Are you getting your piece of the incredible profits available from foreclosure opportunities?
Right now the investment window has never been better.
However, you know the old saying, it takes money to make money;
Perhaps you have thought about using your IRA but did you know that the old fashioned IRA is NOT real estate friendly?
Congress recently created a much better plan to use which I call the Real Estate K plan.
This is a self administrated individual 401k plan that is very friendly for real estate investing.
Here are 3 examples of the flexibility of this state of the art plan.
Number One:
Steve and Jenny want to use their IRA’s to invest into the same property?
The IRA tax code says “oh no you don’t because you are related to each other”
The Real Estate K plan does away with this problem because ALL of the retirement monies for both Husband and Wife are pooled together into a specialized checking account at their favorite local bank.
So, now the Steve and Jenny may have enough money to pay cash for the house and having cash may even negotiate a better price with the bank?
Number Two:
Steve and Jenny decide that they want to be full time real estate investors. Where will the seed capital come from?
The Real Estate K plan to the rescue!
Both Steve and Jenny can borrow from their plan…up to 50% of their individual account balances to a max of $50,000 each. Now they have their very own credit line and can use these monies to snatch up those deeply discounted bank owned properties.
Number Three:
Steve and Jenny would like to add their personal money into the same property as their retirement plan.
As a part of their Real Estate K plan Steve and Jenny have a Tenants in Common legal agreement.
This will allow them to invest their own funds into the same property as the Real Estate K plan. When the property is sold they will pay taxes based upon their portion of ownership and their K plan will realize its portion of the profits
So let’s assume that they split ownership with the plan 50/50. When the property sells the profits will be distributed half to them and half to their plan.
Why is all of this possible when it absolutely forbidden to do these things in an IRA?
Because the Real Estate K plan is governed by a totally different section of the tax code and that folks is very good news for real estate investors!
David Cole is President of Financial Design Group, LLC and for the last fifteen years has advised tax professionals, Realtor’s and investors on the pros and cons of using retirement monies to invest into real estate.
If you are sick and tired of being told NO you can’t do that with your IRA, then it’s time to discover a wonderful gift from Congress. Serious real estate investors realize the importance of having 100% total control of their retirement monies! For an eye opening report please visit his website at http://www.RE401kplan.com
David_A_Cole
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Tags: Foreclosure, Lease, real estate investing
