If your first house, a California Investment property was purchased
with IRA monies for the down payment, and now, your job has relocated you to
Chicago, as was the case of John Engel, can you dip into your IRA again in order
to purchase a new house?
You may have not saved for a home mortgage, because you have been
paying rent for over two years. Like John, you now real estate sales training
on buying a house. Your bank, loves to fasten your savings in C.D.s
that often pay only 1.5 percent or less, while the bank loans out your cash at 7
percent.
Fret not. Your self directed IRA account, your Keogh, 402(k), your
profit-sharing plan or your SEP can all legally be used to purchase investment
real estate if you live in it. You must also have been out of the home ownership
status for over two yeas. Thankfully, John Engel’s California home loan was paid
off during the sale over two years ago.
Now John Engel begins shopping the mortgage leads for sales that he
can afford with this IRA monies used as down payment. He will be able to use the
second $5,000 of his allowed $10,000 from his traditional IRA,
penalty-free to buy his second home in just over two years. Yes, you can see how
Real Estate IRA Benefits help people earn cash.
John’s closest brother, Roy, craved Texas real estate leads. However
Roy, a self-employed carpenter, owned no Real Estate IRA. Okay, from the
sale of John’s first home, he had loaned Roy $100,000 to purchase a
self-employed 402k. Roy used 50%, or $50,000, penalty free to purchase two
real estate investment deals in two months.
Not TRUE, you say, using even a truly self directed IRA or a 402k,
carry the same penalty. If you touch the money before retirement, you will pay
income taxes, as well as a 10 percent penalty according to Federal Law. Now here
is the loophole. If you have not owned a house in two years, and you live in the
new house, then you may secure your future by using some of your
savings for retirement account, tax free.
Roy, like John, simply bought a Texas mortgage property that was listed as a
family home. He lived in the In-Law quarters, but he rented the main house out
to his family. In this way, this Investment Real Estate was not listed as
such, and qualified for his tax and penalty free purchase. Once again, using a
402k can be like John’s gaining of Real Estate in your IRA. Yes, all IRS
permitted investments, such as leveraged or un-leveraged real estate, single and
multi-family rental properties, commercial real estate, all of it can
technically be classified as your family home, bought in a penalty free manner.
Good NEWS, not only truly self directed IRA or a 402k’s qualify. So do
mortgage tax lien certificates, whether they are first, second, or third
mortgage leads?certificates better known as trust deeds. Also qualifying
are discounted notes, which are streams of payments from existing notes. However
see your Tax specialist to verify yours.
Some IRA specialists can get you immediate access to your purchasing real
estate at an auction. To contact any specialist simply click on designated link
on this page.
