Self Directed IRA - Holding Real Estate

[Robert Barney]

The one I am really wondering about are the outfits who help you set up what they call a check book LLC. The LLC becomes the IRA and you can buy and sell real estate within it.

Self Directed IRA | Real Estate IRA | Small Business Financing | Guidant Financial Group, Inc.

Real Estate IRA LLC | MyRealEstateIRA.com

Anybody here do one of those?

 

[iravest]

Robert, If you are an accredited investor you can review opportunities at IRAvest.com(promissory notes and properties for sale) Also, to find companies in this space to help you with custodians, administrators, accountants etc @ IRAvestor.org

~Iravest

 

[Freedom_Growth]

Robert, my firm specializes in owning real estate through IRAs, 401(k)s and LLC IRAs. We are NOT a custodian or trust company, but work with a range of custodians to provide our clients different options that match their investing goals. Please check us out at Freedom Growth.

If you need any help or have any questions, don't hesitate to email me.

Dave ([email protected])

 

[njh_lfg]

How old are you and what is the strategy you plan on using for these real estate holdings?

I have a number of clients with self-directed IRAs so I am rather well versed.

 

[Robert Barney]

How old are you and what is the strategy you plan on using for these real estate holdings?

I have a number of clients with self-directed IRAs so I am rather well versed.

I'm 57, plan to put 1/3 of my money into real estate, and never plan to actually retire.

 

[Full Throttle]

Worst case scenario I could always put a mortgage on it - right?

I'm not saying not to do it, just posing some questions. I don't know enough about self directed IRAs or your situation to give meaningful advice. One risk in that strategy is, what if interest rates rise significantly when you need to mortgage the property? Maybe premature, but another thing to consider when the time comes is passing what remains in the IRA to the next generation and the liquidity issues involved.

Not trying to be negative, in fact, just the opposite. I can see the appeal of doing something like this.

 

[Norwayguy]

Robert...Who calculates the value of the Real Estate annually for the purpose of calculating the RMD. I would assume it would have to be a third party just wondering the costs....I've also heard of people doing this and always wondered about the exit strategy.

 

[VolAgent]

Robert...Who calculates the value of the Real Estate annually for the purpose of calculating the RMD. I would assume it would have to be a third party just wondering the costs....I've also heard of people doing this and always wondered about the exit strategy.

This seems like the negatives are going to outweigh the positives.

If nothing else, liquidate all the real estate as retirement draws closer. Even if you just moved to a fixed annuity, you'd probably do better off when you consider how much you'd save on accountant and attorney fees.

 

[Robert Barney]

I'm not saying not to do it, just posing some questions. I don't know enough about self directed IRAs or your situation to give meaningful advice. One risk in that strategy is, what if interest rates rise significantly when you need to mortgage the property? Maybe premature, but another thing to consider when the time comes is passing what remains in the IRA to the next generation and the liquidity issues involved.

Look, if I only have 1/3 in the real estate, and the rest liquid, where is the liquidity problem. I am complete liquid now and the likelihood is high that Obama and his crew are going to devalue the dollar sharply. Currently the world is beating a path to buy gold. In my view it is overpriced and silling. On the other hand, I can buy this:

Gradyville, Adair County, Kentucky land for sale - 220 acres at LandWatch.com
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Robert...Who calculates the value of the Real Estate annually for the purpose of calculating the RMD. I would assume it would have to be a third party just wondering the costs....I've also heard of people doing this and always wondered about the exit strategy.

Which is why I am asking the questions.

Why would I not be able to hold the land, in the IRA, at it's original purchase price?

 

[VolAgent]

Which is why I am asking the questions.

Why would I not be able to hold the land, in the IRA, at it's original purchase price?

Do you really think the IRS is only going to let you value the land at original purchase price come time for RMDs? As much as you dislike the IRS, do I even need to ask this question?