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Was wondering if any of my fellow subscribers are Investing in Costa Rican real estate using A self directed IRA with checkbook control.Would love to hear from you.To anyone wondering, this is using an IRA, through an administrator and forming an American LLC,depending on what state you live in to purchase real estate or any other things an IRA can purchase.It gives alot of flexibility to make time sensitive investments.Wanted to see if anyone else is using this approach. Thank you
I just opened a new account yesterday with the Entrust Group. I rolled over a few 401K’s I had into a new self directed IRA for a RE investment in Costa Rica. It was pretty simple. There are offices all over the USA. Are you in the USA and where in Costa Rica were you planning to invest ?
The way I’m doing it is more complicated than the method you are using,but gives me alot more flexibility. I can make decisions on the spot if need be. also requires alot more due-diligence. I am interested in the Atenas and San Ramon area along with Jaco. I have a piece of property near Playa Hermosa Panteranas. Am doing very well with it wanted to buy a couple more pieces before long so I am using this method, as I said its more complicated but the rewards appear to be great. Was tired of my 401k collecting dust and Cosat Rica at this time is a great place do invest if you do your research and are careful.
Your piece flew off the page at me as I am just beginning my investment change to CR. How long does it take to set up these IRA,s? I am leaving for CR the 16th of Dec and would love to have something like this in place. While there I will be meeting with a couple of folks that are interested in developing a Senior Assisted Living Center. My wife, an RN, and I have been very successful in Senior Care in the Midwest and want to semi-retire in CR while still trying to do something healthy and good. This is really a due-diligence type of trip as I like to have my ducks in row so to speak. On the other hand should a facility present itself that has the proper amminities and location the time senitive situation and the IRA would seem to go hand in hand. If you know of such a location you are welcome to respond also. If you have more info about this type of IRA please share. Thank you for responding to this message.
Robertthe process takes aprox 45days give or take. it involves using a facilitators to help the process along and make sure everything is done right. i would be glad to discuss the process with you in more detail and help you out. Unfortunety I am hesitant to put my email address or phone number on this site as I don’t want to get alot of unsolisited emails etc. Any suggestions how I can contact you. have a nice day.
tomtwoshoe: thanks for the response. I too am careful about giving out info in a forum such as this and will not do it. However if you would call me on the phone. I would give you my e-mail address and we could communicate. my number is 785-249-2273. For all others reading this forum please do not call me. respond through the site first if you have relavent information to discuss. Thank you so much.
Hello. This thread is very interesting. As an investment advisor working in international markets, we are fans of the IRA strategy. There are a handful of trust companies in the US that offer this type of service. We like Entrust as well as a couple of others. Perhaps the greatest benefit is one that has not been mentioned: you can actually benefit from leverage inside your IRA when investing in real estate, most notably foreign real estate, which cannot be said for traditional equity investments. The key to utilizing leverage, if you so desire, is to make sure that any loans established on investment properties are done with Non-recourse loans, meaning that you are not co-signing on the note. This means that the bank is taking the property as the sole support or recourse for the loan. That being done, a $50,000 down payment on a $150,000 property can be made, and as long as the IRA/401k/SEP can make any payments required to service the note, property taxes, utilities, etc. the entire profit if and when sold (or rental receipts) can be retained by the IRA without tax liability (or UBTI). As a side note, we are also investigating the creation of nursing centers (intermediate care+) and would be delighted to chat with you. Warm Regards, Richard
Richard, As far as I understand it the UBIT does not apply but The UDFL tax does. (Unrealed Dept Financed Income). It is my understanding and I am not a professional,just an investor.A good source for my information is a book “Retire Rich with your self-directed IRA” by Nora Peterson. Chapter 8 describes this. Its fast reading and information. Take a look at it if you care to. You are not the first pereon that I have spoken to that wants to explore the possibility of open an intermediate care facility in CR. Its a great idea.
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