Welcome to another episode of Passive Real Estate Investing. I'm your host Marco Santarelli. Well, today we have a returning guest. He is someone who is very intelligent when it comes to self-directed retirement accounts like IRAs and 401ks. He knows how to help you defer and eliminate taxes. So if you're thinking about investing in buy and hold rentals, flipping property, investing in promissory notes, or just using your IRAs and 401ks to invest for the purposes of creating more wealth and additional cash in your retirement account, this is an episode you wanna listen to. It's going to be focused primarily on real estate strategies as they relate to your self-directed IRAs and 401ks. So I hope you enjoy today's episode. There's probably gonna be a lot of takeaways here. And if this is an area that you want to learn more about, certainly listen to today's episode, but also maybe pick up some books, including Mat's book on an IRA's specifically titled The Self-Directed IRA Handbook. And with that, let's get to our interview.
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Well, it's my pleasure to welcome back a returning guest to the show, Mat Sorenson. He is an attorney and he is also the CEO of directed IRA. He is a bestselling author, a national speaker, and an expert on self-directed retirement accounts. He's also, I just found out the VIP contributor to entrepreneur magazine. He is a real estate investor, which I'm sure my audience would love to know. And he has been at the forefront of the self-directed IRA industry since 2006, a very long time. And he wrote the book, The Self Directed IRA Handbook, which is the most widely used book in the industry for self-directed IRAs. So Mat, welcome back to the show.
Yeah, Marco, thanks for having me. I love talking about self-directed IRAs. Obviously I had so much to say, I wrote a book about it and but I love talking about real estate too, cause this is what I do with my own account. Like literally that's what my retirement account owns is real estate in my retirement, you know? So I love pairing those two things together and excited to be here, talking about that.
No, that's great. Well, I'm glad you're back on. We're gonna have a very focused show today. We're gonna talk about using IRAs and 401ks to buy rentals, do flips and invest in notes. Yeah. Which is timely because I've been doing a lot more work in the whole promissory note investment space and investors are calling and asking about that.
So I think this is a great topic. It's kind of timely, but I think there's a lot of misunderstanding out there about whether people can use an IRA or a 401k to invest in real estate. Some so-called gurus out there. Say not to, yeah. You can talk about this and why, because you know, you're losing the tax benefits of among other reasons. So where do you wanna start with this?
Well, I wanna just start, like right now, I mean, we're recording this, this is like summer of 2022, you know, and what's happened in the economy is the stock market totally down. Right? And that's what most people's retirement accounts have been invested in. They're buying stocks and mutual funds and they just got hammered over the last six months. I mean, this has been the largest stock market correction. Actually, t's the second largest stock market correction in my lifetime. I mean, I'm 42. This is the second biggest one. And so a lot of people are like, well, dang, is this all I can buy with my retirement account is what's on wall street, stocks, bonds, and mutual funds. And so you know, here at directed IRA where we handle self-directed accounts, there's lots of companies like ours that do that. But I mean our real estate clients,