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The South East quadrant of the United States is the 4th largest economy in the world and Atlanta is the Hub.
Driving Economic Growth Factors in Atlanta
• Bioscience and Health IT
• Global Commerce
• Supply Chain
• Technology
Growth Video http://vimeo.com/31861432
The Metro Atlanta Chamber has a twofold role in the area of Global Commerce. Our Global Business Growth team supports local Atlanta companies doing business internationally while our Foreign Direct Investment team helps international companies that want to open an office or facility in metro Atlanta.
We provide confidential and free services to foreign companies seeking market entry into the U.S. We equally work closely with site consultants and project managers for inbound companies.
Atlanta is a global leader in supply-chain management
Metro Atlanta is the business and distribution center of the Southeast – with the nation’s fifth-largest concentration of supply chain employment and 103,000+ jobs.
Supply chain giants here include: Delta Air Lines, Manhattan Associates, Norfolk Southern, UPS, the Supply Chain and Logistics Institute at Georgia Tech.
Learn about the Sixth Annual Atlanta Supply Chain Forum and Awards Luncheon

Global Access for Global Supply Chains
Atlanta’s global access, innovation, and talent create an unparalleled logistics network for companies that demand efficient, predictable and consistent global supply chain operations to accelerate growth.

Air
Home to the world’s most traveled airport, Hartsfield-Jackson Atlanta International,with more than 2,600 daily takeoffs and landings. Ranked 12th in U.S. air cargo traffic.
Ground
One of five U.S. cities served by three major interstate highways. More than 80 percent of the United States’ commercial and consumer markets can be reached within two truckload delivery days. Ranked 6th in ground freight movement in U.S.
Rail
Access to the most extensive rail system in the Southeast with 4,900 miles in Georgia. State is ranked 6th in rail intermodal O & D traffic.
Sea
Only 250 miles to the Port of Savannah, fastest growing and fourth-largest container port in the U.S.
Corporate Supply Chain Center
Headquarters to Delta Air Lines, Manhattan Associates, and UPS. Ranked fifth nationally in transportation and logistics employment. Twenty-four of the top 25 third-party corporate logistics firms (3PL) operate here.
Intellectual Capital
Home to Georgia Institute of Technology’s Supply Chain & Logistics Institute and School of Industrial and Systems Engineering, a globally recognized leader in research and eduction.
Center for Supply Chain Management Software
Seventy percent of the top 20 supply chain management software providers have operations in Atlanta. Twenty-five percent are headquartered here (Manhattan Associates, Infor, Logility, Aldata Solutions, and CDC Software).

IRA Frequently Asked Questions

Is a Self-Directed IRA any different than a regular IRA?

Yes. With a Self-Directed IRA you are able to direct your own investments. Unfortunately, many custodians place restrictions on what you are allowed to invest in, but an IRA that is truly self-directed allows you to invest without restrictions.

Is there any difference between a Self-Directed IRA and a Self-Directed IRA LLC?

A Self-Directed IRA LLC is truly self-directed and you are in total control of the account. With a Self-Directed IRA LLC you are responsible for managing the checkbook, don’t have to ask permission to make purchases, and may write checks for your IRA.

Are there advantages to using a Self-Directed IRA LLC when investing in real estate?

Yes. You have total control over the finances of the IRA and this gives you far more freedom to make decisions quickly. A self-directed custodian requires you to get permission for just about everything you do. This can be a problem with a time sensitive investment like real estate, where a few minutes can make or break the deal. With a Self-Directed IRA LLC you have the checkbook and the ability to make the investment immediately, without someone else’s permission. An IRA with an LLC is also subject to lower and fewer fees than one without it. The LLC also gives you the ability to advertise for renters, pay real estate bills, deposit rent checks, etc. This freedom helps you keep money in your IRA and make your retirement that much more comfortable. Additionally, your IRA is protected from lawsuits and there are tremendous asset protection reasons to use an LLC.

How much are the custodial fees on your Self-Directed IRA’s?

The fees are different by each custodian in administration. Some are asset based, others transaction based and others are a hybrid of both.

What type of retirement accounts can be moved into Self-Directed IRA’s?

Qualified Annuities, Profit Sharing Plans, Money Purchase Plans, Government Eligible Deferred Compensation Plans, Keoghs Traditional IRA’s, SEP IRAs, Roth IRAs, 401(K)s, 403(B)s, Coverdell Education Savings (ESA) a.k.a. Educational IRAs. Most retirement accounts can be moved into a Self-Directed IRA.

Are there any downsides to a Self-Directed IRA?

Yes. Inactivity. There is no reason to have a Self-Directed IRA if you don’t use it. The ability to get involved in a high yielding, creative transaction is what a Self-Directed IRA is all about.

What investments can I make with an IRA LLC?

Anything you can invest in with a regular LLC, with the exception of collectibles and insurance contracts.

Is real estate a good investment for my IRA?

Yes. Real estate offers a tangible value with excellent returns. As investors become aware of this, many are gradually moving some or all of their retirement capital into the real estate market.

Can I use my IRA to purchase property I already own?

No. This is considered a prohibited transaction.

Is investing my IRA in real estate against the law?

IRA law does not prohibit investment in real estate.

What is the most effective way to buy Real Estate using my IRA?

There is no question the Self-Directed IRA LLC is a good choice for investing in real estate. This option gives you the most control over the IRA’s finances. However, using Equity Participation Notes, Options and the beneficial shares in a Land Trust are also simple strategies that are easily implemented.

What happens to the rental income if I buy an income generating rental property?

The investment will retain it’s tax deferred or tax-free status. Any income generated by the IRA owned property, goes right back into the IRA.

Why does my current broker claim that I can’t buy real estate using my IRA?

The most likely reason is that your broker won’t allow real estate investment through their custodian. Either that, or your broker is not aware that it is possible. In either case, investing in real estate is allowed, your broker just doesn’t do it.

Can I use my Self-Directed IRA LLC to obtain a mortgage?

You can, but the loan would have to be a non-recourse loan. This means, the only recourse the bank would have against the loan would be the property itself. The loan would also be subject to unrelated debt finance income tax.

Do I pay taxes and penalties when using my IRA to buy Real Estate?

No. Buying Real Estate with your IRA is just like any other investment made with it, except if you use non-recourse financing. If you use non-recourse financing then you are subject to tax on the income generated by the amount finance minus a $1,000 deduction.

Does leveraging real estate still make sense?

Yes, because it increases your buying power. The benefits of this increased buying power, far outweigh any risks involved in leveraging. However, make sure you have reserves for when things wrong. Rental property involves people and people have problems, so don’t risk your retirement for a higher yield if you don’t have the reserves.

Can my Self-Directed IRA LLC get a loan if my IRA is short of the funds to purchase it outright?

Yes, your Self Directed IRA LLC can get a non-recourse type loan. Unfortunately, with this type of loan, if your IRA can not make the payments, the property is the only recourse the lend has available against the loan. You may also want to speak with a tax professional, because a loan of this type is subject to UDFI (unrelated debt finance income) tax.

Can I manage the property I purchase?

The answer would be no with a simple self-directed IRA. But with a Self-Directed IRA LLC you would be able to manage the property, collect the rent checks, advertise for renters, pay the real estate bills, etc. A Self-Directed IRA LLC, unlike one without the LLC, doesn’t have a laundry list of restrictions. This will save your IRA a lot of money, giving you more to enjoy during your retirement.

Can I make renovations or improvements to the property using my IRA?

Any improvements made to the property must be paid for by the IRA. Since the property is an investment of the IRA, all expenses or profits generated by the property, must be returned to the IRA.

Can I buy vacation property?

Yes you can, but you can not vacation there.

Can I buy my retirement home with my IRA and then live in it when I reach the age of my retirement?

Yes. Upon reaching retirement age, the property could be distributed to you. Of course, you would be required to pay any taxes generated by this distribution.

Can I use my IRA to invest outside of the country?

Of course – there are many great investment opportunities in other countries.

Can I loan money to others for property using my IRA?

Yes. This is done frequently, and can be a great investment.

Can I give my brother a loan for the down payment on his house?

Yes. Loans to siblings are not considered prohibited transactions.

Can my Self-Directed IRA LLC make loans to a friend?

Yes. Your IRA is able to make loans to friends for just about any purpose.

Can my Self-Directed IRA LLC make loans to a real estate developer?

Yes. This is a great way to get your IRA involved in real estate. Many developers rely on provate financing and a good develop, is a good investment.

Can my Self-Directed IRA LL make loans to businesses or companies?

Of course – as long as you have no ownership interest in the company.

Can my Self-Directed IRA LLC be used to purchase a business?

Yes.

Can I invest in a business?

Yes. This can be done by purchasing stock as a loan to the business.

Can I transfer funds from an existing retirement account to my IRA?

401k, IRA, Sep IRA, Roth IRA, or 403b accounts can all be invested in an IRA LLC.

Why is so little information available on Self-Directed IRA’s?
Many in the investment community don’t want smart investors to know about the options available outside of the traditional stocks and bonds they offer. Since most brokers make their money through fees and commissions, they want you to buy what they are selling, not invest outside of it.

Can I co-invest with my IRA?
You are not prohibited from doing so, but certain rules need to be followed, and in many situations it is not advisable.

Can my IRA co-invest with my friends?
Yes.

Are the profits made by my Self-Directed IRA LLC taxable?
If your IRA is used to purchase a property that is then sold for a profit, the profit stays within the IRA. If you have a Roth IRA it should be tax exempt and traditional IRA’s are usually tax deferred.

Are there any special taxes that apply if I use debt financing to purchase real estate?
Yes, your investment would be subject to unrelated business taxable income (UBTI).

What are IRA Prohibited Transactions?
Prohibited transactions usually involve one or more of the following:
(1) Business dealings with a disqualified person(s)
(2) Transactions which benefit someone other than the IRA
(3) Loaning money from the IRA to a disqualified person(s)
(4) Prohibited investments

Putting it as plainly as possible, a prohibited transaction goes against the basic intent of the IRA. The rules governing prohibited transactions are available in IRS Publication 590, IRC 4975.

What are IRA Prohibited Investments?
The prohibited investments outlined in the Internal Revenue Code include: artwork, rugs, antiques, metals, gems, stamps, coins, beverages, stock in a s-corporation, and certain other tangible personal property.

How can I avoid prohibited transactions and / or self-dealing transactions?
Only invest in new properties, or properties not owned by you, or a disqualified person. Also, make sure any purchases made by your IRA are for investment purposes only. For example, if your IRA is used to purchase beachfront property, you are not permitted to use that property for your next vacation. One last thing, if you perform maintenance on a property owned by your IRA, you may not pay yourself from the IRA for the labor performed.

What is the definition of a disqualified person?
Disqualified persons include: The IRA owner, his/her spouse, ancestors or lineal descendants of either, managers, investment advisors; any corporation, trust, partnership, or estate which the IRA holder has a 50% or larger interest in; as well as anyone who would provide services to the IRA such as a trustee or custodian.

It is my IRA. Why am I a disqualified person?
Your IRA is a separate trust for your benefit when you retire.

Can I form an IRA S-Corp?
No.

Can I invest in stocks and other more traditional investments using my Self Directed IRA LLC?
Yes. Any traditional IRA investments are still available to you. The benefit of a Self Directed IRA LLC, is the freedom you have in choosing these investments. By cutting out the middleman, you can direct your own investments and and have total control over the IRA’s finances. A Self-Directed IRA LLC is just like a traditional LLC, minus the middleman.

Can I move a 401k I had with an old employer into my Self Directed IRA LLC?
Yes, and we can help you do it. If you have several old 401k plans or IRAs, it is also possible to combine these for investment in your Self Directed IRA LLC. You should also consider investing any funds you are unable to combine into the same Self Directed IRA LLC, because this will maximize your buying power.

Can I move money from the 401k I have with my current employer into a Self Directed IRA LLC?
In most cases, you cannot move money from a 401k plan if you are still working for the employer. Although, certain 401k plans may allow you to unlock a portion of your funds for reinvestment.

Is the transfer of funds a taxable event?
No.

Am I able to invest in an LLC I manage?
Yes.

Can I allow someone else access to my IRA’s LLC, if I no longer want to manage it?
Yes.

Am I able to partner with my LLC?
You are, but a separate LLC must be created for the partnership.

Am I able to partner my IRA with another unrelated individual?
Of course.

Can I use my IRA to pay for pre-construction reservations I intend to assign or simultaneously close on?
You can.

Is investment in secured and unsecured notes allowed with my IRA?
Yes.

Is a bookkeeper required for the rental properties owned by my IRA?
No

Are funds in my IRA insured?
The funds are usually in a FDIC insured checking account, since you will have checkbook control.

Do you allow debt-financed properties?
Yes .

Hundreds Of Thousands of New Jobs To Be Added in Atlanta and the State of Georgia in the IT Health sector according to the Atlanta Business Chronicle.

In an article titled “City will sell itself as health IT capital”

Changes that will need to take place with health care records and how medical professionals access them. Hospitals, clinics and doctors will need to upgrade their IT systems. This will create massive amounts of jobs in and around the Atlanta Metro Area.

An REO is a property that was foreclosed on by a lender and that the successful bidder of the mortgage foreclosure auction was the lender.  Said another way, the lender now owns the property that they had lent money on.

These lenders have these REOs on their books and they need to get rid of them in order to maintain cash levels in the bank acceptable to the Federal Government.  These cash requirements are being changed by the Feds in the hopes that banks will become more stabilized.  Often you will see REO houses for sale by Fanny Mae or Freddy Mac.  That’s because these 2 entities which are owned by the Feds have guaranteed these loans and they paid off the lender and now they own them.. REOs They have been around since loans have been made.

To buy REOs you can go to www.getreoproperties.com and simply search the areas that you want to buy in.  You may have heard of “tapes” of houses being sold by lenders and various companies and individuals.  A big word of caution; If you’re not getting deeds and title insurance at closing, then don’t buy.  There are a lot of companies and individuals that are hawking these tapes on the internet and you could end up losing your money.

The first question to ask anyone selling tapes of properties or even an individual house is this: “How do you control the property?”  This answer, if answered honestly, should let you know if you want to move forward.  Control can be one of the following:

• they own it
• they have it under contract

If they own it, there should be a deed to prove it and you’ll want to know who is on the deed.  If they have it under contract or have an option to purchase, they should be able to show you the documentation.

Some sellers wont want you to know what their making and if this becomes their issue for not wanting to prove they have control just tell them, “I don’t care if you’re making $100,000 on this deal, I only care if I can make money.”  And you know what?  That’s all you should care about. There is money to be made in REOs, just don’t give down payments to sellers that you don’t know. Always go through an attorney or a title company.

A passive investor is not active in the day to day real estate business.  I used to think I was a passive investor with over 200 homes, only to have someone point out that I was really in business.  And there is a big difference from being a passive investor, being in a business and running a business.

I was a bit surprised that for 30+ years I was running a business and it couldn’t run without me.  Heck, I was really just an employee that worked tirelessly everyday to acquire more houses.

Things are different now.  I still buy houses but I hire a manager to handle all the tenants.  That’s the beautiful thing about real estate as you can basically hire someone to do every aspect of the business.

• Someone to find opportunities
• Someone to fix the house
• Someone to management
• Someone to sell it

The greatest aspect of real estate is that everything is negotiable.  When you surround yourself with the right talent you can truly reap in the rewards of passive real estate investment.  I know of no other investment that has so many moving parts and there are so many ways to make money.  It’s no wonder that more and more people are getting involved, especially with their IRAs and 401Ks.

The government allows you to invest these retirement plans in real estate but you cannot manage it nor should you do the work on the houses.  When you consider that 91% of the wealth created in the United States is from real estate then you want to know the people that can make this happen for you.

Have you noticed how any houses are for sale lately? It’s true, there are more houses on the market now than last year at this time.  This is good news for investors that have cash and the courage to take action, while the opportunity’s available.

So, why would you buy an old house?  I don’t care how it looks or where it is, why would anyone in their right mind buy a house that was built before 1978?

Our constantly regulating government has created new laws about houses built before 1978 because these houses could have lead-based paint.  For your information; lead-based paint is harmful to your health and lead was a primary ingredient in paint up until 1978.  If you buy or sell a house that was built before this time, all kinds of disclosures must be made and a pamphlet  on lead-based paint must be given to prospective buyers or tenants.  Now, if you have peeling paint in a house or on the exterior of a house built before 1978, you must hire a licensed lead-base paint removal contractor to do the work if it exceeds approximately 10 square feet.  Good luck with that!  Most of the homes in the North East have this problem and it’s much bigger than what meets the eye.  Let me explain in more detail, as I have more experience than I care to tell you about in this area.

We live in a litigious society, where blood sucking vampires (attorneys)  look for reasons to sue people because this is what keeps them alive.  They must get more and more blood to increase their business.  They literally seek out alleged victims and run newspaper ads in the areas that are most likely to have greater exposure to lead-base paint.  These areas are the inner cities of our North East states in the lower income areas.  The reason lead-base paint lawsuits are concentrated in these areas is because lower income tenants have a tendency to leave their children on the floor, they don’t supervise them as much, and often these young babies or children will eat peeling paint – AND lead-base paint is sweet so they like it.  Now, I hope I didn’t generalize too much, but this is my experience.  And guess what?  These kids become adults and when they see an ad in the paper that gee, maybe I ate lead paint, or they’ve been diagnosed in the past, then they hire the contingent fee based attorney and sue every landlord and property manager of any house they ever lived in or visited!

Think I’m kidding?  I got sued 7 times in the last 12 months for houses I owned at one time or another over 16 years ago.  And the last lawsuit stated they think the “alleged victim” visited my house between 1994-1995.  Now, if that isn’t a crock of BS I don’t know what is.  I’ve had to respond to all this nonsense and so you know, my insurance did not cover lead-base paint.  And I assume now – you can’t get lead-base paint insurance.

So, why would anyone want to buy a home built before 1978?  You can buy beautiful houses in beautiful neighborhoods that are only a few years old at bargain basement prices in great areas.  Even if the house looks pretty and has been completely rehabbed but was built before 1978 – think again.  The bargain you think you are getting could be the road to perdition.

Think about your ultimate dream house, but most importantly, visualize and try and sense what the landscape looks like, the sky and your surroundings outside.  What would you be wearing and what would your hobbies and entertainment be like?

I bet everyone that reads this pictured a sunny day, pretty flowers growing with warm temperatures.  Anybody think of gray skies or snow on the ground?  Of course not.

So doesn’t it make sense that people want to live in these types of areas?  You bet it does, and they especially want to live in areas where jobs are being created, not lost, where taxes of all kinds are lower.

If this is true, which I believe it is, why would anyone want to buy investment houses in the RUST BELT?  It makes absolutely no sense to buy in dying areas where the local governments are broke and continue to raise taxes, water rates and other fees they can come up with.  These areas are doomed on the long term radar map for houses rebounding in value.

Most retirees prefer to live in a warm climate and ultimately move there if they can afford to.  College graduates are leaving the nest too.  Once they realize the sun comes out more than 30 days a year outside of Rochester, NY – they leave.  They never forget the vacation when Mom and Dad took them down to Florida over a holiday break.  And jobs?  C’mon.  Large employers are leaving the heavily taxed states in the North East and operating their businesses in lower tax states with warmer climates.

When you come down to it, there is a better quality of life in warmer climates.  You can be more active at all times of the year and in general, it is more cheerful than gloomy, wintery weather of the North East.  That being said, why would you want to buy investment houses in these areas?

With advancements in technology and networking, you can buy a house anywhere in the country and find rehabbers and property managers.  There is no question this is the best real estate buying opportunity of a life time.  Virtually, every market is down, so buy in the markets that will have future growth, where real estate taxes and insurance are low, and that is not in the path of hurricanes or freezing winters.

Don’t get blindsided by your own greed or rates of returns in cheap houses in areas of the country that are losing population.

Did anyone ever offer you a house to purchase and tell you that the rate of return will be over 30%?  Be careful!  This real estate market is lined with sharks preying on new investors.

The only way you can achieve those kind of results is when you buy low income property or use leverage.  The high rate of returns may be attainable, but it will not be sustainable. I’m going to speak in general terms so I hope not to offend anyone.  Low income houses mean low income tenants or worse, subsidized by the Federal Government through Section 8 or by the local county through welfare.

Just think about this for a moment:

• these tenants will never buy the house
• if they break something, they can’t afford to fix it
• when they move out, you will be doing a full blown rehab on the house to repair everything they ruined
• you may get paid for a while but it won’t last
• these houses seldom go up in value
• these houses are hard to finance if you ever do sell it
• you’ll have to sell to an investor
• and finally, these houses are HIGH maintenance and management intensive

Why would anyone buy this garbage when there are so many great opportunities in today’s market?  Sure, you will pay more for a well constructed house in a good neighborhood.  In fact, the higher the quality of the home, the lower your rate of return will be.  The reason your rate of return is lower is because rents do not go up in direct relationship with the cost of a home.  For example, you could buy a house for $65,000 and your rent should fall between $650-$900 a month depending on where you buy.  But, if you buy a house for double $65,000, that is $130,000 that doesn’t mean that your rent will automatically double.  However, the quality of the home that you buy for that extra money should offer you greater safety in terms of value. You are buying a better house in a better neighborhood and it should be more stable in terms of future value.

A good rule of thumb, not always accurate, is that rents should be approximately 1% of the purchase price.  This is not written in stone and is subject to the local market where the house is located.

With so many properties on the market today, go for quality houses in quality neighborhoods in the path of progress.  Focus on your exit plan, that is, who will you ultimately sell the house to?  Buy in the price range of first time home buyers as these are the primary buyers in today’s market.  If people already have a home they are staying put until the market corrects itself.  Nobody needs a second home so focus on the market that is buying; first time home buyers.