IRA Financial Group, the leading provider of Self-Directed IRA LLC solutions, announces the finding of its internal housing report which showed self-directed IRA investors are discovering that there are not enough houses for sale to accommodate the recent flush of demand. The unusually low level of homes for sale is creating widespread problems for buyers and sellers alike, leading to bidding wars and bubble-like price jumps in places that not long ago were suffering from major declines. According to Jim Thomas, an IRA Financial Group client from Florida, home prices in his community have risen over 20% sine January, 2013. The sudden rise in home prices have put a squeeze on many self directed IRA LLC investors who have been frustrated by the lack of well priced real estate opportunities “We have heard from may of our self directed IRA clients who have been outbid by multiple investors bidding on the same property – something that did not happen in previous years,“ stated Adam Bergman, a tax attorney with the IRA Financial Group.
The IRS has always permitted an IRA to purchase real estate, raw land, or flip homes. “With IRA Financial Group’s self-directed IRA LLC solution, one is able to use tax-deferred funds to buy a home and all income and gains would not be subject to tax,“ stated Adam Bergman, a tax attorney with the IRA Financial Group. “As the manager of your Self-Directed IRA LLC, the IRA holder will have control over his or her IRA funds so that flipping a home can be made by simply writing a check,” stated Mr. Bergman. One major advantage of buying a home with a self-directed IRA is that all rental income generated by the property is tax-deferred until a distribution is taken (Traditional IRA distributions are not required until the IRA owner turns 70 1/2). In the case of a Self-Directed Roth IRA LLC, all gains are tax-free.
Unlike a conventional Self Directed IRA which requires custodian consent and requires high custodian fees, a real estate IRA LLC with Checkbook Control will allow one to buy real estate, including rental properties by simply writing a check. With a traditional custodian controlled self directed IRA, one will have total control to make a real estate purchase, pay for improvements, and then sell the property without ever talking to the IRA custodian. Since all the IRA funds will be held at a local bank in the name of the Real Estate IRA LLC, all one would need to do to engage in a house flipping transaction is write a check straight from the IRA LLC account or simply wire the funds from the Real Estate IRA LLC bank account. With IRA Financial Group’s real estate IRA LLC solution, no longer would one need to ask the IRA custodian for permission or have the IRA custodian sign the real estate transaction documents. Instead, with a Checkbook Control IRA, as manager of the IRA LLC, the IRA holder, will be able to buy rental properties simply by writing a check.