Since 1975, IRAs and 401(k) plans have been afforded the ability to purchase real estate, helping knowledgeable investors see significant change in their retirement wealth.
The IRA pays cash for the entire property. The property is titled to the IRA and all income and expenses must flow through the IRA.
IRAs can purchase fractional ownership of properties. Ownership interest is determined on the pro-rata amount of the investment purchase by the IRA. All income and expenses must flow through the IRA in the same rate basis.
An IRA can purchase real estate with a mortgage as long as the loan in non-recourse, which means there is no personal guarantee to repay the debt by the IRA owner, or other disqualified persons. Repayment of the underlying debt must come from the retirement plan. Taking on debt in the IRA may subject the plan to Unrelated Debt Financed Income.
From Serene coastal views and lakeside escapes to breathtaking mountain retreats, Waterfront Group brings over 30 years of expertise in land acquisition, development, sales and seamless closings.
We handle it all, providing you access to exceptional properties at unbeatable prices.
