of things to build your ira. There's, there's always things you can do and we have time to talk about that with you if you want to go that route.

We'll have to do a different, different episode in some of the different ways to partner.

Sure.

And go. Yeah, it's such a fun thing. And being able to take $1,000 or $2,000 if you got a small balance and taking a thousand like a, an escrow fee or an option fee on a property and flipping that paper and making 10 grand, that means one of my first deals I got excited about, we put a property here in Austin under contract. Unfortunately, it wasn't in my IRA, but an option for 100 bucks and sold it for 75 grand, you know, a week and a half later. That's a nice, nice, nice roi. I think the return on that is called enough. You know what I mean?

Well, I mean that's a, you know, if somebody is, you know, call it their, you know, they're getting a late jump, but they're 50 and they've got a 7500 IRA or a 800 or $8000 IRA. I mean they just basically grew that 10 times in one deal. And if you do that two or three times, I mean it's amazing that people who have gotten very successful and grown those in a short amount of time doing that exact same thing.

Yeah, exactly, exactly. Well, we could sit here and talk. We're gonna have to have you back on. Is that all right?

Again, Kyle, I'll be back any. Yeah, I'll be back anytime you need man. There. Because there's so many avenues. You're right. We can really start getting into the niches of this, of what people and you know, hey, we take on some questions and, and we see what folks want us to talk about and we'll, we'll, we'll chop it up next time.

Sounds good. Therefore, what is the best way though for those that are wanting to get rocket rolling to get started, reach out to you to do a rollover, start putting their, their plans in place to start opening their American IRA accounts. What's the best way for them to reach a hold of you, Kyle?

Yeah, absolutely. I'm going to give you guys my direct number. It's going to come to this guy right here. I'm the business development manager of the company and, and you get to talk to me. And it is 882-841-28123. That is my direct line and I'm sure that Scott will get that out to everybody if you didn't write that down. And then my email, you can email me directly at Kyle K Y L E american ira.com and I'm never too busy for your referrals. We're east coast over here. If it's tomorrow when you, when I can get back to you or if it's after the weekend. Yeah, that's that, that's when we'll get back to you. But I'm always going to make time for you to help you out.

Yeah, we'll definitely put the, the contact info in the chat, roll in the description there for you guys. Take advantage of that and that way you can get rock and roll. But Kyle, thank you so much for coming on and spend some time with us here and sharing some great stuff. We look forward to having you on the future and helping our note closers out there go close some more deals and make some good returns in their retirement accounts. How's that sound?

Absolutely, man, sounds good. And between between now and then, I'll be watching the game tomorrow night and yeah, I might just have to show up on the next one in some of my, my game gear. I'm a big time Redskins fan, man. So if you're a Cowboys.

Sorry commanders. You know what I mean?

I mean, do it. Can't do it, but.

I know, but they're talking about bringing that back, aren't they? I think they're trying to bring it back.

You know, they're luckily now of all things that, you know, Congress should be doing. One of the, of the last second things that they did before they went out on the Christmas holidays is that there was that bill where Washington is at least going to be able to now do something with the old RFK Stadium. There's that. Do I ever think the name is going to come back? I mean, let's be honest, I don't think the name will. I would love for the logo to come back. You know, that was, that was Chief White Calf, man. I mean, you know, and they're, they're pretty particular about that. I mean, I, I think, I think you may see a name change because this one's terrible. I didn't like the way they undid this one, but since the day I was born in 1974, my dad left the hospital and he got me my first Redskins outfit. I told folks I've got everything of memorabilia. Look around my office right now and it's all around me. But I tell folks, don't buy me a Washington football team anything. Don't want. Don't buy me a Commanders or that stupid looking W thing. Sorry. If there's any of the ownership that's on here, I, you know, it's just, it's, it's heritage, man. I mean it's, it's my history and everything and. But I'm just glad that we, we won 12 games instead of four like last season and we're in the, the wild card playoffs. So hopefully we have a good show on Sunday night.

I'm probably gonna have the rookie of the year as well too.

Love you, man. He's a good kid. Good kid.

Yeah, he is Definitely, definitely a good kid out there. Goes headed on shoulder. So definitely got some magic back in the Washington NFL, which is good to definitely need it some. All right, buddy. Well, hey Kyle, have a great day. Thank you for joining us everybody. Go out there, connect with Kyle, shoot him an email, shoot him a text. We'll put all that stuff in there, get your accounts open. If you're wanting to do more in 2025, that's the first thing you do. Take a thousand bucks, open an account, let's get that rock and roll and put some money into it on a monthly basis. If you put a thousand in to begin with, you could put in 500amonth on average there and max out Your account at 7000 for the full year there for you day. Let's do that. Let's, let's do that. Let's claim your retirement yourself because guess, guess what everybody, nobody else is watching out for you. You need to take control of your investments, of your retirement and go out and make it a great day. If you do that, I guarantee we'll see at the top. Have a great everybody.

Bye.

Hey real estate investors, this is Scott Carson. I'm known across the country as the note guy and I've been an active note investor focused primarily on the niche of non performing notes, distressed mortgage notes on residential commercial properties for almost 20 years now. My company company is weclose notes.com and I know there's a lot of different things when it comes to the note world. Are you buying performing notes? Are you buying owner finance notes? Are you buying institutional debt like I would focus on? Are you buying first seconds contract for needs? There's a lot of questions and it can be very confusing about what you can or cannot do. So one of the great things that we've hosted for the last couple years that we do on just about a regular monthly basis is we host our one day class called Note Weekend. If you go to noteweekend.com you can register for a free three and a half hour class. We'll talk to you and share with you how you find fun and flip non performing notes. And yes, you can buy non performing notes from banks, hedge funds and a variety of different hard money lenders out there for your own portfolio. No, you don't have to have millions of dollars to dive into the non performing note game. We've got students that have bought plenty of deals with 25, 30 grand getting their ball rolling using their self directed IRA who are tired of dealing with toilets, tennis trash, tired of battling contractors and GCs to get properties rehab. We all know the market is changing and while it may not be like 2008, 9 and 10 again, it we do see a lot of distressed debt out there on both the residential and the commercial side. So if you're thinking about diving into the note game, becoming a note investor, a lean lord as you'd like to say, versus a landlord or you just want to figure out what it is about the sexy side of real estate in the note space. Well check it out. Noteweekend.com doesn't cost you anything. We host it live usually the first or second Saturday of each month. You can go today. Register at the website noteweekin.com Register for the next live class we host. You'll get sent a replay to the previous class so you can start learning about the note business today. No questions asked. No credit card needed. This is a great way for you to dip your toes in the water and see if it's warm because I guarantee going through our three one day class you want to dive into the deep end and become a note investor. So check it out. Noteweekend.com you can also go to our website. We close notes.com check out our podcast. Check out our YouTube number one YouTube channel. We are here to help support you whether you're experienced investor or you're brand new investing. Note weekend is a great place for you to get the ball rolling. People often say we cover more in our three hour class than most people cover in their three day class. So check it out. Love to have you be part of our note family but get signed up today@noteweekend.com thanks and have a great day.

Sam.