Owning real estate with your self-directed IRA can be an invigorating but challenging endeavor. Most importantly, it can be a profitable one for your retirement portfolio if you can implement and maintain a property management strategy. Let’s examine four ways self-directed investors can manage the real estate assets owned by their self-directed retirement plans and mitigate the potential stress involved.
Although earnings must return to your IRA and expenses must be paid by your IRA, self-direction will always incorporate a certain degree of your involvement. As such, feel free to have bills and tax paperwork sent to your home. With expense information coming directly to you, you can evaluate the payment option that suits your needs.
Technology was designed to help make our lives easier, including in the realm of managing our finances. Once your IRA bills arrive at your home (or you’re otherwise made aware of expenses), New Direction Trust Company allows you to pay your bills online through your myDirection® portal. Once logged in, choose “Pay Bills” in the gray column on the left-hand side of the page. Click the “Select an asset to pay a bill” drop-down menu, choose your applicable asset, and click either “Pay a new bill” or “Pay a final bill”.
You’re under no obligation pay bills online if you’re not inclined to do so. You may instead authorize New Direction Trust Company to pay recurring bills or invoices by submitting our Payment Authorization Letter. With this form on file, you won’t have to coordinate every individual payment from your IRA; we will instead execute those payments on your behalf using available IRA funds. Once completed and signed, you may scan and e-mail the Payment Authorization Letter (or any New Direction Trust Company paperwork) to firstname.lastname@example.org or fax it to 303-665-5962.
If you specialize in rental properties and want to provide your tenants with a free and easy avenue for paying rent, point them toward www.mydirection.com and have them choose “Make Payment Now” in the lower right-hand corner of the page. As you can see, your tenants needn’t log in or establish myDirection® accounts to pay rent. This method can help prevent you from having to track down physical checks and forward them to your self-directed IRA custodian.