All Forum Posts by: Noemi Contreras-Woods

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As mentioned above, and like in the Bahamas, buying a property in Puerto Rico is on "island time". I'm in the process of buying a short sale, we signed the contract back in April and still waiting for the sellers' accountant to produce some financial statements. The status as of today is that the statements will be available by the end of the week but we'll see. Something  to keep in mind is that mainland banks do not offer mortgages there. In order to buy you would have to borrow from a local bank or buy cash. That is also when "who you know" makes a difference. 

Best of luck!

Thank you @Mark Nolan! Our challenge now is that we got the check from the pension plan and don't know what path to follow. The shortsale paperwork was submitted to the bank on Tuesday and it could take up to 120 days before we get a response. My question now is, if we open a Solo 401K, how soon could the funds be withdrawn? 

We have 60 days to deposit the check on another eligible retirement program or I.R.A. and avoid paying taxes  on it otherwise we will be taxed and penalized. 

Not sure what to do. 

Any thoughts?

Thank you!

Thank you so much @Bob E. and @David Dachtera. I greatly appreciate you taking the time to explain it to me in such detail.  I now have a better understanding! 

Thank you @Bob E. What I meant was as vacation rental and then staying maybe once a year for a week or so. Would that be allowed or not at all? 

So if we do not need to stay there at all would an SDIRA be best? I am trying to minimize the tax impact since we do not  meet the age requirements for withdrawal. 

Thank you so much!

Hello!

I am fairly new to the forum but have been quietly following some of the post. My husband and I are in the process of buying our first investment property, a multi family short sale in Puerto Rico. The plan is to rent the first unit to a full-time tenant and the second unit as a vacation home given that the property is only blocks from the beach. We currently live in the states but have family members that can help take care of the property as well as access to a property manager. My question is, should we directly use the funds from the pension plan for the down payment? or should we open a Self Directed IRA and use that as a vehicle? I have been reading about SDIRA but still not clear as to how it works.

Thank you in advance for your help!

Noemi