Real Estate in Self-directed IRA's.

Investors seeking alternatives to the volatile and low-yielding equities and bond markets will discover that they can use self-directed IRA funds to invest in land, rental income properties, commercial properties and entities such as limited liability companies that invest in real estate.

 Although most people do no know it, the IRS has allowed you to put your retirement savings into real estate since Individual Retirement Accounts were created by law over 30 years ago.  The rules governing what asset classes in which an IRA can invest in are exclusive - not inclusive.  That is, the IRS Code only specify asset classes in which you cannot invest.  Therefore, your permissible retirement investment opportunities are nearly unlimited - all within IRS rules.  The IRS only defines the following assets as excluded as improper IRA assets: life insurance contracts, collectibles and capital stock in an "S" corporation.

 Educate yourself by discovering more information today.  Visit the website of the Internal Revenue Service:  www.IRS.gov.  Locate IRS Publication 590 which explains the rules governing Individual Retirement Arrangements.  At page 41, the IRS states what you cannot do within an IRA.  Publication 590 does not state that real estate is one of the asset types in which an IRA is prohibited from investing.

Internal Revenue Code § 408

Internal Revenue Service Publication 590

Selecting the Real Estate:

In selecting real estate for an IRA, one important consideration over time is not to find oneself in the position of lacking enough funds in the IRA account to support the investment.  Rental or mortgaged properties can require additional funds due to variable mortgage rates, unexpected repairs, funds required for maintenance and revenue shortfalls due to rental vacancy rates or unexpected events.  These situations can result in penalties and potential problems in keeping the status of the IRA.  Investments with sum certain annual expenses can be the safest for an IRA.

Real Estate Investment Structure:  

 On a rolling basis, IMD forms limited liability companies as investment entities for the on-going acquisition of properties or projects.  This ensures that an inventory of suitable properties is available for investors prior to any private placement offering presented to a prospective investor.  These consistent acquisition activities enable IMD to act quickly to obtain properties at favorable market values so that the cost savings and property location benefits can be made available to investors.  IMD real estate investments are structured as limited liability companies (LLCs) and individual investors are the LLC’s members. 

 IRA Custodian and Qualified Intermediary.

IMD currently works in conjunction with a major financial institution as our preferred qualified intermediary.  The investment process is relatively simple.  Once the IMD real estate investment is selected by the investor and an IRA account is funded in cash at this major financial institution, the financial institution funds the acquisition.  The account set up and funds transfer process is assisted by our staff.  

If an investor is not a client of this major financial institution and the existing custodian will not allow investment in real estate, the existing IRA account or the cash equivalent to the real estate investment can be transferred to a new account established at this major financial institution.

 Create your self-directed IRA today or use existing self-directed IRA funds to invest in real estate.  Improve the long term performance of your investments and take control of your future.