The IRA Club is an experienced provider of Real Estate IRAs. Our low cost and efficient service is ideal for investing your IRA in any type of real estate or other alternative investment.
Investing in real estate with a Self-Directed IRA is popular amongst many of our account holders. This strategy is not a new idea. The IRS has allowed Americans to own investment real estate in their IRAs since January 1, 1975. Today, it’s estimated that over 2 million people hold real estate in their Self Directed accounts. We want you to be informed and familiar with this type of strategy. Below are some topics and ideas to consider to see if this opportunity is right for you.
You can invest your IRA funds in just about any type of real estate. The most common type is income producing rental property.
Additionally, you can diversify your IRA to hold other types of alternative investments such as tax liens, hard money loans, and private stock.
There is no limit and it is not uncommon for a single IRA account to own several.
The two most common ways to fund your IRA Club account is from a transfer of funds from your existing IRA or a transfer from an old 401(k) or pension plan.
When your IRA buys real estate, your IRA goes on the deed. The IRA Club will assist you to make sure the title company has your closing documents vested properly. This is very important so that your investment income is tax deferred (or even income tax free).
All IRA accounts are income tax deferred (or income tax free in a ROTH). There is no income tax on the earnings and profits inside the IRA account. This allows the account to grow and compound much quicker that in the earnings were made outside an IRA account. There is no maximum dollar amount you can earn. Also, investment income is exempt from paying the 3.8% Affordable Health Care Tax.
All expenses of the IRA owned property are to be paid with IRA funds. The Internal Revenue Service does not allow you to pay those with your own personal accounts. It’s a simple process. Just fill out an IRA Club expense form and we will send the check or wire to the payee for you!
No, the property owned by the IRA cannot be used for personal reasons. It must be treated as an investment. The Internal Revenue Service would call this a prohibited transaction with a disqualified individual. The good news is that there are very few “disqualified persons”. Below is a simple diagram.
Do no comingle your personal assets with your IRA’s assets.
You or a family member cannot perform or invest any labor in the property. This is sometimes referred to as “sweat equity”.
If repairs need to be taken care of, call a local handyman or other professional.Lastly, you or a family member cannot rent or live on the IRA investment property.
All rent is deposited to your IRA. The earnings will accumulate so your IRA can make future investments!
Generally, just a few minutes! If you are a moving funds from an old IRA or 401k, please allow 15-30 days. This is important to know because your account must be in place and funded prior to making any transactions.
Call now to start your application! 888-795-7950