CEO & founder of Lasaii Benefits, Alberto Uranga, couldn’t understand the idea of owning a vacation home, but not being able to occupy it. “That’s ridiculous!” He remembers thinking in the early nineties. At the time (and still to this day) Alberto lived in the famous ski resort town of Sun Valley, ID and owned a financial services company as a Series 7 Investment Advisor. He thought to himself, “You mean I could use a Self-Directed IRA to buy a condominium in Sun Valley to let others use for their skiing, mountain biking, and fishing trip, but not be able to enjoy it for myself and with my family? You’ve got to be kidding me!” And especially now, years later, with companies such as Airbnb and VRBO, there is no reason why you shouldn’t be able to use your IRA to purchase real estate that you can occupy yourself AND rent out to make money. So, Alberto got to work.
IRA Real Estate to Occupy
After much research and out of the box thinking, Alberto created his proprietary IRA Real Estate structure in 1992 that allowed occupancy. He has helped hundreds of clients in thirty-six states and four countries invest in real estate using the SAFE HARBOR®-Directed IRA™ (SHIRA™) for immediate OCCUPANCY and enjoyment and, at the same time, to CREATE INCOME from their real estate investment!
The SAFE HARBOR®-Directed IRA™ can help you buy a primary residence, a second home, a vacation/rental/investment property, or land on which to build. You can also use the SHIRA™ to fund payments for an existing mortgage and property taxes up to allowable by law.
If you sell one property supported by your SAFE HARBOR®-Directed IRA™, you can restructure your SHIRA™ to fund a new property. You can buy in the US and/or overseas, if you qualify. You can mix SHIRA™ and non-SHIRA™ funds to buy property or properties. You can buy real estate as an individual or with partners.
Immediate Occupancy & Enjoyment
The real estate is titled in your name-not in the name of your IRA- therefore, there are no prohibited transactions! So, you and your family can occupy and enjoy your home immediately. You can use the property as a primary residence, a vacation home, a rental property, or simply keep it as an investment. The choice is yours.
Possible Appreciation of Real Estate
If you choose to support the purchase of real estate with a SAFE HARBOR®-Directed IRA™, then you will be allowed to occupy and enjoy the property while it increases in value over time.
Any net rental income goes directly to the individual and not to the IRA. It is yours to use as you wish.
If you qualify, you can enjoy all the tax benefits associated with real estate ownership.
Step Up In Basis/1031 Exchange
The real estate you purchase through a SAFE HARBOR®-Directed IRA™ can be passed at death to your heirs with a “step up in basis.” This means there will be tax savings on any appreciation accumulated. At death, a 1031 Exchange can also be passed to your heirs as a “step up in basis.”
Required Minimum Distributions (RMD)
If you have savings in a tax-deferred retirement account, such as a 401K or a Traditional IRA, you’re required to being taking distributions (withdrawals) from your account after you reach age 70.5. Your SAFE HARBOR®-Directed IRA™ distributions (withdrawals) that are paying for the real estate, loan payments, and property taxes are counted (credited) towards the RMD end of the year calculations.
The Perfect Alternative Investment
With the potential interest earnings of the SHIRA™, possible appreciation of the real estate, rental income (if you wish), and the intrinsic value of occupancy, together with the tax write-offs, if you qualify, the total value and benefit of both the SHIRA™ and the real estate could be, and has been, in the double digits. In other words, the perfect alternative investment.
We specialize in helping clients structure customized, tax effective IRA real estate investments that enhance their portfolios, lifestyles, market positions, and legacies.
Please share this with friends and family that could benefit from our proprietary IRA real estate structure!
Visit www.lasaiibenefits.com to sign up to receive our “Understanding the SAFE HARBOR®-Directed IRA™” PDF brochure to learn more. You may also visit our website to see if you qualify for our program.