Monday, February 9, 2009

Real Estate in Your IRA?!

As an introduction to the next subject, below is an introductory article by Mr. Callahan:

Real Estate in Your IRA? Self Direct and Take Control!

By Jack M Callahan, J.D., CFP™

If you haven’t heard about buying real estate inside your IRA, your first reaction might be, “You can’t do that!” Despite the attention, including articles in Business Week (Nov. 18, 2002; Aug. 2003), The Wall Street Journal (Dec 18, 2002; Jan 15, 2003), and other publications, many investors today still do not realize they can invest their retirement plans into real estate. Many feel “trapped” in their stock market investments due to common misconceptions about the types of investments that are permitted within IRAs and other retirement plans.

It’s all about the Custodian
The widespread misconception that permissible IRA investments are limited to stocks, bonds, mutual funds, and Certificates of Deposits is a result of people and companies who are in the business of selling these products. The IRS requires that you have an approved custodian for your IRA or other retirement plan. The IRA custodian for the vast majority of investors is a bank, brokerage firm, or mutual fund company – the companies who are in the business of selling investment products. These custodians simply choose to limit your IRA investment choices to the products they sell. The widespread misconception is that these limits are placed on IRA investors by the IRS, which is simply not the case. The only investment types that are prohibited by the IRS rules are collectibles, such as artwork and antiques. The IRS rules allow you to invest your IRA into real estate, lend your IRA as a mortgage loan and many other investment alternatives - AS LONG AS YOU HAVE A CUSTODIAN THAT IS WILLING TO ALLOW THESE INVESTMENTS!
As a truly self directed IRA administrator Entrust of Tampa Bay, LLC does not sell any products, does not give investment advice, and does not limit your IRA investment options. With a truly self directed IRA from Entrust of Tampa Bay, LLC you are able to “Unlock Your IRA” and invest in rental property, rehabs (fix up & sell), commercial property, raw land, pre-construction contracts, lease purchases or virtually any other form of real estate. All of the income from the investment goes back into your IRA and all of the expenses of the property are paid from the IRA, all without any taxes! You find the property, you make all of the decisions and your IRA reaps all of the benefits!

Jack M. Callahan, J.D., CFP™ is an Attorney, a Certified Financial Planner™, and Managing Member of Entrust of Tampa Bay, LLC.
RE/MAX EXPERTS - Commercial Division has teamed up with Entrust to offer this great benefit to our clients. For more information on self directed IRAs and purchasing commercial or investment property within your IRA, please contact Brett Vogeler at: 863-255-1613.
http://www.floridacommercialexperts.com/Real_Estate_IRA.html

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