Equity Trust Client ‘Suits Up’ to Help His Real Estate Rehab Business and His IRA Succeed

Imagine yourself standing in line at the supermarket checkout behind a man dressed in a suit. During the lengthy wait you decide to ask him what he does for a living. The answer sounds like a 15-second commercial:

“My company, Professional Investment Opportunities, LLC, turns ugly homes into beautiful ones. And we use funds from people’s self-directed IRAs to do so.”

This scenario has happened to Equity Trust Company client Mark Roeker several times. In fact, he’s turned many of those folks asking the question into clients for his business and even Equity Trust.

“I attended the Joel Bauer presentation at the 2009 Equity University Networking Conference,” Roeker says. “He said to put on a suit to stand out. It works. Packaging makes a big difference – people don’t expect a home rehabber to be wearing a suit.”

They also don’t expect what comes next. If the person in line asks additional questions, Roeker gets their e-mail address and sends them some professionally-packaged marketing pieces, a link to his website (rehabforcashflow.com), plus a 32-page business plan. This usually results in a lunch or dinner with the prospective lender, and then a visit to a rehabbed home or two.

“People have said yes to being a client every time,” notes Roeker.

Willing Investors Plus Great Returns Equal Impressive Results

Since becoming an Equity Trust client in March 2009, Roeker has used the private bank concept (borrowing money from an individual’s IRA for investments and paying it back an amount of interest that is agreed upon in advance) to borrow from other Equity Trust clients at least six times. His business, based in Milwaukee, Wisconsin, purchases local foreclosed properties, rehabilitates them and then sells or rents the dwellings.

Those investors, many of whom Roeker’s referred to Equity Trust to establish a self-directed IRA, receive exceptional returns for use of their IRA money. For example, one investor (an Equity Trust client) is realizing a 12% return for a loan of $68,000. Part of that figure, $48,000 came from the investor’s Roth IRA and is the first mortgage on a property. The remaining $20,000 from the lender’s Traditional IRA is a second mortgage on a property worth $145,000. This investor’s IRAs receive $494 and $206, respectively, for a grand total $700 each month.

Perhaps even more remarkable is the fact that this is the first growth the investor has seen in a decade since he previously had his retirement savings in a brokerage account. Even though he was contributing to the account on a regular basis, his balance remained the same.

On the horizon, Roeker is working with yet another Equity Trust client who wants to partner with him in a new business venture. One of the 2010 goals is to enhance that individual’s IRA from $105,000 to $300,000.

Cultivating Great Results for His Own Self-Directed IRA

An avid gardener, Roeker has a green thumb for growing almost anything – especially his Equity Trust IRA. His approach with his own retirement savings mirrors what his business does for investors. But to ensure he’s steering clear of any prohibited transactions, he lends his IRA money to a business associate.

In approximately 14 months, the Badger state resident has earned a 10%-plus return with his tax-advantaged, self-directed IRA. But he hasn’t stopped there. Those IRA earnings have been lent once again to the same business associate and helped fund the purchase of an exceptional piece of real estate. Another double-digit return is on its way.

How You Can Duplicate His Success

Roeker, who comes from a humble upbringing with nine siblings, says he’s been influenced most by his mom who he describes as “so patient” and someone who “gave until she couldn’t give anymore.” He also tips his hat to Robert Kiyosaki, author of Rich Dad, Poor Dad, for his willingness to share knowledge and “give the little guy a fighting chance.”

Perhaps that’s why Roeker’s so willing to share what he knows and why his business is built to help individual investors reap substantial passive income.

“Those interested in investing in real estate with their self-directed IRAs but who don’t know how to get started, should attend a local Real Estate Investors Association meeting,” he advises. “A lot of people who know what to do are there – they just don’t have the capital. REIAs offer a wonderful opportunity to make a great return and team up with folks in your own community.”

Not bad advice from some guy in a suit.

You can meet and network with successful Self-Directed IRA investors like Mark Roeker at the Equity University Networking Conference. It’s a great way to take your self-directed investing to new heights.

Disclaimer: Equity Trust is a passive custodian and does not provide tax, legal, or investment advice. It does not endorse or recommend any contributor, company, or specific investments. Any information communicated by Equity Trust Company is for educational purposes only and should not be construed as tax, legal, or investment advice. Whenever making an investment decision, please consult with your legal, tax, and accounting professionals.