Let your IRA own property - The Park ...

Let your IRA own property - The Park Record

There are 5 comments on the Park Record story from Mar 4, 2011, titled Let your IRA own property - The Park Record. In it, Park Record reports that:

Jon Galane will give a seminar on how to buy real estate with an IRA on March 9 at noon.

Join the discussion below, or Read more at Park Record.

Thomas Jefferson

Springfield, OR

#1 Mar 4, 2011
"Experts agree:" hahahahahahahahahahaha you stooge.

West Jordan, UT

#2 Mar 5, 2011
As far as I've ever heard, you need to pay for the entire property in cash out of the IRA because the property can't be used as collateral for a mortgage, thus no mortgages allowed, not to mention the annual fees and potential transaction fees to the trust company (read ENTRUST) who is acting as custodian as your self directed IRA, not to mention the loss of any tax deductions, not to mention that all costs associated with the property need to continuously be paid out of the IRA, not to mention that gains are now ordinary income vs. capital gains, not to mention possibility of unrelated business income tax, not to mention all of the other prohibited transactions that can blow up your IRA and stick you with an enormous tax bill for your disqualified IRA on which you have to pay ordinary income.

So if you want to drain your IRA and go completely illiquid with your retirement funds, knowing that all of the income that you were going to take out is going towards utilities, property taxes, HOA dues, and insurance, etc. then this is a great idea. After the seminar, maybe you can buy some juice from deep in the jungles of Southeastern Mongolia that have until now only been known by the locals who have just barely begun sharing their secret with a select few individuals and you can be one of the first to know about it...if you can get 10 other friends to buy some too. Genius!

Draper, UT

#3 Mar 5, 2011
I could not determine whether this piece is an 'article' or an advertisement. It seems the 'reporter' has embellished a one-sided sales pitch from a financial agent with talking points cut and pasted from the agent's corporate website.

The author suggest that an IRA holder can immediately fund an IRA by 'adding a home' to the plan. That is incorrect according to current tax code. You cannot add your current home to your IRA. Neither you, your spouse, nor your family members (other than siblings) may have owned the property in question prior to its purchase by your IRA plan.

Retirement is a serious issue for most Park Record readers. IRAs are a necessary component of anyone's retirement, unless you belong to one of the few unions around that still has a viable pension program. Depending upon Social Security is naive and wishful thinking given that the entire program will be insolvent within twenty years.

For this newspaper to give away adspace to a real estate investment scheme without any critical understanding of how the Entrust Group profits as such is journalism that is lazy at best and collusive at worst.
PC Guy

United States

#4 Mar 5, 2011
With a diversified IRA, I own a few properties in a self directed IRA. There are many caveats, but also many benefits, especially to cash buyers in a depressed real estate market.

One thing for certain though, the WORST thing you could do is buy UTAH property managed by someone other than yourself. Time and again, the legislature has failed to protect investors by allowing management companies to comingle and otherwise steal outright funds belonging to owner investors. The lodging lobby has politicians ears.

Don't be a fool, don't use a management company or nightly/weekly or even monthly rental management companies in UTAH. They have a contract to STEAL your money in Utah, with virtually no recrimination.

If in doubt, just read past copies of the PARK RECORD over the years for the multiple companies that have easily stolen investors money with no retribution. I got that T shirt years ago, and have learned my lesson. Sadly, authorities remain non plussed by the millions of dollars siphoned off.

Wahiawa, HI

#5 Jun 10, 2013
It is your IRA. Manage it by yourself.


Tell me when this thread is updated:

Subscribe Now Add to my Tracker

Add your comments below

Characters left: 4000

Please note by submitting this form you acknowledge that you have read the Terms of Service and the comment you are posting is in compliance with such terms. Be polite. Inappropriate posts may be removed by the moderator. Send us your feedback.

Mortgage Discussions

Title Updated Last By Comments
News Q&A with John C. Williams, president and CEO of... (Oct '14) Mon RUN 7
News The Best Time to Buy a Home is Now (Mar '15) Nov 20 Molly1952 2
News Personal bankruptcies soar in financial crisis (Nov '08) Nov 19 barnabus 4
News Theft charge is linked to mortgage (Sep '07) Nov 18 DRZ 33
News Homeowners Insurance Can Cost You Twice as Much... Nov 18 hiphop4 2
News Rents top $3,000 at some luxury apartments in C... Nov 16 Linda 5
News Lawsuit exposes Bowling family feud Nov 16 DC Dave 5
More from around the web