All Forum Posts by: Kaaren Hall

Keep in mind this is a self-directed account and most are not.  

Fees:
The Set-Up Fee is $50
The IRA Annual Fee is $275 (flat fee regardless of the number of assets & regardless of the account value)
The Direction of Investment fee is $10**
The Wire Fee is $15
See our fee schedule for Crypto-currency fees
Please refer to the fee schedule to see metals storage costs.
Check fees are $10***
* When buying physical real estate, you must have a 10% cushion of the purchase price
**We waive the first 6 transaction review fees for the life of the account.
*** The first 12 incoming checks are free each year.

I am also a huge fan of real estate and for the past 50 years there's been a way to combine both.

By leveraging a Self-Directed IRA, real estate investors enjoy both the traditional advantages of property ownership and the additional tax benefits of retirement accounts, creating a powerful wealth-building strategy. Here's how using a Self-Directed IRA (SDIRA) to invest in real estate enhances these benefits, especially for those looking to diversify their retirement portfolio:

1. Tax-Advantaged Growth: Real estate investments inside a self-directed account grow tax-deferred (traditional SDIRA) or tax-free (Roth SDIRA), meaning rental income, appreciation, and even gains from selling the property stay shielded from taxes until withdrawal—or forever in the case of a Roth!
2. Cash Flow Potential: Rental income from real estate held in an SDIRA flows directly back into the account, allowing you to reinvest and compound your wealth tax-advantaged.
3. Depreciation Benefits via Leverage: While you can't claim depreciation personally on IRA-owned real estate, SDIRAs can use non-recourse loans to purchase property. This allows you to use leverage while still reaping the benefits of amplifying your gains inside the account.
4. Diversification Beyond the Stock Market: Real estate provides tangible, real-world value that helps hedge against market volatility—a crucial feature when building a resilient retirement portfolio.
5. Control and Flexibility: With an SDIRA, you're not limited to stocks, bonds, or mutual funds. You can invest in single-family homes, multifamily properties, land, commercial buildings, and even tax liens, creating opportunities tailored to your investing goals.
6. Tax-Free Exchanges: While 1031 exchanges aren't available to SDIRAs, the tax deferral within the account means you can sell property and reinvest proceeds into new opportunities without immediate tax consequences.
7. Generational Wealth: If your SDIRA invests in real estate, those assets can pass to your heirs, benefiting from the step-up in basis (outside the SDIRA) or continued tax-advantaged growth if inherited in a beneficiary IRA.

@Rene Hosman You can read about H.S.A. investing in my new BP book - Self-Directed IRA Investing: A BiggerPockets Guide - www.BiggerPockets.com/SDIRA

@Rene Hosman Right?!  Surprising for sure.  The contributions are lower so it takes a while to build, but once you do, it's tax-free investing.  You get a deduction for the contribution, the gains grow tax-free and as long as you use the proceeds for health-related expenses the funds come out tax free as well.  It's the best of all worlds with regard to self-directed investing!

Here's a blog I wrote about H.S.A.s invested in alternative assets Financial Independence Retire Early - Achieve FIRE Faster with a Self-Directed HSA- https://udirectira.com/achieve-fire-faster-with-a-self-direc...

@Jonathan Chan Here is a list of allowable assets for SDIRA investing.  Actually the IRS does not tell us what we can invest in, only what is disallowed (life insurance contracts and collectibles).

Allowable investments for SDIRA investing include the following:

• • Residential real estate, including: apartments, single family homes, and duplexes
  • Commercial real estate
  • Undeveloped or raw land
  • REITs (Real Estate Investment Trusts)
  • Real estate notes (mortgages and deeds of trusts)
  • Promissory notes
  • Private limited partnerships, limited liability companies, and C corporations
  • Tax lien certificates
  • Oil and gas investments
  • Private stock offerings, private placements
  • Judgments/structured settlements
  • Gold bullion
  • Factoring investments

Bruce Norris, of The Norris Group, is a highly respected real estate investor, educator, and market analyst with over 40 years of experience. Throughout his career, Bruce has been involved in more than 6,500 real estate transactions, wearing many hats: buyer, seller, builder, and money partner. Despite his impressive track record, Bruce remains grounded, passionate about sharing his expertise, and dedicated to helping others navigate the complexities of real estate investing.

Bruce’s journey into forecasting began nearly two decades ago with his groundbreaking report, "The California Comeback." In this report, he accurately predicted that California’s median home price would double within eight years, with even greater gains if interest rates dropped below 10%. While skeptics initially dismissed his findings, Bruce’s forecast proved astonishingly accurate, cementing his reputation for insightful market analysis.

In 2006, Bruce released another influential report, "The California Crash"* warning of an unprecedented 3,000% surge in foreclosures and a dramatic decline in home prices. Once again, his predictions were met with skepticism—and once again, they were borne out by market events.

Now, Bruce turns his keen analytical eye to the current real estate landscape. With a new administration shaping policy and the potential for significant shifts in regulations, Bruce will share his latest insights into what the future holds for real estate investors. Don’t miss this opportunity to hear from a true visionary in the field and gain actionable strategies for navigating today’s market.

Date: Thursday January 9. 2025
Time: 6:30pm - 9:00pm
Location: Avenue of the Arts Hotel - 3350 Avenue of the Arts, Costa Mesa, CA 92626
Cost: $20
Find Tickets: https://www.ocreia.com/

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