Computer Engineer Leaves the Rat Race Behind for Real Estate IRA Investing

A resident of Summit, New Jersey, Richard Alpert has a background in technology. He’s taught mathematics and computer science at both the high school and university level.

And most recently, he worked as a principal engineer at CNET – an online company that provides information, tools and advice to help consumers get the most out of today’s technology.

The CNET gig, although an enviable position by the measure of his peers, left Alpert wanting more. So in 2005 he cashed out his stock options and took some time off to study wealth and wealth-building strategies. He emerged with a new-found focus and a plan to not put his money in the stock market.

“Willie Sutton was wrong,” claims Alpert, referring to the prolific U.S. bank robber. “When someone asked Slick Willie why he robbed banks he said, ‘Because that’s where all the money is.’ – Not so, the money’s in real estate.”

That’s when Alpert discovered the power of self-directed IRA investing. The true control on creating future wealth combined with tax advantages intrigued him. So he began seeking out self-directed IRA custodians. After researching, scrutinizing and comparing all the possibilities, Equity Trust came out on top.

Since that time, the former engineer has used the wealth-building prowess of the exchange 1031 IRS tax code, been a residential landlord, and currently does a good amount of lending through his self-directed IRA.

He’s even opened a Coverdell account and a self-directed Roth IRA for his seven-year old daughter. Plans include contributing to the Coverdell account by getting options on residential properties of $1.5 to $5 million.

Alpert’s doing quite well. He recently lent a business acquaintance $47,000 for 24 hours from his self-directed Roth IRA. The loan added a fast $1,000 to his account, plus saved him approximately $400 in taxes.

For those doing the math, that’s a 2.13% return overnight. Not a staggering amount of return to be sure, but since it goes back into his Roth IRA, the quickly made grand will continue to collect interest 100% tax free – forever. Read more about Alpert’s 24-hour lending adventure.

Self-Directed Investing Success Comes from Education

Like most Equity Trust Company clients, Alpert is eager to share some tips to help other self-directed IRA investors interested in real estate and promissory notes.

“Education is so important,” he says. “It helps you know what to do and what not to do. So if you want to lend from your IRA but are nervous about it, educate yourself to ensure you’re covering all the bases.”

For starters, he suggests catching seminars, webinars and reading all you can on your investment of choice. Without a doubt, there’s an incredible amount of useful information available on investing in real estate, promissory notes and other options with your self-directed IRA. Equity Trust Company’s Web site offers a wealth of information. And conducting topic-specific searches on the likes of Google.com will help, too.

Alpert also highly recommends the annual Equity University Networking Conference in Orlando, Florida. “It’s definitely a ‘must go.’ There are a lot of people at different levels doing different and great things with their IRAs. It’s an absolutely priceless experience.”