Thursday, March 23, 2006

Asheville Real Estate Journal 

Asheville Real Estate Journal

ECO Invest
The IRA, LLC, & the Self-directed IRA

in Asheville Real Estate Investment Portfolios

The self-directed IRA and IRA LLC (Limited Liability Company) are vehicles to invest in real estate. They come in two forms: tax-deferred and tax free. (See other descriptive articles archived at my BLOG) Problem is-- IRAs often simply are NOT used because many investors erroneously are told by their IRA trustees that they cannot use IRAs to invest in real estate.

I thought that myself until a few years ago I had the good fortune to meet a champion of investing in real estate who showed me how to use my IRA to my benefit.

I learned that the creation of a self-directed IRA or IRA LLC enables you to choose what you would like to invest your money in – it can be raw land, an ECO-development, or a sustainable building – for the ECOinvestor, all good news.

When setting up this option for investing, look into an LLC because it is flexible and you can add and subtract investment partners easily. Setting up an LLC and using an attorney who gives you an opinion letter stating whether the transaction is legal or prohibited. This is valuable protection for you. The traditional tax-deferred IRA allows yearly contributions to a tax-deferred account using your pretax dollars. You are not taxed when you deposit into your IRA. NOTE: You are taxed when you withdraw money upon retirement.

Many types of IRAs can be converted to self-directed accounts including: Traditional IRAs, Sep IRAs, Roth IRAs, 401(k)s, 403(b)s, Coverdell Education Savings (ESA), Qualified Annuities, Profit Sharing Plans, Money Purchase Plans, Government Eligible Deferred Compensation Plans, and Keoghs.

I can recommend that you interview and select a qualified expert to guide you through the process of setting up a real estate investment IRA. You may choose to begin by doing some research on your own. Here are a couple of good resources for more details.

Let me know if you would like more information


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