You miss 100 percent of the shots you never take, and if you think it’s expensive to hire a professional to do the job, wait until you hire an amateur. FOR OVER 20 YEARS, I HAVE WORKED EXTENSIVELY WITH OWNERS AND BUYERS IN LAND, COMMERCIAL AND INVESTMENT REAL ESTATE IN PHOENIX, TUCSON AND THROUGHOUT ARIZONA. PLEASE LET ME KNOW HOW I CAN HELP YOU. Call me if you want to sell your property and need an estimated value. Phone: 480-948-5554 Prefer cell: 520-975-5207 or email me walterunger@ccim.net. – What is a CCIM. –
CLICK HERE TO VIEW ALL MY 60 MIL WORTH OF LISTINGS.
SELF-DIRECTED IRAS, UNLIKE THE TRADITIONAL KIND, CAN OPEN UP THE POSSIBILITY OF BUYING REAL ESTATE DIRECTLY FOR INDIVIDUAL INVESTORS.
NATIONAL REAL ESTATE Investor Patricia Kirk | Oct 29, 2020
In an era when retirement pensions are practically non-existent, tax-deferred Individual Retirement Arrangements (IRAs) provide workers with a way to save for their retirement years. But in today’s uncertain economy, individuals concerned by the stock market’s volatility can gain greater control over their retirement funds by opening a self-directed IRA (SDIRA). One of the advantages of an SDIRA is that it provides access to alternative investment opportunities, including income-producing real estate.
However, using an SDIRA to purchase rental properties can be complicated to those who are newcomers to the sector, which is why investors likely need to use a real estate IRA custodian to help them understand the tax code governing this type of investment and guide them through the investment process to avoid unexpected penalties and reap all of the available benefits.
To gain an understanding of how SDIRAs work when investing in real estate, NREI asked Meg O’Connor Zwick, a senior vice president and director of client services at Millennium Trust Company who specializes in directed-custodian services for IRA investments, to share her knowledge about this investment option. In the following Q&A, she explains how an SDIRA works, its advantages, challenges and unique rules that apply to investing IRA funds in in non-standardized, alternative investment like real estate.
This Q&A has been edited for length, style and clarity.
NREI: Please explain how an SDIRA works, and how it is different from an IRA managed by a third-party?
Meg O’Connor Zwick: Self-directed IRAs allow individual investors to make and direct their own investment decisions. One advantage is to be able to invest retirement savings in non-standardized, or “alternative” assets, such as real estate, private equity, private stock and hedge funds.
Self-directed IRAs offer the same tax benefits as regular IRA accounts, allowing investors to place retirement funds into traditional investments, such as stocks, bonds, exchange-traded funds (ETFs) and alternative investments that are not typically supported by standard brokerage firms—often due to administrative complexity.
NREI: At this time, why might real estate be a smarter investment for an SDIRA investor than stocks or other investment choices?
Meg O’Connor Zwick: Successful investing is generally based on diversification and risk mitigation. Real estate has the potential to offer a non-correlated investment return to a portfolio of stocks, bonds and ETFs. Traditional equity markets have shown to have a fairly high correlation between small-cap, mid-cap and large-cap stocks. It is becoming more challenging to find diversification in today’s equity markets, even between different market-weighted indices, so real estate may be the right choice for a given investor.
NREI: What are the challenges, risks or pitfalls involved in investing in real estate through an SDIRA?
Meg O’Connor Zwick: Investors generally have to have knowledge about the investment that they are making and feel comfortable with having some [potentially] limited liquidity. A financial advisor and tax advisor can help the investor understand the implications and IRS rules for the investments in their portfolio, and an experienced custodian can help to ensure everything in the IRA is properly titled and in compliance with IRS reporting regulations.
NREI: Are tax incentives and rules for deferring taxes different for investing an SDIRA in real estate than investing in other investment options? Please explain incentives and rules that apply to real estate that may be unique.
Meg O’Connor Zwick: The tax structure and rules for investing in real estate through an LLC or fund structure are similar to other SDIRA investment types. If a client would like to purchase a specific property directly, there are some additional rules that the investor needs to follow. Taxes and maintenance on the property, for example, must be paid out of the self-directed IRA to avoid the IRS-prohibited transaction rules.
NREI: Are returns on investment (ROI) in real estate tax-deferred if reinvested in more real estate or capital improvements to the property or how does this work? Are there any special IRS rules that must be followed for reinvestment or capital improvements?
Meg O’Connor Zwick: All returns within a self-directed IRA are tax-deferred since they stay in the IRA. Income or appreciation generated by the investment must stay in the IRA, but can be used for capital improvements. Tax implications come into play when distribution of income or an asset occurs.
NREI: What are sequential steps advised for completing an SDIRA real estate deal?
Meg O’Connor Zwick: If the investment is within an LLC structure or fund structure, most custodians will ask to review the offering documents to make sure the investment is operationally feasible to be held in an IRA. If investing in a direct piece of real estate, investors reach out to their preferred IRA custodian to learn more about what is needed for this transaction type.
NREI: What types of advisors are recommended for the SDIRA investor?
Meg O’Connor Zwick: An existing advisor that oversees a client’s assets may not have the ability to purchase non-standardized assets. Purchasing a non-standardized asset, such as real estate, with IRA funds is generally completed with the help of a custodian like Millennium Trust, which specializes in the custody of non-standardized, or “alternative” assets.
NREI: Are there other reasons an SDIRA investor who wants to invest in real estate should seek the services of a custodian that specializes in managing investments in alternative assets?
Meg O’Connor Zwick: Many advisors are unaware that investors can hold alternative investments in a self-directed IRA. Advisors should educate themselves and their clients on these types of assets to better serve their clients’ needs and work with a custodian that will help them meet regulatory standards and high client expectations.
NREI: Is there any additional advice you have for SDIRA investors?
Meg O’Connor Zwick: Investors that open up self-directed IRAs often have a specific investment that they would like to gain access to with tax-deferred dollars. Self-directed IRAs provide investors investment opportunities that are not possible within a traditional brokerage/IRA structure.
FROM ME: Now is the time, if you are thinking of selling or purchasing your Land or Commercial Building in Phoenix, Scottsdale, Maricopa County, Pinal County, Arizona / Office / Retail / Industrial / Multi-family / please call me on my cell 520-975-5207 or e-mail me walterunger@ccim.net. Investors and Owner / Users need to really know the market today before making a move. The market has a lot of moving parts. What is going on socio-economically, what is going on demographically, what is going on with location, with competing businesses, with public policy in general — all of these things affect the quality of selling or purchasing your Commercial Properties, Commercial Investment Properties and Commercial and large tracts of Residential Land Therefore, you need a broker, a CCIM (Certified Commercial Investment Member) who is a recognized expert in the commercial and investment real estate industry and who understands your needs. I am marketing my listings on Costar, Loop-net, CCIM, CREXi, Catylist, and various other web sites. I also sold hundreds millions of dollars’ worth of Investment Properties / Owner User Properties in Retail, Office Industrial, Multi-family and Land in Arizona and therefore I am working with brokers, Investors and Developers. I am also a CCIM and through this origination ( www.ccim.com ) I have access to marketing not only in the United States, but also international. Are you ready to sell or purchase your Land or Commercial Building in Phoenix, Scottsdale, Maricopa County and Pinal County, Arizona, please call me?
Click here to find out what is a CCIM: https://en.wikipedia.org/wiki/CCIM
CLICK HERE TO VIEW ALL MY 60 MIL WORTH OF LISTINGS.
https://www.crexi.com/properties?searchBrokerId=17513
http://walter-unger.com/gold-canyon-resort-sells-for-29-4m/
Walter Unger CCIM
Associate Broker
West USA Commercial Division
7077 E MARILYN RD.
Suite 200, Building 4.
Scottsdale AZ, 85254
Phone: 480-948-5554
Cell: 520-975-5207
History of Arizona from 900 BC – 2017 -Timeline.
History of Arizona from 900 BC – 2017 -Timeline.
History of Arizona from 900 BC – 2017 -Timeline.
WHY PHOENIX? AMAZING!!! POPULATION IN 1950 – 350 K PEOPLE; “NOW 5 MIL”. – “5TH. BIGGEST CITY IN USA”
- DEMOGRAPHIC FACTS ABOUT MARICOPA COUNTY:
Walter Unger CCIM – walterunger@ccim.net – 1-520-975-5207 – http://walter-unger.com
Timeline of Phoenix, Arizona history
Facts of Arizona – year 1848 to 2013
CLICK HERE: Arizona Opportunity Zones As We Understand /maps. Interested!!! Please contact me.
Feel free to contact Walter regarding any of these stories, the current market, distressed commercial real estate opportunities and needs, your property or your Investment Needs for Comercial Properties in Phoenix, Tucson, Arizona.
Walter Unger CCIM
Associate Broker
West USA Commercial Division
7077 E MARILYN RD.
Suite 200, Building 4.
Scottsdale AZ, 85254
Phone: 480-948-5554
Cell: 520-975-5207
FOR OVER 20 YEARS, I HAVE WORKED EXTENSIVELY WITH OWNERS AND BUYERS IN LAND, COMMERCIAL AND INVESTMENT REAL ESTATE IN PHOENIX, TUCSON AND THROUGHOUT ARIZONA. PLEASE LET ME KNOW HOW I CAN HELP YOU PLEASE CALL ME
CLICK HERE TO VIEW ALL MY 60 MIL WORTH OF LISTINGS.
https://www.crexi.com/properties?searchBrokerId=17513
Also Call me if you need an estimated value of your Property.
Call me if you want to see a map with what is in the Construction Pipeline for Apartments.
Prefer cell: 520-975-5207, or email me walterunger@ccim.net. CLICK HERE TO VIEW ALL MY LISTINGS.
Check out my professional profile and connect with me on LinkedIn.
Walter Unger CCIM, CCSS, CCLS
I am a successful Commercial / Investment Real Estate Broker in Arizona now for 20 years. If you have any questions about Commercial / Investment Properties in Phoenix or Commercial / Investment Properties in Arizona, I will gladly sit down with you and share my expertise and my professional opinion with you. I am also in this to make money therefore it will be a win-win situation for all of us.
Please reply by e-mail walterunger@ccim.net or call me on my cell 520-975-5207
Reasons to Consider me for Commercial Referrals
Delivering the New Standard of Excellence in Commercial Real Estate
- Commercial Real Estate Scottsdale
- Commercial Real Estate Phoenix
- Commercial Real Estate Arizona
- Commercial Investment Properties Phoenix
- Commercial Investment Properties Scottsdale
- Commercial Investment Properties Arizona
- Land Specialist Arizona
- Arizona Land Specialist
- Land Specialist Phoenix
- Phoenix Land Specialist
- Land For Sale Phoenix
- Land for sale Arizona
- Commercial Properties For Sale Phoenix
- Commercial Real Estate Sales Phoenix
- Commercial Properties Phoenix
- Commercial Properties Arizona
- Commercial Land Specialist Phoenix
- Commercial Land Phoenix
- Multifamily land Phoenix
- Retail Land Phoenix
- Industrial Land Phoenix
- Land Commercial Phoenix
- Land Retail Phoenix
- Land Industrial Phoenix
- Land Multifamily Phoenix
- Industrial Land for sale Phoenix
- Land Industrial
- P
- Investment Real Estate
Disclaimer of Liability
The information in this blog-newsletter is for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. Tax articles in this e-newsletter are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided “as is,” with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpos