Growth in Debt-Financed Real Estate IRAs

In 2016, New Direction IRA, Inc. saw a sizable increase in debt-leveraged real estate investments inside our client’s IRAs. As time progresses, more self-directed IRA holders are utilizing borrowing within their IRAs. Retirement investors are recognizing and utilizing the increasing availability of non recourse loans to enhance the buying power and growth potential of real estate investing in their IRAs.

The value of total real estate purchased in our client’s accounts in 2016 (including land contracts receivables) was $76.5 million. This is up from $68 million for 2015.

The total value of new mortgages obtained grew 24% from 2015 to over $19 million for 2016.

In 2016, New Direction IRA re-launched its new fully-automated client portal, myDirection®. Real estate investors are taking advantage of this portal to manage their accounts, as made evident by the growth New Direction saw in IRA leveraged property in 2016. myDirection® allows renters to pay rent directly into the IRA, encouraging on-time payments. myDirection® also displays account holders' balances and transactions, so retirement investors have the information to make wise real estate investment decisions for their self-directed IRAs.

In 2017, New Direction has continued to expand its mission to educate financial and real estate professionals with the development of a CPA and real estate agent-approved continuing education classes. These give CPAs and real estate professionals the background knowledge they need to assist clients with self-directed IRA investing questions, from broad strokes to intricate strategic options. NDIRA has expanded classes into more states in the south east – Pennsylvania, New York, New Jersey, Alabama, and Florida; as well as presenting via national legal CE providers on topics related to real estate investing and tax implications for the IRA.

These classes were specially designed by New Direction’s co-founders and presented by Bill Humphrey, CEO and Co-founder of New Direction. Bill has over twenty years of experience as a CPA, and specializes in income tax, auditing, tax-related real estate issues, and forensic accounting. Bill has taught courses on IRA investment rules to investors, CPAs, and investment professionals through a variety of venues over the past decade, including the University of Denver School of Law, Lawline, Strafford Publications, and a number of state CPA societies.