IRA Investment in Real Estate

[kate]

I want to invest some money in real estate and I do not want to take loan from any bank. Recently I have heard that investment in real estate is going to pay me much more than what I invest now. Can anybody help me in my real estate investment?

[johnnuzzo]

You say you do not want to borrow money from a bank. But your title mentions your IRA.
Have your IRA borrow money from a bank. This is with NO recourse to you. Only your IRA is liable. Of course it must be a Self-Directed IRA or Self-Directed ROTH IRA. With the ROTH, all money going in is TAX FREE and all money going out is TAX FREE. Yoiu can not beat this.
There are banks that will lend just to your IRA for investmnet property only. The max LTV is 70% and the MAX loan is $400,000. Therefore your IRA can buy up to a $571,000 property, put $171,000 doen and borrow the $400,000. I think the smallest loan is about $50,000 so you smallest property would be about $71,000.
You need an independent Trustee. Then all you need is a driver's license and the latest IRA statement. The license proves the IRA is yours. Think of it: no W2s, tax returns, 1099s, no bull.
We can help you find the property and we can help you find the bank to lend to your IRA.
PM me for more information

I want to invest some money in real estate and I do not want to take loan from any bank. Recently I have heard that investment in real estate is going to pay me much more than what I invest now. Can anybody help me in my real estate investment?

[kavs]

One of the worst financial decisions you can make is to cash out your 401K. If you do, you’ll be faced with at least a 10% penalty. So if you had $100,000 in your 401K, Uncle Sam will take $10,000 as an early distribution penalty and you’re left with only $90,000.

There is a better solution to your foreclosure investment opportunity, one without a penalty. The property can actually be bought with your IRA. And, if you your IRA doesn’t have enough funds to buy the property outright, your IRA can actually get a loan. This is probably one of the best kept investment secrets. You can also collect information about IRA investment in real estate from various online sources.

[Greg]

Ahh. A first poster asks a question and another first poster miraculously has the answer and website to got to for salvation. Do I smell a conspiracy or is it just the spam burning?

[jcdykes]

There is also companies out there that help you to invest your IRA or Roth IRA money. The company that I use is Equity Trust Company. They are extremely thorough and on top of things. Very easy to work with. I would recommend them.

[johnnuzzo]

I think you meant to say Self-directed IRAs or Self-directed ROTH IRAs.
IRAs and ROTH IRAS can not invest in real estate. The Self-Directed ones can through a Trustee.
And even better than that is the fact that there are banks that will loan money to those Self-Directed IRAs and Self-Directed ROTH IRAs.
They will loan 70% of a purchase. The IRA or ROTH IRA comes up with 30% and the bank loans 70%. How sweet is that?
And there is no liability to the owner of the IRA or ROTH IRA as only the IRA or ROTH IRA is liable. No tax returns, no W2s, no 1099s, NO NOTHING!
For purposes of the above, all mentions of IRAs and ROTH IRAs should be with the understanding that they are SELF-DIRECTED through a third party Trustee.
Thanks and good luck!

[jcdykes]

"And even better than that is the fact that there are banks that will loan money to those Self-Directed IRAs and Self-Directed ROTH IRAs.
They will loan 70% of a purchase. The IRA or ROTH IRA comes up with 30% and the bank loans 70%."

One of the first things that was disclosed to me was that you can not purchase property that had debt attached to it. The only way I can think to get around that is to have a partner with your IRA. I believe that you would be walking a very thin line with the IRS if your IRA borrows money from a bank. I personally don't think that you would be over the line and into the black side of the grey area. That is just my take on it. Good luck.

[jessiesc]

The above is correct: it must be self-directed.

Also, not all self-directed iras allow this, so you must do your research.

Where ever tax related information is concerned, ALWAYS check with a qualified tax professional (of which I am not).

Best of luck.

[johnnuzzo]

I am not a tax expert and should not give advice, but when I see inaccurate information posted here, I must comment.
Someone commented that "not all self-directed IRAs" allow investment in real estate.
The self-directed IRA is YOU the owner of the IRA. If you want to invest in real estate you can. Or more correctly, your separate entity known as a self-directed IRA. You tell the TRUSTEE to buy real estate with your IRA. The TRUSTEE does all the paperwork. You can tell your TRUSTEE to borrow money in your self-directed IRA also to buy real estate. There is NO liabliity or RECOURSE to the owner of the self-directed IRA either.
Imagine borrowing money and not being liable. Isn't that how Donald Trump got rich? Only the actual self-directed IRA is liable.
For expert information, please go to:
www.entrustnortheast.com (http://www.entrustnortheast.com)
Better yet, call them and ask for Jamie. Our investment club uses her advice regularly.
They are one of the best Trustees out there and you will gain a wealth of information at this site.
The most exciting thing is you can use your self-directed IRAs to buy single family homes and then Lease With Option those homes. Please, let's check out information before we give it to others.

[jessiesc]

Perhaps I used a poor choice of words.

What I probably should have said was:
Not all IRA custodians permit self-directed ira investments.

I am not a tax expert and should not give advice...But you are.

inaccurate information posted here, I must comment.Always verify any tax related information with a certified accounting professional!

[TomAnto]

People, please don't pull money out of your retirement vehicles to invest in real estate. Keep you dollars in those accounts. The tax implications and loss of shelter status will not be fun to deal with. What about REITs? They are securitized similar to stock in a corporation. Could be a way to get the benefit of both worlds.

Just a suggestion, I really don't know the answer but it seems logical to me.