Utilizing self-directed IRA’s for tax-free real estate investments
One of the most under-utilized, but incredibly advantageous, investment strategies for real estate is using a self-directed individual retirement account (SDIRA). An SDIRA is an individual retirement account (IRA) in which the investor is in charge of making all the investment decisions. A SDIRA differs from a traditionally managed IRA in a way that you, the IRA-holder, have more control over how your funds are invested.
Investing in real estate in Curaçao using a SDIRA involves three simple steps:
1. Identify your investment and request funds
Start by contacting a SDIRA custodian and they will help you release the funds and set up your account.
Then, identify the property/investment you wish to purchase, and gather all key documents related to the sale and transfer of the investment.
All documents related to the investment must be titled in the name of your IRA, not in your name.
2. Process the investment
The IRA custodian you choose will review and process your forms. If everything is correct and approved, the funds will be sent from your IRA for the investment based on your specifications.
3. Manage and sell the investment
Once your IRA owns the investment, all expenses and profits related to the investment must come from and back to the IRA.
When you are ready, instruct your custodian to sell the investment on behalf of your IRA. Funds from the sale of the investment return to your SDIRA tax-free, where you can continue to re-invest them as you see fit.
Utilizing SDIRA’s for tax-free real estate investments is just one of many topics that your RE/MAX BonBini agent can assist you with.
If you are looking for the perfect property in Curaçao and want to learn how to truly maximize your investment, do contact me.