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Overseas Properties in a Real Estate IRA

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Many of our clients are actively looking to diversify their retirement portfolios by using Self-Directed IRAs to invest in overseas assets. Often, this includes investing in foreign property using a Real Estate IRA.

Is it legal to purchase overseas property in an IRA? 

Yes, since the birth of IRAs in 1974, it has been legal to purchase and own overseas property using Real Estate IRAs. You can buy and sell properties, collect rent, and do anything you can do with domestic real estate in an IRA, provided you observe all the rules concerning prohibited transactions.

Can I take out a mortgage or borrow money to buy an overseas property for my Real Estate IRA? 

Yes, you can. You can borrow from any willing lender who is not a prohibited counter-party. Prohibited counterparts include yourself, your spouse, your children or grandchildren or those of your spouse, your parents and grandparents or those of your spouse, or any entities any of these people control.

If you do take out a mortgage, it must be on a non-recourse basis. That is, you cannot sign a personal guarantee for the loan. Any collateral for the loan must come from within the IRA itself.

You should also be aware of any local laws and regulations that may affect mortgages in the country in which you are investing. Most other countries will not recognize your IRA as a legal entity.

How can I purchase an overseas property using a Real Estate IRA? 

To buy property for a Real Estate IRA, you need to establish an account with a custodian or administrator that will support self-directed/real estate transactions ahead of time. You cannot buy the property yourself, thinking that you can transfer it into your Real Estate IRA later. That would essentially be causing the IRA to purchase the property from yourself, and that constitutes a prohibited transaction.

Instead, set up an account in advance with American IRA, LLC, and fund it. In most cases, clients fund their Real Estate IRAs using rollovers from existing IRA accounts. You can also contribute up to $5,500 in new money per year to a Traditional or Roth IRA. If you are over age 50, you can contribute another $1,000 in catch-up contributions.

If you want to make larger contributions, and you have a business or self-employed income, you may consider setting up a small-business retirement plan like a SEP IRA or a Solo 401(k).

Set up a trust or local entity in the host country. 

Most countries do not recognize IRAs as a separate legal entity. That means that while you may have limited liability protection in the United States, you will not have any in the property’s host country. If a tenant sues you in local courts, they could go after you personally, and possibly seize other assets you own within the country.

Consider having a local attorney help you set up a limited liability entity that will help you limit your liability, just as you would set up a corporation or LLC within the United States to protect your personal assets if someone should sue the business.

Purchase the property. 

Again, it is best not to try to handle the transaction yourself, directly. Instead, send all necessary documentation and instructions to American IRA, LLC, to purchase the property on your behalf, using funds within your funded Self-Directed IRA account. Verify the purchase was completed correctly.

Note, the property cannot be titled in your name directly. The title has to go to your IRA, or to the entity within the IRA, with your IRA listed as the owner.

Disqualified parties may not reside in the Real Estate IRA property. 

Unless you are ready to withdraw the entire property from the IRA, and pay taxes on the transaction, you, nor any disqualified person to your IRA can physically stay in the property; even if market rent is paid.  You cannot use an IRA to own your own vacation home overseas. If the IRS finds out, they could force you to take the entire value of the account as a distribution, costing thousands in taxes, penalties and legal bills.

Are You Ready for a Self-Directed IRA?

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A Self-Directed IRA is a proven way for investors to gain access to alternative asset classes not normally offered by most Wall Street investment companies. Most of them readily offer access to trade stocks, bonds, ETFs and mutual funds. Some of them also support trading in options on stocks and margin trading. But for the most part, if you want to diversify your portfolio into other asset classes in order to increase your expected returns, decrease your exposure to volatility, or both, while preserving the tax advantages of a retirement account, you are going to have to look at Self-Directed IRAs.

Self-Directed IRAs is it the right fit for you? Some people just do not have the skills or financial sophistication to take personal charge of their IRA investments, pulling them from the control of a money manager. They may need the assistance of a professional mutual fund manager or stockbroker to help them manage their portfolio. Or, they may simply not have time for managing investments, because they do not enjoy it.

Who is Ready for a Self-Directed IRA?

A Self-Directed IRA can be an excellent match for certain investment minded people. If the following criteria apply to you, you may be ready for a Self-Directed IRA.

1.) You have professional-level knowledge of real estate, precious petals, private equity, technology, small business or some other asset that gives you a meaningful competitive trading advantage over the market.

2.) You understand the different kinds of risk that could affect your investments, including, but not limited to, market risk, systematic risk, interest rate risk, inflation risk, legislative risk and company or investment-specific risk.

3.) You generally have an independent or entrepreneurial spirit.

4.) You know how to read a cash flow statement and a balance sheet.

5.) You understand the rules governing prohibited transactions and prohibited investments in IRAs.

6.) You want to save hundreds and possibly thousands of dollars in fees every year, compared to the high assets under management (AUM), wrap fees, expense ratios, 12-b-1 fees and other fees the Wall Street firms charge.

If all these apply to you, it may be time for you to consider a Self-Directed IRA. 

There are some important things to understand before you invest:

Self-Directed IRA Rules

You cannot buy an investment in your own name, expecting to transfer it into a Self-Directed IRA later. The law prohibits your IRA from buying or selling to you, personally. Your IRA also cannot transact directly with your spouse, children, grandchildren, parents, grandparents, or any entities they control.

For example: John is an experienced real estate investor and finds a promising property that would make a great candidate for his first investment in a Self-Directed IRA. However, he does not have a Self-Directed IRA account set up with a custodian or third-party administrator. So he goes ahead and has his own real estate investment LLC buy the house. He cannot then transfer the house into his IRA. Since he controls the LLC, the IRS could disallow the entire investment, and force him to take a distribution on the entire value of the account. This would result in a big income tax bill and potential penalties for early withdrawal – plus a bunch of legal fees.

Making Your First Self-Directed IRA Investment

The correct way to go about buying your first Self-Directed IRA investment is to:

  • Contact American IRA, LLC directly at www.AmericanIRA.com, or by phone at 866-7500-IRA(472).
  • Fill out a couple of forms to open an account. You can choose to open a Traditional IRA, a Roth IRA, or if you have self-employed income or a small business, a SEP IRA, SIMPLE IRA or a Solo 401(k).
  • Transfer funds from a qualified source into the account. If you qualify, you can make up to $5,500 in new contributions to an IRA or Roth IRA per year – and you have until April 15th to make IRA contributions for the previous calendar year. You can also roll over money from another IRA or qualified retirement account. In most cases, the best way to accomplish this is via a trustee-to-trustee transfer. This way, you will not take personal possession of the assets – and risk making a costly mistake. If you are transferring money from a 401(k), you also will not have to worry about your old 401(k) custodian withholding 20 percent to forward to the IRS to pay expected taxes.
  • Identify the asset you want to purchase for your Self-Directed IRA (or other retirement account).
  • Provide American IRA, LLC with detailed instructions on what to purchase, from whom, and for how much.
  • Have any attorneys involved draw up the title naming your Self-Directed IRA as the owner, NOT YOU. Mistitling the assets in a Self-Directed IRA can lead to big problems down the road.
  • Confirm the purchase is made correctly.

American IRA will log the transaction and ensure it is completed according to the law.

Note, American IRA handles the transaction. We do not determine whether the investment is appropriate for you or your portfolio. That is between you and your financial advisors. We work with your existing advisors to make sure your directions to us are handled promptly and accurately.

That is part of what it means to have a Self-Directed IRA: You take more direct and personal control of your retirement investments. You may hire some advisors to help you, but ultimately, you, and not some distant fund manager who does not know you or your goals, are in charge of managing your Self-Directed IRA portfolio.

The Self-Directed Real Estate IRA: Five Benefits You Didn’t Know

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You might have heard of a Real Estate IRA. You might have even looked into it as an option in the past as you considered the retirement options that make the most sense for you and your family. But if you’re not familiar with this kind of retirement account, you might be surprised at just what kinds of investment results you can have when using it properly.

Don’t believe us? Let’s take a closer look at the Self-Directed Real Estate IRA—and how it can uniquely benefit your retirement plans:

Benefit #1: Getting More Leverage with a Real Estate IRA

One of the most fascinating concepts in real estate investing is that of leverage. By using leverage, you can make purchases you otherwise wouldn’t be able to make with the cash in your bank account. In Real Estate IRAs, you’ll be expected to use non-recourse loans, but you’ll still be able to use this concept of leverage to your advantage. In other words, you can buy real estate that you otherwise not me able to with plain, ordinary cash.

This is well-known to anyone who’s invested in real estate, but the good news is that you can use these non-recourse loans within a Real Estate IRA as well, giving you the opportunity to employ big investments of real estate into your tax-protected retirement plans.

Benefit #2: You Can Collect Rental Income Tax-Free or Tax-Deferred

Because the real estate is within a tax-protected account like a Roth IRA, you’ll be able to collect on real estate income without paying the usual taxes. This is the chief advantage of retirement accounts like the Roth IRA—you’re simply applying it to a different asset class.

Keep in mind that you’ll hire a property manager in order to handle rental collections when you work with a real estate IRA. The differences between real estate in an IRA and real estate as a regular investment are subtle, but important.

Benefit #3: You Can Still Partner with Others for Investments

Sometimes, you can’t quite get enough money together yourself in order to secure a real estate purchase. Fortunately, you can still use the ability to partner up with other investors even when you’re working within a real estate IRA, which gives you even more leverage than a simple non-recourse loan. It allows you to invest in large properties and include these properties as part of your retirement plan.

Benefit #4: You Can Sell Property Within a Real Estate IRA Without Capital Gains Taxes

Tax protection under an IRA help you to make moves within that account that don’t apply to your taxes the way normal investments and sales might. In other words, using a Real Estate IRA, you can still sell property without having to worry about capital gains taxes—giving you plenty of opportunities to grow money as you make deals you otherwise would have to pay substantial taxes on.

Benefit #5: Quick Access to Passive Income

Because it’s difficult to turn a lot of money into passive income overnight, the Real Estate IRA is unique in that it offers a quick path for soon-to-be-retirees to turn their money into a regular income. This helps you secure the kind of cash flow you need to make a peaceful retirement possible.

If these benefits sound interesting to you, it might be a good idea to keep reading about Real Estate IRAs and find out if they’re right for your investment strategy. For more information, continue browsing our website or contact American IRA directly at 1-866-7500-IRA.

Self-Directed Real Estate IRA Update: Alternatives to Eviction

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Eviction is a time-consuming and expensive process – best avoided if you and the tenant can manage it. You don’t want the legal expenses and court hassles involved with the legal eviction process, which can take weeks or months. That’s not good for your Real Estate IRA, and it’s not good for you.

Moreoever, your Real Estate IRA tenant doesn’t want an eviction on his or her record, either,  which can impact their credit and make it even more difficult for them to find a new place to live.

In some cases it’s unavoidable. The tenant either isn’t listening or is actively destructive to the property and is trying to abuse the process, at your expense. But there are alternative paths to resolution that work out much better for both you and the renter, short of eviction, that you can explore.

Here are some things you can do.

  • Identify temporary problems. Sometimes an inability to pay rent or comply with some other critical part of the lease agreement is temporary. For example, say you have a rental property in your Real Estate IRA and the tenant is late on the rent. If you’re able to speak to them, though, you may find that the tenant lost her job last month. But she’s actually working again, and making even more money, but won’t receive a paycheck again for another week and a half or two weeks. After that she’ll be even more financially qualified to rent the property. This is a classic case where it’s much better to work with a tenant who is otherwise good, but is going through a temporary cash crunch. It’s much easier to wait two weeks ad collect in full, rather than play hardball with a slow-payer.
  • Don’t paint your tenant into a corner. Remember: The second you evict, the tenant loses all incentive to pay you, and instead must focus on coming up with money for first and last or a security deposit at the new place.

You can get a judgment for the outstanding rent, minus the deposit – but good look collecting on it. If collecting it were that easy, you’d have the rent already.

  • Consider a referral to a charity or outside agency. There are a number of charities that provide short-term housing loans or grants to individuals facing eviction or foreclosure. Catholic Charities and the Red Cross both do so, as do the military relief societies for members of the Armed Forces. These organizations could provide a bridge loan or some other assistance to help a struggling tenant stay current, and buy both you and them some time to work out a more lasting solution.

Sometimes you may have elderly individuals renting from you who just need some social services support to help them remember to pay bills, clean, take their medications, etc. You may help them contact family or other sources of support to help keep them current on the rent. With a little support, these individuals can be very successful tenants for many years. They are worth keeping.

  • Offer an incentive to move. It’s a fact of life that evicted renters don’t clean up very well – and occasionally vandalize their units outright. Evicting causes a lot of hard feelings. But what if you provided an incentive for a successful move-out within a certain amount of time? Getting the place re-rented that much sooner can put more money back in your Real Estate IRA, and you save hundreds of dollars or more in court fees/eviction costs. You also reduce the risk of vandalism. Provide a cash incentive or a forgiveness of part of a months’ rent in exchange for the tenant’s moving out by a certain date.

Note: Remember to pay all legal expenses using funds from your Real Estate IRA. You cannot pay attorney’s or court filing fees for evicting a tenant from your Real Estate IRA owned property.

American IRA, LLC is experienced at working with Real Estate IRA investors, as well as investors who hold real estate within other retirement accounts. With offices in Asheville and Charlotte, North Carolina, we work with Real Estate IRA owners in all 50 states.

For more information, or to schedule a free consultation, call us at 866-7500-IRA(472), or visit our extensive online library of information at www.americanira.com.

 

Real Estate IRA – What They Don’t Tell You About Using One for a More Secure Retirement

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Close your eyes and picture your ideal retirement. You have a great place to live, plenty of financial security, and all of the free time in the world. Now open your eyes. What’s the most effective way to get from where you are today—to where you want to be, come retirement? Although there are many options available to you, the Real Estate IRA may be one of the most powerful tools in your arsenal.

If you’re still unsure about the Real Estate IRA, it may be time to brush up on the basics. And because some of these basics are overlooked by many people, including investment professionals, it’s important to mention them specifically. Here’s what the media and many mainstream periodicals won’t tell you about Real Estate IRAs in detail:

A Real Estate IRA Can Help You Defer or Collect Income Tax-Free

Let’s be clear from the offset: a Real Estate IRA is not a way to avoid taxes. There is no free lunch even when it comes to the tax-protected retirement accounts the IRS allows investors to utilize. But when you dig deep into owning real estate with a Self-Directed IRA, you’ll start to see just how powerful a tax tool it can really be.

Most specifically, a Real Estate IRA will allow you to:

  • Use a tax-deferred exchange inside your IRA to defer the UDIT tax
  • Own real estate within a Roth IRA and collect rental income, tax-free
  • Sell property within a retirement account without having to worry about the otherwise-applicable capital gains taxes

Of course, if you’re confused about any of these subjects, it’s a good idea to contact a professional who can help you make sense of all these benefits. But for now, keep in mind that if you’re investing in real estate with a heavy tax burden, while aimed at retirement, there may be huge benefits you’re passing up.

You Can Still Utilize a Number of Powerful Real Estate Tools within an IRA

Most notably, you can still utilize leverage when purchasing real estate within an IRA. This is made possible through the use of non-recourse loans, in which the lender will only be able to come after the loan amount itself in the case of default. This actually provides you and your family with an additional layer of protection when utilizing leverage to make a real estate investment.

Another powerful tool is that of partnership. Because many real estate investments that are worthwhile are also highly valuable, many investors choose to partner up and own pieces of these investments. You can still do this with a Real Estate IRA, which means you still have flexibility to utilize investment in large property in order to secure a more prosperous retirement for yourself.

Many people assume that the tax benefits of a Real Estate IRA are outweighed by the disadvantages and limitations therein—but one look at the rules will convince you that this is not the case. In fact, if you’re an experienced real estate investor, you’ll be able to make many of the same investment decisions within an IRA that you would otherwise make. The key is to know the differences, the similarities, and steer your actions accordingly—and within the IRS rules.

Interested in finding out more? For more information about retirement strategies utilizing a Self-Directed Real Estate IRA, be sure to visit our Real Estate Custodians page. And for more information about Self-Directed IRAs and how they can impact your retirement, call us at 866-7500-IRA.

Real Estate IRA: Tools for Building Wealth with One

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When many people think about building wealth, they picture one thing: investments in the stock market. Mutual funds, individual stocks, index funds—the list goes on and on, but ultimately, they fall under one asset class. What more future retirees need to remember is that there are other ways of building wealth that can be just as effective—if not more effective—than the stock market. One such way is through a Real Estate IRA.

Real estate is an entirely different asset class from stocks. But the difference goes even deeper. Real estate is an entirely different type of retirement investment as well. That’s why it’s important for anyone considering building up wealth for retirement to at least consider the benefits of using a Real Estate IRA. And along the way, you should learn the tools within a Real Estate IRA that help you build this wealth consistently and safely over time.

Real Estate IRA Tax Protections

Perhaps the most obvious tool for building wealth with a Real Estate IRA is the fact that it’s still an IRA. With IRAs come certain rules—but also certain protections. The most powerful protections here are usually focused on taxes. With IRAs, you can often grow wealth either tax-free or tax-deferred so that your money is as optimized as possible when providing you with the returns you seek.

For example, consider the following potential protections:

  • Owning real estate within a Roth IRA allows the collection of real estate income, tax-free. This is because with a Roth IRA, you’re investing taxable money while the value of the investment is allowed to grow tax-free.
  • You can sell within your Real Estate IRA and not have to worry about capital gains taxes. If you’re a frequent property flipper who often makes sales at a profit, you might want to consider the Real Estate IRA as a tool for building long-term retirement wealth.
  • You can use the tax-deferred exchange within your Real Estate IRA to defer the UDIT tax, which helps you save some money.

It’s important to know these protections in order to get the most out of every real estate investment.

Utilizing the Power of Loans and Leverage in a Real Estate IRA

Perhaps the most powerful thing about investing in real estate is that you don’t have to pay it all in cash. Buying real estate with debt is not only easy in some cases, but often necessary. Using a Real Estate IRA means there are some limitations on the kinds of loans you can take out—they have to be non-recourse loans—but these non-recourse loans also come packaged with certain protections, such as the fact that the lender can only come after the value of the loan itself.

This protection, used in symmetry with your leverage, allows you to make big real estate transactions while still remaining comfortable in your financial position.

You can also use the power of partnering up in real estate—and the same is true within a Self-Directed IRA. You can buy part of a piece of real estate and hold it within your IRA, just as you would own a portion of a mutual fund.

Understanding these tools is the first step toward finding the right solution for your individual retirement plans. Whether or not those plans involve real estate may still remain to be seen—but you should at least know the tools at your disposal. For more information, view our real estate resources or simply call us at 866-7500-IRA. When it comes to retirement wealth, the most important tool is always knowledge.

Avoiding Real Estate IRA Tax Traps

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Self-Directed IRAReal estate provides a unique combination of investment qualities:

  • Tangibility – Unlike securities, value almost never drops to zero.
  • Current income – From rent, mineral rights, logging or farming
  • Potential for capital appreciation
  • Tax advantages

Yes, rental income is taxable as ordinary income. But for those who use Self-Directed IRAs, holding real estate within an IRA allows you to defer those taxes until they take distributions. If it’s a qualified Roth account, distributions are tax-free!

The combination of real estate with the tax advantages of retirement accounts such as Self-Directed IRAs is a potentially powerful investment engine. But if you want the tax advantages to stick, you have to follow a few basic rules to avoid IRS penalties. Running afoul of them even once could cause the IRS to revoke the IRA status, resulting in big tax penalties.

Self-Dealing Rules

The first thing to understand is the prohibition against self-dealing. That is, using your IRA property for your own personal benefit, or the benefit of your own family.

Under the law, your IRA is holding your property in trust for you for the purpose of contributing to your retirement income security. If you begin appropriating the property for your own immediate short-term use, that creates a conflict of interest for your IRA. It also short-circuits the original purpose of the IRA itself: Congress grants tax advantages to IRA accounts because taxpayers have to give up current consumption to contribute to IRAs.

For this reason, if you own real estate within an IRA or other self-directed retirement account, you cannot stay in the property yourself, personally. Additionally, you may not provide services to the property such as maintenance.

You also cannot make the property available to your spouse, parents, grandparents, children or grandchildren. You can’t even make your property available to any advisor who provides you advice on your IRA, because of the potential for conflict of interest.

Taking the rules a step further, your IRA cannot take a loan from you, and cannot lend money to you or any of the people described above. You cannot pledge assets in your IRA as a collateral for a personal loan (though your Self-Directed IRA can borrow money on a non-recourse basis – as long as the proceeds remain within the IRA).

Furthermore, you cannot mask yourself behind an entity you control. For example, you cannot hold a property in a Self-Directed IRA and have the property hire your corporation to do remodeling, landscaping, lawn maintenance, or anything else. The same goes for any corporations controlled by your spouse, parents, or children or your spouse’s parents or children. For more information, see IRS Publication 590, or click here.

FAQs

Can my Self-Directed IRA buy or sell property from or to myself or my family members?

No. Your IRA cannot conduct transactions directly with you, your spouse, decedents or antecedents, outside of contributions and distributions.

Do nieces and nephews count as family members?

No. Curiously enough, there’s no rule against renting the property or granting use of the property to brothers and sisters and their descendants. The law only prohibits your IRA from doing business with or benefiting your spouse, decedents and antecedents, your advisors and their spouses.

Can my brother and I both own vacation rentals within Self-Directed IRAs and allow each other’s family to stay in the house?

Technically, yes. But we wouldn’t recommend it. The IRS could possibly challenge it, and courts have generally taken a dim view of attempts to circumvent the spirit of the law.

Can I take a salary for managing my property within a Self-Directed IRA?

No. The same goes for your parents, spouse and children. This would violate self-dealing rules. Utilizing a property manager is the safest method for managing your IRA owned real estate. They can take care of evictions, collections, and send the profits to your IRA. This keeps everything at arms length for you.

Can I take money out when I sell the property within a Self-Directed IRA?

Sure. But it would be counted as a distribution, and taxes and penalties would apply, just as it would for any non-Self-Directed IRA.

Do I pay capital gains tax on property held within a Self-Directed IRA?

No. Capital gains tax does not apply to property held within IRAs. The cash proceeds just remain within the IRA. When you distribute the proceeds, it is generally taxed as income (minus an allowance for any basis you may have accrued as a result of non-taxable contributions). Of course, if you funded a Self-Directed Roth IRA with after-tax contributions, and the money’s been in your Roth IRA for five years or longer and you have reached 59 ½ , then the proceeds are tax-free!

Are there other taxes I should be aware of?

Yes. Your profits won’t be subject to ordinary income tax or capital gains tax as long as the assets remain within the Self-Directed IRA. But if you used debt to finance your purchase, you could be liable for something called unrelated debt-financed income tax. In a nutshell, the portion of your profits that can be attributed to leverage is subject to this tax. For more information on unrelated debt-financed income tax, see 26 U.S. Code Section 514.

 

 

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Real Estate in Recovery, but With Room to Run

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Self-Directed IRA | Real Estate RecoveryIt’s been a rough six-year stretch. But it looks like the real estate sector is finally well on the road to recovery.

We’ve seen a broad increase in average home prices in almost every major market across the country over the last 18 months or so. A slowly improving credit market, some very slow but fairly consistent hiring numbers and gradually recovering wages are feeding into a nationwide and even global real estate recovery.

That said, prices are still well below their peak levels. The Case-Shiller House Price Index indicates that house prices have recovered about 50 percent of the way from the trough to the (overvalued) peak levels of 2006-2007.

Furthermore, of the approximately 350 metro markets nationwide, 59 have returned to or exceeded their last normal levels of economic and housing activity. Which suggests that we have some room to run left, in some of these markets that have been lagging.

The best opportunities won’t be going to the indexers and the mutual fund holders, though – who can, in the aggregate – get only average returns at best.

Instead, the best opportunities in the real estate recovery are going to go to those who are the most successful at identifying and purchasing homes selling at a substantial discount to market value.

Think about it: If you buy a broad REIT open-end index fund and stick it in your IRA (thereby sheltering that nice REIT income from federal taxes, at least until you retire), you will be buying real estate right about at its current aggregate market value, by definition. You may be able to get a bit of a discount using closed-end funds, which usually sell at a modest discount to their net asset values. But those discounts are puny compared to the discounts that successful and experienced Self-Directed IRA real estate investors can get by placing their bets carefully, finding motivated sellers, and identifying ways to add value to individual properties. It’s not unusual for these investors to find homes and other properties selling at 20, 30 and sometimes 50 percent off.

This is the key to market-beating returns, in the long-run, and across all asset classes. Warren Buffett has bought almost every asset class under the sun at one time or another, and he’ll tell you the same thing: Look for opportunities to buy at discounts to intrinsic value.

Real estate, of course, is no different. And it doesn’t matter what your strategy is. Are you a fix-and-flipper? Your returns, in the long run, will depend on your ability to buy homes at an attractive price from motivated sellers. Only then can you reliably add value to bring your property back to the mean.

Are you a long-term, buy-and-hold rental income investor? Buying at a discount will increase your cash-on-cash yields substantially, compared to buying the same property at full price.

In many ways, the Self-Directed IRA is an ideal place for you to hold real estate assets: Real estate investing frequently generates substantial streams of rental income, which you may want to defer (using a traditional IRA) or allow to compound tax free, which you may be able to do using a Roth account, provided you meet the income requirements for eligibility.

Furthermore, you can increase your potential overall return using leverage within your Self-Directed IRA, under certain conditions. (Note: Using leverage could expose your IRA to a special tax on unrelated debt income. Consult your tax advisor for more information).

You can also self-direct other accounts, such as Simplified Employee Pension Plans (SEP), SIMPLE IRAs, Solo 401(k)s, and even Health Savings Accounts!

If you are an experienced real estate investor, or otherwise curious to learn more, you won’t want to miss our upcoming seminars on Getting Started in Self-Directed IRA Real Estate Investing.

Indeed, you won’t want to get started without us!

 

 

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*Live* Charlotte Event – Advanced Real Estate Concepts

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Presenters: Jim Hitt and Sean McKay

Click here to Register.

Details:

Do you ever wonder how investors realize tremendous rates of return with minimal investments?

At this *live* event you will learn about some of the advanced tools these investors are using including:

• LLC’s
• Options
• Wrapping Mortgages
• Partials
• And so much more…

Click here to Register.

*Live* Charlotte Event – Growing Your Retirement Account with Real Estate

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Real Estate IRA

This is a *live* event in our Charlotte, NC office.

Click here to Register.

Join us for this intermediate class and learn how to grow your Self-Directed IRA with Real Estate!

Topics covered include:

  • Prohibited Transactions
  • Disqualified People
  • Specific Strategies
  • Case studies that clients are using to grow their retirement account

Click here to Register.

Events

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