How To Destroy Your Self-Directed IRA With A Single Gallon of Paint

Yellow Paint Brush and Can isolated on white background

This is the very tragic story of how a single gallon of paint could destroy your entire retirement savings. Pay close attention, my friend: This is far more realistic than you’d prefer to believe.

Let’s set the stage: You’re a smart investor with the “long term” in mind. You’ve done all of the right things… you’ve set up and funded a self-directed IRA, then used it to buy rental properties and hired a great management company to handle the day-to-day business of your rentals. You’ve gotten good legal and tax advice along the way, and with your growing portfolio of properties, ever-increasing cash flow and growing equity in your self-directed IRA, there’s nothing but blue skies in your retirement future.

But there’s that one gallon of paint that could cost you all of your retirement savings. You remember that gallon of paint, don’t you? It seemed innocent enough. It was the right color, the right quality, the right amount. But that gallon of paint is about to destroy your retirement savings more aggressively and instantly than the very worst real estate crash.

Here’s how it happened:
Several years ago when you first began building your self-directed IRA, you noticed that the paint on the front door of your rental property was chipping. Your management company was scheduled to bring by some new potential tenants the next day, and you were concerned that the less-than-stellar look of the front door would cast your property in a bad light.

So you fixed the problem. You went to the local Home Depot and picked up a gallon of paint and quickly repainted the door. You did a fine job… the door looked like new and the new tenants were very impressed…

…But little did you know, you destroyed your retirement savings as a result of a little-known set of technicalities referred to as “prohibited transactions”.

Read the rest of this article by subscribing to Real Estate Income Magazine.

Get 3 Complimentary Issues
Now 3 back issues of the most important digital magazine for real estate investors in 20 years is now your when you submit your mobile number below.

Real Estate Income Magazine is leading a real estate investor movement that reveals what it takes to become a successful investor in your real estate business! We are the ultimate resource for your future success as a real estate investor. Next time you’re looking for foreclosures, searching MLS listings for homes to buy, or searching for houses to sell, be sure to read Real Estate Income Magazine to know the best strategies and tips to become a successful investor.

This is your unconditional gift of 3 complimentary issues of Real Estate Income Magazine ($50 Value). We are now waiting you the private link after you enter your MOBILE PHONE # in the box provided below.

You will have access to Real Estate Income Magazine on the website and iTunes without any obligation, credit card or further commitment on your part whatsoever.

lock Your mobile and personal information is 100% private to us will NEVER BE SHARED WITH ANYONE.  No credit or auto-renewal is required. Just wait for the instant message on your mobile phone from Real Estate Income Magazine and it will read:

“You’re about to get 3 free issues of  Real Estate Income Magazine, but first, what’s your full name please?”

NO CHARGE: There is NO charge for the text message you receive from us. (Message/data rates may apply from your carrier).  By entering your mobile number, we have your permission to live/robo call/text. And you may opt-out of our private mobile database by sending a text message with the word “stop” to (+1) 302-223-9894.

FREE APP DOWNLOAD: If you want a faster, better and easier way to read Real Estate Income Magazine issue after issue, download our free app at the iTunes App Store by clicking the button you see below

Download_on_the_App_Store_Badge_US-UK_135x40 arrow




Bryan Ellis is Executive Director of the Self-Directed Investor Society, an invitation-only association of high net worth self-directed investors. Bryan is also the publisher of the Bryan Ellis Investing Letter with more than 500,000 subscribers nationwide. You can reach Bryan via the Self-Directed Investor Society at www.sdisociety.org