Winter Haven Win-Win-Win

Here we go again. A new case study featuring a true win-win-win Note Deal. We bought this note in 2015 as a JV deal with a fellow investor’s IRA. It just recently closed in April 2017, and turned out to be a killer deal for all parties involved! Our company, Seasoned Funding, LLC worked with our JV partner completing all of the work, while they passively received their (way higher than average) return on investment.  We look forward to completing many other home run deals like this in 2017 and beyond.

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I hope you enjoyed this month’s case study. Stay tuned for more great deals to come! If you’re interest in working with us a lender/investor, please contact us at the information above. We are always looking for new and interested partners to work with.

Parlaying your IRA into a Family Fortune


I am in my early 20’s and most of my fellow investor colleagues consider me very young for the real estate game. Knowing that I’m starting earlier than most, I want to be ahead of the game financially and with that comes planning and preparation, especially with IRA’s and taxes.  With that being said I’ve been doing a lot of reading on the power of IRA’s and Tax Protection and just finished reading a wonderful book by Ed Slott, How to Parlay your IRA into a Family Fortune.


The Main Idea of the Book:

You can “Parlay for your IRA into a Family Fortune” by setting up your Roth IRA to be given to a beneficiary (typically someone that is younger than you such as a child or a younger spouse) which allows something called a “stretch”. The beneficiary can continue to make contributions to the IRA growing and building your original retirement based on their  life expectancy according to the IRS, tax free, taking only the minimum distribution the entire time.

Let’s use an example from the book to make this a little more clear.

“Bob” leaves his 39 year old daughter, his beneficiary, a 1.5 million Roth IRA. Because of his daughters current age, the IRS says she has a life-expectancy for 43.6 years remaining to contribute to that IRA before the required withdrawal date. Now Bob was no dummy, he planned for this day properly, ensuring that the structuring of his estate and IRA allowed maximum growth and minimum tax payments (if he did not set this up before his death it would have been left to his estate and a large portion of his IRA would have gone to paying estate taxes). His daughter then inherits this money 100% tax free because of his structuring and now has the ability to continue growing that wealth by self-directing it getting a 8% return (which let’s be honest is a very feasible return this day in age). By the end of her 43.6 year life expectancy she grew the 1.5 million inherited IRA into $11,903,767 all tax free while slightly increasing her annual income taking the required minimum distributions! Talk about the power of growth!

Okay, you’re probably thinking “well I don’t have 1.5 million in an IRA for my kids”,  but the major point Ed Slott is trying to make in this book is the that the power of time, growth, and compounding interest work just as well in an IRA that is stretched with $100,000 or $1,000,0000. It’s tax free growth regardless!

In order to be able to STRETCH your IRA to maximize growth and contribution limits and minimize taxes you need to:

1. Get a ROTH IRA (you can do this by rolling over an existing IRA, 401K, or other traditional investment plan or if time allows, starting one while you are young).

  • Check with your IRA custodian to ensure they allow stretch IRA’s and can set up everything needed prior to your death to allow the stretch.

Stretch IRA slide 1

2. Name a Beneficiary to each ROTH IRA you own. This can be 1 person or multiple but discuss with your custodian the proper way to do this.

  • There are a number of suggestions he gives in the book on this topic, and it is highly suggested that you keep your IRA beneficiary forms updated as much as possible in the event of death, divorce, or other circumstances. If this form is in existence after death, it supersedes your will and all of your IRA will be given to the beneficiary, hence the reason you want to keep it updated as best as possible.

3. Provide instructions and incentives to your beneficiaries to ensure they maximize this opportunity after you pass.stretch_example

  • You cannot control if your beneficiary takes advantage of the wealth building opportunity you provided to them or not, but you can however provide them incentives and the tools to utilize and maximize the stretch. Leaving them explicit instructions on what steps to take to properly stretch the IRA with a chart showing the possible growth vs. taking the money and paying 30% or more in taxes upfront.

Now I am not expert in this area, nor am I an accountant, lawyer, estate planner, or IRA advisor, so I highly suggest if you are interested in what you read here that you pick up your own copy of the book and explore the many details, laws, and regulations that were not discussed in detail. The book is extremely well written and easy to understand. It makes learning about growing your wealth enjoyable and exciting! I hope this blog helps you take the right step toward parlaying your IRA into a family fortune!

The Power of 72: Prepare for Retirement by Making Money Work for You


I first heard of the rule of 72 at my local County Chapter REIA monthly meeting. We had a guest speaker from a local Self Directed IRA Company, NuView IRA. I was excited to hear his presentation because I love hearing new ways to shelter and grow my wealth using alternative methods such as solo 401Ks and Self Directed IRA’s. During his speech he showed us a very odd-looking chart that had the numbers 1 – 65 on them. There were 7 consecutive squares of the chart blocked out in white instead of the bold blue color of the remaining 58 blocks. He began to explain what we were looking at and the “Rule of 72“, a simplified method that helps you determine the amount of time that would be needed to double your investment  (72/interest rate = time to double).


“The most powerful force in the universe is compound interest” – Albert Einstein 

The 7 white blocks on the chart he showed us was demonstrating the doubling period or 7 years time it would take to double your money if you were receiving a 10% interest rate, which let’s be real – the average person is nowhere near receiving. The point of the chart was to emphasize how important time is when investing money.  With that being said, your age can greatly affect your ability to double your money or not.  The chart below should give you a better idea of that timeline.


So let’s give an example. If you are 25 and you are receiving a 5% interest rate on the $100,000 you have in your IRA (which is a higher than average rate of return, even for investing in stocks/mutual funds). That means it would take you 14.4 years to double your money and you would have $200,000 in the IRA by the time you are 39. If you did nothing additional to the money and continued to receive that 5% interest rate, by the time you were at retirement age (65) you would have around $775,000 in your IRA. That’s not a bad amount of savings if you have a good pension plan with benefits from your previous employer. If you have no additional pension plan; with the average life expectancy rate rising, you will be living on a $51,000 year salary that will disappear at the age of 80 (15 years from retirement).

Can you imagine what your rate of return would be if you started with $100,000 at 5% interest at the age of 45, or 55…You’re ability to double your money is greatly diminished in return affecting your ability to retire at the age you desire.

So what’s the solution?

To be honest, there is none; but there are ways that you can grow your wealth at a much faster rate than the annual contribution limit (which is $5,500 for anyone under the age of 55) or from putting your money into a savings account (current national average 0.21%), CD (5 year CD average 1.34%), or  Mutual Fund/Stocks (current average yield 3.4%).

selfdirected-iraA Self-Directed IRA (SDIRA) is similar to a traditional IRA with the exception that you as the individual owner are allowed to choose and direct what investments you would like to pursue with your IRA such as real estate, gold, promissory notes, and even limited liability companies (LLC) or partnerships while receiving the traditional tax benefits such as tax deferment and even tax-free growth within your IRA.

When used properly, SDIRA’s can be an incredible vehicle for building wealth inside your retirement plan although there are regulations when using a Self-Directed IRA that should be closely followed and understood prior to making any investment decisions (you can see some of those rules and regulations by clicking here).

Our company, Seasoned Funding, LLC  is a privately funded real estate investment company that works with private individuals who often have money sitting idle in IRA accounts, 401Ks, or even saving accounts. After becoming an approved  investor, we assist the individuals in the process of rolling over their current IRA or 401K into a Self-Directed IRA. We then form a LLC or partnership with their SDIRA and invest in various forms of real estate such as residential and commercial properties and/or promissory notes.  We give the individuals the opportunity to build their wealth at a much faster rate by giving a higher than average rate of return on investment and it’s all done legally, passively, and tax deferred or tax-free. The IRA owner can make their annual contribution while putting their existing IRA money to work with a higher annual rate of return. The chart below is a great demonstration of how we work with SDIRA’s (click on it to make it larger);


There are endless ways to build your wealth using solo 401K plans or Self-Directed IRA’s. There is no need to fear retirement when you can learn alternative methods for investing and can take control of your future. Check out our website to see how we are getting higher than average rate of returns for our partners.

*This is not an offer to purchase or sell securities. This overview is for informational purposes only and is not an offer to sell or solicitation of an offer to buy any securities, and may not be relied upon in connection with the purchase or sale of any security. Interest in the fund, if offered, will only be available to parties who are “accredited investors” (as defined in the Rule 501 promulgated pursuant to the Securities Act of 1933, as amended). Any offering will be made only to qualified prospective investors pursuant to a confidential offering memorandum and subscription agreement, all of which should be read in their entirety prior to investment.