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Multifamily investments with your IRA Retirement Funds

Posted 06/16/14 by Multifamily Associates and filed under:

If you’ve ever considered moving your retirement funds into a self-directed IRA to purchase investment properties, here’s a great article from the CCIM institute on the subject:

Self-directed IRAs provide a twofold opportunity for CRE pros

http://www.ccim.com/cire-magazine/articles/323458/2014/03/real-estate-nest-egg

Other considerations

Often times retirement funds will not allow you to personally sign for a note, so a non-recourse loan is required.

Today is not as easy to get non-recourse loans and a guideline to use is 50% down payment.

This large downpayment requirement makes some think twice… but keep reading!

Two sides to the issue

In the past few years we’ve had a couple clients withdraw money from their retirement accounts and pay the taxes and penalties.

Why?

Once the money is out of your account you can now take losses on your investment properties to reduce your annual income.

You can also take money that would normally be taxed at a higher rate and invest in real estate and pay the reduce capital gains rate when you sell.

Best Advice today: BE READY TO ACT!

Today good properties with 7% or greater returns are not staying on the market long.

Just recently we had a few clients contact us about some recent listings and they sold in a few days…. the buyers were ready!

Contact us to get ready!

If you’re ready but unsure of the next step contact us for a private confidential planning session.