| Purchasing Land in Your IRA |
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In 1975, as part of the Employee Retirement Income Security Act (ERISA) and the creation of IRAs, self-directed IRAs were also permitted. “Self-directed” means that you make the investment decisions about your retirement assets—in much the same way you may invest outside your retirement plan. With a self-directed IRA, you are able to purchase a wide variety of assets including real estate, mortgages notes, tax liens and even private businesses. Yes, there are some restrictions and prohibited investments, so recommend consulting with your CPA or a Self-directed Custodian like MySelfDirect. Custodians hold title to the assets in your IRA. These companies are federally regulated trust companies and commercial banks and most of them only hold listed stocks, bonds and mutual funds. Only a small number of these custodians are interested in holding title to assets like real estate. Yet, certain types of real estate assets like pre-developed land are typically very low risk while providing a very high return opportunity. In fact, earning potential using real estate inside an IRA has caused many individuals and small business owners to rethink their current retirement strategies. David Nilssen, co-founder of Guidant Financial Group Inc, conveyed, “I can’t tell you how many people I talk to everyday who say they wish they had heard about this strategy three or four years ago. People can see the power of real estate. It is more real than stocks or mutual funds. You can touch it and see it.” Nilssen’s company, Guidant Financial Group Inc, specializes in IRA facilitation. Their purpose is to help average people get started in non-traditional IRA investments like real estate. “It is rewarding to help people whose retirement savings have been devastated by the bear market recover their savings through non-traditional investments I have personally lost a great deal of money in the stock market, so I can empathize with the powerlessness one has over Wall Street.” Using leverage inside your IRA can be very complicated. Using a qualified Custodian, who can help you through the process of switching into a Self-directed IRA and provide a network of professionals familiar with IRA investing, is very important. Nilssen specified, “If you decide to invest with a Self-Directed IRA, don’t try to do it yourself. Use a professional to handle the process and avoid the severe penalties of doing something incorrectly.” LandDiva has partnered with MySelfDirect—a premier self-directed custodian and administrator who specializes in handling real estate assets. MySelfDirect helps you establish your Self-directed IRA; communicates with your previous custodian to enact roll-over or transfer of funds to new Self-Directed IRA; receives, documents, and reports all deposits; distributes, documents, and reports all disbursements; reviews suitability and paperwork for all your proposed investments; send funds to as directed by you; and provides all governmental filings. With MySelfDirect, the purchase real estate in your IRA is simple and transparent. All you need to make is a single phone call and we can help you open a self-directed IRA account online today. |
