Who’s who
When choosing a guide determines what capabilities and experience the guide has. Many people that come to us are confused as to the rules and what they can really do with their self directed IRA and with good reason.

Custodians or Administrators are generally where many start the investigation process. The adage that bigger is better seems to be the perception. Let’s look at the challenges that face the investor:

Challenge 1 Each custodian you talk to has different rules – An attempt to understand why they all have different rules can be perplexing but it really boils down to internal, policy, their interpretation of the code, how they deal with assets and of course, fees. Here is the evidence, below is an actual response from the IRS to an inquiry on what an IRA can invest in.
Are there any restrictions on the things an IRA can be invested in?

The law does not permit IRA funds to be invested in collectibles.

If an IRA invests in collectibles, the amount invested is considered distributed in the year invested. The account owner may have to pay a 10% additional tax on early distributions.
Here are some examples of collectibles:

• Artwork,
• Rugs,
• Antiques,
• Metals – there are exceptions for certain kinds of bullion,
• Gems,
• Stamps,
• Coins – there are exceptions for certain coins minted by the U.S. Treasury,
• Alcoholic beverages, and
• Certain other tangible personal property.

Check Publication 590, Individual Retirement Arrangements (IRAs), for more information on collectibles.

Finally, IRA trustees are permitted to impose additional restrictions on investments. For example, because of administrative burdens, many IRA trustees do not permit IRA owners to invest IRA funds in real estate. IRA law does not prohibit investing in real estate but trustees are not required to offer real estate as an option. (Italics, underlining and bold by Asset Exchange Strategies, LLC)

The Self Directed IRA Advisor Advantage – We only deal with the IRS code and what it explicitly says. No policy interpretation, no asset fees and no requirement to report back on the desired asset purchase.

Milestone 2 Protection from prohibited transactions. An investor has the same opportunity to commit a prohibited transaction with a custodian as they would if they were on their own. Why? Because on each and every custodial website states they do not and cannot offer advice. If the custodian offers advice they become liable and they’ll send you back to “your” advisor for help. And if you are like most people investigating self directed IRAs you have learned that there are very few “advisors” who understand the IRA rules.

Self Directed IRA Advisor Advantage – We will only provide to you what the IRS says you can’t do and under what circumstances. If desired a compliance review and confirmation of correct structure will be provided.

Milestone 3 You must obtain permission to execute your deal – With custodian involvement the investment decision is theirs not yours as to what can be bought. Now the possibility of missed investment opportunity is present.

IRA LLC Advantage – You make the investment decision. Not sure if it is a prohibited asset see the list above. Not sure if the structure is correct see Self Directed IRA Advisor advantage.

Milestone 4 Custodians have no responsibility for errors they incur. Custodians have no liability for errors incurred on your behalf. For example, if a check is incorrectly sent to the selling party and the check is cashed the only recourse you have is from the receiving party of the check. Your IRA is now that much smaller.

IRA LLC Advantage – You write the checks, if there is a processing error the only person at fault is in the mirror.

Milestone 5 Assets purchased through a custodian are limited in asset protection.

IRA LLC Advantage – The IRA LLC provides asset protection for both you the IRA and the structure. Don’t expect the custodian to provide any legal help or assistance.

Daniel Cordoba is a Certified Estate Advisor and Principal of Asset Exchange Group, LLC. Asset Exchange Strategies, LLC through its website http://www.MyRealEstateIRA.com helps investors gain greater control of their self directed IRAs.

o Take a good look at your home and try to imagine how it looks to someone seeing it for the first time. Taking photographs is a good idea as it allows you to see what you may not have noticed before.

o Windows and doors are crucial to the overall look of your home, so clean, polish, paint or replace the front door if necessary and clean all windows so that they sparkle.

o Power washing or a new coat of paint will make the walls of your house more appealing and cleaning mildew stains from gutters, paths and behind plants improves the look of your home.

o Fences and gates should be clean and painted if necessary and importantly perform the job they were made for, to open and close.

o Garden furniture adds to decorative value, but needs to be in good repair and freshly stained or painted. Also ensure all water features like ponds; birdbaths and fountains are clean and working properly.

o Make sure driveways are clean and free of cracks and weeds and as people buy house in all seasons, clear pathways after a snowfall.

o Prune trees and shrubs, cut back any limbs touching the house and rake up fallen leaves. If you can afford to stock the flowerbeds then this adds to the curb appeal of your home and lawns should be cut and even reseeded if necessary.

None of this need cost a fortune but it will make your house far more appealing to potential buyers and make them want to make your home their home.

However if you don’t have the time, inclination or money, then there is a simpler way that is guaranteed to sell your house fast. I am talking about contacting a property specialist who can buy your home in as little as seven days regardless of condition or curb appeal.

An instant sale – Best home buyers, buying property, sell house fast and Quick House sale specialists throughout the UK, If you are interested in service but want to know if it fits your needs contact info@aninstantsale.co.uk

Much depends on what you intend to do with the money received on a sale. And the currency used when you bought and when you sell.

So let’s look at an example. Say you purchased a property in Bulgaria for 15,000 Euros back in 2007 when you were maybe getting 1.40 Euros to the British Pound. The property therefore cost you around ₤10,700. And then if renovation costs were a further 20,000 Euros, or ₤14,200, making a total spend of around 35,000 Euros or ₤25,000.

If you intend to sell the property now and take the money back into the UK, converting it to pounds, then to break even, you could actually list the property for sale at 28,000 Euros, less than the total Euros you spent on it two years ago and not lose anything. List at 35,000 Euros and you stand to make a profit of around ₤7,000.

If you are trying to sell your property in Bulgaria, or another country where transactions tend to happen in Euros, then this is something to keep in mind. And it will allow you to list your property at a lower price and thus attract more potential buyers.

Of course, this scenario does not help the likes of Irish investors or people living outside the UK and not intending to convert the sales proceeds into British pounds. But for most investors, now struggling to off load properties to free up some cash, this is certainly a positive factor and an advantage of the strong Euro.

Rachel Gawith runs Bulgarian property advice and investment site at http://www.thetravelbug.org. She has lived in Bulgaria for over 2 and half years and has written an ebook about her experience, plus writes articles for various international investment property sites.