Insight On Collecting Rent for IRA-Owned Properties By Kaaren Hall
Nearly a third of U . S . apartment renters didn ’ t pay any of their April rent during the first week of the month , according to new data to be released April 8 , 2020 by the National Multifamily Housing Council and a consortium of realestate data providers .
How can you help the tenants in your IRAOwned properties ?
Be aware of the rules for your state , county and city . Here are some of the steps you can take :
• Take stock of the situation . Consider the tenant ' s payment history
• Call or visit the renter . Get in touch quickly to find out why they didn ' t pay the rent
• Pay or quit notice . In most states , your IRA ’ s property manager can serve the delinquent tenant a pay or quit notice as soon as the rent is past due
• Pay the tenant to move out
• Ask the tenant to investigate housing assistance programs
• The tenant can check with their employer to find out if they have any unused SickPay ( PTO ) to or if they can take a 401 ( k ) plan loan to provide additional funds for rent .
• If there is no eviction moratorium then that is an option .
Remember , all expenses of the IRA need to be paid for by the IRA . These expenses include eviction proceedings if necessary and include any loan servicing costs if your IRA holds the note on the property .
During these uncertain times , if you find your IRA running short remember the 2020 contribution limits were raised . For Traditional and Roth IRAs , you can contribute $ 6,000 if you are under 50 and $ 7,000 if you are 50 +, should you qualify to do so .
So far there are no government loan programs that IRAowners can take advantage of . The SBA loans being made to businesses cannot be made to an IRA or 401 ( k ) accounts because these accounts can only receive nonrecourse debt .
If your IRA has a nonrecourse loan on a property , check with your lender about any leniency they are willing to extend on the repayment of loans during this crisis . Perhaps they will be willing to add the payment to the “ back of the loan ” and extend the maturity date .
As always , check with a component tax or legal expert when making decisions regarding your SelfDirected IRA .
MEET KAAREN HALL
Kaaren has helped hundreds of people selfdirect their retirement savings . A native of California , she has a 20 year background in Real Estate , Property Management and Mortgage Lending . She has worked at such companies as Bank of America , Centex Homes , Pulte Homes and Indymac Bank . She ' s held a real estate license in Washington , Texas and California and a Life & Health license in California . Her company , uDirect IRA Services , LLC , offers selfdirected education and services to investors , providing excellent customer service . Kaaren is a public speaker and master networker . A mother of two , she lives in Orange County . If you have a question about how to use your IRA to selfdirected you can contact us here at info @ uDirectIRA . com or at 866.447.6598 . Our website address is http :// www . udirectira . com /.
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