Case Study: What Happens When You Have No Renters? Or Renters Who Can’t Pay?

Our IRA Real Estate to Occupy Investing Program has you covered.

Almost over night, millions of people lost their jobs because of the COVID-19 crisis. The trickle down effect has started and we now see landlords worried about tenants not being able to pay rent as well as those that rely heavily on extra income from their investment properties through Airbnb or VRBO scared they may lose their real estate if they have no income coming in to cover the mortgage(s).

For Airbnb & VRBO: A nuclear bomb on their booking calendar

A colleague of ours rents her own home out via Airbnb here in Ketchum, Idaho (currently the nation’s hot spot for COVID-19 with more cases per capita than even New York). Renting her home out is usually very lucrative in our destination ski resort town, hence the outbreak, with tourists coming from all over the world and consistent bookings throughout the year. Again-over night-all of her bookings for April and into May were canceled. Income lost that she won’t be able to get back, and on top of that, concerns on how she is going to pay her mortgage. (Unfortunately, she does not have any retirement savings at this point). Airbnb and VRBO hosts are experiencing this same problem worldwide.

Leverage: Do you have the means to back it up?

Leverage is a powerful tool and part of what makes real estate investing such a smart idea, but if you don’t have the funds to protect that leverage, you could see yourself in a precarious situation because, as we have seen time and again: life happens. Whether it’s a downturn in the economy, getting laid off, going through a divorce, losing a loved one, or a 100-YEAR PANDEMIC-you need to be sure you have the means in place to cover your mortgage payments in order to lower the risk of losing your real estate asset.

Our IRA Real Estate to Occupy Program has you covered:

Case Study:

Based on actual client of Lasaii Benefits

Two years ago, our client opened a SAFE HARBOR®-Directed IRA™ (SHIRA™) to invest in a multifamily property in our hometown, with one of the units being occupied by his daughter. (The SHIRA™ allows personal and family enjoyment of the property because there are no prohibited transactions). Again, because our hometown is a destination resort, he had no trouble finding renters. So, he chose to let his SHIRA™ accumulate and grow for retirement for the time being instead of directing its funds towards the real estate, with the option to use the SHIRA™ to support the mortgage payments or to invest in more real estate at any time. Because of the downside protection with upside earning potential that the SHIRA™ offered him, he was confident in the security and growth of these funds.

Our client called us last week. With the COVID-19 crisis hitting hard, he has had to close the doors to the public for all three of his successful brick and mortar businesses in town. His tenants of the multifamily property all lost their jobs and would not be able to pay rent this month and possibly for the next couple of months. But, because he has his SHIRA™ in place, we were easily able to supply him with the funds to support the mortgage on his multifamily property. On top of that, the tax liability of using those funds is totally or partially eliminated because of the tax advantages associated with real estate ownership.

Not only did our client not lose any value to his SHIRA™ account these last few weeks from the severe volatility of the stock market, he is now directing those IRA funds into his multifamily property. Once this is over, because YES this too shall pass, he will still have his multifamily investment property. Because of the SHIRA™, he was able to protect his real estate investment and direct his IRA funds into something that gives his daughter a place to live, creates income, and is a valuable real estate property that will likely only grow in appreciation in a famous resort town for his children and grandchildren to someday benefit from, ensuring that he leaves a lasting and impactful legacy for his family.

Flexibility of SAFE HARBOR Directed IRA funds after the storm:

Moving forward, our client can either *stop his SHIRA™ payments when the tenants are able to pay again and continue to let his account accumulate for growth and lifetime guaranteed income in retirement, or he can continue to direct the SHIRA™ to pay the mortgage on his multifamily property and use the rental income from the property however he’d like, because with the SHIRA™, the funds go directly to your pocket.

He could even use the same SHIRA™ account to help purchase another property if a smart opportunity comes along. And, in our opinion, there will be plenty of opportunities to invest in real estate as a buyer’s market is very likely in our near future.

Own real estate and need help with mortgage payments now?

If you are in this situation now, we can help by structuring your IRA or 401K Rollover funds to help support your existing mortgage(s). The flexibility of our program allows for either short term cash flow relief or longer term diversification of retirement monies into real estate. The SHIRA™ is a smart solution as your retirement monies are not being wasted each month, but rather are being put towards your mortgage payments on your real estate.

Like many of our clients, we can help you weather the storm now, or turn your IRA into a real estate investing machine, with real estate that you can personally use and create income from now and into your retirement.

STRATEGICALLY OPTIMIZE YOUR IRA FUNDS FOR REAL ESTATE THAT YOU CAN ACTUALLY USE AND CREATE INCOME FROM.

We help people multiply their IRA funds by directing them to purchase real estate that they can personally use or create an additional income from. This allows them to have more flexibility in their retirement, as well as create certainty and security for their families and leave a larger and more impactful legacy.

SMART INVESTING STARTS AT HOME

For more information on the protected leverage that our SAFE HARBOR®-Directed IRA™ (SHIRA™) Offers, click the button entitled, “Protected Leverage.”

*Subject to age