Property Managers and Self-Directed IRAs Real Estate Rentals

Do you Manage a property that is owned by an IRA?

If not, would you like to but are just not sure how?

As a property manager, just knowing the basic rules makes you a valuable partner for your owner.  You will find that some owners unintentionally may want to make a decision that will totally cancel out their IRA structure, but if you know the basic rules, you can protect their interests.

​​​​​​All management contracts, deeds, and legal documents must be in the name of the IRA and not the IRA owner’s name. When applicable, documents may be in the name of an IRA/LLC.

For the purposes of determining prohibited transactions through a self-directed IRA, the following people are considered disqualified persons:



  • You and your spouse
  • Your employer
  • Your lineal ascendants and descendants, as well as their spouses (children, parents, etc.)
  • Any person [Read More]
September 23rd, 2018|Articles|

How many properties should you hold in one LLC or LLP?

There is no correct answer here.  This is all about your personal tolerance for risk.

However, the purpose of an LLC/LLP structure is asset protection.  The overall strategy should be to segregate assets.  Therefore, if you have all of your properties held in just a single LLC/LLP entity and you are sued, all of the properties would be subject to a judgement creditor in a court approved claim against you. With that in mind, is it wise to have multiple properties in a single LLC/LLP?  Many individuals will do so because they do not want to pay the annual fees and deal with the administration of multiple LLC/LLP entities. In the long run though, it would be in your best interest to break up the assets into separate LLC/LLP entities and just view the additional annual fees as added “insurance” in the event of a lawsuit. In this scenario, if you [Read More]

August 12th, 2018|Articles|

Portfolio Interest Exemption for Non-US residents

Are you a non-resident that would like to invest in US real estate without the hassle of owning property or filing US income tax returns? Then perhaps you should consider the portfolio interest exemption technique to enter the US market.

Investing in U.S. Real Property

Oftentimes, non-U.S. investors look to benefit from the historical strength and stability of the U.S. economy. However, some of these investors are hesitant to acquire a U.S. real property interest for a few reasons.

First, some non-U.S. investors simply do not want to pay U.S. taxes on their U.S. source income, whether such income arises from the rental or disposition of a U.S. real property interest. A non-U.S. investor can purchase property, rent it out and elect to be treated as being engaged in a U.S. business, which would mean that they can offset their gross income with expenses of owning the investment property. In effect, they pay [Read More]

July 19th, 2018|Articles|