OUTSIDE® – Most Frequently Asked Questions, Answered Here
1. Is your plan available for all IRA investors?
2. Who benefits from your plan?
3. Is age a factor to qualifying for your program?
4. Is there more than one way that an IRA can be invested in real estate?
5. Is your OUTSIDE® method a form of Self Directed IRA?
6. Has your OUTSIDE® IRA/real estate program been audited by the IRS?
7. How long has Uranga & Associates been structuring IRA/real estate programs?
8. Is there a minimum IRA value requirement to qualify for your OUTSIDE® program?
9. Will there be any penalties involved in converting the IRA to a real estate investment?
10. Will transfer taxes be assessed?
11. Which type of retirement plans qualify for the OUTSIDE® method?
12. Can a Roth IRA be used to purchase real estate with your program?
13. Can non-IRA funds be coordinated with an IRA to purchase real estate?
14. Is the IRA money transferred to Uranga & Associates
15. What are the fees for your services?
16. How long does the process take?
17. Must leverage be used to purchase the real estate?
18. What if the client’s current income will not qualify for a loan?
19. Can the real estate be occupied by the owner of the IRA, his family and friends?
20. Can real estate purchased with your OUTSIDE® program be sold or turned at will?
21. Is there a risk to purchasing real estate with the OUTSIDE® program?
22. Why is it that CPAs and attorneys don't seem to be familiar with the OUTSIDE® structure?
Is your plan available for all IRA investors?
No. Compatibility of the investor’s objectives with Lasaii’s diversified structural options, in addition to eligibility of the investor for certain tax benefits must be examined before a qualifying determination can be reached.
Who benefits from your plan?
Our program has been designed for individuals wishing to purchase real estate for either personal use or investment purposes. It is the flexibility and intrinsic value gained from the OUTSIDE® method that makes the purchase of real estate more than just an investment, but instead, a future focused approach to holistic wealth management.
Is age a factor to qualifying for your program?
Yes. However, we can structure our program for people of all ages.
Is there more than one way that an IRA can be invested in real estate?
Yes. There are two methods. The INSIDE method where title is held by the IRA/trustee and the OUTSIDE® method where title is held in the individual’s name. Please reference Inside vs. Outside for more information.
Is your OUTSIDE® method a form of Self Directed IRA?
No. A Self Directed IRA allows for nontraditional or alternative investments to be bought and sold by the IRA with a trustee operating as custodian and is limited in its use and management by prohibited transaction rules. The OUTSIDE® method is specific to real estate only, structuring the IRA to support the purchase of real estate where title is held in the name of the individual, not by the IRA itself and is therefore not governed by any prohibited transaction rules.
Has your OUTSIDE® IRA/real estate program been audited by the IRS?
Yes. Please reference our parent company website IRS Audit
How long has Uranga & Associates been structuring IRA/real estate programs?
Since 1992
Is there a minimum IRA value requirement to qualify for your OUTSIDE® program?
Yes. $100,000.
Will there be any penalties involved in converting the IRA to a real estate investment?
No.
Will transfer taxes be assessed?
No.
Which type of retirement plans qualify for the OUTSIDE® method?
Any tax deferred individual or company sponsored plan that is eligible to be rolled into a traditional IRA.
Can a Roth IRA be used to purchase real estate with your program?
Not as part of the SAFE HARBOR® directed structure, however, in some circumstances these monies could be used for the down payment on the real estate.
Can non-IRA funds be coordinated with an IRA to purchase real estate?
Yes. In fact this is a necessary component of the OUTSIDE® method as it is a requirement for the down payment to be provided for by non-IRA monies.
Is the IRA money transferred to Uranga & Associates
No. The IRA will be transferred to a qualified SAFE HARBOR® IRA account. Whether structured for partial and temporary utilization or a longer-term application, the principal amount of your IRA will be protected from the fluctuations of the stock market while in the SAFE HARBOR® IRA account. The SAFE HARBOR® is the engine that drives the program. With the absence of SAFE HARBOR® direction, the OUTSIDE® structure would lack a secure foundation and could not be relied upon to service the duration of the plan.
What are the fees for your services?
Depends. Our fee structure is dictated by the client’s choice of custodian. The majority of our clients pay no fee at all.
How long does the process take?
From the time an engagement packet is requested it takes approximately 30 to 45 days to establish the foundation of the IRA/real estate plan. Guide To Our Process
Must leverage be used to purchase the real estate?
Yes. Our program is structured to coordinate with a mortgage, gradually moving the IRA into the real estate investment. We are pleased to be able to offer the services of independent lenders who are familiar with this process. Or the client may use a lender of his choice.
What if the client’s current income will not qualify for a loan?
The OUTSIDE® method plan structure will, in many cases, satisfy the lenders income requirements to qualify for the loan.
Can the real estate be occupied by the owner of the IRA, his family and friends?
Yes. Our program specifically addresses the benefits of intrinsic value and is unique in its structure allowing occupancy either as a second home, a primary residence or for business use.
Can real estate purchased with your OUTSIDE® program be sold or turned at will?
Our IRA/real estate plans are customized for each individual, optimizing the flexibility of our program to structure between 5 to 30 years in duration. There is complete freedom to sell or turn the real estate whenever it makes business sense to do so. The SAFE HARBOR® IRA account may be closed and monies transferred without penalty upon satisfaction of the minimum time commitment which can be from between 5 and 10 years.
Is there a risk to purchasing real estate with the OUTSIDE® program?
Real estate can fluctuate in value like most other investments. However, the opportunity to invest in something tangible that can be enjoyed by the investor, his family and his friends and knowing the investment structure is designed for security, flexibility and liquidity gives peace of mind to even the most conservative investor.
Why is it that CPAs and attorneys don't seem to be familiar with the OUTSIDE® structure?
Think of the OUTSIDE® method as being similar to Estate Planning. You cannot go to an IRS tax book to find a tax code for Estate Planning. This is because Estate Planning is a structure customized to a client’s individual circumstance that employs and coordinates many different legislated tax codes. The same is true of the OUTSIDE® structure in that there is no one tax code dedicated to its implementation. OUTSIDE® is a registered name for a structure Uranga & Associates created that is customized to each client utilizing all applicable legislated tax codes pertaining to real estate and individual as well as employer sponsored retirement plans. Since the OUTSIDE® method cannot be found in any tax book and is a proprietary process that is not included in the curriculum of law or accounting education, your CPA or attorney may not be familiar with its existence. View Due Diligence
