Many people who see investing in real estate through a retirement account know what a tremendous wealth-builder it can be. But it will only be a blessing in that regard if landlords follow the proper rules and procedures in cases like eviction cases.
Columbia, SC (PRWEB) August 27, 2017
It is considered a “fact of life” in the world of real estate investing—landlords will not always have the ideal tenants. Sometimes, eviction will not only be possible, but necessary. This makes many potential real estate investors nervous about holding real property in a Self-Directed IRA, because they’re not sure how to go about the eviction process when holding real estate in a retirement account.
These questions are bread and butter to Jim Hitt, the CEO of American IRA, a Self-Directed IRA administration firm in North Carolina. When posing the question recently to the American IRA blog (http://www.americanira.com), Jim Hitt explained how the process works even when a landlord holds the property within a retirement account:
“First, be careful to maintain strict segregation of your personal and IRA funds,” wrote Jim Hitt. This segregation is not only necessary for the proper adherence to IRS and regulatory rules, but ensures that an eviction will go as smoothly as evictions can go. Jim Hitt pointed out another prohibition to pay attention to—namely, that investors cannot pay themselves to act as their own attorneys when representing the case.
Jim Hitt also explained the specific rules in South Carolina in more detail, pointing out that in South Carolina, landlords are prohibited from effecting evictions without a court order. In other words, landlords are expected not to take the law into their own hands. Even simply changing locks to force the issue is not allowed, because it is interpreted by the law as effecting that eviction. A court order must first be obtained, says Jim Hitt.
“There are a lot of details here,” Jim Hitt said about the article. “And many people who see investing in real estate through a retirement account know what a tremendous wealth-builder it can be. But it will only be a blessing in that regard if landlords follow the proper rules and procedures in cases like eviction cases.”
American IRA, LLC was established in 2004 by James C. Hitt in Asheville, NC.
The mission of American IRA is to provide the highest level of customer service in the self-directed retirement industry. Mr. Hitt and his team have grown the company to over $250 million in assets under administration by educating the public that their self-directed IRA account can invest in a variety of assets such as real estate, private lending, limited liability companies, precious metals and much more.
As a self-directed IRA administrator they are a neutral third party. They do not make any recommendations to any person or entity associated with investments of any type (including financial representatives, investment promoters or companies, or employees, agents or representatives associated with these firms ). They are not responsible for and are not bound by any statements, representations, warranties or agreements made by any such person or entity and do not provide any recommendation on the quality profitability or reputability of any investment, individual or company. The term "they" refers to American IRA, located in Asheville, NC.