Self Directed IRA's Can Be a Tremendous Tax Saver
Irvine, California (PRWEB) November 10, 2014
Maybe they would prefer to invest in cattle in Wyoming, a gas station in Philadelphia or an underwater cemetery in Miami? Impossible or even illegal, some may say. This is not so, according to the Internal Revenue Service tax code. Self Directed alternative IRAs, which are more widely known for their ability to fund real estate, can also be used for private equity investments, such as limited liability corporations, private stock offerings, leases and joint ventures.
Many investors do not realize that investing IRA money in private 1st Trust Deed Mortgage Notes is perfectly legitimate, and has been since 1974. Review Internal Revenue Code Sections 408 & 4975.
If the thought of investing in real estate is of interest, without the hassles of dealing with tenants and repairs, then perhaps investing retirement funds in trust deeds or mortgage notes may be something to consider. Using a Self Directed IRA (http://summerlinam.com/ ) to invest in trust deeds or mortgage notes can be an attractive option, because it allows the ability to earn tax free, passive income in a secured lending arrangement.
A trust deed or mortgage note is a financial agreement between a borrower and private investor in which the promissory note is backed by a deed of trust recorded on the property. The borrower executes a note payable to the IRA owner and promises to pay a certain interest rate on the loaned money, plus repay the principal amount within a specific time frame. The monthly income from these payments may generate a higher-yielding return than an IRA in the form of monthly income. In the event the borrower defaults on their loan obligations, the IRA receives claim to the property once the property goes through foreclosure. While all investments involve risk, trust deeds or mortgage notes may offer a Self Directed IRA (http://summerlinam.com/ ) owner, the opportunity to re-coup a portion or all of their original investment through the sale of the property.
IRA funds are typically invested in public stocks, bonds, mutual funds and money markets. They can also be invested in Real Estate, Trust Deeds, Mortgages, Promissory Notes and Private Stock/Bonds. It can be very lucrative to purchase the best and safest investments with IRA funds to avoid income and capital gains taxes. This works especially well with a large amount of money in an IRA account.
About Summerlin Asset Management
Summerlin Asset Management seeks to generate attractive risk-adjusted returns through investments in collateralized first position mortgages. Their management team executes this strategy by combining a sophisticated valuation analysis, pricing discipline, and professional mortgage workout solutions that benefit the borrower and Summerlin. For more information about purchasing first trust deeds with your Self Directed IRA please call 928-854-7747.
Call Summerlin today and start earning double digit returns.
Tel.: (928) 854-7747