Optimax Investment

Can I get the lump sum now?

$34,764 lump sum.
Answer: No. It's a non-qualified benefit so the earliest I can receive it if 55, or if terminated.

Real Estate Investing in an IRA

American Real Estate Investments

Home Union

Putting your hard-earned IRA assets into a “self-directed” IRA can be a very good idea to grow long-term, tax-deferred or tax-free assets. But it doesn’t work for everyone.

With taxes going up for most people, you might be paying more attention to your tax-deferred retirement investing options, such as your Individual Retirement Account (IRA). And with property prices going up, you might ponder whether you can invest those IRA funds in real estate to both defer (or eliminate) taxes and earn a fair rate of return.

Here are a few things you should specifically consider if you think using an IRA to buy investment properties could work for you.

Eligible properties

The real estate you buy must be a business property, not a personal residence, second home or occasional rental. Also, you can’t use your IRA to buy a property you already own; it has to be a new purchase directly into the IRA.

If you wanted to buy a rental property, you would open an IRA custodial account, transfer cash from an existing IRA account — or possibly 401(k) — into the custodial account and then purchase real estate under the IRA account name. Very specific rules outline what you can and cannot do in funding and managing the investment, so make sure to get good advice on those rules.

You can also buy and sell real estate in a self-directed IRA if you are in the flipping business, but there are limits on how many you can do per year. The profits on any transaction would be tax-deferred or tax-free and allow your IRA to continue to grow with those tax advantages.

IRA investing concerns

You can’t get a traditional mortgage loan in an IRA, so you really need to have enough money in your IRA to purchase properties for cash if you plan on having the property as a long-term rental.

There are also costs to administering the IRA, so factor those into your calculations when penciling out any real estate investment. And you cannot write off losses or depreciation from any investment property in an IRA, so there won’t be the traditional tax savings you’d get on rental properties. Lastly, if you fail to comply with any of the rules, it may kill your IRA and cause you many tax penalties.

Financial considerations
Don’t put all of your IRA eggs into one basket. Too many people don’t properly diversify their retirement assets — present company included. It would be smart to talk to a financial adviser on how to allocate all your investment savings into different assets, based on your age and risk tolerance.

If you want to use your IRA to buy real estate, you need to understand what you can and can’t do. More key information can be reviewed at udirectIRA, which is a self-directed IRA custodian. And as always you also should get professional guidance from an accountant and lawyer.

Good luck!

What will I be doing?

Unordered Tasks

None

Ordered Tasks

Sell Eden 2

Calculate financial model for Eden2 sale

Manage Eden 2 Renovation

Sell Eden2

Gratefully receive the profit

Pay tax in New Zealand

Move the money to USA

Setup Optimax Investment LLC

Create financial plan to buy 5 properties

Create Optimax Investment LLC

Put money in a self directed IRA and use it to buy investment property

Buy 5 Rental Investment Properties

Research properties

Create a budget

Create a timeline

Buy the first investment property

Buy the second investment property

Buy the third investment property

Buy the fourth investment property

Buy the fifth investment property

Mallorca Modern Homes

Create the Mallorca Modern Concept

Develop the Concept

Learn how to manage a construction project

Create a budget

Create Mallorca Modern LLC

Create the First Mallorca Modern Home

Create an onsite office

Find a lot

Create the high level 3D design my self

Hire an architect to finalize the plan

Get the planning permission

Hire a landscaper

Project Manage the building process

Get the home build

Hire an estate agent

Sell the home

Scale the Mallorca Modern Business

Identify lots for two or three homes

Develop multiple homes

Identify lot for ten homes

Build gated community of ten homes

Identify Learning Gaps

What is My Personal Wealth Building Creed?

I will build wealth continuously and safely.

I will build wealth by placing integrity and ethics first at all times.

Building wealth allows me to become more of who I want to be.

I qualify for amazing opportunities, happily receive money, gratefully take profits, and accumulate weath rapidly.

Why is this the perfect vision for me?

I have a Professional qualification in design

I have local knowledge of Vista/Bonsall/Fallbrook to identify stunning locations

I love this area!

I use my design skills to design house and landscaping

I use my project management skills to manage the projects

I use my skill with numbers and spreadsheets to manage cash flow and equity

Who will I work with?

Catherine Dooley

Alpha Studio

Debra Carl Landscape

That Hutton - Luxury Real Estate Broker Thad Hutton Homes

Win-Win homes - Builder

Mitch Royal - investor/consultant/advisor

Using Financing to Buy Investment Real Estate

EDS NQ Retirement Benefit Analysis