One of the frequently asked questions by Second Home buyers is where do I get the money to purchase my dream?  Many people use equity in their personal residence to either pay cash or provide down payment funds for conventional financing.  

Did you know that you can use your Individual Retirement Account (IRA) to purchase investment real estate?  Most people know that IRA’s can hold Real Estate Investment Trust (REIT) shares as part of their portfolio, however, few are aware that any owner of an IRA can fund an ICO (Self Directed IRA LLC or Corporation) and within that entity hold investment real estate.  The owner, then acting as manager of his/her own IRA is placed in the position of “fiduciary”, per Internal Revenue Code (IRC) Section 4975(e)(3) 4.  IRA’s are by definition accounts that hold investments on behalf of the owner to fund retirement, (usually over a period of many years) therefore, they are not technically held for vacation enjoyment.  While some of us are looking to purchase a Second Home for use throughout the year, many are looking for long term holding and eventual use as a retirement home  or investment for now with a week or two of use during the year and appreciated resale.  The ICO IRA will work well for such people.  With a properly prepared ICO it is even possible to invest in real estate outside of the United States.

Establishment and funding of the ICO requires an expert in the field who has the ability to set it up, provide an IRS Audit Support Warranty and will be there to counsel as the new ICO manager (IRA owner) executes his investment plan.  Most Financial and Estate Planners are not interested in this program because they are geared toward selling stock or mutual funds.

We will be glad to help any Second Home Pro with more details.  All Second Home Pro’s are Realtors and experts at assisting buyers and sellers with their real estate needs.  The use of an IRA ICO is another vehicle to accomplish that end.  Assisting our clients ”unlock the door to their dreams.”

 Judy and I recently had the opportunity to visit one of our first SECOND HOME PRO’S at her office in Branson, Missouri.  What a pleasure meeting Deborah and other agents in her office. They were professional and enthusiastic about their great marketing area.  It is hard to stop Deborah when she begins talking about what a wonderful place Branson is to establish a second home. The area not only boasts the Ozark mountains peaceful and quiet beauty, Lakes and streams with great fishing and world class golf and shopping, amusements parks and activities for the entire family, but, Las Vegas style entertainment too.  There are over 100 theaters staring first class entertainment.  My favorite was Andy Williams, one of our Country’s great entertainers (remember him) who makes Branson his permanent home.  I remember sitting on the floor watching his wonderful TV show.  Another favorite was Shoji Tabuchi who has a theater to rival any and is a fantastic violinist and puts on a show that will please any audience. 

The Branson Landing, a new $420 million dollar lakefront entertainment and shopping district is the home of their first class convention center and two new Hilton hotels.  I guess I could go on and on.  I haven’t seen so many restaurants in one town outside of Florida.  It must be the 7 million annual visitors, it can’t be Branson’s permanent population of 6000. 

I give Deborah and her area FIVE STARS!