We've always known that our SAFE HARBOR®-Directed IRA™ (SHIRA™) works exceptionally well with multifamily real estate as one of Alberto's, founder of Lasaii Benefits, first endeavors with his proprietary IRA Real Estate to Occupy program was to help a client build four multifamily properties in Hailey, ID in 1992. Today, twenty-seven years later, those properties are still being rented and creating income for our client.
At Lasaii Benefits, we believe that investing your IRA funds in a multifamily home can be a wise investment, depending on where you chose to invest. Take our hometown of Ketchum, ID. Housing is in high demand, with limited options. Because of this, we can see new construction on almost every block, many being multifamily properties with smart investors looking to take advantage of a scarcity and supply housing for a growing town.
We've included a list of pro's and con's that come with investing in multifamily properties:
Contained-you would have one yard to take care of and no traveling from property to property to fix leaky sinks and broken washing machines keeping your operating costs down.
Rarely Vacant-Always some sort of cash flow coming in.
More Rental Income-because there are more tenants.
Fairly Easy to Find Tenants-especially in cities and towns with a high demand for housing.
Live In-you or a member of your family could occupy one of the apartments.
Considered Commercial Financing for five units or more making it hard to finance -(BUT, by using the SHIRA™ to help purchase the property, you can show additional income in order to qualify for the commercial loan).
Management Required-Not a passive job with multiple tenants so be ready to manage!
An example from our own little corner of the world of Ketchum, ID: IRA Real Estate to Occupy with the SAFE HARBOR® Directed IRA™ (SHIRA™).
Our client invested in multifamily real estate in 2018 here in Ketchum, ID with his daughter occupying one of the apartments because, with the SAFE HARBOR®-Directed IRA™ (SHIRA™), there are no prohibited transactions. Had our client chosen to invest in the multi family real estate with a Self Directed IRA-his daughter would not be allowed to live in one of the apartments. With the SHIRA™, our client and any member of his family is free to live in one of the apartments, if they wished.
As housing is in very high demand in our area, his multi family real estate has been so successful that he has not had to use funds from his SHIRA™ once. With a multi family rental, there is more cash flow and rental income from the real estate that is going directly to his pocket, allowing the SHIRA™ funds to accumulate in an account safe from any downturn in the stock market with upside earning potential for when it preforms well and ready for if and when our client needs help. (*Depending on age, you can increase, decrease or stop SHIRA™ payment's whenever you wish). Talk about a wise investment that allows flexibility depending on your needs!
The SHIRA™ offer's Step Up In Basis- therefore, our client's two daughters will someday inherit a money making machine in a world class ski resort with no tax consequences on the appreciation. Another benefit that would not be possible with a Self Directed IRA.
If our client needs to use the funds from the SHIRA™ at any time to help with the real estate, he will enjoy the tax advantages associated with real estate ownership.
To learn more about the other benefits that the SAFE HARBOR®-Directed IRA™ (SHIRA™) offer's, click the button entitled, "Learn More".
Creative Financing with the SAFE HARBOR®-Directed IRA™ (SHIRA™):
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 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.