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Investor Insights Blog|Helping Veterans – and a Friend – with a Creative IRA Investment

Investor Insights Blog

Helping Veterans – and a Friend – with a Creative IRA Investment

helping veterans

It’s possible for self-directed IRA investors to make a meaningful impact in the lives of others – as seen in the origins of the Building Veterans ministry – proving it’s possible to build wealth and impact communities.

Roger, an Equity Trust client from Maryland, used his IRA to support a cause near to his heart and impact the lives of American veterans, while also helping his financial future.

Roger’s friend, Bob, is a pastor and Vietnam veteran who dreamed of creating a ministry for vets, particularly those returning from Iraq and Afghanistan. Many veterans unfortunately suffer from post-traumatic stress disorder (PTSD) and struggle with their adjustment back to civilian life.

Bob’s goal was to establish a ministry that provided veterans housing and spiritual guidance as a form of therapy and community-building. Who better to help these vets than fellow veterans who used to, or currently are, facing the same challenges?

His ministry also provides skills training, such as carpentry and construction, as a way to help the vets find meaningful and gainful employment.

IRA Capital Helps a Dream Become a Reality

Roger helped his friend Bob find an ideal property to start the ministry. Although needing significant repairs, the bank-owned property was priced well and seemed like the perfect fit.

It was a large 1920’s house with 5 bedrooms and a sizable kitchen and dining room. The property also included a second building which would later become a workshop and skills-training facility.

In an unexpected twist, the bank financing fell through at the last minute, jeopardizing the earnest money deposit Bob had placed on the home and potentially hindering his ability to close on another house.

Bob feared his dream would not come true.

In stepped Roger, who provided a $100,000 loan from his retirement account to help Bob acquire the property and begin his ministry. The 6-percent interest he received was returned, tax-deferred, back into his IRA.

The Start of Building Veterans

Bob soon found several veterans to live in their newly acquired home and, together with the vets, the team renovated the house. Roger could not help with the labor because of IRS rules and regulations.

The renovations allowed Bob to refinance the house and repay the initial loan back to Roger’s IRA. The newly renovated house was now ready to accept the ministry’s first residents.

Although a modestly profitable retirement investment, Roger concedes that the real payback was making the Building Veterans ministry a reality.

If I wasn’t able to step in and use my self-directed IRA funds as the initial financing for the house, the whole thing could have fallen through.

Roger, Equity Trust Client

“If they had to go to a hard money lender, those terms are pretty onerous and may have been around 15 to 20 percent,” recalls Roger.

Roger was able to help a friend, his retirement, and facilitate a project with a palpable impact in the local community and the lives of American vets.

Thanks to his investment, a friend’s lifelong dream was fulfilled and at least 10 veterans are receiving guidance and support as they transition back to civilian life. The ROI of Roger’s investment goes beyond dollars and cents; it has changed lives.

1

How do I pay funds to the seller?

You must instruct Equity Trust where to send the funds from your account. You can do this online through myEQUITY’s Bill Pay system, or you can submit a form with the instructions. Typically, funding to purchase real estate is sent to a title company, attorney or escrow agent.

2

How do I set up a self-directed retirement account?

To set up a self-directed retirement account with Equity Trust visit myEQUITY and start the process today. You can also visit How to Get Started for more information. Or simply schedule a free, one-on-one consultation with an Equity Trust Senior Account Executive.

3

What investments can I make using a self-directed IRA?

With a self-directed IRA, your investments are up to you, within the bounds of the IRS rules and guidelines. The IRS does note provide guidance on what investment types are permitted, but dictates only what is NOT permitted. Examples of prohibited IRA investments include collectible (such as artwork, stamps, rugs, antiques and gems), certain coins and life insurance. See IRA Publication 590 for more information about prohibited investments.

Case studies provided are for illustrative purposes only. Past performance is not indicative of future results. Investing involves risk including possible loss of principal. Information included in the above case study was provided by the investor and included with permission. Equity Trust Company does not independently verify all information provided by third parties.


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