SDI-Power


All About IRA4HOMES

IRA4HOMES's picture
Name: 
George Z.
Location: 
Los Angeles and Orange County CA
About Me: 

Real Estate IRA (Rollover 401K) Investor

"Now That's Diversification"

Contact: Zuluaga@****

Interests: 
Real Estate IRA, Self-Directed Investing in Real Estate, Rollover 401K Investing

Topics I've Participated In

TitlePosterRepliesUpdated
LLC Benefits FDrake4123 years 37 weeks ago
Investing in Real Estate is the best way to make money Build_assets911 years 12 weeks ago

Basic Info

Occupation: 
Information Technology Manager - MBA
Education: 
Completed Post Graduate

Sites I Visit

Mainly Just This One

Guestbook

Can you give me any information on i.r.a. with mortgage in it?

I have an i.r.a. that is more than sufficient to payoff my mortgage but would rather do it without the taxes and penalties (which would basically eliminate the balance of the monies) if possible but cannot find anyone who can tell me how to do it.

I have been told by i.r.s. that any type of loan/investment must be "at interest" so I am hoping I can float myself a mortgage at 4% (or less) and get out from under my 7% existing/30 year fixed which is about 35-40% paid off.

The second thing I would like to do is do the mortgeage for an amount over the existing payoff on the old note (if possible) to get some working capitol for my r.e. business.

The current "property tax assessor's "assessment" is less than $500.00 of what I would want the mortgage proceeds amount to be.

I would greatly appreciate any help/direction I can get in this regard as if nothing else it would give me "some" breathing room each month.

Thanks:John Sims

IRA WITH MORTGAGE

IRA4HOMES's picture

John,

Please take this only as general opinion and get advice from a CFP who knows your unique situation.

Some IRA plans allow borrowing from your IRA to increase cash flow. A borrower would essentially be paying themselves interest (back into the IRA). Downside is, the loan is paid back using after-tax dollars.

Now back to the IRA scenario you described. A self directed IRA would be tricky for your objective because the IRS prohibits certain transactions. Self-dealing is what I believe they call this.

Increasing Cash FLow
Here's a possible option for some investors. Suppose an investor in a similar situation opens a self-directed IRA to buy income property. The rents from the property could go back to the IRA and an investor could take distributions penalty free after age 59-1/2. This would smooth out the taxable income over a longer period.

A Roth IRA is another Self-Directed choice for investors. The difference is they could purchase income property and have access to their after-tax money if the Roth has been open for at least 5 years.

IRA and Business Investing
An investor can use IRA money to invest in a business. The key is to stay within strict IRS guidelines regarding direct involvement and operations of the business.

where and how can we set up a self directed ira

hesavedpdl's picture

george . I'm in okla. my wife and need to rollover the money she has in her 401k. do you know who or where we might go to do this so that we can use this money for investing in re .

also do you know how we can gain access to investors 401k and use others money to invest from there savings and 401k account

any help would be greatly appreciated

my email is hesavedpdl@**** or you could PM me from this site
THANKS SO MUCH DEAN

interested

My husband has his 401 in a low paying cd, how would he do this?

Self-directed IRA

Just type in self-directed IRA on google and you will get a few different companies that do them. There really aren't that many. If you go to thehardmoneypros.com they compare a few of them for you. Good luck.

Stephanie

Self-directed IRA

Hi,

Nice job on the IRA investment. I have an extensive knowledge on IRA investing and would like to share to the group that this is the way to go if one desires to retire wealthy. The ROTH IRA is the entity that allows us to do this. 401K's and traditional IRA can be converted to Roth IRA. However converting to Roth IRA is a taxable event but the gains compounded on the Roth IRA are tax free. I have a friend who heavily invest in RE using his ROTH IRA. He grew his 200K to 825K in a matter of 2 years .... tax free. If anyone needs to invest in the bay area using their Roth IRA funds, please drop me an email. I am a RE agent and most agents do not know about this strategy. Feel free to contact me. Thanks for your time.

MArcus