Self Directed IRA - Holding Real Estate

[SportsNut]

i would not have my IRA conected to my house in any other way.

You CAN'T have your house connected to your IRA. If you did, that would be considered "self dealing" and could invalidate the entire tax shelter of the IRA; meaning it all becomes taxable NOW. So yeah, don't connect your house and your IRA at all.
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Sprots Nut, I haven't been active in quite a while, but used to play with the RE thing quite a bit back in the day.

I've always thought the defaulted mortgages thing would be a hell of a market. Where do you find them? I talked to some guys a while back, but they were spread out across the country, it'd be way better to find some local to purchase.

I had mine with Mid-Ohio. Havent done much with it in 5 years or so, so dont know if they are competitive, but at the time they were very easy to work with.

Actually Eq Trust Co and Mid-Ohio are sisters or brothers; connected companies in some fashion. Mid-Ohio may just be the SEC variety of their brokerage company, but not sure. They share the same physical address: 225 Burns Rd, Elyria, OH.

Defaulted mtgs are a good way to go if you have the knack. Of course buying one by paying too much is the worst investment going too. Where to find them... well, it is like the ins agent who is getting a stream of quality leads, he doesn't usually divulge that source... but usually they are commercial or institutional lenders that do not want to own the property via foreclosure. You almost need to have a pretty wide circle, like mine is about 4-500 mile radius, in order to get enough of them to satisfy your needs. So it is really a specialty niche market and not really for the avg investor, truly. I've been fortunate on them though... I can seem to smell the good ones and haven't ever bought a loser, and some of the winners were.... well decent.


By decent, I am talking maybe 1000% return, but then those kind usually aren't a 100K investment; maybe 5K to 50K or 10K to 100K; on that order a few times.

 

[Sales71]

What is the concept ur talking about. I lost u.

 

[SportsNut]

What is the concept ur talking about. I lost u.

Which part did u get lost on...? This is a deep subject so best to know what part you didn't catch or u ask a specific question even better. Often times a question lets the party answering know what needs to be covered... (and I don't mean that in a smart-azz way...)

 

[whall]

OK folks, I need some advice on this.

I am, of course, very worried about the devaluation of our currency. I am also very nervous about the stock markets.

I am interested if anyone has advice about setting up an IRA which allows you to hold real-estate. There seem to be two ways to go. First, you can hire a trust company to do it for you, and pay fees everytime someone sneezes. The second alternative seems to be the establishment of an LLC company, which you control and manage, which is then considered an IRA, and which you transfer IRA money in to and use the money to buy real estate.

I understand that you cannot personally benefit from the real estate in the IRA, or risk it being deregistered.

Does anyone have any experience with this stuff. I am especially interested in any IRS horror stories in regard to this strategy.

My goal is to own low cost, high acreage rural land for 10 to 20 years. I am not looking to make a killing, I just want to get a portion of my IRA out of paper and into land.

I look forward to your advice.

Bob Barney
Compulife

Call Equity Trust and ask this same question. Before they will answer, they will have some questions from you. They are very helpful.

whall
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Sure. But who with? Anyone got any specific recommendations. Do any of you do this. Who do you do it with?

I'm a hot prospect here. I need details.

www.ira401kproperties.com then log on and give as much detail as you can and someone will give you the answer you are looking for with your options. whall
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Other than your percentages, you've got the idea. The IRS calculates a total RMD from all your qualified accounts. As long as it is met, they don't care where it comes from. The trick is when you have to start liquidating real estate to meet the RMDs. And the day will come, because the RMD is calculated to deplete the account right as your reach life expectancy.

A Self Directed Real Estate IRA and Checkbook IRA can invest in any form of Real Estate including:
Income Producing Property
Undeveloped Land
Agricultural Land
Off Shore Real Estate
Residential property
Commercial property
Industrial property
The RMD works just as would with any other type of account. The RMD has to be paid or you will get a big fat penalty. So you should know your exit strategy for non income producing raw land. whall
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Other than your percentages, you've got the idea. The IRS calculates a total RMD from all your qualified accounts. As long as it is met, they don't care where it comes from. The trick is when you have to start liquidating real estate to meet the RMDs. And the day will come, because the RMD is calculated to deplete the account right as your reach life expectancy.

A Self Directed Real Estate IRA and Checkbook IRA can invest in any form of Real Estate including:
Income Producing Property
Undeveloped Land
Agricultural Land
Off Shore Real Estate
Residential property
Commercial property
Industrial property
The RMD works just as would with any other type of account. The RMD has to be paid or you will get a big fat penalty. So you should know your exit strategy for non income producing raw land. whall
- - - - - - - - - - - - - - - - - -

Other than your percentages, you've got the idea. The IRS calculates a total RMD from all your qualified accounts. As long as it is met, they don't care where it comes from. The trick is when you have to start liquidating real estate to meet the RMDs. And the day will come, because the RMD is calculated to deplete the account right as your reach life expectancy.

A Self Directed Real Estate IRA and Checkbook IRA can invest in any form of Real Estate including:
Income Producing Property
Undeveloped Land
Agricultural Land
Off Shore Real Estate
Residential property
Commercial property
Industrial property
The RMD works just as would with any other type of account. The RMD has to be paid or you will get a big fat penalty. So you should know your exit strategy for non income producing raw land. whall
- - - - - - - - - - - - - - - - - -

Other than your percentages, you've got the idea. The IRS calculates a total RMD from all your qualified accounts. As long as it is met, they don't care where it comes from. The trick is when you have to start liquidating real estate to meet the RMDs. And the day will come, because the RMD is calculated to deplete the account right as your reach life expectancy.

A Self Directed Real Estate IRA and Checkbook IRA can invest in any form of Real Estate including:
Income Producing Property
Undeveloped Land
Agricultural Land
Off Shore Real Estate
Residential property
Commercial property
Industrial property
The RMD works just as would with any other type of account. The RMD has to be paid or you will get a big fat penalty. So you should know your exit strategy for non income producing raw land. whall

 

[Lady4Homes]

Were you able to get this accomplished? Let me know if you need information on this subject!!

I am a Realtor and Financial Planner specializing in Self Directed IRA's that are attached to real estate. It is a very powerful tool with many tax advantages, you just have to know what the rules are.