COVID-19 | Advantage Team Update
When the Equity Advantage Team established IRA Advantage, we did so in an effort to satisfy our Exchangor’s desire to diversify their IRA/401k into Real Estate and other tangible assets. At the time we had no idea the Financial crisis of 2007-08 would temporarily shift the focus of IRA Advantage.
When the financial crisis hit, our clientele shifted from Real Estate Investment to Investment Salvage and finally Business Startups… The business startups utilized something called a Roll Over Business Startup or “ROBS”. During those dark days we created lifelines for people who had lost their jobs and their only funds to create a new livelihood were their IRA or 401k plans. During those tough times we assisted clients with the creation of businesses ranging from Gold/Silver/Palladium Mines to Real Estate Investment Companies to Mattress Companies and even Car Dealership Management Companies.
Today, unfortunately due to COVID-19 we could be facing similar circumstances to 2007-2008 and we are once again are ready to help! The following is a description of the ROBS process, we hope you find it helpful and encourage you to reach out with any questions or concerns you may have. We are not stating this will trigger a recession, but if it were, we want to make you aware of options that can get you back on your feet during this difficult time.
Best of health to everyone!
The Advantage Team
BUY a BUSINESS WITH a 401k…
Did you know it’s possible to finance the purchase of new business with your retirement account? The process is called a “rollover business startup” and your 401k literally owns the new business.
Three Easy Steps
- Create your new company 401k plan.
- Rollover your current Retirement Plan into your new company 401k.
- Your new 401k invests in the business’ new C-Corporation. The shares of the new C-Corporation are now owned by your new company retirement plan.
Your are now ready to acquire the new business!
Mixed Ownership
If the business costs more than you have available in your retirement account it is possible to invest with your retirement account. Yes, it is possible to jointly own the business though timing is critical. Any joint ownership between disqualified parties must be made simultaneously.
Get Ready Today
As the old saying goes; be prepared. When negotiating the purchase of a new business for a retirement account all negotiation should be done in the account’s name or if the 401k’s C-Corporation has been completed in the C-Corporation’s name.
Although buying a business with your retirement account is not a difficult process though understanding the legal issues, planning and preparation are essential. The Retirement account must be able to make the acquisition and cover any costs the investment may require. The process to establish a Rollover Business Startup typically takes two to four weeks.
Give us a call today at 1-800-475-1031 for more information!
HAPPENING NOW
The Equity Advantage Incorporated & IRA Advantage YouTube Channels
Head to our channels and watch as owner of Equity Advantage and IRA Advantage David Moore speaks on the basics of 1031 Exchanges and Self-Directed IRAs in today’s market!
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The Guys With All The Answers…
David and Thomas Moore, the co-founders of Equity Advantage & IRA Advantage
Whether working through a 1031 Exchange with Equity Advantage, acquiring real estate with an IRA through IRA Advantage or listing investment property through our Post 1031 property listing site we are here to help Investors get where they want to be. About Us…
