Subject to/IRA? - Posted by Jonathan Rexford

Real Estate Investing Real Estate Financing
#1

Posted by Buddy Schultheis on May 22, 2000 at 19:15:07:

Bud,

I have been trying for some time to find someone who has information on doing what you described, with one difference. I want to use Bill Gatten’s Pactrust to control the property and then “sell” a beneficial interest to a Roth IRA. I see this a being an excellent tool for investors, realtors and Investment Advisors. I have information from Mid-Ohio and Entrust that says this can be done in Florida. I would like to market this as a planning opportunity for RE agents and investors to receive astonishing returns on minimal investments (or theoretically no capital out lay after resident beneficiary comes into the picture

Can you provide any feed back on the viability of doing this type transaction with the land trust, resident beneficiary, non-resident beneficiary (Roth IRA) and the corporate trustee?

#2

Subject to/IRA? - Posted by Jonathan Rexford

Posted by Jonathan Rexford on May 22, 2000 at 11:59:46:

I have a question about IRA’s. I have one Schwab and was wondering if I change it to say Ohio or Entrust if I could do a couple Subject deals and wrap. I have emailed Ohio but know answer. Any help

#3

Re: Subject to/IRA? - Posted by Bud Branstetter

Posted by Bud Branstetter on May 22, 2000 at 12:14:40:

You can do a subject to deal with the IRA but the more common circumstatmce is that your IRA buys the beneficial interest in the land trust. As long as you were not the benficiary Mid-Ohio has no problem with it. But then you seem to be saying you are going to spend the money from the IRA. When you buy subject to you try to get a T/B in there with owner financing or as a L/O to cash out. You try to get more option money than you have to put out. So all is profit. That is why Roth IRA’s are well suited. Little cash available but little or none needed. And all tax free.

You can purchase with owner financing as long as it is non-recourse. You can have a problem with tax on unrelated business income but there are ways to solve that also. Entrust is progressive also but they can only do business in CA or states they have reciprocity with.

#4

Re: Subject to/IRA? - Posted by Jonathan Rexford

Posted by Jonathan Rexford on May 22, 2000 at 19:51:03:

Bud,

What I want to do is allow the IRA to collect the payments and build up over time.

Jonathan Rexford
Licensed General Contractor
Licensed Mortgage Brokerage Business
Rexford Incorporated
P. O. Box 650099
Vero Beach, Florida 32965
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