US Equity Group LLC

THE FREEDOM OF SELF-DIRECTION

Use Your IRA or 401k to Invest in Real Estate!

Independently minded investors have been able to achieve substantial returns for years. From real estate, lease/options and tax liens to limited partnerships, investors holding "nontraditional" assets have flourished in areas that the mainstream has had neither the vision nor the knowledge to comprehend.

Independence

Success in investing comes from hard work and knowledge. Why pay someone else to manage your retirement and bet your entire wealth on the stock market rising in value, when you are capable of acquiring substantial retirement savings by investing in assets that you know and understand? Combining your investment expertise with an IRA can be a powerful investment strategy. Through utilization of the tax-deferred qualities inherent in IRAs, investment earnings are able to grow at a much faster rate than those created without this tax status.

Common Investment Vehicles

In addition to listed investments (stocks, bonds, options, mutual funds, etc.), Equity Trust Company offers clients the ability to invest in non-traditional assets such as:

. Real Estate

. Mortgages/Deeds of Trusts

. Tax Liens/Deeds

. Promissory Notes

. Judgments

. Lease/Options

. Private Placements

. Limited Partnerships

. LLCs

. Structured Settlements

. Equipment Leasing

. Mobile Homes

For many investors, starting an IRA with only $4,000 leaves them with very few options and the inability to purchase substantial investments. With non-traditional assets, ownership isn't always as important as control. For example, an investor with $4,000 certainly couldn't purchase a property valued at $40,000, but the investor could purchase an option on that property for $4,000.

By taking an option, the investor could then find a buyer for the property, and sell the option at a substantial gain. The possibilities can be endless.

HOW TO MAKE AN INVESTMENT WITH YOUR ETC SELF-DIRECTED IRA

Once you have opened and funded an account at Equity Trust Company, purchasing an investment (option, real estate, mortgage, private placements, etc.) is fast and easy. With our knowledgeable staff, transactions can be completed in a timely manner. (Normal processing is approximately three days; same day service is available.)

When you have found an investment that you would like to purchase with your IRA, you will notify Equity Trust through the use of the Direction of Investment (DOI) form, available for download on our website at www.trustetc.com. This form is used whenever you choose to allocate funds within your account and informs Equity Trust of what you are purchasing, whom the account will purchase it from, the amount needed, and where the funds are to be sent. Once the DOI is received, Equity Trust will purchase the asset for your account in the name of your IRA: "Equity Trust Company Custodian For the Benefit of Your Name IRA" All necessary original documents, such as warranty deeds, options, mortgages, notes, etc., will be sent to Equity Trust Company, where they will be held in safekeeping.

Investing Made Easy

1. Find the investment.

2. Complete the Direction of Investment (DOI) form, available online, and mail or fax it to Equity Trust Company.

3. As your account custodian, Equity Trust Company purchases the investment for your IRA, according to the instructions you provide on your Direction of Investment form.

4. Appropriate documents (e.g., warranty deeds, options, mortgages, notes, etc.) will be held by Equity Trust Company in safekeeping. In addition, any signatures required will be signed by Equity Trust Co. on behalf of your IRA. Do not sign any documents yourself.

5. You will be notified once the investment has been purchased and is posted to your account (accessible 24/7 on our website).

6. Any related income (rent, down payments, etc.) must be sent to Equity Trust Company along with a Deposit Coupon. The funds will be received, deposited, and posted to your account.

7. Any related expenses must be paid out of your IRA account, using a Bill Pay DOI form.

Real estate purchased without an IRA Real estate purchased with an IRA

Purchase property for $80,000 Purchase property for $80,000

Make Improvements $10,000 Make Improvements $10,000

Total Cost in Deal $90,000 Total Cost in Deal $90,000

Sell the property for $130,000 Sell the property for $130,000

Profit $40,000 Profit $40,000

Subtract Tax at 31% $12,400 -

Realized Profit $27,600 Realized Profit $40,000

Now, for your next deal, you have $40,000 in assets, rather than $27,600. This $40,000 can continue to grow, tax-deferred, until you choose to withdraw it.

Prohibited Transactions

A prohibited transaction is any improper use of your IRA account by you, your beneficiary, or any disqualified person. The following are considered prohibited transactions by the IRS:

. Borrowing money from your IRA.

. Selling personal property to your IRA.

. Receiving unreasonable compensation for managing your IRA investments.

. Using your IRA as security for a loan. Purchasing property for personal use (present or future) with IRA funds. (Must be for investment purposes only.)

. Using IRA funds to purchase collectibles such as rugs, artwork, antiques and certain other tangible personal property (exceptions include certain U.S. minted coins).

. Purchasing assets owned by yourself, your spouse, or other family members (exceptions include siblings with your IRA funds.

. Your business may not be located within a property owned by your IRA.

For more information and complete details on prohibited transactions, please refer to IRS Publication 590.

Explore Self-Directed IRAs

Who We Are:

For more than 34 years, Equity Trust Company has been helping individuals make tax-free profits to secure their financial future. With close to 40,000 clients and management of $3 billion in assets, Equity Trust allows clients to take advantage of truly self-directed IRA benefits (compounding interest and tax-free profits), while investing in both traditional and non-traditional investments.

What You Need to Know

A self-directed IRA allows you to invest in a variety of assets, such as real estate, tax liens, foreign currency and much more, while receiving valuable IRA benefits (tax-deferred and tax-free profits). You are encouraged to share with your tax/ financial professionals and advisors. If you would like more information please call 1-888-382-4727 to talk with a Retirement Plan Specialist.

Is it Legal?

Yes. Since the IRA was created in 1974 investing in real estate and other alternative assets has been legal as long as IRS guidelines are followed. IRS publication 590 provides IRA regulations and states with what investments are prohibited (such as collectibles), not what investments are allowed. For more than 30 years, Equity Trust has assisted clients create tax-free wealth investing in a broad range of investment opportunities such real estate, promissory notes, tax liens and much more.

How Does it Work?

Investing with a self-directed IRA is similar to investing in assets outside of an IRA, with three main differences.

1). You actively chose and manage the investments of the IRA through a custodian. Equity Trust is a passive custodian that does not offer advice to clients.

2). Every investment asset must be titled in your IRA�s name, not you personally.

3). All profits and expenses generated from the investment must return to the IRA, not to your own bank account.

What are the Rules Surrounding Self-Directed Investing?

The IRS has established rules and guidelines for IRAs ensuring those accounts benefit an individual�s retirement. The IRS penalizes investors for withdrawing IRA funds before 59 1/2 and for engaging in "prohibited transactions." The IRS defines a prohibited transaction as follows: "Generally a prohibited transaction is any improper use of your IRA account or annuity by you, your beneficiary or any disqualified person. Disqualified persons include your fiduciary and members of your family (spouse, ancestor, lineal descendant, and any spouse of lineal descendant)."

-- Source IRS Publication 590

Publication 590 indicates that prohibited transactions include investments with disqualified individuals, "self-dealing" and receiving indirect benefits.

Disqualified persons include:

. IRA owner (you)

. Parents (and their spouses if re-married)

. Grandparents (and their spouses if re-married)

. Children (and their spouses)

. Grandchildren (and their spouses)

. Designated beneficiaries of IRA

. Fiduciaries (a CPA, financial planner, IRA custodian, etc.)

-- Source: Internal Revenue Code 4975

Self-dealing rules require investments made with self directed IRAs to be at arm's length, which is most often defined as a willing buyer and willing seller coming together with no undue influence from outside sources.

Please Note: This is a general overview and should not be construed as legal or financial advice.

Please consult with a tax or financial professional before making an investment.