Real Estate Revealed

#5 - Greg Herlean, Self Directed IRA Expert

Eric Wilson
December 15, 2020

SUMMARY KEYWORDS

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SPEAKERS

Greg Herlean,Dave Seymour, Intro Voice Over

 

Dave Seymour 00:35

Allright. Hey, hey, hey, how are you? Oh, yeah, that was a nice little bit ofenergy right out of the gate. Dave, see more here. Real Estate revealedSaturday afternoon 12 to one. We've been getting a lot of great feedback on theshow. Really appreciate that. Folks reaching out asking questions interacting.It's makes me feel good to know that you're getting value out of what we dohere. I am Dave Seymour, host of real estate reveal right here. 104 point nine.Some of you might recognize my dulcet tones from the hits. He show flip inBoston that aired on a&e network. But anyway, real estate revealed itssecrets. It's it's the stuff that we don't generally hear about in the world ofreal estate, said this before, I'll say it again, this isn't a fluff on bathreal estate show. You know how to get how to get your house ready for an openhouse. Although we do touch on a little bit of that. You know, we focus on thefinancial power of real estate, we focus on cash flow, we focus on growing yourwealth the same way that you know the one percenters have done it like them ordon't like them. They know how to work capital at a velocity. So we focus onsome of those tips and tricks that they've been using in their history. And Idid some some deep dive this week. And I found it kind of interesting. And thedeep dive I found out was is that a lot of the the endowments that are outthere, especially for us up here in New England, you look at Harvard'sendowment, Yale, for example, the amount of real estate, commercial cash flowand real estate that they have in their portfolios is really, really quiteamazing. And I read an article this week that was talking about the fact thatthey are looking through the COVID crisis and the current political landscape.They're looking to increase their their acquisition of commercial real estate,allocate more of that, that that that capital, that they've been charging allof our kids over the years for that, that college degree. So that's the kind ofstuff we're talking about. I do have a guest on with us today. Very, veryinfluential, a gentleman that I've known for probably eight, nine years nowmaybe even a little bit longer. Greg Helene will be joining us. I know he's onthe line. I'll introduce you in a second, Greg. But Greg is the co founder andCEO of a company called horizon trust. And one of the tools in the toolbox thatI've used in my own career. And I've shared this powerful technique with withmany folks looking to grow their retirement accounts. We're gonna be talkingtoday about what are called self directed individual retirement accounts are asthe cool kids call them, SDI IRAs. Greg, maybe we'll also touch a little bit onsolo 401, K's and the power of taking control of retirement accounts anddirecting them yourself. Finding investment opportunities that makes sense toyou as an investor and no longer allowing somebody else to take control of theretirement account. But you control it, you drive that bus, you make thosedecisions. You let us do the work, but you work the capital. So without anyfurther ado, I want to introduce my very dear friend, Mr. Greg Helene. Greg,are you still with me? still with you? Thanks, Dave. Thanks for the intro.Yeah, man, how'd I do? Not bad for a start right now? You did good. I actuallydo think we probably known each other almost probably 10 years. But yeah,excellent. It's been a long time. Yeah, man, it really has and both that bothKoreas have, you know, been on quite a trajectory over that period of time. Ithink it's always important when we do something like this, whether it's in apodcast format, or here on the radio show, for the folks to get a little feelfor you and your background because you weren't always you know, operating oneof the largest, you know, self directed retirement accounts, companies orcustodians in the country. I mean, you started kind of yourself in theinvestment side. So share a little you know, I'm going to stop talking andlisten to you for a change

 

Greg Herlean 04:38

Well,you're good there. So look, I what one thing that you said in the beginning,which they kind of just piqued my interest is and it was a reminder of kind ofwhere I started about 20 years ago is the secret and, and and truly, this selfdirected space is a secret that kind of led me my you know, my wealth and alsothis business started from the real estate first I was, you know, I I waslooking for a place to find money that could fund my real estate deals. Myfirst deal is actually funded by a self directed IRA. And and then in manyafter that, and I ended up flipping over 500 homes. And it all started by mefinding and understanding what a self directed IRA was, which is kind ofopposite or backwards. Most people, most people go find the real estate, I wasfinding real estate, but I was like, Okay, I have my fun my first deals and soI won't dive into too deep, but I but I will tell you that what we're going totalk about what I'm excited about is the self directed space is it trulychanged my ability to do more than just one property, but 10 flips or 20 flipsat the same time. And it was by using either other people's retirement funds,or even my own. And so anyway, so I've been doing it for almost 20 years now.And I've flipped over 500 homes, and I've done you know, I've flipped 12hotels, and and all by kind of on the finance side and the real estate side,but really by using self directed IRAs, it's been kind of a critical tool in mytool belt.

 

Dave Seymour 06:03

Love it.Love it. I think it's important, Greg, like you downplay that a little bit inthe sense of, you know, I was searching for capital for my own first deal. Andthat's how you discovered that there was a tool that you could, number oneeducate people on, but number two, actually use that self directed retirementaccount to do to do a flip right to do a buy, fix and sell single family home.Now the reason I kind of teed it up in a downplay, I think it's important tounderstand that, you know, that capital that invest the capital is work inpretty much the same way a bank would work if the bank was lending money to dothat deal. So so just just unpack that a little bit, because, you know, it'sbaby steps with this stuff.

 

Greg Herlean 06:50

Sure.And let me give you a little background to this real quick, you know, selfdirecting has been around since 1974. So some people think, oh, wow, this is anew thing. It's new for most people because it's not highly like marketed outthere. And and I want to touch on that it's not marketed for the most partbecause financial advisors and brokerages that the Charles Schwab's of theworld and Merrill Lynch's, they're not out there saying, hey, guess what, youcan take your money and move it away from us and invest it in your own realestate deals. They're not out there marketing that because they don't makemoney on the money that you take away from them. So you're not going to hearmuch about it. But what's interesting, like, for example, I don't know if yourecall, when like Mitt Romney was running for presidency, they talked about howbig he got his amassed his retirement plan, it went from, you know, some smallnumber to like over $20 million, but it was because he was using his retirementfunds to invest in his own business. And so, so it's just, you know, this hasbeen around for a long time, but it is a little bit of a secret. So going backto the original question, though, as far as real estate goes, my my first dealwas a $60,000, condo fix and flip. And in I didn't have much money back then.And so I self directed this, this person was willing to move a portion of theirIRA over to a self directed company. And and and then invest it or lend it tome on terms. And what's what's great about it, is the terms are based upon whathe and I both agreed to. And so there is no fixed term schedule. So if he wantsa percentage of the profits or fixed interest rate, or vice versa, we can wechose those terms together. And my first deal was funded 100% all of the moniesneeded to rehab and fix it and purchase it by his self directed IRA. And inreturn, I gave him a lien on the property first lien position on the property.And on that deal I happen to give him 75% of the profits to is the first time Ihad done a deal. Oh, hold

 

Dave Seymour 08:47

on, holdon. Hold on a minute.

 

Greg Herlean 08:51

Yeah,

 

Dave Seymour 08:52

gave him75% of the profit. So look, this is important. You know, you and I can talkreal estate and all of the terminology, you know, in asleep. What what Greg is,what Greg is saying here is is he found somebody who had maybe anunderperforming retirement account, he presented a real estate transaction tothat individual, helped him allocate funds through self directing theretirement accounts were the custodian. And what he was able to do was work arelationship with that investor, given the investor the protection of being thefirst position on that property, just like if we get a property, and we buy it,and we get a bank loan or whatever, the bank is always protected becausethey're in first lien position on that property. So what Greg was did was hedid the same thing with this investor, and the investor is protected. Firstly,with the I say it was 60,000. Maybe it was more great because you probably didsome rehab on there as well. But then the deal made sense for Greg because hecould give up What did you say? 75. The sound of the Prophet.

 

Greg Herlean 10:01

Yeah, Imean, that was aggressive. But it was my first deal. So,

 

Dave Seymour 10:04

man,watch this, watch this. So you got 30% of the profits with probably little orno money out of your own pocket. Is that correct?

 

Greg Herlean 10:12

That'sright. That's right. And so Okay, so

 

Dave Seymour 10:14

oncewhat listen though this is cool, man. Because once you do that, as an investor,or as a an investor, you know, putting in return capital, let me ask you, youknow, think about this resilient, everybody listening, if you were in aposition where you could work your retirement capital at aggressive returns,because you negotiate those terms with somebody who's an expert. Would that beexciting to you? And I think the answer to that is a resounding yes. aresounding yes. Look, man, I didn't mean to cut you off. But clack, claritiesclarity is important here. You know what I mean? So you go and you do this dealwith this with this investor? It's a successful transaction, you give them 70%of the profits. What did he say once you gave him 70% of the profits? What Whatwas the next thing? He said?

 

Greg Herlean 11:04

Yeah, weall could get probably guess it, which was, Do you have another deal? Right. Sohe flipped his money in 90 days, and he made more money in that transaction,and that he would have made in probably over two year period, and that was 90days. And so obviously, though, things changed. And so, so as I became more,you know, more efficient and successful and had more experience, I changed theterms and he that that original investor, which was 19 and a half years ago, hehe invested with me literally to the day he died, which is a few years ago, andin the term has changed where he was ended up getting an 8% or 9% fixed rate ofreturn from his IRA. But it's interesting, because even that, you know, ifyou're able to make a consistent eight to 10% on your money, you know, you'regonna beat the market, there's very few years ago, market beats that and so, soit's been really a game changer. Now, by the way, I'm on the other side of thatnow, I'm the guy that's lending, you know, and getting these kind of returns.And so, you know, it's just nice to be able to invest in something that is easyto understand that you have some control over. And there's just too often thatpeople put the retirement funds away into you know, some you know, fund andsome manager who probably makes less money than you and they're makingdecisions for you. And they're getting paid fees. And so that's that so it'sbeen really a life changer. And that was my first deal. So it's I learned a lotthat first deal but but yeah, that was my first deal.

 

Dave Seymour 12:30

I loveit. His his we're gonna go to we're gonna go to a quick break in a second,Greg. But here's something that I think I can wrap out of this this first fewminutes together is because you kind of highlighted it perfectly. You know,it's relationships. It's a relationship. You had a gentleman that stay with youyour whole career, because you performed he liked the returns he was gettingand it just made good, good sense and good business. So we're gonna take aquick break, we're going to keep on unpacking self directed retirement accountsand how they can help grow those accounts with with the LA City. We'll be rightback with my friend Greg Helene from horizon trust Don't go away.

 

Intro Voice Over  13:09

RealEstate revealed We'll be right back.

 

13:15

Today,the real estate market is booming. mortgage rates just hit historic 30 yearlows and the New York Times recently reported that investors are snapping upreal estate at rock bottom prices. And now savvy investors are buying realestate using their IRAs that allows them to access their retirement funds tobuy properties without paying any penalties or early withdrawal fees. If youhave funds in your retirement account, and you are interested to learn morecall horizon press today at 866-712-2007. That's 866-712-2007 unlock the powerof your retirement account and take advantage of one of the most profoundopportunities in real estate since the housing crisis 15 years ago, callhorizon trust retirement specialist at 866-712-2007. And for a limited time,get our free Ultimate Guide to buying real estate with your IRA that's 866-712-2007or visit horizon trust.com slash day. Horizon Trust Company is an independentpassive custodian and it's not associated or affiliated with and does notrecommend promote organize any specific investment investment opportunityinvestment sponsor investment company or investment remote or any agentsemployees, representatives or other such firms or entity horizon trust is notproviding investment advice, advocating or endorsing real estate. These optionsmay or may not be a fit for individual investor investment or not FDIC insuredoffer no big guarantee and may lose value or rising trust doesn't receive anycommissions or fees if I invest with any other sponsor.

 

Dave Seymour 14:38

You everwondered how to create cash flow outside of your job income or retirement plan?Have you considered large commercial real estate assets? Do you know what analternative investment strategy is? Well tune in for all the answers on my showreal estate revealed this is they see my my recognize me from the hit TV showflipping Boston's. I'm also the CEO and co founder of freedom ventureinvestments to smarten up your real estate now. How to Every Saturday for allinvestment details, visit us at info at freedom ventures.com slash 104 pointnine call my team at 781-922-4418

 

Intro Voice Over  15:10

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Dave Seymour 15:50

back.Welcome back with my friend Greg Helene, founder, CEO of horizon trust,custodian for self directed retirement accounts. So yeah, we were talkingbefore we went on that break there, Greg in the fact that this is almost likea, an I hate to say secret of the wealthy. Cuz it sounds, it sounds so corny.But you know, the first time I heard about self directed retirement accounts, Igot a little bit upset. I got a little bit upset that I hadn't heard about itbefore number one. And then number two, I was upset that when I had someeducation in real estate, or used other people's skill sets in real estate, youknow, as your first invested with you. And as investors have done with me andmy career, you know, I got to see these higher velocity of capital these higherpotential returns. So break down for me what what the process is, Greg, if aninvestor's out there who can and who cannot open up a self directed retirementaccount? What is the process? Should they put all of their retirement in there?What what what what advice do you have for clients? And then how do they goabout doing that, man?

 

Greg Herlean 17:01

Okay, soSo yeah, so the process is pretty simple. But before the process who qualifiesfor a self directed IRA, basically, any individual that has a retirementaccount, meaning an IRA, a Roth IRA, a simple IRA, an old 401k, and I said onpurpose emphasize old because it has to be from a previous employer, if youhave a 401k with your current employer that you're making contributions to,that's not eligible to move over into a self directed IRA. But almost any othertype of retirement account is eligible to be transferred over when I saytransfer. It means there's no tax, you know, no tax consequences, no, nopenalties by moving it over. For example, if you have $100,000, IRA or Sep orsimple IRA at Charles Schwab, let's say for example, you can move over anyportion of transfer over any portion of that into a custodian like ours, andit's tax free transfer, and in you can move or any portion, so it could be$50,000. And leave $50,000, which is kind of a nice place in also answeringwhen your questions of how much you should move, you know, I don't recommendyou just you know it right from the get go. Unless you are an expert kind of inwhere you're going to put your money to move it all over. I think, I think thisis not meant for everybody, first of all, and for those that are going to doit, they should test it out. And how I started testing it out as I moved partof my money over and I started using some of mine. And I and I kind of competedwith my financial advisor, you know, and so I had fun and, and I think he'sonly beat me twice out of like, 20 years, I still leave money with them forsome reason, but maybe because I like him, but also maybe because he has moremy conservative my bond kind of money there. And I like that. And then youknow, my real estate always outperforms him. And so and that's okay. So it'sreally whatever you're comfortable with, but it has to come from one of thoseplaces. And so once you move it over, the process is very simple. It's anapplication and then it's a phone call, we typically will call your custodianwherever your money's at right now and submit the application to them saying,hey, so you know, Dave Seymour wants to move over all or part of his money fromhis retirement account to our Trust Company horizon trust, we we helpfacilitate that make sure it comes over in a tax free manner. And there's noconsequences. And then once it arrives to us, which takes usually a coupleweeks, then it sits in our account, our client account and which is youraccount, until you're ready to tell us where to send it. And so for example, ifyou're going to now invest it in a, in a fund, a fixed bond or any kind of fundor or note or deal itself, you got to structure that put those documentstogether with whoever you're working with, and then you submit those documentsto us. And we help the money get transferred over to title or to that fund andand I don't want to get too specific and also confuse anybody. So I think thebigger answer this question is We will hold your hand through the process, wewill make sure you don't make any mistakes, we'll make sure that money comesover without paying taxes. So it stays in a qualified status. And then it youknow, we just make sure it's just done the right way, we don't make thedecision for you, we don't tell you where to invest the money, that's not ourjob is truly a self directed. And it is, that's not like a technical term,that's just, you know, it's still a Roth IRA, it's still a simple or Sep ortraditional IRA, with our Trust Company, all the same rules apply that areCharles Schwab as they are with horizon Trust Company, it just becomes selfdirected.

 

Dave Seymour 20:33

I, Ilove the you bring up the point of that of the hand holding. And I can give youa beautiful example, because it happened today, I was working with, with acouple today, the husband had retired from the Postal Service 34 years, workedhis way up through through that, you know, through that, that career, and donevery well, you know, raised their children put them off to college and his wifeis working in the healthcare field. And, you know, a shout out to a health careprovider, she's, you know, administrator at an executive level. And, you know,they they're entertaining, real estate, they have some experience, but it wassuch a pleasure to be able to with one email chain, put a job directly withwith Joe Campbell on on your, on your team, Greg, and know that, you know, thatprocess of educating, I think it's important to say, we educate clients as I doin invest in when they're coming into our farm, but you also educate theclients through the whole process of, you know, all of the the steps that arenecessary, it just felt good to know that this particular client of ours waswas in the, you know, in the hands of Joe Campbell, or one of your better guys,you know, over there that I've dealt with consistently, you know, just just Ijust wanted a shout out and say thank you for that, because I know they're takingcare of right? Would you agree that educating them is just as important asbeing able to actually execute on the process

 

Greg Herlean 22:10

100 100%I mean, knowing what you're doing and why you're doing is important, and thenhaving someone just to help you through the process. So I appreciate that. I'mglad that that happened for you and should happen for for really all of ourclients, and you know, it's new. And so in the beginning, that's what needs tohappen. As you get more versed in it, you do it several times, you'll startkind of, you know, it's funny, once our clients get comfortable with us, thenthey start getting a little push with us, like, Hey, you need to get that moneyto title in 24 hours, like, Hey, hold on a second, it might take us 48 hours,but they get really good. And that's okay, like so. So we, you know, we love,we love this business, because we're able to see, so many people have success.And so I would say on this date, I think it's important to note that it's notlike by self directing, by default, you're going to double your returns. Andwhat I like to talk about is, is if an individual can make an extra couplepercent, you know, just by moving it over and putting in something that'srather than you typically making five or 6%, or negative five 6%. And themarkets, but sure, there's good days, I get it, but if you can make it, youknow, eight or 9%, and that extra two or 3% by you self directing it putting itsomething that you understand, in over a 10 2030 year period, we're talkingabout hundreds of 1000s if not millions of dollars difference just by making acouple percent more. And so that's what I like seeing in these accounts.

 

Dave Seymour 23:27

Yeah, I,I've got a when I when I teach, there's a deal that i i case study, and I thinkit's it's a perfect, it's a perfect example of the power of self direction. Ihad, as you know, Greg, I was I was in the fire department and I left the firedepartment. And there wasn't a ton of money left in my retirement account. I'dhad some some challenges in my life. But that that, but I believe there wassomething that like about 120 or $130,000 in my retirement account with withthe city. And you know, I could either leave it there and I remember that thecomptroller in the city saying to me, Dave, you know, are you sure you want totake this money out? And I've got educated by then Greg, I knew the power ofreal estate investing. And I was, you know, I was all in I knew that thejourney was going to be different for me. And there's, there's no right orwrong in this anybody listening to us right now. It's just left or right. It'sa decision that one person makes. But anyway, long story short, I got 110 or120,000. I can't remember what it was. And what was beautiful laws is that I alsolearned that I don't have to just invest in real estate I could invest inanything that met the criteria of the self direction. I could invest in otherbusinesses if I chose to. I could invest in in gold. I've got a friend of minewho uses his self directed IRA for valuable watches. And you know that theyappreciate over time and he uses his art for that. The very first deal i didwas was a was was invested in a friend of mine Who had a, a dropship company,he was kind of like, like an eBay, Amazon kind of a guy. And he needed somecapital Greg for buying product. And I can't remember the exact numbers, but Iactually asked him for a 20% simple interest only on a loan. And I think I wastoo scared to give him all the money. I think it gave him like 30,000, like yousaid, just to test it out. But every single month, I got a 20% return on onthat 30,000 that came into my into my retirement account. And I'm looking atthat compared to what they've been doing the years of the fire department. Andthen I buy a little house inside of it. I bought as Greg, as I'm sitting inthis chair, in my office in Danvers, I bought a little house in Gary, Indiana,through through an investment group that I knew out there, I knew theoperators. And I bought this little house for $20,000, which is ridiculous inMassachusetts pricing, right. But I bought this little thing, and and thetenant paid me $800 a month in rent, and I watched my retirement account, justkeep on growing and growing and growing and growing. And then I sold it on anote to another investor. And then it was a mortgage. And then I, I you know, Ilet the investor buy me out. And I and in the three or four years that I fiveyears that I ran that money, my retirement account, Greg, I bought it for20,000. And I practically quadrupled that money inside my time at account. Andit's awesome. Is that crazy? Isn't that crazy? You know, I looked at that. AndI thought to myself, I'm definitely on the right track. Right. And I've usedmyself, right, right. I've used self direction to be a hard money lender, I'veused self direction to invest in businesses. So I think it's important thatit's out there that, you know, it's it's the ability to control your ownfinancial destiny, Jet destiny in retirement. You know, we look, we look atsome of the numbers that are out there for unfunded liabilities if people arerelying on Uncle Sam, you know, and the standard procedures for retirement, youknow, they could be facing some challenges. And I think that's what's that'swhat's made this such a powerful, powerful process for folks to get involvedwith this stuff. Let's do this, we're gonna roll into another little bit of abreak, we're going to unpack this some more. When we get back. You know, I'dlike to talk about what your avatar is, you know, what is your your client, youknow, what, uh, what are they? What do they ask for? You know, are they arethey searching for alternatives? Like we've been talking about? I'd beinterested to, to get a little bit of insight on that. And then also, you know,it's gotta cost something man, right? Nothing for nothing gets you nothing. So,you know, what are the fee structures look like and those kinds of things, andwe'll get right back on it. So don't go away. We'll be right back with my friendGreg Colleen from horizon trust.

 

Intro Voice Over  28:00

RealEstate revealed We'll be right back.

 

28:05

SteveAlesis of Solaris reality, has intimate knowledge of the North Shore market.With over a decade of experience and record of 300 real estate transactions.When it's time to buy or sell property. Give Steve a call directly at617-763-1001 that's 617-763-1001

 

Dave Seymour 28:33

you everwondered how to create cash flow outside of your job income or retirement plan?Have you considered large commercial real estate assets? Do you know what analternative investment strategy is? With tune in for all the answers on my showreal estate revealed this is they see my might recognize me from the hit TVshow flipping Boston. I'm also the CEO and co founder of freedom ventureinvestments to smarten up your real estate now how by tuning in every Saturdayfor all investment details, visit us at info at freedom ventures.com slash 104point nine call my team at 781-922-4418.

 

29:05

Todaythe real estate market is booming mortgage rates just at historic 30 year lowsand the New York Times recently reported that investors are snapping up realestate at rock bottom prices. And now savvy investors are buying real estateusing their IRAs that allows them to access their retirement funds to buyproperties without paying any penalties or early withdrawal fees. If you havefunds in your retirement account, and you are interested to learn more callhorizon trust today at 866-712-2007. That's 866-712-2007 unlock the power ofyour retirement account and take advantage of one of the most profoundopportunities in real estate since the housing crisis 15 years ago. Callhorizon trust retirement specialist at 866712 to 007. And for a limited timeget our free Ultimate Guide to buying real estate with your IRA. That's866712200 Row seven or visit horizon trust calm slash date. Horizon TrustCompany is an independent passive custodian and it's not associated oraffiliated with and does not recommend to promote or advise any specificinvestment investment opportunity investment sponsor, investment company orinvestment promoter or any agents, employees, representatives or other suchfirms or entity horizon trust is not providing investment advice, advocating orendorsing real estate. These options may or may not be a fit for individualinvestors investments are not FDIC insured, offer no bank guarantee and maylose value horizon trust doesn't receive any commissions or fees. If I investwith any other sponsor.

 

Intro Voice Over  30:29

You'relistening to real estate revealed with Dave Seymour from Amy's living Boston.Right? Well,

 

Dave Seymour 30:34

Iappreciate those words of wisdom for our sponsors, they make sure you reach outso my friend George coachhouse, over at cross cross country mortgage, my dearfriend, Steve molestus, one of the one of the best real estate brokers thatI've had the pleasure to work with, if not the best right here on the NorthShore. So I'm with my friend, Greg, we're talking about retirements, we'retalking about tax savings. You know, we didn't really get into that yet, man.Like when I make a profit on a real estate transaction or any other kind oftransaction inside my retirement account, right? What what's the tax exposureto that? What Tell me about the taxes? what's what's the deal, and I knowyou're not an accountant. We're not attorneys. We're not giving anybody anylegal or financial advice, or we got to do the disclaimers. But we know thatthere's a really really strong tax strategy attached to the so um, packet forme, brother share the wealth.

 

Greg Herlean 31:36

Allright, well, we'll look first let me say well, I feel like anytime the wordslike tax or IRA or IRS comes up people start to like those off let me be clear,like this, frankly, is it bias is the sexiest thing it is it when you have totalk about taxes, you know, people like to plan the next vacation way moreoften than spending a half an hour once a month on actually looking at how theycan save an extra few $1,000 a month, which actually give them more vacations,but anyways, go look whatever you're doing, you know, take take out the selfdirected kind of concept per second but whatever you are interested inpersonally and you're listening to this, you're like, you know, I'm reallyinto, you know, we had a guy like did an ice skating rink, right? You havesomeone that maybe does the watches or has a Cattle Company or whatever thecase is like you can get crazy but whatever it is that like really floats yourboat that you want to invest in or get involved with you there's almost all ofthose things are available for self directing, but most people do those thingsoutside of their IRA and so let's say whatever you're doing it's you know, youpick the watch company idea or landscaping company whatever the case is, andyou get you know, you put money into this new company or new idea and thenobviously you get some profits hopefully back and in whatever you know, you'regonna pay taxes on those profits if you just decided to start doing whatever itis that you're passionate about and or understand or want to invest in, evenpassively and I would say probably most important passively you can invest inthose things and all of those gains go back into your self directed IRA and youpay no taxes on it and so when I say no taxes depends on what kind of IRA youhave with us so if you do it with inside your Roth IRA with us it obviously allthose gains grow you know grow tax free and come out tax free if you do itinside your traditional grows tax free but then you pay taxes, you know, whenyou start pulling it out, but that's kind of you know, the compoundingprofitability and growth in your retirement account comparative to outside ofretirement account, it is a huge difference and that's where it does kind ofstart getting sexy if you start putting you know the same kind of things thatyou might be investing in like Bitcoin. I got people doing, you know, digitalcurrency. Oh, God

 

Dave Seymour 33:47

bless.Yeah, right.

 

Greg Herlean 33:51

But thatbeing said, right, like you anything that you're passionate about, you canalmost do I mean, I say almost, cuz there's a few exceptions, but you couldalmost do inside of a retirement account. And as you do so, you don't paytaxes. And that's it. You know, that's it, that's a 2030 40% savings on all ofyour gains, you know, and so, so it's definitely worth your while from a taxperspective,

 

Dave Seymour 34:11

forsure. That's what that's where we get the the terminology of velocity of capital,right. You know, it's interesting, Greg, you said you know, you still havecapital with you with your advisor, you know, he takes care of the the bondmarket you know, with that with the feds interest rates, where they are the youknow, the bond market I was watching this morning and it's trying to creep upto like, point 07 or point 08 again before before I can even poke its head up.So you know, velocity a capital, just as I explained that a little house and asyou shared in there, I mean, that's that Look, man, and then you can pourgasoline on it and and you could do a 1031 exchange inside of a retirementaccount. And I'll give I'll give the folks a quick quick demonstration on on a1031 exchange. Change, it's it's an additional tax strategy that can actuallytake place inside of a retirement account, so that all of those gains are justsitting there in a tax free or tax deferred environment. And when you'll knowhow to either leverage somebody else's real estate experience or yourexperience yourself, you can really begin to microwave real estate, take aneight unit property, let it grow inside a retirement account. You know, thecash flow is 5000 a month, whatever, you sell that one, this capital gains,you're rolling into that into a bigger deal, tax free, bigger cash flows, itgets to be, it gets to be a very powerful, powerful process for for, you know,that long term. And here's the other thing, it also Greg, and I know, you'veseen it with your clients, because I've seen it with the people that haveinvested with us. And I see in my own life, it also creates the legacy piecethat so many of us are looking to achieve for for the next generations. Wouldyou agree with that? Right? Like the ability to sense yeah, right? Because youcan roll that over to the next generation. However, why don't you tell me whoyou cannot lend capital to out of your retirement account? And why? Well, look,

 

Greg Herlean 36:17

there'syou can't, he can't lend to your, you know, a family member. So you can't lendto a spouse, you know, a direct relative, that would blow up the tax, you know,the IRA account, the this the self directed IRA account, so you can't, youknow, lend it, you can't lend also to yourself in this capacity, meaning youcan't buy an A, you can't buy a vacation home with your IRA, and then go useit. If you can buy an investment property. But you can't do that you can't, youknow, you know, purchase your own home with it. You can't commingle yourpersonal funds with IRA funds, but you can lend it you know, like you could wecould buy a home investment property with your IRA. And then Dave Seymour can,you know, or somebody else not related to go rent it from you, and that'stotally fine. But you definitely have to keep that distance when it comes to familymembers. And then there's just a few exceptions to you can't like invest ininsurance policies or collectibles, you know, or alcohol. And you can't you

 

Dave Seymour 37:22

can'ttake any, any, any kind of income outside of the retirement account. Right?

 

Greg Herlean 37:29

That'sright. So you can get set the IRA and, you know, funds this investmentproperty, and and or an entity that buys it, and then that entity pays youpersonally and your IRA separately, something you can't do that the proceedsfrom that investment have to go back into your IRA and cannot go to you.Personally,

 

Dave Seymour 37:50

I sharea little strategy with you. And we'll do a little roleplay. Ready, Greg? SoGreg is is in his market, and he's got this house that he can buy for 350,000.He can put 50,000 into it. So he's all in for 400. He can sell it for 500.Right? So that's his deal. It's funny, I've got kind of like a similar dealgoing on over here exactly the same. I'm all in for 400. I could sell it for500. Hey, Greg, I know that you're a player player, you know that I got gaming,it's not my first rodeo, how about this? How about I lend you the money from myretirement account, and I charge you a low interest rate on that money so thatyou make more profit and in return, you lend me your retirement account to domy deal? charge me a low interest rate, and I could do the same thing and putsome money in my pocket? Is that legal? Can we do that? I think we can. Right?That's where it's

 

Greg Herlean 38:41

legal.And I feel like that might be the first deal I did for you when we firststarted. You absolutely cannot. Now if Dave was my blood brother, I wouldn't beable to do that. But he's He is my brother, but from another mother. So.

 

Dave Seymour 38:57

Right?You know, it's it's interesting, you know, when I started looking at how the,you know, how the landscape was laid out, you know, in my regular years of, youknow, punching the time clock for one of a better term, and then being able toelevate to you know, just that strategy alone, having another expert in themarketplace being able to trade off of each other's skill sets, so that bothpeople win. I think, you know, I I just get excited man, I do I get excitedevery time I get on a on a phone call with you. All right. Well, I don't wantto end on a on a negative, but I do want i do want your insights on thepolitical landscape. What do you see going on? I know they're still countinglike this show was recorded about I think it's like 10 or 12 days to its to itsair date. So maybe when this airs, they might have finished counting the Chad'sin Florida or wherever the hell they count on now. But what what do you seeman, I mean, what concerns you What doesn't concern you? Share it, share yourinsight on that.

 

Greg Herlean 40:00

I can'tbelieve you're gonna ask me in closing a political question

 

40:02

I had.

 

Greg Herlean 40:05

Okay, sohere's what here's what I, here's what I told my 18 year old. I said, Look,obviously, you know, there's some that Bennett You know, one president benefitsor Congress more than other and I can't control it I can vote but I can'tcontrol that variable. So I'm not going to give you the answer you want Dave, Ican tell you though, that certain, you know, certain certain obviously, partiesand or you know, politics affect my pocketbook more than others. But all thatmeans is I just have to be more efficient, be smarter, make better decisionsand make more money, I can control that. So if I can, even though I might haveto pay more in taxes, if I can, if taxes are going to go up, then I just needto make sure that I'm doing more inside of my self directed IRA. So that way,I'm not more tax, Greg,

 

Dave Seymour 40:51

that's,that's look, dude, the answer is the answer. Because I, my son is, you know, myoldest boy, Robert 25. Right, comes from a dif different political point ofview and landscape. To me, however, you know, he's learned the power of realestate. And he's grown that very, very nicely once he when he inherited someproperty from his grandmother. So you know, he's got the he's got the the yinand the yang going on, but you hit it over the head, the the politicallandscape, the tax landscape, the business landscape, we can't control those.But I agree with you 100%, my friend, all I do is pivot and adjust. And I thinkwhat's important is, is what the folks heard from from you today, is that thereare there are rules out there that are not necessarily, you know, the firstrule that we learn, okay, there's, there's a, there's a rule book that, youknow, wealthy people have been using for generations. And, you know, to yourpoint 1974, as when the self directed retirement account, came to themarketplace, and I'm pretty confident it was a bunch of politicians who passedit and got it into the tech, right, we'll get into the tax code. And look, I atthe end of the day, the politicians move at the speed of slog. They don't, theydon't, you know, they don't change tax code fast, they don't change servicesfast, as much as we would love them to. So we have time, I think the beautifulthing for guys like us and folks listening, is that we have the ability to movefast, we have the ability to get educated and then implement so that it worksout for our families, first our communities, and when it comes to taxes, go tothe you know, the what is the US debt clock.org that'll show you how wellthey're doing with that with our tax dollars. So I you know, I'm not gonna havethat discussion with anybody. But before before I let you off the hook, myfriend, any last words, how can folks get ahold of you? What's the best way toconnect with you over at horizon?

 

Greg Herlean 42:59

If youjust go to our website horizon, trust, calm Look, there's no time like thepresent it I can tell you, if you start now, even if you open up your firstretirement account now and start getting involved, five or 10 years from now,you'll think me too many people are saying oh, I'll start my retirementsavings. When I do this, I pay off my credit card or I pay up whatever, let metell you, you're gonna always have debt no matter what, for the most part formost of your lives. And so start saving now because it will definitely benefityou. And if you could really you know, either the velocity thing is so true.You start now and you start you know, avoiding paying taxes certain things. Itwill be the difference between you vacationing a lot in retirement or notvacationing at all.

 

Dave Seymour 43:40

I loveit. And I don't take vacations anymore. Do you?

 

Greg Herlean 43:44

Thinkyou want vacation right now? And I'm enjoying it. This is a fun conversation,man.

 

Dave Seymour 43:47

Yeah,it's a business trip, baby. Everything's a business trip. I don't takevacations. We learn we learn to play the game at a higher level. My friend, Iappreciate you. Thanks for your time, ladies and gentlemen, you've beenlistening to real estate revealed. My friend Greg Helene at horizon, trustcalm, or you can reach out to us directly at freedom venture.com and our teamis quite capable of connecting you with with the white glove treatment that myfriend gives to all of his clients over there. God bless you, brother. Staysafe, and I'll talk to you real soon. Thanks, Greg.

 

44:22

Thanksthat

 

Intro Voice Over  44:25

realestate revealed We'll be right back. Thinking of purchasing a new home secondhome or investment property or maybe refinancing to get a lower rate,consolidate debts, drop PMI or need cash out to do home improvements. Georgecuartos mortgage Officer of cross country mortgage in Danvers is just the loanofficer you will need as Essex County's top loan officer with more than 8000past happy clients in over 30 years experience. George and his team will behappy to assist you with rates the lowest in history, don't hesitate act nowyou may be able to save 1000s of dollars. Call George at 978-777-4663

 

Dave Seymour 45:04

you everwondered how to create cash flow outside of your job income or retirement plan?Have you considered large commercial real estate assets? Do you know what analternative investment strategy is? Well tune in for all the answers on my showreal estate revealed this is they see my might recognize me from the hit TVshow flippin Boston. I'm also the CEO and co founder of freedom ventureinvestments to smarten up your real estate. Now how by tuning in every Saturdayfor all investment details, visit us at info at freedom ventures.com slash 104point nine call my team at 781-922-4418 Steve Alesis

 

45:36

ofSolaris reality as intimate knowledge of the North Shore market with over adecade of experience and record of 300 real estate transactions when it's timeto buy or sell property. Give Steve a call directly at 617-763-1001. That's617-763-1001

 

Intro Voice Over  46:05

you'relistening to real estate revealed with Dave see more from Amy's living Boston.All right, welcome

 

Dave Seymour 46:10

back. Idon't know, I guess thanking you, I asking questions. you're beginning to youknow, peel back the layers of the onion. You know, I think I look, I know whatI know. And I know what other experts know, unfortunately, we didn't reallyhave a great deal of time to get into another vehicle that is very powerful forus as investors is a vehicle called a solo 401k. The solo 401k isn't like yourregular 401k. Again, it's a it's a 401k that can be rolled into from an old,regular 401k. But the solo 401k is a vehicle that allows up to I'm 54 yearsold. So I'm allowed to put as much as 60, I think is around 60 to $65,000 incontributions into a solo 401k and then do exactly the same thing that we'vebeen talking about with a self directed IRA, which is then direct that capitalinto the investments of my choice, kind of the same rules and regulations ofwho you can and can't invest with. But there are so many secrets, again, to usethat term out there when it comes to to retirement, that, you know, we could wecould do days on end teaching and training and bringing in experts on thisstuff. But as I said the beginning of the show, and as I say every week, youknow, to be able to just bring something new something thing that has not beenmainstream for you know, the majority of Americans in our country is excitingto me, you can hear the passion and Greg when he talks right? And I feed off ofthat. Who you surround yourself with and the information that you you seekreally sets sets a path. There's an old adage We are the common denominator ofthe five people we hang around with the most. Think about that for a second,right who I love. We're not going out to restaurants much at the moment but youknow who you listening to? Who do you get your information from? Who inspiresyou? If you are discontented? Who owns that? I think we do right? I mean I I'vemet a lot of if watch this. Who is this person in your life? You know who theyare right? You always say to him Hey, blank, whatever the name is, how youdoing? Uh, what do they say? They say same old same old right? They just thinkthat their soul sucker is bad that they drag you down they don't build you up.You know? How's it going john? nother day. Now the dollar you know what I mean?Like they ooze that kind of negativity. I found a long time ago to you know torate raise the raise the awareness of the people that I hang around with I hada student years ago she was hilarious. She came up to me and she said you knowyou know I want to be I want to be in that one percenter she said I want to beup there with with with the with wealthy people. And I said sure. I said wellwhy you know what's what's your what's your driver? You know what what whatexcites you? Why do you Why do you want some financial you know, freedoms thatyou currently don't have? She said to tell you the truth Davey, she said it'sreal crowded. Down Down here at the bottom. She said I just want to rub rub elbows.She said I think my biggest this girl was so funny. She was from New Jersey.She said I think the biggest challenge in my life is is have been you knowwanting to solve with the Eagles she says but I've just been hanging out withthe turkeys. Right? So I you're hanging out with turkeys. I had a captain inthe fire department. Super dude. Great. guy's name was Larry godbout. And youknow his nickname was God because it was God bow even added on the back of hisfire coat. But I remember my first day in the in the academy that we had in inthe fire department on Broadway in Linn. I'm sitting there with, I think it waslike 28 of us got hired, it was a large class and godbout comes in. And hesays, boys in your career, there's going to be there's going to be drains andradiators. He said, there's going to be guys in your career who are drains whodon't want to participate and complain, he said, and then there's going to beradiators, there's going to be go getters, there's going to be people that wantto, you know, do extra training and be the best firefighter or medic that theycan be. He said the choice is yours. You know, you choose who you want to bearound. And, you know, I choose to be around guys like Greg hellene, I chooseto be around, you know, the best real estate agents in the marketplace, the BLSI choose to be around the best mortgage origination companies. You know, GeorgeCoots owes cross country mortgage, you know, I choose to be around my mentor,if you will, actually in the in the fund business, like a real estateinvestment fund, where we bring in your investor capital and put it to work onthe apartment complexes in Florida. You know, it's $100 million fund, but theguy I'm, I'm paralleling and aligning myself with his fund is a billion dollarsright now. And he's trying to do one one, acquisition to get up to 2 billion.So elevation, right? seeking new information, decipher in that information, seeand how it applies to us in our lives, and then not just sitting on it,implement it, right knowledge is power. Well, that's not true. Knowledge isonly powerful if it's implemented. And you know, from that little house inGary, Indiana, to the fund that we are working with today, you know, just justgreat opportunities. So look, if you want to connect with us through the radioshow, then you can reach out to info dot freedom venture.com slash 1049. I saythat again, info dot freedom venture.com slash 1049. If you go to that site,you'll be able to, you know, punch in a question, a lot of you have alreadybeen doing that we're kind of hitting a lot of those answers as we're speaking.And then also, I have had two lines of inquiry, as they say, in the English TVshows that I watch when I want to turn my brain off from business lines ofinquiry to lines of inquiry, one has been around the fund. You know, David,what does it take to to put my capital to work with your company, we work asI've said in the past with what are called accredited investors. And we canhelp you with that. It's funny that the lady that I was talking to earlier ontoday that's reaching out to Greg and her team, as a team over there at horizontrust, you know, she was under the impression that she was not an accreditedinvestor, put her with my accounting team. And it looks like that, you know,the definition of accreditation has some nuances to it, that the accountingteams can help with still legal, still aboveboard, but don't discount yourselfout because you believe you're not accredited. So accredited investors onlyPark capital with us and we put that capital to work for them over a five, sixyear period of time, and we target double digit returns on the capital that'sinvested 10 to 14%. On quarterly distributions, our investors get the first 6%of all profits. And then when we sell the assets, our investors are looking at20% plus on what's called an IRR, which means an internal rate of return,meaning that's the value return they get on their money working over over thatfive, six year period of time. Just as Greg said, I'd like to see how thatstands up and, you know, performs against all of the other vehicles out there,you know, these are alternative investments. So that was one line of inquiry.You can reach out to us at freedom venture comm or call our phone number 781-922-4418you'll have a chance to speak to me directly just say hey, I listened to Daveon the show I got some questions. And the other line of inquiry has been aroundHey Dave, buy my house. I'm still in that business. I you know, just shut thatskill set down. If you are a homeowner and you're looking to sell a singlefamily home because you have some challenges that's the only reason you knowthe market is it's it's absolutely a seller's market and when it comes tosingle family business, I'm a buyer, but who you do business with is asimportant as anything else. You know, we buy houses, ugly houses, I've got I'vegot an ugly house. There's a you know, a bandit sign on a post somewhere. Youknow who you're doing business with is very important. We're a professionalreal estate investment company, dealing with large 100 million Dollar funds,like I said, but also, you know, buying single family homes. Now the challenge,you know, some people don't want to open houses, some people just know thattheir house needs so much work, that they're prepared to just sell it for cash.They don't want the commission structures, and it's okay, it's okay to justhave one of my team members come to the property and in 2448 hours, I'll giveyou a cash offer. If you like it, take it if you don't, that's okay too, I canpoint you over to some of our team members who might be able to help you sellthe asset without you know, dealing with a cash offer from from a company. Itsexploration once again. So if you're in that marketplace, you do have a singlefamily home anywhere in the the listening area of 104 point nine FM, we'd loveto help you out, I'll have a team member with you as soon or as or as not, assoon as you would need them to be there, we'll look at your property, we'll runa list of repairs that we we would need to do to the asset. And then we'll makeyour cash offer we can close fast, or we can close slow. Sometimes I've I'veclosed properties. And I've waited, you know, three, four months why my sellerhas needed to do what they needed to do to be ready to move on to the next partof their life. So it's a service business. It's been a pleasure being with youagain this afternoon. Take care of each other, you know business can be brutal,but we we can always take care of each other at the end of the day. Love thosethat love you. And, again, we're here. Freedom venture investments next week.It's an interesting week, I think we might do a double hit one with a financialadvisor in alternative investments. And also maybe Steve walesa's a realtor Oh,come on and share a little bit about what's going on. So tune in next week.We're here every Saturday from 12 to one o'clock. Real Estate revealed pleasereach out to us. Let me know what you like about the show. Tell me what youdon't like I'm a big boy. I can take it Take care. We'll see you next week bye.

 

Intro Voice Over  57:09

Anysecurities being offered are under an exemption provided by sec regulation Drule 506 c only accredited investors who meet the SEC regulation d 501.accredited investor accreditation standards often provide suitable verificationof accredited status may invest into these offerings. Any historicalperformance data represents past performance past performance does notguarantee future results. Tune in again next Saturday at noon for real estaterevealed hosted by Dave Seymour, the star of ad libbing Boston and CEO offreedom venture investments in Denver.

 

Dave Seymour 57:52

You everwondered how to create cash flow outside of your job income or retirement plan?Have you considered large commercial real estate assets? Do you know what analternative investment strategy is? With tune in for all the answers on my showreal estate revealed this is they see my mic recognize me from the hit TV showflipping Boston's I'm also the CEO and co founder of freedom ventureinvestments. To smarten up your real estate know how by tuning in everySaturday. For all investment details visit us at info at freedom ventures.comslash 104 point nine call my team at 781-922-4418.