Potential Real Estate Investment Strategies
When you have a business and want to invest in real estate, the best method by far is to create a qualified plan governed by the Employee Retirement Security Act (ERISA). A qualified plan allows for the investment of plan assets in real property or mortgages. You can visit the IRS website for the most up-to-date information and publications. When you prefer to have someone else handle the work, consider private REITs. If you are interested in long term wealth building and legacy strategies, please contact me.
What About Stock Brokerage Accounts?
An article in a Forbes investment guide special issue written by Larry Kotlikoff exposes a reason why you would want to close your stock brokerage account that you think is covered by SIPC insurance: "Nothing could be further from the truth. Investors with accounts at firms that fail as a result of fraud can, incredibly, be forced to pay an SIPC-appointed trustee money; rather than the other way around." This involves a definition/calculation of net equity, which is hopefully being revised in a bipartisan bill before Congress (H.R. 3482 and S.1725). That bill would base the definition of net equity on your latest brokerage statement before your stockbroker fails. It's another good reason to invest directly in real estate!
Your Secret Weapon to Locating the Best Areas for Real Estate Investments