If you have a mortgage on a rental property that’s owned by your self-directed IRA, how does the mortgage need to be paid? On today’s show, we’re going to answer this question — and more!
This Q&A episode of Investing in Real Estate features three listener questions on self-directed IRA payments, how to choose a landlord friendly state to buy investment properties, and what investors should consider about taxes when buying raw land. Click play to hear my A’s to your Q’s!
On this episode you’ll learn:
- How payments work inside a self-directed IRA.
- The best landlord friendly states for investing.
- What to consider about taxes on a piece of land.
How Payments Work Inside a Self-Directed IRA
If your self-directed IRA owns mortgaged rental properties, all payments need to come from the self-directed IRA, initiated by your custodian. The IRS has strict rules around IRA transactions, so you’ll want to be sure to talk with your custodian on setting up these payments properly.
The Best Landlord Friendly States for Investing
A landlord friendly state typically has low taxes, short and seamless eviction processes, and few regulations surrounding things like security deposits and leases. Here is a short list of landlord friendly states to consider: Texas, Missouri, Alabama, Georgia, Arizona, Colorado, Florida, Indiana, Kentucky, and Illinois.
What to Consider About Taxes on a Piece of Land
There are multitude of different tax benefits when it comes to buying land. My suggestion, as always, is to work closely with a CPA who understands your asset type. For more info, check out this interview with Tom Wheelwright on investments the government will pay you to make.
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Episode Resources
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Investments the Government Will Pay You to Make with Tom Wheelwright
morrisinvest.com/Clayton
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DISCLAIMER: I am not a financial adviser. I only express my opinion based on my experience. Your experience may be different. These videos are for educational and inspirational purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. There is no guarantee of gains or losses on investments.
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