Robert Clay Creates Prosperous Deals Buying Tax Liens and Loaning Money from his Self Directed IRA

Robert Clay, an investor from Hershey, Pennsylvania, “The Sweetest Place on Earth,” comes from a land full of delicious chocolate treats. In addition to being around chocolate most of his life, Robert developed a sweet tooth for self-directed investing, utilizing his Equity Trust account and own knowledge to invest in tax liens, real estate and hard money lending.

Diversification and numerous tax advantages are the biggest benefits of an Equity Trust self-directed IRA for Robert. “The tax advantages are incredible and I really enjoy the ability to pick my own deals.”

Discovery of Equity Trust Company leads to investment opportunities and a wealthy future

True retirement account diversification wasn’t always available for Robert. Since Robert began earning money cutting grass as a teenager, he has had varied investing interests, dabbling in stocks and bonds initially, and then residential real estate and tax liens. But throughout his career as an engineer, his retirement accounts were always in stocks and mutual funds, thinking those were his only options.

Following the stock market crash in 2000 many investors became disillusioned, including Robert.  He wanted to diversify further and leverage his strong real estate background.

That’s when Robert discovered a self-directed IRA at Equity Trust Company. Robert quickly learned there was more than just stocks and bonds, and how to make successful deals. “I didn’t know self-directed IRAs existed until I started researching. I found out about Equity Trust, learned one can earn a great return and that it is possible to invest in things like real estate.”

Investing with an IRA provides outstanding benefits—combining tax advantages with compound interest. All profits from investments are tax-free or tax-deferred, and depending on the account and if certain requirements are met, taking money out of the account is tax-free as well. IRAs also provide potential large tax deductions and protect assets from potential creditors.

Low cost and potential big gains – Robert invests his self directed IRA in tax liens

With Equity Trust as a passive custodian for his self-directed IRA, Robert began directing funds from his IRA into tax liens.  A tax lien is issued by the county on a house owned by someone who can’t pay the property tax and subsequent tax penalties. Smart investors like Robert purchase tax liens from the county and can earn a high rate of return from the homeowner: either the tax lien is paid off (including interest) by the owner to Robert or if the tax lien isn’t paid, Robert ends up owning the property. 

Robert says he was very happy with the fast return of tax liens compared to a bank certificate of deposit (CD).  On his first tax lien deal Robert received a 6% return in just 2 months.  Since then, Robert has averaged 15-20% returns on his tax lien investments. 

Robert likes tax-liens because “you don’t need a lot of money to get started. You can purchase a tax lien for $50 to a couple of hundred dollars and receive a good return.”

For example, Robert recently directed his IRA to purchase a tax lien for $540 on a house worth $45,000 to $50,000. The owner failed to pay the tax lien off and now Robert owns the house from just his initial $450 investment, and is working to sell it. All of the sale profits (potentially $40,000+) will return to his Equity Trust account tax-free.

He also holds a tax lien purchased for $1,700 on a $300,000 property. Again, if the owner doesn’t repay Robert, plus interest, he owns the property.  

“Those are the outstanding deals that we’ve been working,” Robert says.

Robert’s self directed IRA invests beyond tax liens

Building on his tax lien success, Robert began to lend money from his IRA. Robert’s self-directed IRA invested in a limited partnership that lends money to investors looking for funds to support residential and commercial projects or to individuals needing the additional funds to make a purchase.

As a lender, Robert looks for projects/loans that are favorable to his self-directed IRA with a short-term repayment schedule, potential for a strong return and secured by property. 

“We lend money on residential rehab properties, where we get a 15% to 20% return. Those are short term loans for one year,” says Robert.  “We work with local investors that we can trust who typically work with properties that banks won’t loan to.”

Anyone can replicate Robert’s success

Since Robert began self-directed investing at Equity Trust he estimates 15% to 20% return each year. He believes anyone can reap the same benefits. Robert’s advice is to conduct research and “choose things that you are knowledgeable about and apply those principles to your self-directed IRA.”

“For me the best way I knew was real estate and real estate type of investments. I knew I was not going to lose money and up to this point I haven’t.”

Having an experienced self-directed IRA custodian with a wealth of resources has helped Robert too. Equity Trust has been helpful every step of the way according to Robert.

“My experience with Equity Trust has been excellent. Everyone has been very helpful and I feel very secure with Equity Trust.”

And unlike other investment options, a self-directed IRA puts Robert in control of his financial future at all times.

“I like doing non-traditional investing. From being around investment clubs, I knew there was money to be made out there and it wasn’t going to happen through my brokerage firm.”

Working with Equity Trust and utilizing his own experience, Robert can easily control and direct the investment returns of his IRA, creating tax-free wealth, while saving for the future.

Want to succeed like Robert? Call 1-888-382-4727 today to open an account and begin growing your wealth.