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Old 02-08-2017, 11:41 AM
 
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
22,581 posts, read 39,952,759 times
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Quote:
Originally Posted by BC1960 View Post
I'm contemplating using 20 to 25% of my total IRA balance, and I asked only for responses from those who have actually done this. Thanks anyway.
This is reasonable to do. Just verify your overall portfolio and keep it balanced to not over extend into RE, due to it being an illiquid asset.


I keep about 20% of my 'qualified funds' in my Self Directed IRA LLC that owns RE. (I also have personal / non-qualified assets in RE investments). I split off a separate IRA to invest in the LLC. And, yes... you need to keep a balance adequate to cover all costs, and never co-mingle funds (or the entire IRA will become taxable).

RE has been good to me and I do better with it than equity investments, so I currently invest 30% of my NW in Investment RE. (Primary residence excluded). That may change as I age, I will probably sell investment RE to tenants on contract. (You can also do this within your Self Directed IRA).
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Old 02-08-2017, 02:53 PM
 
6,800 posts, read 4,440,860 times
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Quote:
Originally Posted by davebarnes View Post
I have.
Pay close attention to fees.
Who did you use as your custodian and administrator? TIA
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Old 02-08-2017, 02:54 PM
 
6,800 posts, read 4,440,860 times
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Quote:
Originally Posted by StealthRabbit View Post
This is reasonable to do. Just verify your overall portfolio and keep it balanced to not over extend into RE, due to it being an illiquid asset.


I keep about 20% of my 'qualified funds' in my Self Directed IRA LLC that owns RE. (I also have personal / non-qualified assets in RE investments). I split off a separate IRA to invest in the LLC. And, yes... you need to keep a balance adequate to cover all costs, and never co-mingle funds (or the entire IRA will become taxable).

RE has been good to me and I do better with it than equity investments, so I currently invest 30% of my NW in Investment RE. (Primary residence excluded). That may change as I age, I will probably sell investment RE to tenants on contract. (You can also do this within your Self Directed IRA).
Who did you use as your custodian and administrator?
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Old 02-08-2017, 04:10 PM
 
Location: The Berk in Denver, CO USA
14,035 posts, read 20,349,383 times
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Quote:
Originally Posted by BC1960 View Post
Who did you use as your custodian and administrator? TIA
Cannot remember as it was a decade ago. But, I was angry at the time.
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Old 02-08-2017, 07:14 PM
 
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
22,581 posts, read 39,952,759 times
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Quote:
Originally Posted by BC1960 View Post
Who did you use as your custodian and administrator?
as per reply#3
http://www.city-data.com/forum/47068592-post3.html
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Old 02-08-2017, 10:40 PM
 
6,800 posts, read 4,440,860 times
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Originally Posted by StealthRabbit View Post
Gotcha, thanks. I didn't realize you has responded earlier.
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Old 02-11-2017, 03:36 PM
 
546 posts, read 565,939 times
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We own a home and notes (like being the bank to other homeowners) with our Self-Directed IRAs through Vantage. However, let me address your desire to buy a condo with some of your money. We rent single family residences in CA and AZ.

Condos are tricky because of what can go wrong with them for which you'll have to pay, such as special assessments. Your yearly earnings can be quickly wiped out. Unless it's being offset by the appreciation on the property, I don't know if I'd choose that, unless you're looking at it as a vacation rental, and it's in such a good area that you could demand and get high prices in the short term (such a a beachfront property).

Our company owns a condo in SoCal. Great amenities. Clearly, it's appreciating along with the rest of OC. However, because so many condos in the HOA have had leaky pipes, we're having to approve a special assessment to fix the situation to keep the HOA healthy over the long term. Nevertheless, it will wipe out our profits for a year. As a company with a long-term hold on that property, we can absorb the loss because we know the condo will continue to appreciate. However, if something like that were to happen to one of our IRA holdings, I would be pretty upset.

Would you be purchasing the condo with all-cash or with a mortgage? How much do you want to clear monthly? We bought our IRA home with cash; the numbers wouldn't have worked if we'd used the IRA as a down payment and then financed the rest. With a performing note, you could earn 10% interest, but the only way you'd really have the property as yours would be if the tenant didn't pay, and you had to evict him.
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