Buy A Rental Home With An IRA


Yes, That Statement Is Correct

You can buy a rental home with one of your IRA’s. Financial Planners talk about diversification of your portfolio. Think that some Real Estate might be better than all in the Stock Market at this time. Start moving and check out Purchase with an IRA or as we have mentioned in the past, Purchase with a Reverse Mortgage.

When You Want To Check On The Newest Segments Of The Market, Go To An Expert

I did this last Saturday morning. Went to the Avenue of the Arts Hotel in Costa Mesa to hear Kaaren Hall, owner and founder and boss and jefa and patron, of As always, she did not disappoint.

In addition there was an excellent session on ‘”How the Tax Bill Affects Investors in Real Estate” by a member of the Robert Hall and Associates Tax Firm. They have a large “store” in Glendale so they must be good. Their speaker was excellent. A good contact. He stated that almost all Tax Preparer Software this year can calculate your 2017 tax and then hit another key, and you find out what your 2018 tax would be with the same facts.

Some Factors:

Personal Exemptions are gone, BUT so is Alternative Minimum. State and local taxes are capped, BUT the Standard Deduction has been doubled. Deduct interest on only $750.000 of new home purchase, BUT there is now a 20% deduction on Pass through income.

Back To IRA Rental Purchase

To do this purchase you need a self-directed IRA. No problem, find an IRA Custodian like Kaaren.

Some Info:

  1.      Positive cash flow is tax free.
  2.      Your IRA can use leverage, but loans must be Non-Recourse for Income Property. Find a specialist.
  3.      Gains are tax free.
  4.      No family member can benefit (straight lineal family) so can not rent to Grandpa and can not have son do repairs for pay.
  5.      For more info: IRS Publication 590
  6.      Check out UDFI and UBIT, some tricky taxes on income based on leveraged money, or something like that as I do not understand it.
  7.      Want to talk:  Kaaren Hall, 714-831-1866  or [email protected]
  8.      Kaaren also conducts an Orange County Real Estate Investment Group, check it out.

But More Important;

Last week Mitchell Nixon, a senior at Kansas State from Rancho Santa Margarita and Trabuco Hills High School (go Mustangs) and son of Kaaren Hall, won the weight toss at the Big 12 Indoor Track and Field conference meet. That is the Big 12 which is Big. Kaaren’s video of Mitchell’s throw is amazing, the technique is amazing, and anyone doing it is amazing. Be careful if you are ever at a meet, that ball is heavy.

The indoor version of throwing a 16 pound weight after spinning many times is called weight toss, while the outdoor version is called hammer throw. Yes, Mitchell won it. He tossed it 70.800525M beating the second place throw by less than an M which worked out to .7872 inches. So the two young men worked out forever, day and night, and the final difference between gold and silver was not even an inch. They say that sports are a game of inches, and it is true.

No comments yet.

Leave a Reply

More Information & Classes -