Cases featured in this section are actual case histories of IRA/real estate plans structured by Uranga & Associates. Names have been changed to protect the privacy of our client(s).

Case Outline: Mr. & Mrs. Kelly, both in their early 40’s, operate a Bed and Breakfast Inn, in which they also live, in a beautiful historic down town neighborhood of a cosmopolitan city in the south western united states.  The home next door to their Inn became available for sale and the Kellys dreamed of buying it as an annex to their current facility, providing additional rooms for their business as well as the opportunity to expand their own living space.  Their current finances did not allow for additional mortgage expense and so they believed their dream to be unattainable until they came across Uranga and Associates’ advertisement in Frontier’s Wild Blue Yonder in-flight magazine.  

Summary: The purchase price of the property the Kellys wanted to buy was $385,000.  They had an IRA value of $200,000 which they transferred to establish a SAFE HARBOR® IRA account as the foundation for their IRA real estate plan.  The IRA value was not enough to structure cash flow to satisfy one hundred percent of the mortgage payment however, the addition of the IRA cash flow to the Kelly’s current income along with additional income the new annex to their Bed and Breakfast would produce was more than enough to qualify them for their loan.  Uranga & Associates then structured the IRA, in coordination with a commercial property mortgage in the amount of $308,000, using non IRA monies necessary for the down payment to purchase the building. 

Business tax offsets, coupled with allowable real estate offsets will more than satisfy the tax liability generated by the IRA cash flow, allowing the Kellys to gradually transfer the value of their IRA into the real estate with little or no tax consequence. The OUTSIDE™ structure of their IRA allowed the Kellys to expand their business and improve their own standard of living, while at the same time make a long term investment in real estate which will contribute to their eventual retirement.

Other estate planning benefits are derived from the OUTSIDE™ structure.  Please visit our website for further information. http://urangafinancial.com/IRA_401K_real_estate/benefits_heirs_more.php?topic=basis