Three Secrets Top Investors Use to Grow Wealth

Josh McCallen

Josh McCallen is co-founder of Accountable Equity, a leading resort development and hospitality management company, committed to your success. Their brand portfolio helps investors achieve life and financial ambitions, through a diverse range of syndication investment programs that build, grow and manage wealth.

YOU’RE reading this because you woke up this morning saying: ‘I’m going to be a billionaire real estate investor today’. Right?

No. You woke up, glanced at the clock pleaded for another five minutes in bed, then watched the news and sport results over breakfast.

I can guarantee you didn’t look at the fluctuations in the economy, thought about your 401 or college funds. Why? Like the water system in your house, or the car you drive, you only worry about them when something they go wrong, or you want to change them.

It’s the same with investments – it only becomes an issue when you call ‘your guy’. But what if you could invest without worrying about getting access to more money to fund deals, or dipping into your own profits to pay taxes?

Most investors look at big Wall Street names and instantly think they either don’t qualify, or have enough to invest so can’t access premium real estate deals.  The reality is these misconceptions drive a self-fulfilling prophecy that holds most people back. Let’s look at why, and maybe help you reach your real estate investment goals using the proven strategies we use every day with our clients. It’s actionable and not just a bunch of fluff.

As with all things in life, we don’t guarantee results or returns. They’re totally dependent on the effort you’re willing to make, actions you’re willing to take, and the strategies you utilize. Results will vary depending on what you do and who you know. 

The Three Secrets

Secret #1: Everyone is able to use tax free and tax deferred accounts such as IRAs and 401k’s to invest in anything you want except collectibles and life insurance.

There are some common misconceptions surrounding using IRA’s and 401k’s to invest. Some people might think that your IRA has to be invested in Wall Street stocks, bonds, and mutual funds.  Another misconception is that if you wanted to use your IRA to invest in real estate, you would have to withdraw money and then pay a penalty or a large sum of taxes. A last misconception is that many believe that if investing in real estate with your IRA was legal, then their broker would have told them about it.   

The reality is wealthy people have been in the know about this since the 1970’s. This is one of the strategies wealthy people teach their children. There are many things you can use your IRA to invest in, such as real estate, notes, and syndications. It’s the IRA making the investment – it is not a distribution on your part. So, there are no taxes and no penalties.

Secret #2: You can access more cash for your real estate deals without relying on a bank loan

When it comes to relying on banks for your real estate investments, there are three common misunderstandings many people have. Some think you can only put a limited amount of money in your IRA, and this may not even be enough for the deals in which you want to invest. Second, some believe the amount they have in their accounts is the determining factor in what types of real estate deals they enter into. Lastly, some believe they can’t move their old 401(k)/4032(b) into their IRA. (The thought with this is you could only put a limited amount of money into your IRA.

What surprised me is that you can roll money over from other retirement funds – for example, instead of only $5k, you could roll over $100k. Here’s how you can invest more cash for your real estate deals without relying on a bank:

As an IRA investor, you can become your own bank for private deals, you can privately loan and set your own investment fee – one of the benefits of private lending. As an IRA investor, you can purchase preferred equity in private deals for consistently high yield returns. Preferred equity refers to an equity interest that includes special privileges over other equity partners. These privileges often include receiving a high dividend rate.

Privileges also include receiving payments before the deal provider. Essentially, this means you are part of the ownership of this asset, not on the side of debt. You receive monthly payments, like it is a debt someone is repaying you.

Lastly, IRA investors can become limited partners in private deals for long term wealth building. Limited partners have the potential for unlimited equity growth. This passive investment method often requires patience before returns can be produced.  Many times, the limited partners and deal partners will receive distribution at the same time. 

Secret #3:  You can access more sophisticated real estate deals without needing to have hundreds of thousands of dollars 

Some believe only the ultra-wealthy can participate in private deals with limited access like a commercial property deal. Another misconception is that in order to invest in more sophisticated deals, you must have a large sum of money ready to invest.* And lastly legal costs of filing with the Securities Exchange Commission (SEC) if you want to invite a large number of investors are huge. 

*Syndication and Sophistication vs. Solo Entrepreneur: Syndicated private investments allow for investments with scale and are led by a group of professionals taking care of your investment- not just one poor soul trying to keep it all together. 

NEEDS MORE HERE TO ARGUE POINT

So we’ve gone over the practical ways to use your self-directed IRA, what next? The first is to buy real estate, making sure it is tax deferred or tax free. Then, either flip it, re-sell OR buy and hold for a more long-term investment. Second, invest in notes. Notes and private lending hold the key to a successful investment strategy. Third, lend money as a note. And lastly, invest in syndications. We’re confident these three secret tools will help you rise above and beyond the ordinary and make your investment strategy extraordinary.

Accountable Equity is a leading resort development and hospitality management company, committed to your success. Their brand portfolio helps investors achieve life and financial ambitions, through a diverse range of programs that build, grow and manage wealth. As equal partners, the company leads with exceptional ideas relevant to you, and make it possible to invest directly in the funds and the assets you own. This bespoke approach to investment planning enables its investors to benefit from powerful real estate investing and tax savings.

For more information regarding Accountable Equity, its products and services, visit www.accountableequity.com

About Accountable Equity.
Accountable Equity is a leading resort development and hospitality management company based in New Jersey, U.S. The company is at the forefront of private investment innovation, providing financial services to help investors achieve life ambitions, through a diverse range of programs that build, grow and manage wealth. Accountable Equity employs approximately X,XXX people at locations in Baltimore, New Jersey and Virginia, managing a $XXXm portfolio of properties and funds, with an unwavering focus on service and quality. Accountable Equity’s bespoke approach to investment planning enables customers to benefit from powerful real estate investing and tax savings. For more information regarding Accountable Equity, its products and services, visit www.accountableequity.com
Accountable Equity.  Unique destinations and investments. Unrivalled authentic service.

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