Webinar: Checkbook Control
June 14, 2019
Investing
Introduction to Checkbook Control
May 31, 2019
Since the concept of individual retirement accounts (IRAs) was introduced in 1974, there’s been a lot of misunderstanding about how they work and what types of investments are eligible to be held.
From a strictly legal perspective, there are very few things that an IRA owner is prohibited from investing in with their retirement account. In fact, the IRS code only identifies life insurance and collectibles as prohibited investments. However, because such accounts must be held by third party custodians, it didn’t take long for banks and stock brokerage companies to realize that if they would act as the custodian, they could effectively limit what was offered through such accounts to only those investments which generated profits for them. In fact, custodial services are often offered by such firms for free or for fees so small that they don’t even cover the related administrative costs.
Continue reading…Overseas Adventure? Take Your IRA with You!
May 1, 2019
Whether it’s the lure of an affordable beachfront condo, or a hillside villa, more Americans are choosing to live either partially or fully outside the country now more than ever. Central America, including Costa Rica, has seen a sharp increase in growth of expats. According to an article quoting the US Ambassador to Costa Rica in 2017, over 100,000 Americans now live in Costa Rica alone.
Continue reading…Private Equity and Venture Capital in IRA Accounts
Alternative Investments Are Becoming More Common in Diversified Portfolios
A recent PEW Charitable Trusts study shows a sharp rise in alternative asset investment (ex., private equity, venture capital, or real estate) over the past decade among large pension and trust investors. From 2006 to 2016, funds have more than doubled their allocation to alternative investments[1]. These large fund professional managers are capitalizing on the return and correlation characteristics of this asset class. A recent trend in this class has been an increase in the relative percentages of private equity and venture capital as compared to real estate holdings.
Continue reading…Is it Still a Good Time to Lend on Fix & Flip Properties?
March 29, 2019
For several months there has been a steady drumbeat of news showing the housing market is slowing down and prices are softening. For investors buying rental properties for long term cash flow, this is not a concern and may be a welcome development so they can buy properties at better prices. However, the fix & flip strategy is impacted by lower prices. If you’re loaning money to flippers, a decline in housing prices can be a concern.
Continue reading…Common Misconceptions About 1031 Exchanges
March 1, 2019
There are several common misconceptions about the Internal Revenue Code 1031 exchange process. To keep investors on the right track and focused on what is important to that investor, let’s clear up a few of these most common misconceptions:
Misconception #1: To execute a 1031 exchange the investor may only file a form with the IRS and as long as the seller doesn’t utilize, spend or touch the proceeds from the sale of the property they are relinquishing, the investor can perform an exchange at any time.
Wrong! THIS IS FALSE. The investor may not have actual nor constructive receipt of the sale proceeds. This action will trigger a taxable event. Investors need to use a special non-related “middleman” called a Qualified Intermediary [“QI”] or Accommodator who is required to hold the sale proceeds for them and who then uses those proceeds to buy any replacement property at their express direction. Once the sale of the property the investor is relinquishing closes, funds must be directed to the investor’s QI until the purchase or “up-leg” portion of the exchange is completed.
How to Get Double-Digit Returns in your Self-Directed IRA Without Ever Having to Own Real Estate
February 27, 2019
Finding the right vehicle for investing your IRA funds can be challenging. With the wide range of investment strategies, it’s hard to know which vehicle will provide the highest yield with the lowest amount of risk. Many self-directed IRA owners chose more common investments such as single-family fix and flips or rentals as their main investment vehicle for their IRA. While those provide decent returns, there is still an element of risk and liability because you have to physically own the asset. Not to mention you’re now dealing with tenants, taxes, and the cost of unexpected repairs on the property. While there is nothing wrong with these vehicles of investing, what if I told you there was an easier way to put your IRA money to work that offered security, collateralization, and double digit returns without ever having to own real estate?
A Guide to Real Estate Syndication
February 5, 2019
Introduction
Making a career out of investing in real estate is not exactly the easiest thing. Like a lot of investments, real estate investments tend to start out small before progressing into something bigger. However, this progression could take years and for the ambitious real estate investor, the idea of spending years of their career investing in turnkey rental properties doesn’t seem too appealing. Fortunately, real estate investors can gain the financial momentum to fast track their career via a concept known as real estate syndication For real estate investors looking to learn more about real estate syndication, this article will provide a complete guide to the concept to help them broaden their knowledge.
Self-Directed Regulation D Real Estate Fund Investments
January 3, 2019
You’ve set up a self-directed IRA account at Nuview Trust Company and you have or are in the process of deciding how to invest your IRA funds. For many investors they are interested in having exposure to real estate as part of their IRA portfolio. Through your self-directed IRA you may choose to invest directly in buying or owning a piece of real estate, while abiding by the limitations set for IRAs (generally restricting you from buying something for personal use or from transacting with certain members of your family). For many investors they choose to invest in a “fund” that is limited to real estate investments to achieve exposure to real estate.
