Case Study: (Based on actual client of Lasaii Benefits).
*Names in this case study have been changed to protect our client’s privacy.
Mr. & Mrs. Grant responded to our advertisement in Delta's Sky Magazine. Their daughter would be attending college in the upcoming scholastic year and the Grant's were weighing the pros and cons of purchasing a condo for their daughter to live in versus renting. After seeing our advertisement, the Grant's were intrigued with the idea of using their IRA to purchase the condo which would clearly tip the buy vs. rent scenario in favor of purchasing. Attracted by the flexibility of the SAFE HARBOR® -Directed IRA™ (SHIRA™) structure which offers the ability to have full control over any and all transactions concerning the real estate without any legally prohibited transactions associated with real estate ownership within the IRA, the Grant's scheduled a telephone appointment with one of our consultants to explore how the SHIRA™ could work for them.
Summary of IRA real estate:
A total IRA transfer of $430,500 established a SAFE HARBOR®-Directed IRA™ account as the foundation for the Grant's IRA real estate plan. We structured the IRA in coordination with non IRA funds to obtain the second home loan. Although the Grant's would be receiving rent from their daughter and roommate, the rental income would be minimal and given the Grant's overall financial situation, the tax advantages to declaring the property as a rental was far greater, not to mention the possible appreciation of the real estate in an up and coming neighborhood.
The Big Picture
The Grant's believed real estate in the college town could be expected to increase in value at historic norms over the next 5 to 10 years. When their daughter was finished with college, the Grant's both in their early 50's, planned to either keep the condo as a rental or sell it at its appreciated value with the intention of purchasing another second home in an area they would enjoy spending vacation time. Either way, the real estate purchased with the help of the SHIRA™ would eventually provide capital or income for their retirement having provided the intrinsic value of occupancy and enjoyment for many years prior to their retirement.
It's important to mention with this particular case, the added benefit that the SHIRA™ has of step up in basis. If the Grant's choose to keep the IRA real estate as an investment and a form of income, their daughter would someday inherit the real estate at it's appreciated value, with no tax consequences.
Our clients look at the bigger picture and know that over time with the possible interest earnings of the SHIRA™, the potential appreciation of the real estate, rental income, and the intrinsic value of occupancy, together with the tax write-offs (if you qualify), the total value and benefits of 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 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. Please share this with friends and family that could benefit from our proprietary IRA real estate structure!
I have dealt with Alberto and his company Lasaii for more than 10 years. I was able to purchase a second home using Lasaii’s IRA/Real estate program without penalty or tax issues. Alberto and his staff have always been very helpful, professional and courteous. I would recommend Alberto and Lasaii to anyone looking for IRA / Real estate advice and planning. Bruce O., Mississippi, Client