A
Creative Way to Finance Your Cabo Purchase
May 17 2016
With a
fluctuating stock market and faltering money market returns, many Americans
have discovered an innovative method to move their retirement account
investment money to a place where it can do some good.
Specifically…..Cabo real estate!! Real property can be either purchased or
sold for your benefit using your qualified retirement plan and/or IRA
funds. When purchased, these properties become assets of your plan, or
account. These accounts are called Self Directed IRA’s (SDIRA’s) Therefore you have no early withdraw penalties and
you’re not subject to US income taxes. You can even buy furniture through
this account. In a Cabo real estate market where there are few options to finance a purchase and
you’re having to pay cash to get the good deals out there the SDIRA is a great
vehicle to purchase real estate.
Another
plus to this type of investment is that the restrictions are relatively
few. They are:
You can also lend money against these types of
property.
The steps
are fairly straightforward and basically require the Buyer to setup a US
LLC. It is that LLC that will be the account holder of the self directed
IRA. Likewise, the same LLC will be the beneficiary of the fideicomiso, real estate trust, here in Cabo
when purchasing a property. It is advisable that the supervision of
an attorney both stateside and here in Cabo is in
place. Using a Cabo real estate agent who has
done these transactions before will ensure a smooth and successful
transaction.
If you
are tired of losing money in the stock market or of watching your IRA account’s
value increase by only a modest yearly fraction….there is a solution.
Maybe now
is the time to explore potentially higher yielding Cabo
real estate investments that you self-direct and can control.