Though we live in an increasingly mobile society, many Americans still haven’t adopted the desire to downsize their possessions to fit this transient lifestyle. That means storage space is at a premium, which opens up a potential investment opportunity for the savvy investor: storage units. Self-storage offers many of the same attractive investment qualities that rentals, office buildings, and other properties offer, including passive income, tax advantages, and appreciation. Investment in self-storage is also made more attractive for many reasons that include:
- Many retirees downsize their homes during retirement but aren’t yet willing to part with a lifetime of possessions. Instead, they seek out additional storage space that their smaller homes can’t offer.
- Some neighborhood housing associations and new housing communities do not allow storage of vehicles like boats, RVs, or even multiple cars on the street outside homes.
- College students use storage space during summer vacation
- Businesses that have downsized and are working out of smaller office space require additional storage space.
Small distributors, start-ups without office space, or home-based businesses use storage space from which to operate their business because operating and development costs of storage units are much more affordable than apartment or retail space. These lower costs also make break-even occupancy ranges lower than other real estate investments. Also, if a storage unit operates on a month-to-month lease, investors can adjust rental rates to compensate for demand. To add further stability to the investment, demand for self-storage is not dependent on the economy. When the economy is booming, people tend to buy more things and thus need more storage. When the economy is slow, people downsize and seek cheaper storage alternatives for the belongings they’re not ready to get rid of.
Self-storage has the lowest default rate of all property types, but like any investment, investors must take time and due diligence to make sure that the storage unit is worth the investment. Well-run, modern self-storage in a good location is desirable to investors and provides a very liquid investment, while old industrial storage units without surveillance don’t command as much demand. As it continues to rise in popularity, self-storage could provide a tangible investment opportunity for you to invest your self-directed IRA in. This is just one of many investment possibilities. That’s the beauty of a self-directed IRA. Since you self-direct your own IRA, you’re responsible for your own investments. We can’t tell you what to invest in or where to find available storage facilities. Self-direction is your choice, but we’re here to show you how to take advantage of self-directed retirement plans. Contact Mountain West to start investing with your self-directed IRA.
For some retirees, living in a retirement facility or assisted living home can’t compare to the excitement and ever-changing destinations a cruise ship has to offer. A substantial number of guests on cruises are retired, enjoying the many amenities cruises have to offer. Would you consider retiring on a cruise boat? Here are 5 reasons why some people do:
- Travel—while some retirement communities may occasionally organize local outings, retirees on cruise ships get to travel almost anywhere in the world they want to go. On a cruise, the cost of rent and travel is combined, whereas travel in addition to monthly rent at a retirement facility can be very cost-prohibitive.
- A large community—cruises offer retirees plenty of opportunities to socialize. There is ample entertainment and plenty of social functions, and retirees get to interact with a much more diverse age group than they do in retirement homes.
- Entertainment—cruises have a well-planned itinerary and hosts to entertain cruise guests day and night. A day of entertainment may include bingo, excursions to the port of call, comedians, and musical performers.
- Food—food is included in the price of the cruise package, and there are many exciting options to choose from. Instead of retirement home food, retirees on cruises might have the option to enjoy fresh, tropical fruit and a world-class buffet.
- Price—while cruises range in prices and amenities, it is conceivable to live on a cruise boat for less than $30,000 a year. This is comparable to some retirement communities and can be significantly less than some full-service retirement communities. If you love to travel and aren’t in need of significant assistance, retiring on a cruise boat might be just the option for you. Your investments back home can continue to generate income while you enjoy life on the fair seas.
Mountain West will be hosting a workshop on “How to Buy Real Estate and Alternative Assets in IRAs and Qualified Plans” Tuesday, November 19.
CEO Jon Galane will be providing valuable CE credit covering the following topics:
- Buying real estate in IRAs and Qualified Plans
- Prohibited Transactions by Disqualified Persons
- Regulations regarding self-directed IRAs
- How to leverage IRAs and the benefits that can provide
$25 covers cost of lunch and all materials.
This class is good for 8 hours of continuing education credit through the Idaho Real Estate Commission.
Register here >>
Tuesday, November 19
10096 W. Fairview Ave.
Boise, ID 83704
9:00 am – 5:00 pm
Many people dream of starting small businesses or starting a new venture but fear using traditional small business financing or taking out loans with high interest rates. However, prospective entrepreneurs and business owners don’t often realize that existing retirement funds can be used to fund start-up businesses. If you’re confident the business has the potential to be a success over the long run, investing your retirement funds can be a very savvy financial decision. By rolling your existing retirement savings into a Mountain West self-directed IRA, you can now invest in a business or start-up without tax penalties. There are IRS restrictions, but you should certainly consider using this smart and viable financing option.
Investing your self-directed IRA in a start-up or small business allows you to affect the value of both your small business and retirement account. You have the ability to lower the overhead of your start-up while accelerating the growth of your IRA. In addition, the following benefits make investing in a start-up a win-win situation:
- Use funds from your self-directed IRA without early distribution taxes or penalties
- Start your small business without incurring as much debt while gaining substantial tax benefits
- Invest up to 100% of your self-directed IRA or use a percentage
- Combine your self-directed IRA funds with those of your spouse or business partner
- Net substantial savings on interest fees and protect your credit
- Roll profits you gained back into your business or retirement plan
- Put yourself in the fast lane for financial success
To learn how you can invest your self-directed IRA in a start-up or small business, contact Mountain West IRA. Now’s the time to enjoy the substantial savings that come along with the tax and credit advantages of a self-directed IRA.
Networking with other real estate investors can provide support and open up real estate investment opportunities you might not otherwise have known about. Networks like real estate investment associations or clubs allow investors to challenge and support each other–the shared knowledge and opportunities can play a crucial role in advancing your career.
If you’re interested in joining a local real estate investor club, you’re in luck! Tonight, Ron Phillips of Wealth Accelerator System invites you to join the local investor club meetings in Thanksgiving Point near Salt Lake City. A short drive to this great event gets you a delicious free dinner, a great opportunity to meet other investors, and valuable investing techniques to accelerate your growth exponentially.
View event details >>