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Financial Freedom with Real Estate Investing

MB498: Unlock the $40 Trillion Secret Hiding in Retirement Accounts - With Kaaren Hall

Financial Freedom with Real Estate Investing

Michael Blank

Business, Investing, Entrepreneurship

4.7577 Ratings

🗓️ 17 November 2025

⏱️ 26 minutes

🧾️ Download transcript

Summary

Did you know there’s more than $40 trillion sitting in U.S. retirement accounts — most of which could be invested in real estate? In this episode, Michael Blank chats with Karen Hall, Founder of uDirect IRA and author of The BiggerPockets Guide to Self-Directed IRA Investing, to break down the rules, tax implications, and best practices that allow investors to use their retirement funds to participate in real estate syndications. Whether you're a GP raising capital or an LP investing passively, this conversation will help you unlock one of the biggest capital sources in the world.

Key Takeaways:

  • There is $40 trillion in retirement accounts — a huge capital pool most investors overlook.
  • Self-directed IRAs can invest in syndications, rentals, notes, crypto, precious metals, and more.
  • The IRS has prohibited transaction rules — keep investments arm’s length to avoid penalties.
  • UBIT/UDFI taxes can apply when leverage is involved — tax advisors are essential.
  • A solo 401(k) can reduce some debt-related tax exposure.
  • Recent laws may allow employer 401(k)s to include alternative investment funds, opening the door wider.
  • Always ask investors: “Do you have retirement funds?” — because most won’t think of it themselves.

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For full episode show notes visit: https://themichaelblank.com/podcasts/session498/

Transcript

Click on a timestamp to play from that location

0:00.0

Hey, Dealmakers, welcome to the show where it's all about financial freedom with real estate.

0:04.3

Let's do this.

0:09.1

You know, there's over $40 trillion sitting in retirement accounts, and most GPs never asked

0:14.9

a simple question that could unlock it.

0:17.1

My guest today is Karen Hall, founder of UDirect IRA and author of of The Bigger Pocket's Guide to Self-Directed IRA Investing.

0:23.9

And we get into what you as a deal sponsor really need to know when it comes to retirement money flowing into your deals.

0:31.7

For example, how does self-directed IRAs in Solof 401 case actually work behind the scenes?

0:37.0

The rules that you and your

0:38.1

investors need to follow so deals don't blow up and learn about there are some taxes like Ubit and UDFI

0:43.6

and why you have to pay attention to some of those things. We also talk about what kind of IRA

0:49.2

accounts there are. There's very different kinds and then how to actually talk to investors who don't have the cash but are sitting on big retirement balances. And if you have an IRA account yourself and you want to invest yourself, we talk about how to do that, whether you're passive and active as well. So this is a big self-directed episode. How are you? Whether you're an active investor or a past investor. Karin. This is absolutely critical that you understand.

1:11.4

That is excellent.

1:12.2

Thank you for. So with that, let's get an interview with Carn Hall. It's sort of an unusual name, you know. Yeah, where's that, where's that from? It's Norwegian, which is what I am. That is cool. Yeah. I got close to Norway. where we were in Sweden, very, very tippy top of Sweden, like 20 minutes away from Norway.

1:29.9

It was cold and heck.

1:31.0

Coler in Hekwin were up there last two years ago. That's fantastic. With the Aboriginal Swedes? Aboriginals. Oh my gosh. Laplands, the Lapland, which is way up there. It was an hour and a half flight from Stockholm, I think. It was way up there. It was delightful. My ancestors were reindeer herders, like a couple of generations back. Yeah, yeah, yeah. It is crazy. That is pretty cool. I'm right here. Let me see. Okay, I think we're ready. Am I? I am. Do you want to chat? I have a PowerPoint if you want that, but I was hoping we were going to be talking here. No, we'll be chatting. I think that'll be better. So we'll go about 20, 25 minutes or so. We're going to dissect self-directed IRAs. I also see that you do solo 401K, so you can talk about that as well. Sure. Any kind of self-directed IRA investing? So that's cool, yeah. And here's something that if you want to be timely, is that the president just signed an act, basically, saying that 401Ks are going to be holding alternative assets, and I can kind of chat about that. Okay, let me make a note. That's a good one. Yeah. That's a, that's a, you know, what does he sign? 200 orders already. Jeez, of course. Yeah. 401k. Alternative assets. And we can, because I'm sure there's a lot of confusion about it so I can kind of straighten that out. Oh, love it. Okay. Well, excellent.

2:52.4

Fantastic. All right. All right. You ready? Yeah, let's go. All right. Cairn, welcome to the show today.

2:58.5

Hey, Michael. Thank you so much. We're going to dissect self-directed IRA and retirement fund dissecting here today here.

3:07.2

Just give us a little background. We're going to start kind of basic in general, but people may not know that you can invest with IRAs and possibly 401Ks. And we'll kind of start the top, but then we're going to go into different types of self-direct investing, so really excited about that. Well, first of all, tell us a little bit about you and your company, you direct.

3:25.1

Yeah, you know, we just hit our 16th anniversary, so we've been helping people self-direct.

3:29.1

We have over a billion under management.

3:31.3

We have thousands and thousands of account holders.

3:33.6

So basically, this all stem from, for me anyway, from a background of real estate, property

...

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