Types of Investment Accounts | 12-Month & Self-Direct Investments

Consolidated Mortgage Investors include individuals and institutions seeking higher rates of return and an opportunity to diversify their investment portfolios.Many Investors ask Consolidated Mortgage about investing an IRA or other retirement account in Trust Deeds. As an Investor, you have the option to choose almost any entity to fund a Trust Deed. If you select your IRA as the entity to invest you probably hold the account with a financial institution which would have to be transferred to a third party "custodian" that would act as your intermediary. This is commonly referred to as a "self-directed" IRA. Once this account is opened, you can then direct funds to be used to fund Trust Deed investments. Preferred Trust Company, LLC is the preferred custodian of Consolidated Mortgage. Visit their website at www.preferredtrustcompany.com or call 702.990.7892 to speak to an Account Representative. Investors may set up accounts with Consolidated Mortgage as:

Individuals
Joint Tenants
IRAs
Keoghs
Pension Plans
Trusts
Corporations

Individuals - "Unmarried" is more commonly used to confirm that there is no community property interest, or "Married" with the account holder declaring his or herself as a sole and separate property.

Joint Tenants - Two individuals hold joint property with the right of survivorship.

Self-Directed IRA / Keoghs - An individual retirement arrangement allows a person to save and invest money for use in retirement while deferring taxes on the account's earnings. A Keogh plan is much like an IRA but is only available for people who are self-employed. The main difference between a Keogh and an IRA is that the contribution limit for a Keogh plan is much higher. IRAs have custodians or trustees, as do Keoghs. Vesting must always be in the name of the custodian or trustee.

Pension Plans - These plans invest the retirement funds of their members and take title in the name of the pension plan.

Trusts - This is typically a family trust, testamentary trust, charitable trust, or an irrevocable or revocable trust. In any event, the investment is owned by the trust and controlled by the trustee, who must be authorized by the trust document to enter into and manage transactions.

Corporation - The purchase of an investment vehicle by a corporation requires corporate authorization. Therefore, by-laws or a corporate resolution authorizing transactions are required.

General Partnership - All partners can bind the partnership and all partners are liable for partnership debts if the partnership itself fails to pay.

Limited Liability Company (LLC) - Similar to a partnership, only without the personal liability of a general partner. LLCs are composed of "members", one or more of which is a "managing member" with authority to contractually bind the LLC. Title is held in the name of the LLC.

Limited Partnership - Consists of one general partner and many limited partners. Only the general partner can bind the partnership, and only the general partner is liable for partnership debts if the partnership itself fails to pay.