Tag Archives: Real estate IRA investing

The Importance of a Real Estate IRA/Self Directed IRA Custodian

Are you interested to take part in different type of investment other than traditional ones like stocks, bonds and mutual bonds? How about trying real estate IRA investing? Are you looking for a real estate IRA/self directed IRA custodian to help you around?

Every IRA account must comply with the rules of IRS. The real estate IRA/self directed IRA custodian can help you understand the rules more. They will not only provide you the rules of IRA real estate investment but they will also help you process the documents needed in this investment. Therefore they are the administrator of your retirement plan.

Even if you have full control over your investment portfolio, the real estate IRA/self directed IRA custodian will still help you out to process things easier. An investor cannot process alone his investments especially if he is new in the investment industry. If you have an experienced custodian beside you then the work load will be lessened.

There are two types of custodians that you need to know about because they have dissimilarities when it comes to customer- service they provide their clients. The custodian that do not provide advices to their clients is called passive custodians. What they can do for you is to ensure that your investment will comply with the rules of IRS. On the other hand, active custodians provide his clients advices as well as offers investment products.

The custodian and the investor are partners to gain success in an investment.

If you have made your mind that you will take part in real estate investment then you must make sure that your chosen real estate IRA/self directed IRA custodian is well experienced in the investment industry. If you want to manage your real estate investment in an orderly and timely manner then you must consider the steps below.

1. It is the realtor who writes the sale agreement but when a property is bought it is under the name of the chosen custodian.

2. Investment authorization forms is needed to be filled out, make sure that your IRA custodian is with you if you do so.

3. Present the paperwork to your IRA custodian for analysis.

4. For safe keeping purposes the custodian will be the one to hold on to the deeded property as well as other important documents.

Careful assessment is needed before you transact with a custodian because there are a lot of important things that you will be entrusting him or her. Make sure that they are well experienced when it comes to IRA real estate investment. It is also okay to run a background check just to make sure that they are not fake custodians.

Custodians are not that difficult to find but you just not lack judgment in dealing with one. The presence of a custodian is still important because they will help you avoid getting penalties. Your chosen custodian makes sure that you will not only comply with the rules of IRS but you will also not do any prohibited transactions such as “self dealing”. Make the right choice by investing in real estate to improve your investment returns with the help of a knowledgeable real estate IRA/self directed IRA custodian.

If you need more info on Real Estate IRA Self Directed, AES (a leading real estate IRA custodian) would be happy to help you. They’ll spend the time with you to structure the Self Directed IRA or your Real Estate IRA Self Directed to fit your specific needs. Visit http://myrealestateira.com or call us at 888-683-5228

Real estate IRA Self Directed IRA Alternative

Because of the fiasco caused by the Madoff case – including some unpublicized cases – many retirement account owners have shifted to self directed IRAs. This is considered as a safe investment strategy because it gives owner total control over the administration of the account. It should, however, be noted that the majority of investment advisors and brokers have produced good, if not exceptional results for their advisees. These fund advisors, brokers and administrators, being in the industry of investments, make it their business to be always kept abreast of profitable ventures. This dilemma is what faces owners of self directed IRA accounts because the accounts require a great deal of research and leg work.

Lately, however, in real estate IRA, self directed retirement accounts owners have found in its investment very promising prospects because of its non-traditional nature and flexibility. Real estate IRA investing allows the account owner to purchase for the account a wider variety of instruments such as tax liens, mortgages, personal loans, raw land, foreclosures, homes and rental properties. This is opposed to the traditional retirement fund investments in the traditional retirement accounts that are limited to stocks and bonds as well as the money market.

Also in real estate IRA, self directed retirement account owners are able to realize profits inside the fund with the benefit of untaxed income. For instance, an account owner purchases a foreclosed property with the account’s cash at a rock bottom prices. This is the time to do it because banks, at this point in time, are anxious to liquidate their foreclosed properties. After the sale has been consummated and the property, say a commercial building, is transferred into the account, the account owner can commence leasing out the commercial spaces. All of the rental income collected from the lease agreements go back into the account. Similarly, all expenses related to the maintenance as well as other incidental expenses are taken from the account. All of these transactions, while reported to the IRS, are untaxed simply because they are done in the retirement account.

Evidently, when investing in real estate IRA, self directed retirement accounts have the advantage of security of investments. Comparing it with stocks, bonds and the money market, real property is a tangible proof of your investment and has always established its capability to appreciate in value over time. However, real estate IRA investing is for long term because although price appreciation is almost always assured, such does not happen overnight. In contrast, the traditional retirement fund investments can double its value over a span of days and just as quickly fall. Real estate IRA is obviously the choice for retirement funds that have a many years to go before withdrawals are made.

When investing in real estate IRA, self directed retirement account holders need to remember to abide by the rules and regulations set forth by the IRS or they lose their tax benefit. The most important thing is that real property investments could not be used for personal consumption by the account owner or his immediate family, ascendants or descendants. The acquisition of real property in IRA is therefore for the sole purpose of generating income for the account. Violating these rules will make you liable for regular tax rates which can set your retirement back considerably.

For more information about Real Estate IRA Self Directed and other important business topics and for legal consultation, please visit our Real Estate IRA Self Directed website at http://assetexchangestrategies.com or call us at 866.683.5228