Friday, 28 January 2011 10:12
Self-Directed IRAs, Corporations, and Tax Lien Investing
Written by NRI Support
Many of you are going to use your IRA or other retirement accounts to fund your tax lien or tax deed investing efforts. This is a great way to get money to start investing. Many of those accounts are losing money anyway. Once you have established which retirement account to use, then you are going to roll it over into a self-directed retirement account. If you take money out of and put it back into an account then you will pay a penalty for this action. Therefore, we use the term "roll-over" to make the transition. You may have to pay a fee to roll over the funds, but you won't be penalized. There are many companies that will help you set up a self-directed IRA, which is the most common account for investing in tax liens and tax deeds. You want to be sure that when you set up your self-directed account, that the company will allow you to invest in tax liens and tax deeds through the account.
This is a specific type of investment and not all of the custodians for the self directed IRA will allow this type of investment. Some of the companies that allow this investment type are: Entrust, Equity Trust, Lincoln Trust, Pensco, and Sterling Trust (which allows tax deeds only). Once you have set up the self directed account, one of the things that you may want to do is set up an LLC or a corporation. Setting up the account through a corporation may give you checkbook controlled capabilities, meaning you can simply right a check, which draws directly from your retirement account. Of course, you can't write a check for anything, but you can write checks to counties for tax lien and tax deed investing. This is important also for time purposes. Having the ability to simply write a check and send it to the county saves a lot of time and ensures you're the winning bidder for tax liens and deeds. This is also a way to cut down on expenditure from your self-directed IRA due to the cost of cutting a check every time each time you want to purchase a tax certificate or a tax deed. Once you have set up your corporation then you will be able to make your self-directed IRA checkbook controlled. This will help you in being able to grow your IRA for a secure future.
No Risk Investor specializes in helping its students effectively invest in tax liens and deeds. Having helped over 6,000 new investors to date, No Risk Investor is well-regarded in the industry and the best source for information, training, and tax lien investing tools.
Last modified on Friday, 28 January 2011 10:27
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Tax Lien Investing
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