Welcome to the May edition of the Milwaukee REIA newsletter, where we ’ re balancing high-level strategy with local community roots. This month, we ’ re providing the Quarterly Housing Market Update for Milwaukee and Waukesha to keep your portfolio competitive, alongside a field manual for self-directed IRAs to help you build a taxadvantaged retirement We also dive into risk management with a "Welcome Freeze" guide to tenant credit screening and introduce you to our latest Volunteer Spotlight, Kesha, whose gardening efforts are transforming our neighborhoods Whether you're a seasoned pro or just starting out, this issue is packed with the tools you need to grow your wealth and your impact in the Cream City
The Field Manual to Saving for Retirement with a Self-Directed IRA
BY: JOHN BOWENS VIA TRUSTETC.COM
Many investors believe their retirement savings are limited to mutual funds, stocks, and bonds, assets that rise and fall with the market and often feel beyond their control Yet an increasing number of Americans are discovering another path one that gives them more choice, more creativity, and more potential to grow through self-directed IRA investing. In Wealth Beyond Wall Street: The Field Manual to Growing Retirement Wealth Through Alternative and Traditional Assets, John Bowens, Director and Head of Education and Investor Success at Equity Trust, invites readers into the world of self-directed IRAs (SDIRAs), where investors aren’t confined to Wall Street’s rhythm This isn’t just an educational overview; it’s packed with real-world examples and potential methods for those ready to take a more active role in shaping their financial future From real estate and private lending to other alternative opportunities, John shows how investors can think differently about building wealth while staying within the IRS framework
What Is a Self-Directed IRA (SDIRA)?
An SDIRA is a retirement account that gives you the freedom to invest beyond traditional Wall Street assets Unlike employer plans or brokerage IRAs that may limit you to stocks, bonds, and mutual funds, a self-directed IRA allows you to choose from a much wider range of alternative assets, including real estate, private loans, precious metals, and cryptocurrency.“Self-directed investing allows you to align your investing approach with your passions or values,” John says in Chapter 1 of his book.You maintain the same tax-advantaged structure of a Traditional or Roth IRA but can direct your dollars toward opportunities beyond Wall Street. This is not a new type of IRA, but it is a new level of control for many investors
Why Investors Turn to Alternative Assets
Alternative assets provide investors a way to diversify beyond traditional portfolios and potentially build wealth through tangible, real-world opportunities
Some of the most common SDIRA investments include:
Rental properties and fix-and-flips
Private lending and promissory notes
Real estate partnerships and syndications
Precious metals and digital currency
Private equity and start-ups
These assets allow investors to participate in sectors they know and trust John’s book offers real-world examples of investors leveraging their personal knowledge to invest in alternative assets within a self-directed plan.
The Tax Benefits That Can Help Build Long-Term Wealth
One of the potential advantages of using an SDIRA is that your gains can compound in the absence of current taxation, meaning more of your profits stay invested and working for you. Depending on your account type:
Traditional IRA: Contributions are typically tax-deductible, and earnings grow tax-deferred until retirement.
Roth IRA: Contributions are made with after-tax dollars, and qualified withdrawals are taxfree including all gains.
The combination of flexibility and tax benefits that an SDIRA can provide help investors pursue long-term growth within their retirement plan
Knowthe Rules Before You Invest
While the opportunities are wide, SDIRAs are subject to IRS rules designed to protect their tax benefits For example:
Your IRA can’t invest in property you personally use or rent to a family member
All investment income and expenses must flow through the IRA, not your personal funds. Certain transactions with “disqualified persons ” such as yourself, your spouse, or direct family members are prohibited
John’s explanations of these rules are useful for investors to understand how to keep their accounts compliant
Inside Wealth Beyond Wall Street
This isn’t another financial textbook. It’s a hands-on field manual designed to help investors understand how they can build and protect retirement wealth using both traditional and alternative assets
Inside the book, you’ll learn:
Step-by-step process on how to buy real estate with an IRA
The key SDIRA real estate rules every investor should know
Real-world examples from investors who grew tax-advantaged rental income
Ways you can structure private lending, partnerships, and other alternative assets within an IRA plan
The potential tax advantages of different account types and contribution methods
Options to combine Roth, Traditional, and even HSA accounts for added flexibility
You’ll also see how investors are using these accounts to help build wealth that can outlast market swings, all while following IRS rules and gaining long-term tax advantages
Dave Graf | 920-203-6087 | dave@gsifoundations com Jodi Graf | 414-395-5478 | jgraf@premierpointrealty.com
Rens | 414-296-6225 | taylor rens@zrlaywers com
| 414-852-0921 jnewland@terranova-realestate.com
| membership@aasew org
MEMBERS: READ THE FULL REPORT HERE!
Not a member - but want to real the article? Click here to sign up for membership!
A Welcome Freeze for Landlords: Credit
BY: SCOT AUBREY VIA REALESTATEINVESTINGTODAY.COM
With winter still winding down in parts of the country, many of us are all too familiar with freezing temperatures. While this can make it tough to be a landlord, there’s a freeze that each of us should be familiar with, and taking advantage of, beginning immediately. I’m talking about a credit freeze It’s not just something that consumers need to worry about; for landlords, it can be one of the smartest (and easiest) defenses you can put in place.
As an investor and someone who relies on their rental business, your personal credit is often inseparable from your ability to operate. Financing, insurance rates, even your ability to expand your portfolio, all rely on your credit In today’s environment where identity theft, data breaches, and sophisticated fraud are increasingly common placing a credit freeze should be viewed as a business continuity step, not just a personal precaution
Landlords Are Prime Targets
As a landlord you manage high-value assets and frequently share sensitive information across multiple services: mortgage lenders, banks, tenant screening platforms, maintenance vendors, online payment portals, and property management software Each interaction creates another potential point of exposure. Even if you run a small portfolio, your data circulates far beyond what you realize And because most landlords have stable credit histories, you are especially attractive to fraudsters who want to exploit your good credit to open new accounts, take out loans, or rack up debt in your name.
You Must be Operational
It’s easy to assume that identity theft is just a nuisance, but for you as a landlord, the consequences can be far more damaging and disruptive. A fraudulent loan or credit line can damage your credit score and trigger higher interest rates or reduced borrowing power right when you need it – such as refinancing a property, funding repairs, or purchasing another unit.
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Worse yet, you might not discover the fraud until applying for financing, at which point the timing can be catastrophic.
A credit freeze blocks lenders from pulling your credit file unless you temporarily lift the freeze. This translates to criminals being unable to open new lines of credit in your name, even if they have your Social Security number and other details You’ll still be able to use existing credit cards and accounts normally, but you’ll reduce the risk of new account fraud, which is the most damaging kind
Freezing Your Credit is Free, Fast, and Reversible
A major reason landlords haven’t adopted credit freezes more widely is outdated assumptions. Many people still believe credit freezes are expensive, complicated, or hard to undo In reality, U S law requires the credit bureaus to offer them for free, and most freezes can be placed online in minutes. If you need to apply for a mortgage, open a new credit card, or finance a renovation, you can temporarily lift the freeze for a set time window and then re-freeze it once the transaction is complete.
As an investor, I suggest that you do these THREE things immediately:
1.Put a freeze on your credit. Experian has made it easy to freeze and unfreeze. Create your freeze today at: https://wwwexperian com/freeze/center html
2.Use an online rent-payment system to manage your rental payments. These systems allow rent to be paid from bank account to bank account, without giving out your personal bank account numbers to your tenants This will protect you from one more person having your personal information.
3.Watch what you post online. When you search for your name, what do you see? I personally write many articles, do podcasts, record videos, and have my information everywhere, so people know me. Your social media is also the perfect medium for people to grab pictures or personal information If you find yourself with a growing online presence or increased exposure, go back to No. 1 above and make sure you freeze your credit. You don’t want to be one of those 6,000 daily reports of fraud going to the FTC.
Professional Level Protection
Landlords often invest in security systems, smoke detectors, liability insurance, and legal protections for leases. Freezing your credit belongs in that same category: a foundational safeguard It’s not about paranoia – it’s about recognizing that your identity is an asset, and like any asset, it deserves protection. Taking 15 minutes today to freeze your credit can save you months of headaches later and help ensure your rental business remains stable, scalable, and secure
Milwaukee REIA Vendor
Steamatic has been providing quality commercial and residential services in Wisconsin for over 25 years. Our services include: mold remediation, water/fire damage restoration, drywall, painting, HVAC system cleaning, surface/post construction cleaning and carpet cleaning.
PRO-TIP:
Be sure to call us BEFORE you do the work. We can provide independent insurance adjusting services that can save you money and increase your dollars received in the claims process.
SPECIAL OFFER FOR MILWAUKEE REIA MEMBERS:
$195 inspection fee waived when Steamatic is given the remediation project
Bo Drazovic (414) 588-3300
steamaticwi@sbcglobal net
Tool of the Month
LAUNCH CONTROL - NO MORE MISSED OPPORTUNITIES!
Launch Control is the #1 text marketing platform for real estate investors, and it’s no wonder why! With the highest deliverability rate in the industry, built-in compliance features and a steady stream of quality leads, it’s one of the best tools you can have in your tech stack!
But there is no much more to this platform than just texting:
All-In-One CRM: The best solution for powerful text marketing and lead management
Intuitive Inbox: Never miss a lead with their comprehensive dashboard and lead nurturing
Automation & AI: Stream line communication, and create smarter conversations that boost engagement effortlessly
National Benefit of the Month
1024 WEALTH - JASON K POWERS
The Infinite Banking Concept is the best place to warehouse your wealth that has guarantees and safety, while proving ready access to your money allowing you to take over the banking function in your life
Imagine a life without the bank... What would life be like if you never had to borrow from the outside bank again? What if you could borrow from yourself? What if you could create a privatized family banking system that would allow you and your loved ones to have access to, throughout your life and long after you ’ re gone?
