Self-directed IRA’s can be invested in almost anything. A lot of people have 401k’s or retirement money and they think that they’re stuck to the stock market – they don’t realize that they can buy real estate, real estate notes, or even LLC’s with their retirement money. In this interview, Brian Spitz and Kevin Price gain insight from Nathan Long, owner of Quest IRA in Houston, regarding this little known opportunity.
Self Directed IRA’s in Houston – Interview
Kevin: Welcome back to the Price of Business. I am your host, Kevin Price, talking about you and your business. Brian Spitz, he’s been with us for a long time. Great contributor. Does a fantastic job of talking to people about how to grow and build their personal wealth through real estate investment and love the stuff that you do. BigStateHomeBuyers.com.
Brian: That’s right.
Kevin: And people should check that out. I personally, literally, take about every week and I’m talking to people about builds that you got going. And I just think it’s awesome what you do and it makes so much sense.
And when you go there, by the way, one of my favorite places to always click is that Investors navigation box. And I play around there, too.
Brian: You can get from there to our investment website, BigStateHouseDeals.com. They kind of interlink there.
Kevin: Awesome. So, kind of give us an update. You, of course, are doing an official Price of Business podcast over at PriceofBusiness.com. We love those. But tell us what else you got going on.
Brian: Well, it was a really good year last year. It’s a great time to invest. Big State Home Buyers, as you know, is a company that helps sellers close their properties in a seamless manner. We buy them. We do any title work necessary. We do all of the closing documents with the title company. It’s a fast cash, as is, transaction.
And then we also work with investors to place rental property and flip properties in their portfolio. So it’s a seamless transaction for the buyers as well. We deal with the property. We deal with any problem tenants. We get the title cleared. We can help them with loans, which are related to my guest today. And we just have a lot of resources for people who want to get into the investment business.
Nathan Long – Owner of Quest IRA, Investing Specialist
Kevin: Yeah, and your guest today is a gentleman I’ve known for a long time, who I really respect. He and his brother, Quincy, are phenomenal leaders in helping entrepreneurs achieve their goals. I’m in shock that people have inflexible IRAs in the 21st century, when people can really actually control their money and their financial futures.
You guys have been doing this for so long. Nathan Long with Quest IRA. So good to see you, man.
Nathan: Hey, how are you doing, Kevin? Nice to see you again, too.
Kevin: Good. Kind of tell us the Quest story and really, your story even precedes Quest. You guys got involved in Quest long after you guys were involved in the IRA business. Talk about that.
Nathan: Well, at Quest IRA, we hold unusual things inside of our retirement accounts. A lot of people have 401k’s or retirement money and they think that they’re stuck to the stock market and they don’t realize that they can buy real estate, or real estate notes, are very common, or LLCs and those types of things.
I and my brother personally have been doing it for a long time because we wanted to do, we’re real estate investors ourselves, and we just kind of fell in to actually starting our own self-directed IRA company. That was a long time ago. Almost twelve years ago.
But now we hold almost a billion dollars in assets and a lot of people use our company to do those things that you can’t do at a traditional facility.
Kevin: Right. And just for clarification’s sake, IRAs, as we know, are meant to be a tax-deferred way to have your retirement money accumulate. The thing is that the vast majority of IRAs allow you to invest in stock. And that’s pretty much it. Self-directed IRAs let you invest in almost anything.
Nathan: That’s correct. Anything that you’re knowledgeable about. It’s not like you come to us and we tell you what to buy. You have to know. You have to go to other types of sources. That’s why a lot of our clients like to loan money against real estate deals to real estate investors in the area and that works really well.
Kevin: Brian, I’ve talked so much. I want you to ask a bunch of questions because this is such a hot topic to me. I love this stuff.
Self-directed IRA Investing – How it Works
Brian: It’s a brilliant thing and I don’t think very many people know it. Certainly not novice investors. But we borrow money, when we buy, fix, split properties, I borrow other people’s money and nine times out of ten, the client that I’m borrowing from is a client of Quest IRA. So what it is, it allows them to lend us the money and the profits, if I understand correctly, go back into the IRA and the profits are tax-sheltered. And that goes towards their retirement.
Nathan: Yeah, instead of buying like a stock, they buy a note. And notes work real well, because they’re very passive. They create income, whether they’re short-term or long-term notes. You tend to be able to feel very secure, because there’s an asset that’s securing it. And so that works really well. A lot of people like to do that.
Kevin: Yeah. Absolutely. It just makes so much sense. Yet so many people still don’t do it. And it just shows you how dominated the retirement industry is by the big money firms that just promote products, in my opinion, mainly investment-type products. And so, what’s the case with that? What can be done to help educate more people on to this?
Because I talk about this fairly often, actually, on my program, that people need to come and see people, like you.
Nathan: Well, I think it’s important to understand that just understand people’s roles, when you’re talking to a big company, like Fidelity, Charles Schwab. These are not bad people. But they’re financial advisors that are selling you an investment. That’s how they get paid.
Because we’re a completely neutral party and you find the investment that you want to go into, you tend to do better because you’re investing in things that you know best.
Typical Self-directed IRA Client in Houston
Brian: Right. Tell us a little bit about your typical client. Who, and I’m sure there’s a huge variety, but what is your most common or your typical client?
Nathan: Our typical client tends to be above forty. Has worked a little bit. Maybe had a job where they had a 401k or some type of thing. They had a career change where they’re in a different field, and this money has become an IRA. It’s available to them and they’re looking. They’re a lot of times disenfranchised by the investments that are available, so they’re out looking for something else to do.
And they do things like purchase direct real estate in their IRAs. Loan money. Buy into private placements that might buy small businesses or apartment complexes, something like that.
Most of my clients’ investments are based on real estate of some type.
Kevin: Yeah. By the way, I want to mention again, BigStateHomeBuyers.com. And then QuestIRA.com, for our guest today. Go ahead, Brian.
Brian: Well, and I mentioned, too, to visit Quest IRA. I think that’s it’s one of the most informative websites. There’s a ton of information that answers questions very precisely. So it’s a great resource to go to Quest IRA.
New Quest IRA Customer Questions Answered
Tell me how your company would prep brand new customers. Someone comes to you. They’re unfamiliar with this option. What do you guys do? How do you start?
Nathan: Well, I think that education’s the key. At Quest, we have a lot of education, both available online and alive in different cities. Our main office is here in Houston. We also have offices in Austin, Dallas and other parts of the country. And you can go to classes and actually learn what to do and talk to other investors that are doing it. And network.
And I think that that’s really a key important part of any real estate investing is education.
Self-directed IRA Investment Limitations
Kevin: Yeah, no question about it. You know, again, when you’ve had a prominent paradigm that’s existed for decades of the old way of doing IRAs, people just simply aren’t going to know there is a better way. In my opinion, this is entirely better. Your flexibility is extraordinary, what you can do with it. What are the limitations? I think there’s what, three? Three limitations?
Nathan: No, there are really only two limitations.
Kevin: Two limitations.
Nathan: Which is life insurance and collectibles, which I don’t think that affects us. But if you can take title to it, you can probably own it in an IRA. And real estate is often a long-term investment and your retirement is the same way. So it’s a great way to build wealth over time. And you can do that tax-free, which is amazing.
Kevin: Yeah. I love that. Brian, we’ve got about a minute or so left. Why don’t you kind of wrap it up with a final question or thought.
Source of property to put in IRA
Brian: Well, one of the things I’m curious about for myself, if you own property already, can you put it in the IRA or it has to be purchased originally in the IRA?
Nathan: It has to be purchased originally. You can’t buy, sell or trade between yourself and your IRA. The IRA has to go out and buy it. So the purposes of the IRA, they’re trying to keep you from getting the benefit directly right now. You have to get your benefits when you retire and take that money.
Brian: Yeah. It’s really important to get educated on this. If you’re a seasoned investor or if you’re just starting out, it’s a really important thing to get educated on.
Kevin: Yeah. Absolutely. And I appreciate both of you doing that. Every time you do a segment here on this show. And, Nathan, again, always good to see you. Wish I could see more of you. Nathan Long. He’s with QuestIRA.com. Tell your brother I said howdy.
Nathan: Oh, will do, Kevin.
Kevin: And then, BigStateHomeBuyers.com. While there, make sure you check out the Investors section. That’s my play page. At least once or twice a week, play around and figure out what’s going on. I’m telling you, there’s so many people out there doing real estate investing and I’m always talking up what you guys are doing and always look forward to your next program, your next podcast, your next big thing.
Thanks so much, Brian.
Brian: Thank you.
Kevin: Appreciate all your great work. I’m Kevin Price. When we get back, much more for you. I do want to remind you, best content here shows up over there, at USDailyReview.com. While there, like it on Facebook, follow it on Twitter.