Can I Use My IRA ?
I understand that people can use IRA funds to invest in tax lien certificates. My IRA firm, Fidelity Investments , told me they dont allow that with their IRA's. So i'm wondering which IRA investment firms allow it? Does anyone here use their IRA for tax lien investing? or know of any company that allows it from your IRA account? If so , please let us know. I appreciate all responses. Thank you.
I have used Mid Ohio and they are the worst!!! THey are now Equity Trust and still they have yet to do one of my instructions accurately, and their statements are all screwed up!!! And even after i pointed out to them that they had overvalued my portfolio by $20,000, and they promised to change it to the correct figure, they never did!!! After 3 times!!!! I will NEVERE use them, nor can i consciously recommend them to anyone! However, I am also using Trustar Retirement Services now, and they are very professional and goes out of their way to help you. Night and day versus Equity Trust/mid Ohio. Also, Mid-Ohio allows you to invest in Ned Majors' Tax Lien www.Agents.com and they are currently under cease and desist orders from securities regulators so you know what kind of work they do huh!!?! Good luck if you use them. That's all I've got to say!
Richard
Yes, I have been in the self-directed IRA administration business since 1989. Email me directly and I will forward our web site and company information to you - Diversified Retirement Services Corporation.
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Bill Exeter[ Edited by wexeter on Date 08/13/2003 ]
Lincoln National Life used to offer managed IRA Trustee services (at substantial fees)...however, IRS classifies IRAs as irrevocable trusts and when you eventually distribute assets the gains are all taxed as ordinary income, and to avoid penalties, regular distributions and mortality tables have to be followed...hold back on new funding in IRAs and invest in leveraged real estate until your cash flow permits Roth IRA contributions...the new 15% max. rate on capital gains and dividends pretty much defeats the old argument for annuities and IRAs for securities...the limitation to security-based investments and likely continued fraud on Wall Street means real estate will rule for many more years to come.
conga321,
There is a company that was called Mid Ohio that did self directed IRA's I think a company called Equity Trust bought them out. You can search online for info on them.
http://www.thecreativeinvestor.com/Product100.html
Here is one item in our shopping cart that will help
Equity Trust is a great company, a little more on the expensive side for accounts $50K and above. You can also call Lori at 800-455-9472 ext. 213. She's with Trust Administration Services Corporation. Tell her Francoise referred you. She's very helpful and they are not as expensive as Equity Trust.
It surely is possible to buy state/county tax liens with IRA money, but NOT with such custodian/administrators as Lincoln, Fidelity, or other mutual fund or annuity companies.
The big ones are MidOhio (now Equity Trust), Entrust & Pensco*...and lots of small, private outfits that work with private clients in helping them use their IRA money to buy notes, tax liens, etc.
All 3 of these have nice websites and will send detailed info at anybody's request, so as to assist the private IRA holder in setting up his account with them, then assisting him in buying those investments he wants his IRA to buy.
The link for Equity Trusts (formerly Mid Ohio) is:
http://www.trustetc.com/links/realestate.html
Hi All,
How does investing IRA funds in Tax Lien Certificates (TLC) work in practice. For example, a couple of weeks ago, I went to Charleston South Carolina, bid on 2 TLCs between 2:00 PM and 3:00 PM, and had to pay by them by 5:00 PM, which I was able to do since I had cashiers checks in my pocket (was using my own funds).
Assuming I wanted to do the same with Equity Trust or other Self Directed IRA. According the their web site, they need to send the money directly to whoever needs to get it (in this case Charleston County). How am I supposed to get them to do that between 3:00 PM and 5:00 PM ? Do I need to have wire money in advance, before the auction ?
Thanks in advance for any insight.
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Your Self-Directed IRA Custodian can issue a number of cashiers check from your IRA payable to the appropriate entity handling the auction or sale, but you would have to give them at least one days notice (assuming they would do it). The unused cashiers checks can be redeposited into your IRA. It is extremely important that the deed from the sale is deeded into the vesting as directed by your IRA Custodian.
I have about $120k in a IRA account. If I move it to a self-directed IRA and want to buy a property, do I have to buy something under $120k or can I use a mortgage also? I may not get much under 120k.
Hi Ahmed,
Some custodians don't allow financing on properties you buy with a self directed IRA, I have seen one custodian whose web site says they allow up to 50% financing, and others where they say they allow financing.
Make sure you read the terms on web sites and get confirmation from one of their customer reps.
By the way, since this is a tax lien forum, you can buy a WHOLE LOT with $120k. You can also split a property 50-50 (or 40-60 or whatever) between you and your IRA. Let's say you buy a house for $240. You can put up 120k from your regular funds (or get a mortgage in your own name). Then you (= Ahmed) will own 50% of the house, and your IRA will own 50% of the house.
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Thanks you very much for your information.
I have contacted Equity Trust and pensco. I didn't ask them whether I can use financing. But it would be good if I could split with my IRA.
I am thinking about real estate because I recently bought a few rental properties. I don't know anything about tax liens. I mean how to get into that. Can I chat with you in private on this?
Thanks.
Hi Ahmed,
To learn about Tax Liens, I recommend "the 16% solution" by Joel Moskovitz and the Free & Clear system by John Beck. If your interest is in acquiring the property, you may want to skip Moskovitz's book and buy John Beck's system directly.
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