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Bob Nelson – Self-Directed IRAs

Today we’re going to talk about self-directed IRAs.

Featuring:
Bob Nelson, Eugene real estate investment broker

Bob Nelson: This’ll be my last presentation dealing with the self-directed IRA; the use of an IRA through a custodian that would allow you to select the asset that you’re going to be acquiring, and that asset could be real estate, rental houses, office buildings, apartment houses, whatever it would be.

Generally, look at it this way, it is not for your personal use, you’re not going to operate your business out of the thing. Instead, it will be a passive investment that’s leased to someone else that generates income. Now, that’s the general rule. There are ways of adjusting that, but you have to be extremely careful. What I’m talking about is the vanilla, straight-up deal.

Bob Nelson: Now, one thing. Let’s assume that you had $100,000 in your IRA, but you would like to buy a $200,000 rental property. That looks a little strange. You’re not going to be able to get to here from there. Is it possible for you to invest your IRA funds and also personal funds, where partially you own it outside the IRA, and your IRA owns the rest of it?

Yes, that’s possible. Be exceptionally careful with that, that it’s set up just exactly right. It’s an interesting process, because the income coming off of your IRA goes into the IRA account. The sale proceeds that are generated as you sell that property, the portion that, in our case, the 50% ownership possession, the sale proceeds go back into the IRA untaxed.

Bob Nelson: The other proceeds, of course, go to you, and they would become taxable just as any other investment. It’s important, though, that please understand, if you are borrowing money to facilitate the acquisition of a partial of property, that debt must be non-recourse, absolutely non-recourse, because the custodian is technically the one who owns the property, and they are not going to offer any form of recourse, where if anything goes wrong, the lender could look back to the custodian or the person who actually signed the mortgage to look for recourse.

So, there are opportunities to do that. Give me a call, I can tell you who to talk to.

Join Eugene, Oregon, real estate experts: Bob Nelson, Real Estate Investment Broker with Pacwest Real Estate Investments, and Marcia Edwards, Residential Real Estate Broker with Windermere Real Estate, daily at 5:30pm on KPNW for the “Real Estate Today” radio show.

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Licensed OR, WA, ID and AZ Real Estate Broker

Robert W. Nelson, CCIM, CRE

Real Estate investment Broker

Real Estate investment Counselor

Pacwest Real Estates Investments, LLC

Oregon Real Estate License #951200166

Washington Real Estate Broker – License #23361

Idaho Real Estate Broker – License #36106

Arizona Real estate Broker – License #BR6579400000

Serving the Pacific Northwest

Oregon, Washington and Idaho

I-5 Corridors of Oregon and Washington (primarily Eugene-Springfield, Salem, Portland, Vancouver, and Seattle)

I-84 Corridor of Idaho (primarily Boise)

Arizona

Greater Phoenix Area

Contact

Robert W. Nelson, CCIM, CRE

Pacwest Real Estates Investments, LLC

Email: bob@1031guru.com

Phone: 541-485-8100

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