In 2014, Alberto Uranga, CEO & Founder of Lasaii Benefits and the IRA Real Estate to Occupy proprietary program was enjoying a cup of coffee at a local coffee shop when he was approached by a man. "May I join you?" the man asked.
Lasaii Benefits had just successfully implemented its program by using an IRA to help build a single family home to occupy from the ground up in world-famous Sun Valley, ID. The house was a success and made a statement with its bold and modern design. People were definitely talking about it! So much so that it was featured on the cover of Sun Valley Property News Magazine.
The man sat down with Alberto and immediately asked about the single family home that everyone was talking about, "Is it true that your program helped build that house using an IRA?"
"Yes!" Alberto replied.
This started a conversation:
"Does it work with any IRA? I have a Roth IRA worth $1,000,000 that I'd love to invest in a lake house that I own. "The man asked.
Alberto shook his head. "Unfortunately no, as you already paid the taxes on that Traditional IRA. Let me ask you, did you have to pay $400,000 out of pocket in order to transfer the $1,000,000 into the Roth IRA?"
"Yes I did." the man replied impressed, "my financial advisor said it would be best for my own tax-free income and estate planning purposes."
Alberto felt bad for the man. He knew that it could have been done differently and with far greater advantage. By purchasing real estate with an IRA, he could've maximized the value of his money. Alberto began to explain to him how the SAFE HARBOR®-Directed IRA™ (SHIRA™) would have had a better outcome:
Lost Opportunity Cost
The SAFE HARBOR®-Directed IRA™ (SHIRA™) could've been structured to pay the existing mortgage payments on your lake house, investing your IRA funds gradually into the real estate over time and without a dime lost on your $1,000,000 principal.
And remember, not only did you lose outright the $400,000 dollars by converting the monies into a Roth IRA, but you also lost the interest that could have been made on that $400,000 forever!
You could have kept the same tax write-offs for real estate ownership that would have totally eliminated or minimized the tax liability of using your IRA money to help make the payments on your lake house
Step Up In Basis:
The lake house that would have been paid for with the help of the SHIRA™ would have been passed at death to your heirs with a “step up in basis.” In other words, your heirs wouldn't have paid a dime in taxes on the appreciation of the real estate, and in the meantime time, would have been able to enjoy the property and make many family memories.
The SHIRA™ is invested in a principal protected vehicle, safe from any possible downturn in the stock market with upside interest earning potential when the stock market performs well. So, if the stock market took a plunge, you wouldn't have lost any money, yet you still would've had the potential to make money when it did well.
If you wanted to, you could've rented out the lake house when you and your family weren't using it. The extra income would have gone directly to your pocket and not to your IRA because with the SHIRA™, the title of the real estate is in your name. Therefore, there are no prohibited transactions!
"I'll be damned." The man said with a pale face. "I wish I would've known about this before."
With Lasaii Benefit’s creative, innovative and life-changing estate planning, don't miss out on the opportunity of maximizing your IRA funds and investing in real estate that you and your family can occupy. Especially now...
Fast Forward to 2019: The Death of the "Stretch IRA?"
A provision in the new SECURE Act would gut the “Stretch IRA” and force a non spouse beneficiary to withdraw the entirety of the IRA in ten years. The same strategy as above could be applied. Learn more about the creative solution we have that would use those ten year to invest the funds in real estate to occupy and/or create income.
The Big Picture
Our clients look at the big picture and know that over time with the possible interest earnings of the SHIRA™, the potential 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 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 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™" Guide to learn more. You may also visit our website to see if you qualify for our program.