Real Estate Transaction Guide
Combine IRA tax advantages with real estate investment opportunities.
Self-Directed IRAs and more...
What Account Holders Value about New Direction IRA • Real Estate Expertise Since 2003 • Industry Leader in Online Account Access • A+ Rating with the Better Business Bureau • Dedicated Representatives for Each Client • Free Education Opportunities • Competitive Fees • FDIC Insurance on Uninvested Cash • Invest Anywhere in USA or Globally The IRS allows an IRA to acquire real estate as an asset. Your IRA can make this investment without penalty and while keeping the tax benefits associated with the account type. In addition to buying a property outright, an IRA can partner with other investors or get a loan to acquire real estate. You, the IRA holder, select a property in which you’d like to invest, agree to terms with the seller, and direct us to send money from your IRA . We make sure that the paperwork substantiates that the asset is part of your IRA and deserves the tax benefits of the account. Acquiring real estate as an asset in an IRA is one way to diversify your retirement portfolio. Not everyone has expertise in publicly traded securities. Real Estate allows the investor to use his or her knowledge and research to generate tax deferred or tax free retirement wealth.
New Direction IRA Account Types that can Invest in Real Estate • Traditional IRA • Roth IRA • SEP IRA • SIMPLE IRA • Individual 401(k) • HSA
Important Notes We are here to assist you every step of the way; however, it is your responsibility to be familiar with the information provided in this guide and follow the required procedures. Remember to stay in the required sequence: 1) Open account, 2) Fund account, 3) Purchase Real Estate Investment
NEW DIRECTION IRA, INC. ____________________________________________________________________________________
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Table of Contents Step One: Before You Invest
Step Two: Investment Process
Here are some important considerations that investors should know before embarking on a real estate investment with their IRA. Open and Fund Your Account
Page 4
Find an Investment
Page 4
Real Estate Assets Your IRA or HSA Can Acquire
Page 4
Investment Timetable
Page 5
Important Things to Remember
Page 5
Purchase Structures
Page 6
DQ Persons and Prohibited Transactions
Page 7
Perform Due Diligence
Page 8
The section includes the investment process and all required actions you will need to take to make your IRA purchase. Please be sure to review titling and signing instructions before getting started. Make an Offer
Page 9
Hot to Currectly Title Your IRA Investment
Page 9
Escrow (Earnest) Money
Page 10
Closing Procedure
Page 10
How to pay bills for your properties and also how to sell your real estate investments.
Step Three: After the Purchase
NDIRA Forms
Congratulations
Page 11
Avoid Prohibited Transactions After the Purchase
Page 11
Insurance
Page 11
Property Income
Page 11
Managing Property Expenses
Page 12-13
Unrelated Debt-Financed Income (UBFI/UBIT)
Page 14
Selling Your IRA-Owned Property
Page 15
Necessary Forms
Page 15
1. Fee Schedule 2. Real Estate Buy Direction Letter 3. Real Estate Contract Checklist 4.Real Estate Required Documents to Fund Checklist 5. Real Estate Closing Checklist 6. Payment Authorization Letter 7. Property Management Acknowledgement Letter 8. Real Estate Sell Direction Letter
NEW DIRECTION IRA, INC. ____________________________________________________________________________________
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Step One: Before You Invest Open and Fund Your Account 1) You must open an account before you can start the investment process. You can establish your account online via our website at: www.newdirectionira.com. For further assistance, please contact NDIRA at: (877) 742-1270. 2) Fund your account with a transfer, rollover, and/or a contribution. Once the funds have arrived at New Direction IRA and are ready to be disbursed, your transaction can take place.
Find an Investment You are ready to self-direct once your IRA has been opened and funded. There are no restrictions on the price and/ or market value of the property, where the property is located, or the type of real estate purchased. In fact, there are several types of real estate an IRA can purchase.
Real Estate Assets Your IRA or HSA Can Acquire Include: • Single Family Homes • Multi-Unit Homes • Apartment Buildings • Condominiums • Co-ops
• Commercial Properties • Rental Properties • Fix & Flips • Improved or Unimproved Land • Property Held Only for Appreciation
NEW DIRECTION IRA, INC. ____________________________________________________________________________________
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Step One: Before You Invest Investment Timetable
* The time it takes to move funds from other institutions will vary according to that institution’s responsiveness.
Important Things to Remember IRAs require special treatment and must follow specific rules. Accordingly, we understand you may have some questions, so please don’t hesitate to call our office. Please remember: 1. You and your IRA are not the same. a. Your IRA is a completely separate legal and financial entity from you. It even has a different name. b. You cannot sign on behalf of your IRA. If something needs a signature, write “Read & Approved” and sign in the margins; then, upload/email/fax it to us to sign as the buyer or investor. 2. You, personally, may not pay any of the IRA’s expenses. a. The IRS considers this a prohibited transaction. b. The IRA cannot reimburse you. c. Any expense of the IRA’s that you pay becomes a taxable and penalized distribution from the plan. This includes earnest money. 3. Unrelated Business Income Tax (UBIT) may be due on profits made as a result of using leverage (borrowed money). a. It is your responsibility to calculate, report and have your IRA pay this tax. b. Your CPA or tax preparer may be able to help with the calculation. (Our sister company, IRA Tax Services, can assist as well. Visit www.irataxservices.com for more information on UBIT.) 4. Any violation of IRS rules that results in a Prohibited Transaction may result in the distribution of related funds plus penalties. This rule is defined in IRC, Section 4975.
NEW DIRECTION IRA, INC. ____________________________________________________________________________________
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Step One: Before You Invest Purchase Structures 100% Cash An easy way to purchase real estate for your IRA is using cash from your plan. In this case, the IRA owns 100% of the property, receives 100% of the rental income, and pays 100% of the expenses the property incurs.
Partnering Your IRA may partner as tenants-in-common with another person, entity, or IRA. In partnering, your IRA would own a percentage of the property, and the remaining portion would be owned by someone else. You may partner your IRA with personal funds and/or disqualified persons. When partnering with disqualified persons/entities, the ownership percentage must be kept constant throughout the life of the investment, and all expenses and income must be split according to that ratio. Special treatment for all income and expenses is required when your IRA partners with your personal funds (or those of any other disqualified person) to purchase property. Bills must be paid with two checks in proportional amounts and renters must write two checks. The proportion of ownership must remain constant throughout the life of the investment, from the initial offer through the sale.
Debt Leverage The IRA may use leverage (a loan) to purchase property. The loan must be non-recourse, meaning that neither you nor any disqualified person can guarantee the loan, nor pledge your personal assets and/or credit. The only security on the loan is the property itself. Non-recourse loans are typically made on income-producing properties, and lenders frequently require between 35% or more down. Net profits from the leveraged portion of the investment may be subject to Unrelated Business Income Tax (UBIT). Please refer to our report on UBIT for more information. Your loan is a separate asset from the property itself and will carry its own set of fees.
Using an LLC You may use an LLC as part of your IRA purchase strategy, but it is not required. In an LLC scenario, the LLC is the titleholder of the property. It is the LLC manager’s responsibility to avoid prohibited transactions which, if violated, can result in the distribution of the IRA plus other penalties. It is the IRA holder’s responsibility to ensure that the manager is familiar with Internal Revenue Code section 4975, form 5305, the Plan Agreement and Disclosure, and has competent legal advisors. For more on this topic, visit: smllc.newdirectionira.com.
NEW DIRECTION IRA, INC. ____________________________________________________________________________________
Step One: Before You Invest DQ Persons & Prohibited Transactions Disqualified persons to your IRA or HSA
DQ Persons also include: • Certain Fiduciaries (CPAs, Attorneys, Financial Planners, etc.) • Retirement Plans held by a disqualified person • Entities owned or controlled by disqualified persons are also disqualified
Prohibited Transactions: Prohibited Transactions are activities that a disqualified person or entity cannot have with an IRA. These activities are defined by IRC, Section 4975. Examples of some of these transactions are listed below. If you have questions regarding prohibited transactions or would like to run a scenario by one of our client representatives, please call our office. Our staff is familiar with IRC Section 4975 and will be happy to share that information upon request. Please note that you can be penalized by the IRS or required to do a full distribution if a prohibited transaction is discovered in your account. It is prohibited to: • Buy a property/asset from the plan • Sell a property/asset that you already own to the plan • Live in the property/ Use the property personally as a vacation home or for any other reason • Rent the property (even if paying fair market rent) • Pay expenses for the property with personal funds • Get paid by the IRA (for real estate professionals, this includes taking a commission on the purchase or sale of the property) • Put personal property or sweat equity into the property (if the IRA directly or indirectly benefits OR is benefited by a disqualified person, that constitutes a Prohibited Transaction.) NEW DIRECTION IRA, INC. ____________________________________________________________________________________
Step One - Before You Invest Perform Due Diligence As the IRA holder, you are responsible for performing the due diligence on any investment. New Direction IRA does not research or endorse investments. NDIRA offers an online webinar that can be used as a starting point for the research process. The webinar is available here: http://newdirectionira.com/Ira-education.html. Simply select the option “Tips for Addressing Your Investment Fears.” A competent professional in the legal, financial planning, or accounting fields can be contacted for additional help in deciding if the investment you are considering is permitted in the eyes of the IRS and is right for your investment goals. Please note that all expenses from the due diligence process (e.g. inspection costs) are to be paid either by inclusion on the settlement sheet or by instructing us to pay directly from your account. This would include expenses to obtain financing (e.g. an appraisal fee).
For any additional questions, please contact your client representative at 877-742-1270.
NEW DIRECTION IRA, INC. ____________________________________________________________________________________
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Step Two - Investment Process Make an Offer Offers must use the IRA titling below to indicate the buyer. If an offer/contract has been made in your personal name, you will have to start over with a new offer. Please note: there is a 1 business day turnaround for offer paperwork received. If you are making the first offer, you may sign it, provided it is titled correctly. Once the contract has been drafted, however, you will need to send it to New Direction IRA signed in the margins by you as “read and approved.” New Direction IRA will sign the contract on behalf of the IRA. NOTE: Purchase contracts in the name of disqualified persons cannot be assigned to the IRA via an assignment, amendment, etc. Do NOT put the contract in your personal name. Do not pay the earnest money personally.
How to Correctly Title Your IRA Investment
When investing with your retirement account, all paperwork for that investment must indicate the IRA as the buyer and NOT the IRA holder (you). New Direction cannot fund your investment If these guidelines are not followed and the investment ends up titled in your personal name and/or social security number. Please complete all investment documents using the following guidelines:
BUYER/OWNER NAME
BUYER’S ADDRESS
New Direction IRA, Inc. FBO John A. Smith IRA OR New Direction IRA, Inc. FBO Account No. 12345678 OR New Direction IRA, Inc. FBO John A. Smith, IRA,Account No. 12345678
New Direction IRA, Inc. 1070 W. Century Drive, Ste. 101 Louisville, CO 80027
DO NOT SIGN ON THE INVESTOR’S / BUYER’S SIGNATURE LINE. You, as the IRA holder, are NOT an authorized signer for the IRA. Only authorized signers of New Direction IRA can sign for the IRA. Any page that needs to be signed is signed by you, IN THE MARGINS, as having been “read and approved,” and then NDIRA signs on behalf of your IRA. The initial offer (as described above) is the only place where the account holder can sign for the IRA.
Titling for Partnerships If you partner your IRA with a disqualified person or with another IRA, you must establish the percentage of ownership at the beginning of the investment. Those percentages will be used to divide up the incoming revenue and pay all expenses, including earnest money. The vesting would be shown as follows, assuming a 50/50 split: New Direction IRA, Inc. FBO John A. Smith IRA, as to an undivided 50% interest, and John A. Smith, as to an undivided 50% interest. New Direction IRA, Inc. FBO John A. Smith IRA, as to an undivided 50% interest, and NDIRA, Inc. FBO Joseph B. Smith IRA, as to an undivided 50% interest.
Titling for Inherited IRA Accounts and 401(k)s Inherited: New Direction IRA, Inc. FBO John A. Smith, Bene - Joseph B. Smith, Dcdt IRA 401 (K): ABC Manufacturing, Inc. 401(k) Plan, John A. Smith TTEE, c/o NDIRA, Inc. (The plan trustee is the authorized signer, NOT New Direction IRA, and they sign, “As Trustee”)
NEW DIRECTION IRA, INC. ____________________________________________________________________________________
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Step Two - Investment Process Escrow (earnest) Deposit Money
PLEASE DO NOT SUBMIT A PAYMENT AUTHORIZATION LETTER (PAL) FOR EARNEST MONEY. Complete section 4 of the Buy Direction Letter (BDL). Please remember, New Direction IRA’s turnaround time for sending out funds is 3 business days from the time the completed paperwork has been received. DO NOT PAY EARNEST MONEY WITH YOUR PERSONAL FUNDS OR FUNDS FROM A DISQUALIFIED PERSON. New Direction IRA will issue earnest money, also referred to as a down payment or deposit, once we have received a correctly titled contract and a completed Real Estate Buy Direction Letter. Please note that completed paperwork will be subject to a 3 business day review period once it has arrived at New Direction IRA’s offices.
For those who need earnest money sooner, with the actual offer, there are several options: 1. You may have the broker issue an earnest money promissory note. 2. You may have a non-disqualified person pay it and your IRA can reimburse them later. 3. If the seller agrees, you may write out a check and send them a copy, but you must NOT send them the real check.
Closing Procedure
The IRS has strict guidelines governing real estate transactions, and it is the administrator’s job to make sure that the rules are observed. In order to fund a transaction on time, New Direction IRA will need: 1. A completed Real Estate Required Documents Checklist
5. Proposed Deed
2. A completed Real Estate Closing Checklist
6. Wire Instructions
3. A completed Buy Direction Letter
7. Title Commitment
4. Complete/correct closing documents signed as ”Read and Approved”
8. If leveraged, loan documents signed as “Read and Approved”
In order to guarantee that we fund on time, we require ALL complete and correct documents, signed as “read and approved,” at least 3 full business days prior to closing date. Forms received after 12:00pm Mountain Time will be considered as having arrived next business day. If we receive your closing package late, or if you send in the package without having talked with us first and want it funded in less than 3 business days, a $500 rush fee will apply. In order to avoid a rush fee, you may need to reschedule your closing for a different time. Sign the closing documents as follows: 1. Write “Read and Approved” and sign your name IN THE MARGINS on pages requiring a buyer’s signature. (Do NOT sign on the buyer’s signature line.) If Title provides a “Read and Approved” signature line, you should sign there instead of in the margins. 2. All other pages, write “R & A” and initial. Once we receive the paperwork, we will review, sign and send them overnight (by trackable means) to the closing. We will also prepare and process the funding so that the funds arrive at the title company on the day of closing. After closing, please ask your title company to email a complete set of fully executed documents to us. NOTE: We do NOT attend closing. Please check with us if you are purchasing a HUD property. NEW DIRECTION IRA, INC. ____________________________________________________________________________________
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Step Three - After the Purchase Congratulations Congratulations on the addition of real estate in your retirement account! We hope your investment will provide your IRA with significant growth. Once you have purchased the property, any inquiries you have should be directed to your Client Representative. In order to protect your retirement account’s tax privileged status, here are some guidelines for managing the new property that it holds:
Avoid Prohibited Transactions After the Purchase The following actions are among those considered prohibited transactions and could result in the distribution of this asset from your plan. Please refer to page 6 of this guide to learn more about prohibited transactions. 1. Personal use of the property by disqualified persons is prohibited; this includes vacations, family get-togethers, guest accommodations for friends and/or family, or renting to disqualified persons or entities (even if they were to pay fair market rent) 2. You, or any disqualified person, may not add value to the property by doing the work yourself (aka “sweat equity”). 3. Use of your IRA’s assets as collateral for a personal loan
Insurance Insurance should be in the name of the IRA. However, because the word “Inc.” appears in the vesting, some insurance companies will not put the IRA in as the named insured unless they charge you the business rate. If this is the case, tell them they can put you (personally) in as the named insured, BUT they need to show that the IRA is the “First Mortgagee” or the “Loss Payee.” Your insurance company must understand that, in the event of a claim, the check must not be made out to you personally, but must be made out to the IRA and mailed to New Direction IRA for deposit. If hazard insurance is purchased, the IRA must be named as the insured or shown as 1st (2nd) mortgage or loss payee. You must provide New Direction IRA with an insurance binder showing the IRA as the insured. The address shown for the insured is New Direction IRA’s address. DO NOT PAY the insurance bill with personal funds.
Property Income All income from the property belongs to your IRA. Instruct your renters (unless a property manager is depositing these checks to their trust account) to make their rent checks payable to your IRA as follows: New Direction IRA, Inc. FBO [client name] IRA We cannot deposit any income checks into your IRA account that are made payable to you personally. Any such checks will be returned to the renter with correct payee instructions. Your renters can pay your IRA online via ACH at:www.newdirection.com.
NEW DIRECTION IRA, INC. ____________________________________________________________________________________
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Step Three - After the Purchase Managing Property Expenses You have three ways to manage expenses generated by your investment in Real Estate: Option 1 - myDirection® Online Client Portal (myDirection.com), cost = Free (5 day processing) or Option 2 - Submit bills, invoices, etc. to NDIRA, Inc. via fax, email or mail along with a Payment Authorization Letter, cost = $10 per check (5 day processing) or Option 3 - Hire a property manager of your choice to pay bills, cost = Whatever is agreed to between you and your property manager
Option 1 - Expenses Paid Using myDirection Online Client Portal If you meet the criteria listed below, then you are eligible to pay your IRA bills 24/7 using myDirection® Online Client Portal. • Your IRA owns 100% of the property* • You want all bills to come to your home for your review on a monthly basis • You would like to retain records for property expenses in your personal files • You want HOA notifications to go to you directly to keep you informed on changes to the property • You want to be informed and act on changes in property tax assessments • You want to control the timing of bill payment to coincide with tenant rent payment • You would like to avoid paying $10 per check fee or the property is jointly owned by another IRA currently held by NDIRA; those partnering with other persons/entities will need to submit bills using a Payment Authorization Letter
Getting Started Effective January 2013, all bills (with some exceptions) will be placed in the name of the IRA, but sent to you. Retain all IRA-related bills in your files. Visit our home page and click on the myDirection® logo and follow the instructions provided on the site, or use the myDirection® “How To” webinar recordings.
Option 2 - Expenses Sent to NDIRA, Inc. for Payment a. All expenses for the property are the IRA’s responsibility. Never pay any bills with personal funds; such payments are considered an excess contribution to your retirement account, subject to penalty by the IRS. b. If you choose to have New Direction pay expenses for you, you must have all bills/invoices mailed or faxed to us.
NEW DIRECTION IRA, INC. ____________________________________________________________________________________
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Step Three - After the Purchase c. To instruct us to pay an expense for your IRA’s property, send us the invoice (signed as “read and approved”), along with a completed Payment Authorization Letter (PAL). d. For recurring expenses, you’ll need to complete only one PAL, designating the frequency of payments. Review the following list for the types of expenses that your IRA may need to pay. (The list does not include all expenses you may incur.) • Recurring Bills: • Mortgage Payments • HOA Dues • Property Taxes • Insurance • Utilities • Repairs & Improvements: • Remodeling • Repairs • Appliances and/or Furnishings • Cleaning and/or Lawn Care
Option 3 - Property Managers a. The property manager must understand that your IRA owns the property, even though you will be making all the decisions about it. b. Choose a property manager that is not a disqualified person or entity. c. The property management agreement must be in the name of the IRA and signed by us on behalf of your IRA. We must have a copy of this agreement on file, along with the manager’s contact information. You will need to create a new signature line and sign the management agreement as “read and approved” before we can sign on behalf of the IRA as “property owner” or “landlord.” d. If you choose to have any bills paid directly from the IRA, please provide us with an invoice (signed as “read and approved”) and a Payment Authorization Letter (PAL); otherwise, we will assume that everything will be paid by the property manager. e. The property management agreement must be signed by New Direction IRA on behalf of your IRA. f. A Buy Direction Letter is used to direct New Direction IRA to fund the property management account. g. The property manager must provide New Direction IRA an accounting of the income and expenses on a quarterly basis. h. Any excess cash should be sent from the property manager back to the IRA.
NEW DIRECTION IRA, INC. ____________________________________________________________________________________
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Step Three - After the Purchase Unrelated Debt-Financed Income (UDFI/UBIT) If there is a mortgage on the property—regardless of whether the property is owned directly by your IRA, or by a legal entity owned by your IRA—you may incur Unrelated Business Income Tax. IRS Form 990-T is used to calculate UBIT for your IRA.
Selling Your IRA-Owned Property 1. You choose a broker and he/she prepares a listing contract. You sign as “read and approved” and email or fax the contract to us for our signature as the seller. 2. You negotiate the terms with your broker. When an agreement is met, accept the offer to sell. a. Sign the offer as “read and approved” and email or fax it to us. (Please refer to the “read and approved” guidelines on Page 5 of this guide.) b. Complete the Sell Direction Letter (Pages 19 and 20 of this guide) and email or fax it to us with the accepted contract. c. We will sign the contract and email it back to you. 3. Closing is scheduled with the title company. a. You receive the closing documents from the title company and review them for accuracy and completeness. You then sign them as “read and approved” and email or fax them to us. b. We sign as the seller and email or overnight mail the documents to the title company. We also provide them our wiring instructions with your IRA name and account number indicated. c. The title company wires your proceeds back to your IRA account with us.
NEW DIRECTION IRA, INC. ____________________________________________________________________________________
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Fee Schedule 1. ASSET ADMINISTRATION FEE
Please check one box.
(Asset Administration fees are due when your IRA purchases an asset.)
Option 1: Quantity Based - Assessed and billed annually*
$295 Annual Fee Per Asset $195 Leverage on an Asset Example 1:
Annual Fee Per Asset
Real Estate Asset:
$295
Total Annual Administration Fee:
$295
Example 2:
Annual Fee Per Asset
Real Estate Asset:
$295
Asset with Leverage
$195
Total Annual Administration Fee:
$490
2. PROCESSING FEES IRA Setup Fee: $50 - One-Time IRA Setup Fee (charged at the time of account establishment) * New accounts with no activity after 90 days will be closed. Transaction Fees: Due when your IRA purchases an asset.
$95 - Purchase, Sale, Exchange of any Asset (Except Real Estate) $250 - Purchase, Sale, Exchange of Real Estate $345 - Leveraged Real Estate $50 - Capital Calls, Note Modifications or Conversions, Additional Fundings, Re-Registration, Partial Sale of Non-Real Estate $40 - Purchase, Sale, Exchange, or Re-Registration of any Precious Metals
Movement of Funds Fees: Due when money moves from your IRA.
*Annual fee is charged when you purchase an asset and annually on the anniversary month of the first asset purchased in your account thereafter. Mortgages used to purchase property are billed seperately.
OR
Option 2: Value Based - Assessed on the total market value of the assets in the account. Billed semi-annually (i.e. twice per year).*
Invested Market Value
New Direction IRA, Inc. 1070 W. Century Dr., Ste. 101 Louisville, CO 80027 p: 303-546-7930 | f: 303-665-5962
Semi-Annual Administration Fee:
$0 - $14,999.99
$97.50
$15,000 - $29,999.99
$125.00
$30,000 - $44,999.99
$162.50
$45,000 - $59,999.99
$187.50
$60,000 - $89,999.99
$225.00
$90,000 - $124,999.99
$262.50
$125,000 - $249,999.99
$375.00
$250,000 - $499,999.99
$387.50
$500,000 - $749,999.99
$750.00
$750,000 and up
$925.00
* Semi-Annual fee is charged when you purchase an asset and semi-annually thereafter. For properties that hold mortgages, the value is calculated based on the full property value.
$5 - ACH Transfer, Trust Check $25 - Cashier’s or Other Official Bank Check $30 - Overnight Mail $30 - Wire Transfer $40 - Foreign Wire Transfers $10 - Void Check Fee $30 - Returned Item or Stop Payment Request
Other Fees: Due when services are rendered. $0 - Real Estate Bill Pay via myDirection.com $10 - Real Estate Bill Pay via PAL Form Submission $500 - Express Real Estate Processing (1 business day rush fee) $250 - Express Non-Real Estate Processing (1 business day rush fee) $75 - ROTH Conversion or Recharacterization $50 - Late Fair Market Valuation ($50 per notification) $25/month - Late Fee (assessed 30 days after fee due date) $150/hr. - Special services (such as research of closed accounts, legal research, expedited investment review or additional processing required for certain complex transactions, out of office real estate closings) Transfers Out, Partial Distribution or Full Distribution: 0.5% of the value • Minimum of $75 (Full Distribution/ Transfer Out) • Maximum fee of $250 (Partial and Full Distribution/Transfer Out)
Plus Movement of Funds Fees and/or Transaction Fees as they may apply. Required Minimum Distributions are only subject to Movement of Funds Fees and/or Transaction Fees.
3. HOW WOULD YOU LIKE TO PAY FEES? Pay fees by: Credit Card (Visa, MasterCard, Discover)
Fund from Account
Credit Card Type:________________ Card Number:_____________________________ Exp. Date: ___________ Exact Name on Card:___________________________________________ 3 Digit Security Code: ___________ Signature: ____________________________________________________________________________________ • Credit card information must be kept current. Unpaid fees will be deducted from the account if invoiced amount is not paid within 30 days of the invoice date.
4. SIGNATURE
Annual record keeping fees are not prorated and are withdrawn from your undirected funds (defined as any cash in the Custodial Account not invested pursuant to a specific investment direction by you), unless you submit payment to us directly prior to the due date by check, credit card, or debit card. Transaction fees are due prior to funding the transaction. Fees paid from your account will be reflected on your statement. If there are insufficient undirected funds in your account, we may liquidate other assets in your account to pay for such fees after a 30 day notification, in accordance with your Plan Agreement and Disclosure. In accordance with your Account Application, this Fee Disclosure is part of your Plan Agreement with the Administrator and must accompany your Application. If a signed Fee Disclosure is not received with your Application, fees will be based on “Option 2—Account Value”. In accordance with your Plan Agreement and Disclosure, which is available on our website, custodial fees, described below, are part of the Plan Agreement. The Custodian shall be entitled to receive, from the assets held in the Custodial Account, a fee equal in amount to all income that is generated from any undirected cash which is held by the Custodian in a deposit or product of an FDIC - or other United States government-insured financial institutions, United States government securities, or securities that are insured or guaranteed by the United States government, as provided in the Plan Agreement and Disclosure. The Custodian’s fees from the undirected funds in the Custodial Account are associated with cash management activities, including, but not limited to, account maintenance, depository bank selection, transaction processing, sub-accounting, record keeping, and other services performed under the terms of this Agreement. The Custodian retains the right, but does not have the obligation, to reduce this fee by rebating a portion of the fee into the Custodial Account. The Depositor agrees that this fee may be retained by the Custodian as compensation for the services provided by Custodian under this Agreement. The Custodian may pay all or an agreed portion of this fee to the Administrator as agreed between the Custodian and the Administrator. The Custodian reserves the right to change all or part of the Custodial Fee Schedule at its discretion with 30 days advance written notice to Depository. I understand that if fees are not paid within thirty (30) days after New Direction IRA, Inc. has mailed the past due notice, New Direction IRA will begin the process of closing the account. I understand that any asset distributed directly to me as part of closing my account will be reported to the IRS on Form 1099 and may subject me to possible taxes and penalties. I agree that accounts with past due fees, unfunded accounts, and accounts with zero value will continue to incur administrative fees until such time as I notify New Direction IRA, Inc., of my intent to close the account or until New Direction IRA, Inc., and/or Mainstar Trust resigns.
Printed Name: _________________________________________________________________ Signature: _________________________________________________________________ Date:_________________________ page 1 of 1
Copyright 2013 New Direction IRA, Inc. FS rev 12/16
Real Estate Buy Direction Letter
Self-Directed IRAs and more...
New Direction IRA, Inc. 1070 W. Century Dr., Ste. 101 Louisville, CO 80027 p: 303-546-7930 | f: 303-665-5962
NOTE: All investment paperwork must be titled correctly: New Direction IRA , Inc. FBO (Account Owner’s Name) IRA. If you have a 401(k) or beneficiary account, please call our office for correct vesting (titling).
1. ACCOUNT INFORMATION Your Name: (as it appears on your account, not your title or vesting name) Account505U Type: Pantone
Traditional IRA Pantone 343U
Roth IRA
SEP IRA
Phone Number:
2. ACKNOWLEDGEMENT OF
New Direction Account Number: SIMPLE IRA Inherited IRA Email Address:
Individual 401(k)
HSA
REAL ESTATE DISCLOSURES
I acknowledge that I have read and fully understand the attached Real Estate Disclosures.
3. HOW WOULD YOU LIKE TO PAY FOR THE TRANSACTION? (All fees are due at time of transaction.) Choose One: Your Account PayPal Credit Card
Credit Card Type: (the following are accepted)
Visa
MasterCard
Discover
Card Number:____________________________ 3 Digit Security Code: ___________ Exp Date: ___________ Exact Name on Card:___________________________ Signature: _____________________________________
4. HOW WOULD YOU LIKE US TO PROCESS THE TRANSACTION? Standard Processing (3 business days)
Express Processing (1 business day, $500 rush fee) Please contact your transaction specialist to see if a rush option is possible.
5. HOW WOULD YOU LIKE US TO FUND THE TRANSACTION*? * One Buy Direction Letter will serve to fund BOTH the earnest money deposit and the closing. Closings are paid via wire ($30 fee), and closing documents/earnest money are sent via FedEx ($30 fee).
Make Check Payable to:
Is this a reimbursement to a (non-disqualified) person? Wire ($30 fee) Yes Payee Telephone Number: (needed for overnight deliveries)
Send Check to:
City:
Earnest money will be paid via:
Check ($5 fee)
Cashier’s Check ($25 fee)
State:
N/A
Zip:
6. TELL US ABOUT YOUR INVESTMENT Legal Description of Property:
Closing Date:
Legal Address of Property: Contract Purchase Price: (this price
will change based on final settlement statement)
$
City: Earnest Money Deposit Amount: $
Is there any debt financing (mortgage) on this investment? No Yes (if yes, complete a Payment Authorization Letter) Real Estate Agent’s Name: Real Estate Agent’s Phone Number: page 1 of 3
State:
Zip:
Are you partnering to Percentage of Ownership: purchase this investment? Yes No Name of Lender: (if debt financed)
Real Estate Agent’s Email Address: Copyright 2013 New Direction IRA, Inc. RE BDL rev 1/16
Self-Directed IRAs and more...
Real Estate Buy Direction Letter
New Direction IRA, Inc. 1070 W. Century Dr., Ste. 101 Louisville, CO 80027 p: 303-546-7930 | f: 303-665-5962
7. WHO IS HANDLING THE CLOSING? Escrow/Title Company/ Attorney Name(s):
Contact Name:
Phone Number:
Email Address:
Pantone 505U
Address:
Pantone 343U
City:
State:
Zip:
8. AUTHORIZATION I confirm that I am directing New Direction IRA, Inc., the Administrator, to complete this transaction as specified above. I understand that my account is self-directed, and I take complete responsibility for any investment I choose for my account, including the investment specified in this Buy Direction Letter. I understand that neither the Administrator nor the Custodian (Mainstar Trust) sells or endorses any investment products, and that they are not affiliated in any way with any investment provider. I understand that the roles of the Administrator and the Custodian are limited, and their responsibilities do not include investment selection for my account. I acknowledge that neither the Administrator nor the Custodian has provided or assumed responsibility for any tax, legal or investment advice with respect to this investment, and I agree that they will not be liable for any loss which results from my decision to purchase the investment. I understand that neither the Administrator nor the Custodian has reviewed or will review the merits, legitimacy, appropriateness or suitability of this investment, and I certify that I have done my own due diligence investigation prior to instructing the Administrator to make this investment for my account. I understand that neither the Administrator nor the Custodian determines whether this investment is acceptable under the Employee Retirement Income Securities Act (ERISA), the Internal Revenue Code (IRC), or any applicable federal, state, or local laws, including securities laws. I understand that it is my responsibility to review any investments to ensure compliance with these requirements. I understand that in processing this transaction the Administrator and the Custodian are only acting as my agent, and nothing will be construed as conferring fiduciary status on either the Administrator or the Custodian. I agree that the Administrator and the Custodian will not be liable for any investment losses sustained by me or my account as a result of this transaction. I agree to indemnify and hold harmless the Administrator and the Custodian from any and all claims, damages, liability, actions, costs, expenses (including reasonable attorneys’ fees) and any loss to my account as a result of any action taken in connection with this investment transaction or resulting from serving as the Administrator or the Custodian for this investment, includ-ing, without limitation, claims, damages, liability, actions and losses asserted by me. I understand that if this Buy Direction Letter and any accompanying documentation are not received as required, or, if received, are unclear in the opinion of the Administrator, or if there is insufficient Undirected Cash in my account to fully comply with my instructions to purchase the invest-ment and to pay all fees, the Administrator may not process this transaction until proper documentation and/or clarification is received, and the Administrator will have no liability for loss of income or appreciation. I understand that my account is subject to the provisions of Internal Revenue Code (IRC) §4975, which defines certain prohibited transactions. I acknowledge that neither the Administrator nor the Custodian has made or will make any determination as to whether this investment is prohibited under §4975 or under any other federal, state or local law. I certify that making this investment will not constitute a prohibited transaction and that it complies with all applicable federal, state, and local laws, regulations and requirements. I understand that my account is subject to the provisions of IRC §§511-514 relating to Unrelated Business Taxable Income (UBTI) of tax-exempt organizations. If this investment generates UBTI, I understand that I will be responsible for preparing or having prepared the required IRS Form 990-T tax return and any other documents that may be required. I understand that neither the Administrator nor the Custodian makes any determination of whether or not investments in my account generate UBTI. I understand that the assets in my account are required by the IRS to be valued annually as of the end of each calendar year. I agree to provide the prior year end value of this investment by no later than January 10th of each year on a form provided by the Administrator, with substantiation attached to support the value provided. I understand that with some types of accounts there are rules for Required Minimum Distributions (RMDs) from the account. If I am now subject to the RMD rules in my account, or if I will become subject to those rules during the term of this investment, I represent that I have verified either that the investment will provide income or distributions sufficient to cover each RMD, or that there are other assets in my account or in other accounts that are sufficiently liquid (including cash) from which I will be able to withdraw my RMDs. I understand that failure to take RMDs may result in a tax penalty of 50% of the amount I should have withdrawn. I understand and agree that neither the Administrator nor the Custodian bears or assumes any responsibility to notify me or to secure or maintain any fire, casualty, liability or other insurance coverage, including but not limited to title insurance coverage, on this investment or on any property which serves as collateral for this investment. I acknowledge and agree that it is my sole responsibility to decide what insurance is necessary or appropriate for investments in my account, and to direct the Administrator in writing (on a form prescribed by the Administrator) to pay the premiums for any such insurance. I further understand and agree that neither the Administrator nor the Custodian is responsible for notification or payments of any real estate taxes, homeowners association dues, utilities or other charges with respect to this investment unless I specifically direct the Administrator to pay these amounts in writing (on a form prescribed by the Administrator), and sufficient funds are available to pay these amounts from my account. I acknowledge that it is my responsibility to provide to the Administrator or to ensure that the Administrator has received any and all bills for insurance, taxes, homeowners dues, utilities or other amounts due for this investment. Furthermore, I agree that it is my responsibility to determine that payments have been made by reviewing my account statements. I understand that all communication regarding this transaction must be in writing and must be signed by me or by my authorized agent on my behalf, and that no oral modification of my instructions will be valid. I understand that no person at the office of the Administrator or the Custodian has the authority to modify any of the foregoing provisions. I certify that I have examined this Buy Direction Letter and any accompanying documents or information, and to the best of my knowledge and belief, it is all true, correct and complete. Transactions with insufficient funds will not be processed until sufficient funds are received. If fees are being deducted from your account, the full amount of the transaction plus fees must be available before your transaction can be processed.
Signature: ______________________________________________________________ Date: _______________________________ Please read the disclosure above the signature line before signing and dating.
FOR INTERNAL OFFICE USE ONLY: Return To:______________________________ Sig Check Balance:________________________________ RTN Cusip:__________________________________ Innove st Fund Date:_____________________________ Scan for Funding Amt. Funded: $______________________________ Fee Option and Invoice Cycle: ___________________________ page 2 of 3
Trans Fee: Annual Admin. Fee: Wire Fee: FedEx Fee: Rush Fee: Total Fees:
$__________________________ $__________________________ $__________________________ $__________________________ $__________________________ $__________________________
Copyright 2013 New Direction IRA, Inc. RE BDL rev 1/16
Self-Directed IRAs and more...
Real Estate Buy Direction Letter
New Direction IRA, Inc. 1070 W. Century Dr., Ste. 101 Louisville, CO 80027 p: 303-546-7930 | f: 303-665-5962
REAL ESTATE DISCLOSURES • In order to ensure a smooth transaction, it is critical that you read and understand the Real Estate Transaction Guide. In the Guide, you will find answers to questions regarding your IRA, processing guidelines, and all the forms you will need to complete your real estate purchase. • Standard processing time is 3 full business days from the time we receive complete, correct documents for Pantone 343U Pantone 505U sending earnest money or closing. For example, if (closing or earnest) funds are needed by Friday, we’ll need the completed documents NO LATER THAN the previous Tuesday at 5:00 MDT or MST. • If the completed packet of documents is not received within the standard processing time, you will have the option to pay a $500 RUSH fee for expedited processing or you will need to push back the date of closing to allow 3 full business days for processing. • Titling - All documents must be in the name of the IRA – See Transaction Guide for appropriate titling. Contracts in the RA holder’s personal name cannot be assigned to the IRA via amendment, addendum, or assignment. • Ownership percentages must be established prior to funding earnest money (if no earnest money is needed, percentages must be established prior to funding the closing). • IRA and the IRA Holder are not the same entity • IRA Holder cannot sign on behalf of the IRA – If a document needs a signature, write “Read and Approved” followed by your signature IN THE MARGINS; then fax/email it to us for signature. DO NOT SIGN ON THE SIGNATURE LINE. • Any violation of the IRS rules that results in a prohibited transaction will result in the distribution of related funds plus penalties. • Our responsibility is to our clients. As a courtesy only, we may work/speak with real estate agents, title companies, and lenders that abide by our policies and adhere to our processing time frames.
page 3 of 3
Copyright 2013 New Direction IRA, Inc. RE BDL rev 1/16
Real Estate Contract Checklist
New Direction IRA, Inc. 1070 W Century Dr Ste 101 Louisville, CO 80027 p: 303-546-7930 | f: 303-665-5962
1. CLIENT INFORMATION Client Name:
New Direction Account Number:
2. REAL ESTATE INFORMATION Property Address:
City:
Broker/Agent Name:
Broker/Agent Company:
Broker/Agent Phone Number(s):
Broker/Agent Fax Number:
State:
Zip:
Broker/Agent Email Address:
3. REAL ESTATE CONTRACT CHECKLIST Will there be a loan on this purchase?
Yes
No
Will there be other investors/ partners?
Yes
No
Does the IRA have sufficient and available funds to pay the earnest money deposit?
Yes
No
Does the IRA have sufficient and available funds to close on the deal?
Yes
No
Does the contract show the IRA correctly as the buyer?
Yes
No
Has the contract been signed by the IRA holder, as “read and approved”?
Yes
No
Have you have attended a class, webinar, meeting, etc. on buying real estate w/ an IRA?
Yes
No
4. REAL ESTATE CONTRACT ACKNOWLEDGEMENT (Initial all items in the spaces provided.) __________ I understand that the following are disqualified persons: (myself, spouse, parents, grandparents, children, grandchildren and their spouses, as well as some business partners, financial advisors as well as their IRAs and any entity controlled or majority owned by disqualified persons). __________ I understand the IRS strictly prohibits disqualified persons from living in, using or benefiting from an IRA owned asset. __________ I understand disqualified persons are prohibited from personally paying any expenses associated with the IRA asset. This includes furnishing goods to the IRA owned property. __________ I understand the IRA cannot purchase a property from disqualified persons. __________ I understand it is my responsibility to make sure that the IRA has sufficient funds to sustain the investment. __________ I understand disqualified persons cannot provided services to or make repairs to the property. __________ I understand that New Direction IRA, Inc. does not, cannot, and will not provide legal, tax, or investment advice. __________ I understand I am not an authorized signer for the IRA and any paperwork requiring a signature is to be submitted to New Direction IRA with my “read and approved” signature in the margins. __________ I understand if the IRA obtains a loan, it may need to file a 990T and pay UBIT. __________ I understand that violating IRS rules compromises the tax status of my IRA and can result in a taxable distribution.
page 1 of 1
Copyright 2011 New Direction IRA, Inc. RECC rev 12/11
Real Estate Required Documents to Fund Checklist
New Direction IRA, Inc. 1070 W Century Dr Ste 101 Louisville, CO 80027 p: 303-546-7930 | f: 303-665-5962
1. Client Information Client Name:
New Direction Account Number:
2. Real Estate Information Property Address:
City:
State:
Zip:
3. Documents Required Before Closing (a checked box indicates the complete form is included with the closing documents) Buy Direction Letter (used to direct New Direction IRA to purchase the asset/property) Payment Authorization Letter (used to direct New Direction IRA to pay expenses for the asset/property) Sales Contract with all Addendums (signed as “Read and Approved”) Amendments (note: You may sign disclosures) Proposed Deed (Copy) (signed as “Read and Approved”) Escrow Instructions, Settlement Statement (signed as “Read and Approved”) Closing Statement Any other closing document requiring a Buyer’s signature (signed as “Read and Approved”) Wire Instructions for Title Company (signed as “Read and Approved”) Loan Documents, if there is a mortgage (signed as “Read and Approved”, if applicable) Hazard Insurance Application (signed as “Read and Approved”, if applicable) Title Insurance Commitment (signed as “Read and Approved”, if applicable)
4. Documents Required AFTER Closing (a checked box indicates the IRA holder will return the form to New Direction IRA) Closing Statement Original Deed (properly recorded) Title Insurance Policy (if applicable) Hazard Insurance Policy (if applicable) Property Management Agreement (signed as “Read and Approved”, if applicable) Lease/Rental Agreement (signed as “Read and Approved”, if applicable) Property Management Acknowledgement Letter (completed by property manager) For Notes/Mortgage: (Payment coupon booklet, or a statement showing loan number, date of 1st payment, payment amount, where payments are to be sent, additional instructions (e.g. additional principal payments)).
page 1 of 1
Copyright 2011 New Direction IRA, Inc. RERD rev 12/11
Real Estate Closing Checklist
New Direction IRA, Inc. 1070 W Century Dr Ste 101 Louisville, CO 80027 p: 303-546-7930 | f: 303-665-5962
1. Client Information Client Name:
New Direction Account Number:
2. Real Estate Closing Information Property Address:
City:
Closing Date: (MM/DD/YYYY)
Closing Time:
Title Company:
Closer Name:
Phone Number(s):
Fax Number:
How will closing documents be provided to New Direction? Email
Fax
Regular Mail
Express Mail
State:
Zip:
Email Address: How does the title company require signed documents back? Email
Fax
Regular Mail
Express Mail
3. Closing Document Information (Check each box that applies to your closing indicating you have the following documents.) HUD (signed as “Read and Approved”) Settlement Statement (signed as “Read and Approved”) Closing Documents [Anything Requiring Buyer’s Signature] (signed as “Read and Approved”) Loan Documents (signed as “Read and Approved”) PAL – Completed & Signed [For Mortgage Payments] (signed as “Read and Approved”)
4. Real Estate Closing Acknowledgement (Initial all items in the spaces provided.) __________ I understand that in order to close and fund this transaction on the closing date indicated above, all closing documents requiring the “buyer’s” signature must be received by New Direction IRA, Inc. no later than 3 business days prior to the closing. __________ I understand that it is my responsibility to review all closing and loan documents for accuracy. __________ I understand that I must indicate my approval by writing “Read and Approved” and signing my name in the MARGINS of the closing documents. __________ I understand that the closing on the property being purchased by my IRA is dependent upon New Direction IRA receiving the “Read and Approved” documents listed below by the date and time indicated above. __________ I understand that failure to provide the documents to New Direction IRA on time will delay the closing.
page 1 of 1
Copyright 2011 New Direction IRA, Inc. RECC rev 12/11
Self-Directed IRAs and more...
Payment Authorization Letter
New Direction IRA, Inc. 1070 W. Century Dr., Ste. 101 Louisville, CO 80027 p: 303-546-7930 | f: 303-665-5962
* Required Fields
1. YOUR INFORMATION * Your Name:
* Account Number:
* % of Ownership:
* IRA Property Address:
Pantone 343U Pantone 505U * 2. REOCCURRING INVOICES Mortgage
HOA
Utilities
Property Taxes (Property taxes are paid annually.)
Insurance
Other
One-time Invoices Other: ___________________________________________________________________ STOP
Do Not use this form to fund a real estate earnest money deposit or closing. Please use a Real Estate Buy Direction Letter.
* 3. PROCESSING INFORMATION I understand that processing fees are paid from the IRA in which the property/asset is held. Pay the invoice via: Wire ($30 processing fee. Please request an outgoing wire instruction form from our office.) ACH Transfer ($5 fee) Payee Routing #:______________ Payee Bank Account #:______________ Owner of Account:___________________ Check ($10 check fee. Fill out address below.) Pay to:
Amount:
Check Memo: Address: City:
State:
Mailing Options:
Standard Mailing (No charge. Please allow 8-10 business days)
Zip: Express Mailing ($30 shipping fee, FedEx Overnight.)
* 4. SIGNATURE I understand that I am to retain all copies of invoices submitted for payment. I confirm that I am directing New Direction IRA, Inc., Administrator, to complete this transaction as specified above. I understand that my account is self-directed, and I take complete responsibility for any investment I choose for my account, including the investment referenced in this Payment Authorization Letter. I understand that I am responsible for ensuring that adequate funds are available in my Account to execute this transaction. I understand that funds in the Account may not be immediately available for use to pay expenses and that all non-certified funds are available 5 business days after deposit to Administrators bank. Funds are available the day following deposit if received by cashiers check, money order, or bank wire. Recurring payments must be for the amount specified in this Payment Authorization Letter, if designated. The Administrator and/or Custodian (Mainstar Trust) is not responsible or liable for late fees assessed on bills due to unavailable funds, late receipt of an invoice/bill or lack of clear instructions on this Payment Authorization Letter. I understand that in processing this transaction the Administrator and the Custodian are only acting as my agent, and nothing will be construed as conferring fiduciary status on either the Administrator or the Custodian. I agree that the Administrator and the Custodian will not be liable for any investment losses sustained by me or my account as a result of this transaction. I agree to indemnify and hold harmless the Administrator and the Custodian from any and all claims, damages, liability, actions, costs, expenses (including reasonable attorney fees) and any loss to my account as a result of any action taken in connection with this investment transaction or resulting from serving as the Administrator or the Custodian for this investment, including, without limitation, claims, damages, liability, actions and losses asserted by me. I understand that no person at the office of the Administrator or the Custodian has the authority to modify any of the foregoing provisions. I certify that I have examined this Payment Authorization Letter and any accompanying documents or information, and to the best of my knowledge and belief, it is all true, correct and complete. I confirm that I have read and agree with the previous terms.
* Signature: _____________________________________________________________ * Date: ___________________________ page 1 of 1
Copyright 2012 New Direction IRA, Inc. PAL rev 2/16
Property Management Acknowledgement Letter
New Direction IRA, Inc. 1070 W Century Dr Ste 101 Louisville, CO 80027 p: 303-546-7930 | f: 303-665-5962
1. CLIENT INFORMATION Client Name: Property Address:
New Direction Account Number: City:
State:
Zip:
2. PROPERTY MANAGER’S INFORMATION Property Manager’s Name:
Property Manager’s Company Name:
Property Manager’s Address:
City:
State:
Zip:
3. PROPERTY MANAGER’S ACKNOWLEDGEMENT (Initial all items in the spaces provided showing your intent to comply.) This property is held within an Individual Retirement Account, the following instructions must be followed to ensure compliance with both IRS requirements and New Direction IRA, Inc. policy. __________ I understand that the owner of the above-referenced property is: New Direction IRA , Inc. FBO (Client Name) IRA __________ I agree to send quarterly property financial statements to: 1070 W Century Dr Ste 101, Louisville, CO 80027 __________ I understand that the Taxpayer Identification Number for this property is : 20-0157510 unless notified otherwise. __________ I agree to accept no payments from the IRA holder’s personal bank account into the Property Management Account, as this constitutes a violation of IRS rules. __________ I agree to provide a true accounting of all monies owing into or out of the property management account to New Direction IRA, Inc. for the above-referenced property on a quarterly basis. __________ Nothing pertaining to the above-referenced property will be titled in the name of the IRA holder. Utility bills, insurance, real estate taxes and any outside contract work shall be in the name of either the IRA or you. __________ All payments, income, distributions and/or payoffs for this holding must be sent to New Direction IRA, Inc. under the Internal Revenue Code, it is never acceptable to send funds directly to an IRA holder (or an IRA holder’s nominee). __________ I understand that remitting funds to the IRA holder or a member of his/her family would be a distribution and must be immediately reported to New Direction IRA, Inc. Such distribution will incur taxes and penalties. __________ I understand that I can not have any access to any information about the IRA holder’s account held at New Direction IRA, Inc., such information would include cash balance, other assets within the account, beneficiaries etc, without specific written instructions from the IRA holder. __________ You agree to honor all written instructions from New Direction IRA, Inc. concerning this property. __________ You agree to inform New Direction IRA, Inc. promptly of any change in address, telephone number, or company status (such as bankruptcy liens, regulatory agency investigations or litigation.)
4. PROPERTY MANAGER’S SIGNATURE: As the property manager, I agree to comply with the above terms. Signature: ______________________________________________________________ Date: _____________________________ page 1 of 1
Copyright 2011 New Direction IRA, Inc. PMAL rev 12/11
New Direction IRA, Inc. 1070 W. Century Dr., Ste. 101 Louisville, CO 80027 p: 303-546-7930 | f: 303-665-5962
Sell Direction Letter 1. ACCOUNT INFORMATION Your Name:
Account Number:
Phone Number:
Email Address:
2. HOW WOULD YOU LIKE TO PAY FOR THE TRANSACTION? (All fees are due at time of transaction.) Choose One: Your Account Credit Card
Credit Card Type: (the following are accepted)
Visa
MasterCard
Discover
Card Number:____________________________ 3 Digit Security Code: ___________ Exp. Date: ___________ Exact Name on Card:___________________________ Signature: _____________________________________
3. HOW WOULD YOU LIKE US TO PROCESS THE TRANSACTION? Standard Processing (3 business days) Express Processing (1 business day rush fee, $500 for Real Estate and $250 for Non-Real Estate) Please contact your transaction specialist to see if a rush option is possible. Deliver the transaction paperwork via:
Standard Mail
Overnight Mail ($30 fee applies) *All closing documents must be sent via Fedex.
4. TELL US ABOUT THE BUYER (NON REAL ESTATE ASSETS) Buyer Name:
Buyer Phone Number:
Buyer Address:
Buyer Email Address:
City:
State:
Zip:
5. TELL US ABOUT THE INVESTMENT YOU WOULD LIKE TO SELL (NON REAL ESTATE ASSETS) Asset Name: Quantity: (number of shares, units, % of ownership, etc.)
Full Sale ($95) Price: (Price per shares, units, etc.) $
Partial Sale ($50)
Total Sale Price: (quantity times price) $
Special Instructions:
6. TELL US ABOUT THE REAL ESTATE YOU WOULD LIKE TO SELL ($250.00 REAL ESTATE SALE FEE) I hereby authorize and direct the Administrator and/or Custodian to SELL the following asset from my account: Legal Address of Property:
City:
Legal Description of Property:
Contract Sales Price: (List sales price. If it changes, please send addendum.)
Is there any debt financing (mortgage) on this investment? No Yes
Name of Lender: (If debt financed)
page 1 of 2
State:
Zip:
Copyright 2011 New Direction IRA, Inc. GEN SDL rev 9/16
Sell Direction Letter
New Direction IRA, Inc. 1070 W. Century Dr., Ste. 101 Louisville, CO 80027 p: 303-546-7930 | f: 303-665-5962
7. WHO IS HANDLING THE REAL ESTATE CLOSING Escrow/Title Company/ Attorney Name(s):
Contact Name:
Phone Number:
Email Address:
Address:
City:
State:
Zip:
8. AUTHORIZATION
I confirm that I am directing New Direction IRA, Inc., Administrator, to complete this transaction as specified above. I understand that my account is self-directed, and I take complete responsibility for any investment I choose for my account, including the investment specified in this Sell Direction Letter. I understand that neither the Administrator nor the Custodian (Mainstar Trust) sells or endorses any investment products, and that they are not affiliated in any way with any investment provider. I understand that the roles of the Administrator and the Custodian are limited, and their responsibilities do not include investment selection for my account. I acknowledge that neither the Administrator nor the Custodian has provided or assumed responsibility for any tax, legal or investment advice with respect to this investment, and I agree that they will not be liable for any loss which results from my decision to sell this investment. I understand that neither the Administrator nor the Custodian has reviewed or will review the merits, legitimacy, appropriateness or suitability of this transaction, and I certify that I have done my own due diligence investigation prior to instructing the Administrator to execute this transaction for my account. I understand that neither the Administrator nor the Custodian determines whether this investment is acceptable under the Employee Retirement Income Securities Act (ERISA), the Internal Revenue Code (IRC), or any applicable federal, state, or local laws, including securities laws. I understand that it is my responsibility to review any investments to ensure compliance with these requirements. I understand that in processing this transaction the Administrator and the Custodian are only acting as my agent, and nothing will be construed as conferring fiduciary status on either the Administrator or the Custodian. I agree that the Administrator and the Custodian will not be liable for any investment losses sustained by me or my account as a result of this transaction. I agree to indemnify and hold harmless the Administrator and the Custodian from any and all claims, damages, liability, actions, costs, expenses (including reasonable attorneys’ fees) and any loss to my account as a result of any action taken in connection with executing this transaction or resulting from serving as the Administrator or the Custodian for this investment, including, without limitation, claims, damages, liability, actions and losses asserted by me. I understand that if this Sell Direction Letter and any accompanying documentation are not received as required, or, if received, are unclear in the opinion of the Administrator, or if there is insufficient Undirected Cash in my account to fully comply with my instructions to execute this transaction and to pay all fees, the Administrator may not process this transaction until proper documentation and/or clarification is received, and the Administrator will have no liability for loss of income or appreciation. I understand that my account is subject to the provisions of Internal Revenue Code (IRC) §4975, which defines certain prohibited transactions. I acknowledge that neither the Administrator nor the Custodian has made or will make any determination as to whether this transaction is prohibited under §4975 or under any other federal, state or local law. I certify that executing this transaction will not constitute a prohibited transaction and that it complies with all applicable federal, state, and local laws, regulations and requirements. I understand that I am responsible for confirming that no “disqualified person” with respect to my account will benefit from this investment in any way which is prohibited by IRC §4975. I understand that my account is subject to the provisions of IRC §§511-514 relating to Unrelated Business Taxable Income (UBTI) of tax-exempt organizations. If this investment generates UBTI, I understand that I will be responsible for preparing or having prepared the required IRS Form 990-T tax return and any other documents that may be required. I understand that neither the Administrator nor the Custodian makes any determination of whether or not investments in my account generate UBTI. I understand that neither the Administrator nor the Custodian reviews or approves any documents regarding the execution of this transaction. I represent that I have done my own due diligence on the execution of this transaction. I understand that my investment in the Entity may be subject to the Plan Asset Regulations (29 C.F.R. § 2510.3-101) and Interpretive Bulletin 75-2 (29 C.F.R. § 2509.75-2) issued by the U.S. Department of Labor. If these regulations apply to this investment, the Entity is disregarded for purposes of the prohibited transaction rules of IRC §4975, and officers, directors, managers and the like may become fiduciaries of my account. I represent that I understand the Plan Asset Regulations and Interpretive Bulletin 75-2 or I have consulted with competent legal counsel regarding these regulations and their potential application to the Entity prior to making my investment decision. I understand that all communication regarding this transaction must be in writing and must be signed by me or by my authorized agent on my behalf, and that no oral modification of my instructions will be valid. I understand that no person at the office of the Administrator or the Custodian has the authority to modify any of the foregoing provisions. I certify that I have examined this Sell Direction Letter and any accompanying documents or information, and to the best of my knowledge and belief, it is all true, correct and complete. Transactions with insufficient funds will not be processed until sufficient funds are received. If fees are being deducted from your account, the full amount of the transaction plus fees must be available before your transaction can be processed. I declare that I have examined this document, including accompanying information, and to the best of my knowledge and belief, it is true, correct and complete. Signature: ______________________________________________________________ Date: _______________________________ Please read the disclosure above the signature line before signing and dating.
FOR INTERNAL OFFICE USE ONLY: Ret To: ______________________________________ Bal:________________________ Sig Check Cusip: ______________________________________ Fee Option and Invoice Cycle: _________________________________ RTN TNet T Code: ___________ FRL Scan for Funding Admin Fee: $_____________________ Transaction Fee: $_____________________ Payment Fee: $_____________________ Other Fee: $___________________________ Total Fee: $_____________________ Fund Date: ____________________________________ Amount Funded: $________________________________________
page 2 of 2
Copyright 2011 New Direction IRA, Inc. GEN SDL rev 9/16
