Posted by RickW on January 24, 2002 at 18:55:23:
Thanks Karl for your response, and also the help of others who have responded. A bit of good direction is worth alot.
Rick
Lonnie Deals and self directed IRA’s - Posted by RickW
Posted by RickW on January 22, 2002 at 17:10:56:
I’m not sure if this is the place to ask this question, but for several months I have read these posting with real interest. I bought DOW and Ernest Tews materials. I have been looking into the parks here and see possibilities. One of my main interests at this time is to establish more retirement security. Does anyone who is doing Lonnie deals use a self directed IRA to make the purchase? Is this a good idea or not? Is this to cumbersome for small purchases. Any advice or lessons learned by others would be appreciated.
Thanks
RickW
Re: Lonnie Deals and self directed IRA’s - Posted by Ernest Tew
Posted by Ernest Tew on January 23, 2002 at 17:51:54:
In addition to eliminating income taxes on the profits, your Roth IRA can serve as a “safe haven” if you don’t put mobile homes or other tangible assets in it. Keep in mind that almost any entity could be sued.
Karl’s approach is the way to go. However, you need to be especially careful to avoid any kind of “self-dealings” or other prohibited transactions through your Roth IRA. It’s too important to take a chance.
If you or anyone else would like to contact me, I’ll be happy to send you an excellent article about what you can and cannot do with a Roth IRA.
Re: Lonnie Deals and self directed IRA’s - Posted by Karl (Oh)
Posted by Karl (Oh) on January 22, 2002 at 22:38:04:
I?m currently doing mobile home deals through an IRA with MidOhio. I explained to MidOhio what I wanted to do, and they suggested doing deals within a trust. I created a property trust, with the help of Bronchick?s land trust course, named my mobile home business as the trustee, and my MidOhio IRA as the beneficiary. Then I directed my IRA custodian to invest my IRA money in the trust. The trust then purchased mobile homes, and started doing Lonnie Deals. As the trust earns back the start up money and makes a profit, it will continue to buy more homes and do more deals.
The benefit of the trust is that I don?t have to direct my IRA custodian to cut a check everytime there is a bill to pay or a home to buy. I pay for everything out of the trust funds.
I?m doing these deals right along side of my regular business deals. I was able to jump on several deals that I would have had to pass over due to lack of funds. And I?m pretty excited about what this IRA will be worth when I retire.
Karl Kleiner
Re: Lonnie Deals and self directed IRA’s - Posted by Jacque - WA
Posted by Jacque - WA on January 22, 2002 at 19:16:07:
Hi Rick,
Companies such as Entrust Administration and Mid Ohio offer Self-Directed IRA’s that allow you to directly invest in mobile home deals.
You can partner with the IRA, and I believe that it does not necessarily have to be a 50/50 partnership.
Hugh Bromma and his staff at Entrust are very knowledgeable. I would recommend that you talk with them and get the answers straight from those who will be handling your money.
There are also some very informative articles by Hugh Bromma on how this works. Check the “How to Articles” here at this site.
Jacque - WA
Re: Lonnie Deals and self directed IRA’s - Posted by Brian, WI
Posted by Brian, WI on January 22, 2002 at 19:06:17:
Great question!!!
Hope some good responses come your /(our) way.
Brian, EI
Re: Lonnie Deals and self directed IRA’s - Posted by BJY
Posted by BJY on April 18, 2002 at 15:32:09:
Mr. Tew,
Does it have to be a ROTH IRA?
I have both a ROTH and a “regular” IRA and would like to buy MHs with both.
Lonnie Deals and self directed IRA’s - Posted by Ben
Posted by Ben on February 05, 2002 at 07:04:32:
IH Ernest,
Could you send me a copy? I would appreciate it.
Ben Spofford
Re: Lonnie Deals and self directed IRA’s - Posted by Roger Ballou
Posted by Roger Ballou on September 29, 2003 at 14:03:07:
Karl Kleiner posted his method of funding a trust with IRA funds Jan 22,2002.
My questions are for Karl or anyone else familiar with these arrangements.
MidOhio/Equity Trust advises me that I could not act as the trustee of the trust I would set up because I would be a disqualified person. Any way to get around that or do I have to appoint another person?
As funds accumulate in the trust can they be transfered to the IRA?
Is the trust subject to federal income tax for capital gains and interest income?
What’s the recommended reading on this subject? Or, is there a specific person at Equity Trust or another company that could help me?
Re: Lonnie Deals and self directed IRA’s - Posted by Eva
Posted by Eva on January 19, 2003 at 11:58:55:
So how is your IRA investing Lonnie Deals doing these days?