#besttamparealtors Thinking about buying Tampa Bay Investment & Rental Homes in Self Directed IRA 401k? Heres what you need to know ift.tt/eA8V8J There are many Tampa Bay area homes for sale. Click here to perform a full home search, or if youre thinking of selling your home, click here to learn about our “Your Home Sold Guaranteed in 29 Days” program or for a free property valuation so you know what your home can sell for in today’s market. You may also call me at (813) 359-8990 for a FREE home buying or selling consultation to answer any of your real estate questions. This show is for those people who want to buy an investment property through the Self Directed IRA 401k. Listen as Andrew Duncan, Tampa Bays #1 Realtor talks about it with Paur Arrington from Arrico Real Estate and Property Management on The Duncan Duo Real Estate Show on 970 WFLA. Paul starts off to say that one major rule of the IRA is that the property must be managed by a 3rd property and not self managed, otherwise it wont qualify. He suggests that people who are planning to invest in a property this way, that it is important to talk to the IRA people first and do some research to know what the rules and regulations are, get with Andrew Duncan to buy the property then have Arrico Property Management to manage it. Andrew explains that part of the reason why they want a 3rd party to manage the property is that they dont want you to give in your personal time, energy and money. The IRA needs to pay for everything, collects all the rent, etc. While you control the asset, you can decide to sell it or not, but you, at that point, will not be completely involved and the property will be the IRAs. While the IRA is yours, the rules are completely different. It needs to operate as a completely separate entity and although you get the financial benefit from it, you dont get the property management control. Andrew believes that there are a lot of opportunities for people to go into this type of investment and take advantage of all the benefits of owning real estate while also being cautious to not tie up capital on this. He also says that although there are a lot of people who should do it, there are also a lot who shouldnt do it. If you need access to the money at some point then real estate probably wont be the right path for you. There are a lot of people who dont realize how strict the IRAs rules are. Some examples are that you cant rent out to family, you cant give breaks, you have to get market rent, and more that you cant do if you own property in an IRA. Another thing is that you have to have to title it the right way. He shares that they worked with a client before who went and bought the property himself and wanted to deed it to his IRA and it was a pain! He needed to get the whole name from the IRA 401k upfront and buy it through that, have the contract written the right way and it will be a lot easier to handle. Not following the rules and regulations could trigger all types of penalties and costs. Paul adds that it could be a major tax event if you dont do it properly. Andrew also points out that you should also know who your qualified intermediary party is, how long it has been owned, and make sure you do your research. You are entrusting these companies to handle a huge amount of your money so it is important to be very cautious and know who you are going into business to. For more Tampa Bay Real Estate news and advice, tune in to The Duncan Duo Real Estate Show on 970 WFLA - Tampa Bay every Sundays at 10 am.
Posted on: Fri, 16 Jan 2015 00:50:39 +0000
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