Jim Hitt Details Handling Hurricane Damage to Real Estate IRA Properties
Posted on September 30, 2017Recent hurricanes from Harvey and Irma through Maria have devastated parts of the gulf coast and Caribbean. Now Jim Hitt of American IRA is detailing how those with Real Estate IRA property can handle the damage.
The recent damage from Hurricanes Harvey, Irma, and Maria have changed the investing landscape for many—and that’s putting it lightly. Those with real estate affected by the Hurricanes are looking at real losses, either to their homes or to investment property that was set to serve as a retirement nest egg. Recently, Jim Hitt took to the American IRA blog to talk about how those with Real Estate IRA properties affected by hurricane damage can handle these issues.
The first topic for the post: insurance and repair considerations unique to Real Estate IRAs. Because investors shouldn’t intermingle their funds—which means investors should keep their IRA funds separate from the rest of their funds—it’s important to watch out for these issues especially when there’s a sudden demand for repair money. Real Estate IRA owners can be tempted to buy things like sandbags and temporary doors/fencing. But Real Estate IRA investors are expected not to use their personal funds to finance these items. There are common-sense repairs available, and Jim Hitt details these issues in the post.
“What many people don’t realize about Real Estate IRAs is that it’s important to keep them separated from an investor’s usual funds,” said Jim Hitt. “You wouldn’t move money in and out of a 401(k) without thinking about it first. Similarly, investors can’t simply go up to their property and use their personal credit card to make things right again. This is a separate, tax-protected investment account, and investors need to remember that they’re expected to treat it as such.”
For example, a settlement check from an insurance company for damage to the Real Estate IRA property should be made to the Real Estate IRA, not to the owner of the property. That requires paperwork done the right way on the front end, Jim Hitt says, which is why it’s so important to work with a reputable Self-Directed IRA custodian.
“There are tremendous benefits to the Real Estate IRA,” Jim Hitt said. “But an investor only realizes those benefits if they follow the rules. Even with special circumstances like hurricane damage, the rules still have to be followed.”
American IRA, LLC was established in 2004 by James C. Hitt in Asheville, NC.
The mission of American IRA is to provide the highest level of customer service in the self-directed retirement industry. Mr. Hitt and his team have grown the company to over 0 million in assets under administration by educating the public that their self-directed IRA account can invest in a variety of assets such as real estate, private lending, limited liability companies, precious metals and much more.
As a self-directed IRA administrator, they are a neutral third party. They do not make any recommendations to any person or entity associated with investments of any type (including financial representatives, investment promoters or companies, or employees, agents or representatives associated with these firms). They are not responsible for and are not bound by any statements, representations, warranties or agreements made by any such person or entity and do not provide any recommendation on the quality profitability or reputability of any investment, individual or company. The term "they" refers to American IRA, located in Asheville, NC.