• Reinvestment

    Self Directed 401k | Real Estate IRA LLC

    Revenue With Reinvestment of Rental Income

    Remember, when an all-cash purchase is not possible, additional real estate can be purchased in your Self Directed IRA in combination with a mortgage loan. However the results may change.

    The amount of rental income will vary based on amount of the down payment, interest rate and the mortgage loan which will reduce the net rental income by the amount of the mortgage principal and interest payment.

    Below is a table demonstrating the growth yielding 8.8%* after the reinvestment of the Rental Income Account Value from 3 typical homes over a ten-year span.

    Year Annual Rental
    Income
    Annual Gain on
    Rental Income
    Accumulated Account Value
    After Investment Yield
    1 $23,400 $1,170 $24,570
    2 $23,400 $3,357 $51,327
    3 $23,400 $5,738 $80,465
    4 $23,400 $8,331 $112,196
    5 $23,400 $11,155 $146,752
    6 $23,400 $14,231 $184,383
    7 $23,400 $17,580 $225,363
    8 $23,400 $21,227 $269,990
    9 $23,400 $25,199 $318,589
    10 $23,400 $29,524 $371,513

    Past performance is no guarantee of future results

    Performance Summary
    On 3 homes at an initial purchase of $140,000 each, totaling $420,000. Your total gain:

    $1,024,036 Rental income and appreciation for a 12-year period
    $ 137,513 Gain on rental income investment after 12 years
    $ 1,161,549 Total account value gain to your IRA
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