Foreign Real Estate Investment

Under the restrictions of traditionally custodied IRAs, investing in foreign real estate can be extraordinarily difficult, if not forbidden outright. Before foreign real estate investing with IRA funds can truly be considered a sound option, an investor should have checkbook control over a self-directed IRA through the use of a Limited Liability Company. (The legality of holding foreign real estate within a self-directed IRA LLC is a matter of proper structuring.)

Many financial advisors will tell you that it is not possible to hold foreign real estate within an IRA and still stay within the confines of the law. The truth is that it is possible, they just do not know how to do it. This is possibly the biggest reason to take care in choosing an IRA advisor. Your advisor may only have a limited knowledge of the types of investing in which you are most interested.

When it comes to knowing how to structure a self-directed IRA to gain the most freedom in your investment possibilities, NAFEP is one of the best. They are a mob of consultants and legal experts with years of experience dealing with the intricacies of IRA investing. At the very least, they are a good place to start your search for the right advisor. Foreign real estate deals can be more complex than domestic deals, so having the right advisor becomes even more important.

Investing in Foreign Real Estate with a Self-Directed IRA LLC To legally own foreign real estate within an IRA, the IRA must be appropriately structured. In simplified terms, this is how it works. The Limited Liability Company is owned by the IRA. The Limited Liability Company may then own the foreign real estate in question. As long as no outside funds are put into the investment and as long as no proceeds leave the IRA except as a distribution, the deal meets the legal requirements.

Written By Scott Janko, The National Association of Financial and Estate Planning (NAFEP)

For more details on the Self Directed IRA -ICO^SM Click Here.
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