There is power in numbers! A number of national lenders are helping asset management companies like AREA Real Estate Consultants via our asset management division meet up and combine our purchasing strength when dealing with REO properties, which are happy to unload the distressed properties at big discounts—so long as the properties are being unloaded in large quantities.

This provides us with a significant opportunity that is typically met with one major issue; how does the typical investor that only has $5,000-$25,000 get into the game?

AREA Real Estate Consultants has been working on a solution for over 3 years with the sole desire to help those potential investors leverage their retirement vehicles such as their self-directed IRA by joining a small consortium of business professionals/real estate investors with the sole focus in pooling their resources in order to purchase blocks of 20-60 properties together.  This strategy allows us to buy in bulk and receive deep discounts straight from the lenders asset management department, thus providing big returns for our partners.

How does AREA make that dream a reality? Area Real Estate Consultants only works with investors that have access to self-directed IRA’s and 401K’s.

Why can’t a cash buyer participate? Simple really, AREA Real Estate Consultants understands the importance of a seasoned investment and mid to long term growth potential. We have simply found that most cash buyers come with baggage and needs that long term retirement vehicles with a tax deferred strategy investors don’t come with. AREA Real Estate Consultants has a pre-set entry and exit strategy that works over a 3 year growth period. Most cash buyers run into issues that could disrupt and complicate the return on investment for the entire group, therefore we will not work with them.

About Self-Directed IRA’s

The term "real estate IRA" encompasses any type of real estate investment in a self directed IRA or 401(k).

AREA Real Estate Consultants works directly with several National IRA custodians that allows real estate investment opportunities, so we'll explain several key points about real estate IRAs—including overviews, which types of real estate your IRA can purchase, and how it all works.

When you combine the advantages of a self directed IRA with AREA Real Estate Consultants knowledge of real estate, your IRAs allow you to earn tax-free/tax-deferred returns on your investments.

The rate of return on your investments is based on the knowledge and expertise in real estate that AREA Real Estate Consultants will help you obtain. IRA investing is not based on the ups and downs of the stock market.

Here are some key points to remember about property income when it comes to using your IRA or 401K:

• All profits/income related to the investment must return to yourself directed IRA.
• Renters/Payers must make out checks to yourself directed IRA, not to you personally. For example, a check would be made out to:

“IRA ABC Trust Company Custodian FBO IRA#1234”

• The IRA Custodian provides deposit coupons to accompany any checks for deposit, and coupons must be submitted with payments.
• Checks are sent to the property management company and then forwarded to the IRA Custodian Company.
• IMPORTANT: You are not permitted to deposit IRA payments into your personal accounts. Checks must be deposited directly into yourself directed IRA. Co-mingling of funds could be considered a prohibited transaction.

Property Expenses

Here are some key points to remember about property expenses:

• All expenses related to the investment must be paid from your IRA proportionate to your IRA’s investment in that property. For example, if you purchased a 50% interest in the investment, then 50% of the expenses must come from your IRA (i.e., 50% ownership of property = 50% expenses).
• You must complete an investment form to instruct your IRA Custodian to make a payment from your account. Reoccurring expenses can be automated with your IRA Custodian.
•  IMPORTANT: You are not permitted to pay IRA expenses from your personal accounts. Expenses must be paid from yourself directed IRA. Co-mingling of funds could be considered a prohibited transaction.

Creating Your Own Investment Bank With AREA