Let us imagine that you are already aware of the benefits of a Self-Directed IRA. You already know that you can enjoy alternative asset investments such as real estate within a retirement account, and that this can be a powerful way to put aside money for retirement. What is stopping you from taking the next step and opening a Self-Directed IRA?
For many investors, it is the thought of adding a new layer of complication to their lives. In short, they are afraid of the stacks of paperwork they will acquire, or the exorbitant tax professional fees they will incur when they take on new real estate investments through a retirement account. That is why today, we wanted to show investors that real estate paperwork does not have to be as complicated as all that. Here is what you will need to know.
American IRA’s Real Estate Investment Paperwork
You can view the forms required to make a purchase of real estate with American IRA, LLC, by clicking here. What you will notice is that this is a very simple, straight-forward process, broken up into three individual steps.
The first step is the “Contract / Earnest Money Package.” These will be submitted as one complete packet. The buyer will be listed as “New Vision Trust Custodian FBO (Your Name) (Type of Account)” and then you will sign the contract as the buyer, notating read and approved below the signature. You will then complete the Earnest Money Request form and contract for payment. And this allows American IRA to sign as the custodian on the account.
That is, it. That is the entirety of Step One. It does not sound too difficult now, does it?
In step two, you will submit the documents of the Closing Package. This includes the American IRA Real Estate Investment Form, which includes the supporting documents for the closing of the agreement. And you will also find that the Closing Agent will help prepare the proper titling for documents that will be initialed as read and approved—but you will not sign documents as a buyer, because it is technically the IRA that will be buying the property.
This step includes a copy of the deed, a copy of HUD-1 Settlement Statement/Closing Disclosure, and any other documents the buyer may be required to sign at closing, as well as wiring instructions. Again, this process is not much more complicated than any other real estate closing.
The Third Step in the Process
Once you are ready to submit a package, you can do it by mail, fax, or email to American IRA. That is, it. American IRA simply needs to have the relevant real estate investment package so that we can handle paperwork on the behalf of the account. It is not a big, scary process—but instead, one that can be repeated with relative ease as you make more real estate investments, if that is your choice.
Of course, you should keep a record of all relevant documents so that you know where everything is and can easily refer to it if there is ever an issue. And you should follow up with us with any questions you have about the process. From there, you will find that it is largely intuitive. It is not a big, complicated maze that makes investing nigh-on impossible. In fact, if you ever do decide to execute more buys like this through the Self-Directed IRA, you will even find that this becomes much easier with time.