Do you want to know one of the smartest moves you can make these days? Use your IRA or 401(k) rollover monies to invest in real estate. Many investors do not know that qualified retirement money can be accessed to diversify investments with personal real estate ownership. However, you can:
• Own and occupy your dream home or condo.
• Purchase your own office space and recover the lease payments.
• Buy the investment property you have been eyeing.
No need to wait until you retire. There are companies that specialize in helping you explore beyond the stock market and traditional investments for your IRA or 401(k) rollover.
With their personal-ownership approach, the real estate is titled to you, the client, not the IRA. This structured process integrates and coordinates an IRA or 401(k) rollover with a real estate purchase. Therefore, you can receive the comprehensive outcome of returns and tax advantages that are typical of real estate ownership.
Have you dreamed of owning a second home?
Own the real estate you want today, OUTSIDE of your IRA plan.
According to the Investment Company Institute Research "there are approximately two trillion dollars invested in IRA's." Baby boomers and other wealthy people own a big bulk of this money. Many people have large estates, therefore have other assets to live on, and they will end up passing their IRA's to their family members down the road. These people have not discovered their family could pay as much as 70cents on each dollar they inherit. This taxation is in two forms, estate and income tax on these IRAs--Can this happen to you?
Here is a new sound program that will allow you to use your IRA monies to purchase real estate, either personally or by sharing ownership with others to enjoy, sell, rent or occupy. This approach takes a design (blueprint) that can save you thousands upon thousands of dollars in taxes and/or depreciation and other write-offs throughout your lifetime. CPA advisors are available to verify the accuracy and tax legality of your plan.
There are two ways to purchase real estate with your IRA
Many people do not know how to use their IRA monies to purchase real estate. The real estate purchase can be done in two very different ways. The real estate can be owned within an IRA plan, but there can be drawbacks here due to investment restrictions, custodial fees, and ultimately income and estate taxes. All proceeds must go back into the IRA. You cannot use IRA money to buy your own residence, or any property in which you live. In addition, if the real estate is rental property the investor can be required to appoint a property manager. Also, an IRA is controlled by the government's retirement plan regulations, such as; minimum and mandatory distributions, penalty taxes, transferability, just to name a few. Many people are not aware, when distributions are taken from an IRA; the distributions may be taxed in the owner's highest marginal income tax rate...
The second way is to own real estate OUTSIDE of an IRA. This is a more efficient method of ownership for many reasons. The owner can now take advantage of a full range of real estate tax savings and cost recovery strategies. Capital gains, income tax treatment, depreciation, more write offs, income tax basis and charitable planned giving opportunities are a few of the many advantages that are available. In addition, the government's retirement plan law does not apply since the real estate is owned outside the IRA.
An IRA can completely or partially fund a real estate purchase. You can own the property outright or share ownership with other IRA owners. You can buy a commercial building, land, second home, vacation home, condominium, rental property, etc. You can enjoy, sell, rent, or occupy the real estate of your choice either within the USA or on foreign soil, such as Mexico. If you were leasing a building and sending your lease payments to someone else, you could purchase the building and recover your lease payments.
This approach is new and different, many people have not heard or been informed that it is possible or that it even exists! There is more information available on how an IRA owner can use their IRA's to purchase real estate.
Simply put, there are companies that specialize in helping people look at their IRA’s and 401 (k) rollovers as a viable resource they may use today in purchasing property.
What they do is gather information from each client and then assemble that information on a model. They use the model to show how the client may use their retirement resources “tax effectively” and without the customary 10% early withdrawal penalty to assist paying their mortgage for the purchase of real estate.
The key is “tax efficiency.”
With their model they illustrate and verify how to reduce and or minimize the taxes normally paid in the “standard” distributions of these monies. By applying these distributions to the purchase of real estate, they use multiple “tax offsets” normally associated with real estate to reduce the tax liabilities through regular retirement distributions.
There usually is no cost or obligation for the client to contact them. They gather some basic information and then apply it to their model in educating each prospect as to the possibility of using their IRA or 401 (k) rollover monies.
Their approach is not “cookie cutter” one size fits all, but rather a custom “build & design” in the coordination and integration of their client’s retirement resources in their real estate purchase. The “build & design” aspect is centered on all of the individual information the client shares with them as well as information gathered from their questionnaire.
Simply put, they are freeing up a portion of these resources today to enable you, the client, to enjoy your new property, and in doing so, are making the real estate purchase part of your overall retirement strategy for the future.
The client decides.
Their objective is always to educate and illustrate how their program may work for the client based on the information obtained. They don’t have a “one size fits all approach”, and their program is not for everyone who may contemplate it.