Stiff new foreclosure rules limiting real estate opportunities for self-directed IRA investors
IRA Financial Group, the leading provider of self-directed real estate IRA solutions announces the findings of a new report which shows self directed IRA investors across the country being impacted by the lack of available real estate inventory due to the recent stricter foreclosure rules. Based on interviews with a number of IRA Financial Group clients across the country, the number of available homes has plunged after state laws have subjected lenders to stiff new foreclosure rules and penalties. According to one IRA Financial Group client, “with banks reluctant to pursue foreclosure actions, many homeowners—including those seriously negligent on their loans—have been allowed to remain in their home.” Accordingly, many of the self-directed IRA clients have reported that there is little on the market at a time when real-estate investors are anxious to tap both cheap prices and low-interest mortgages.”
According to several IRA Financial Group clients, the new stricter foreclosure laws being adopted in many states, such as Florida and Nevada, which were intended to cure foreclosure-processing abuses, has actually backfired. “What has in essence happened is that some owners who are behind on payments aren’t maintaining their homes as banks refrain from eviction proceedings, which has created real estate Inventory shortages,“ stated Adam Bergman, a tax attorney with the IRA Financial Group.
IRA Financial Group’s Self-Directed IRA for real estate investors, also called a real estate IRA with checkbook control, is an IRS approved structure that allows one to use their retirement funds to make real estate and other investments tax-deferred and without custodian consent. The Self-Directed IRA LLC involves the establishment of a limited liability company (“LLC”) that is owned by the IRA (care of the IRA custodian) and managed by the IRA holder or any third-party. As manager of the IRA LLC, the IRA owner will have control over the IRA assets to make the investments he or she wants and understand – not just investments forced upon you by Wall Street.
The IRS has always permitted a IRA to purchase real estate, raw land, or flip homes. “With IRA Financial Group’s self-directed IRA LLC solution for real estate, investors can make real estate purchases and generate income and gains while deferring the tax on the income or gains, stated Mr. Bergman. “Many of our self-directed IRA clients are optimistic that when the banks begin again to pursue foreclosure actions, significant inventory will be added to the real estate market and will offer exciting buying opportunities,“ stated Mr. Bergman.
With IRA Financial Group’s self-directed IRA LLC for real estate instead of buying real estate with personal funds and being subject to tax on the income or upon the disposition of the asset, using retirement funds will allow one to buy real estate, including rental properties without paying tax immediately.
The IRA Financial Group is the market’s leading “checkbook control real estate IRA Facilitator. IRA Financial IRA Group has helped thousands of clients take back control over their retirement funds while gaining the ability to invest in almost any type of investment, including real estate without custodian consent.