Own Commercial Real Estate
In Your Retirement Accounts
With Millcreek Commercial, you can purchase any amount of a high-quality, commercial property through your retirement account(s). Adding real estate to your retirement plan introduces a level of stability that is otherwise difficult to achieve.
Grow $250k into $1million+ in 22 years
Cover required minimum distributions
Diversify and get off the Wall Street rollercoaster
Direct Your Own Financial Future!
Many 401K and IRA investors are unaware that they can self direct their retirement funds into alternative investments. They often see mutual funds and stocks as their only path forward. Your gains aren’t realized with the stock market until a transaction has occurred; therefore, the value is a constant moving target.
We help investors co-own commercial real estate through their self-directed retirement accounts. We assist in the process to transition your current investment into one compatible with owning real estate. With this model, you can direct your retirement account(s) and diversify a portion of those funds into commercial real estate.
At Millcreek Commercial, we give each investor the freedom to own the percentage of a property that best fits their current investment plan—anywhere from one to one hundred percent. Our “have it your way” approach gives you flexibility and access to co-own commercial real estate.
Self-directed IRAs are best suited for savvy investors who already understand the alternative investments and who want to diversify in an account with tax advantages.
What is a Self-Directed Retirement Account?
A self-directed individual retirement account (SDIRA) is a type of IRA that can hold alternative investments normally prohibited from regular IRAs. Although a custodian or trustee administers the account, it is directly managed by you, the account holder—this is why it’s called “self-directed.”
The main difference lies in the type of investments you can hold in the account. While a traditional IRA or Roth IRA might be used to invest in CDs or mutual funds, a self-directed IRA can be invested in and hold many other alternative investments. Funds in a self-directed IRA might be used for:
- Real estate
- Undeveloped or raw land
- Promissory notes
- Tax lien certificates
- Gold, silver, and other precious metals
- Water rights
- Mineral rights, oil, and gas
- LLC membership interest
The Basics of Self-Directed Retirement Accounts
View our webinar with special guest Mat Sorenson who has been at the forefront of the self directed IRA industry for over a decade. He’s the CEO of Directed IRA, a partner at KKOS Lawyers, a national speaker, top-ranked podcast host, best-selling author, and a self-directed retirement investor.
The Top Reasons to Use Your SDIRA to Invest in Commercial Real Estate
On top of portfolio diversification and tax-free or tax-deferred account growth, there are many benefits to using a self-directed IRA for your future real estate investments.
Watch our free live webinar where we discuss the top reasons to use your self-directed IRA to invest in commercial real estate with the help of Brittany Melville, SDIP, from Next Generation Trust Company.
Grow $250k Into $1mm+ in 22 Years.
Retirement planning is fraught with uncertainty. Today’s social, political, and economic climate do little to add stability to an already volatile situation. When we were younger time was on our side. We often took solace in our financial advisor telling us to stand pat, things will recover. And over time they always did. Now that we approach our golden years volatility is no longer our friend. We seek Safety, Security and Stability.
Millcreek Commercial offers a Secure way to grow your retirement account without relying on market conditions. Through a Self-Directed Retirement Account, you can own real estate. You are also allowed to leverage your investment with debt so long as the debt is “non-recourse”. Non-recourse debt means that if the loan defaults the bank has no recourse against the borrower. Non-recourse loans are very common with high net-worth real estate investors – not so much with 97% of Americans. This vehicle allows investors to utilize the power of leverage while severely limiting the risks typically associated with debt.
What if you could borrow money from an A rated institution like Wells Fargo Bank and an investment grade tenant like CVS Pharmacy would pledge to make your payments for you in exchange for using the real estate? Well, because of Millcreek Commercial’s innovative TIC ownership structure now more Americans can. A typical Millcreek CVS deal enables clients to invest $250,000, buying $1,000,000 of a new CVS Pharmacy. CVS agrees to make all the loan payments for the next 22 years. After the loan matures CVS starts paying the rent directly to your retirement account.
To learn more about this limited risk high growth asset contact a Millcreek Commercial Advisor today.
Cover Required Minimum Distributions without Touching Your Principal.
At age 70 our retirement planning enters a new, somewhat complex stage whereby the IRS requires you to take minimum distributions. This section of IRS code is put in place to force retirees into using their individual retirement accounts for their personal retirement income and not as an estate planning tool. What if you could do both? You can with a Millcreek Commercial TIC real estate investment.
At the age of 70 the IRS requires you to take Required Minimum Distributions (RMDs) These distributions begin at around 3.5% of your portfolio value but increase over the years. At age 90 a typical RMD is 8.3%.
For the ease of illustration let’s assume for a moment that your entire SDRA was comprised of a single real estate asset. At Millcreek Commercial you can invest in a Single Tenant Net Leased property with a 20-year term that has 2% annual escalations. As of this writing these investments deliver a 6.25% return in year 1. They grow to a 9.1% return by year twenty. These returns come to the investors in the form of liquid cash and are easily consumed as your RMD.
To learn more about this corporate guaranteed investment contact a Millcreek Commercial Advisor today.
Diversify and Get Off the Wall Street Rollercoaster.
It is always best to get off the Rollercoaster on the way up. Really good investors time their exits to happen at the apex of the ride. Really bad investors allow their 401Ks to turn into 201Ks. Financial advisors often counsel clients to remain in the market and ride out the storm. Young to middle age investors have time to recover from major market adjustments. What they don’t remind you of is your 6th-grade math class. When a $1,000 investment loses 40% of it’s worth it becomes a $600 investment. When a $600 investment gains back 30% of its worth it grows to $780 – not $900. We learned this principle on the playground even before 6th grade; going down the slide is way easier than climbing up the ladder.
What if you were smart enough to diversify 50% of your retirement portfolio into an investment-grade Single Tenant Net Leased Investment paying a 6% return while the market was ascending? If the stock market continues on an upward trajectory and grew at 12% in 2021 your portfolio would only grow at 9% – a little disappointing. But on the other side of the equation; if the market experienced a major correction and lost 40%. Your portfolio would only experience a 16% correction.
If you want to sleep better at night contact a Millcreek Commercial Advisor today.
While a traditional IRA or Roth IRA might be used to invest in CDs or mutual funds, a self-directed IRA can be invested in many other alternatives. Funds in a self-directed IRA might be used for:
Who currently manages your 401K? Take our 2-minute survey to better understand how you can prepare for retirement.
Talk with a Millcreek Commercial Representative to Learn How You Can Self-Direct
Want to learn more? Contact us!
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