If you ever dreamed of investing in a property in Mexico, but were disillusioned by the lack of credit options for foreigners, maybe using your IRA could be an option. An IRA is an “Individual Retirement Accountâ€, something different about IRA’s is that they not only can be invested in trusts, funds or mutual funds, but also in alternative assets such as Real Estate… TAX Free!
When you invest your IRA on Real Estate, there are many benefits such as:
- Your IRA is Tax Shelter; this means that whatever gain you get from your investment goes back to your IRA completely tax free!
- You can use the funds in your IRA to purchase property as an investment
- Using your IRA to buy real estate, allows you to diversify your investment portfolio, so you don’t have all your eggs in the same basket.
If you want to get ready and jump into the opportunity of investing in Real Estate, here are some important steps you have to take in order to make it happen:
1.   Get your IRA ready by choosing Self-Directed
Traditionally IRA’s were designed to have a custodian invest on stocks, bonds, mutual funds and CDs. On the other hand, a self–directed IRA allows for more liberal investments, such as real estate, notes, private placements, tax lien certificates and much more.
This process can take some time, so don’t wait until you find the perfect property to start. Having your IRA ready will allow you to take advantage when opportunity or a good deal comes along.
2.   Find out what is the best option for you
An IRA can be used in three ways to purchase a property, such as using cash if there is enough money to cover the price. If you don’t have enough cash to buy, you can look for another investor; the IRA will purchase the property and define the percent ownership.
Remember that buying a property on an IRA is ideal to buy an investment, but not a holiday home. As you are getting a property and its gains TAX FREE, it is not allowed for you or your family members to reside in it.
3.   Understand how the cash management for your property will work
It is important to understand that the IRA owns the property and any income will go directly to your IRA. On the other hand, any expense related to the property, such as taxes, bills or repairs will have to be covered by the funds on your IRA.
At Top Mexico Real Estate we strive to give you all the tools and information that you need to make the best decision when purchasing a property in Mexico. Feel free to contact us if you need advice for investing in Mexico… We are here to help!
At Top Mexico Real Estate… We Make it Happen!
