Qualified Plans

Many retirement plans are restrictive in their investment scope. Employer-sponsored 401K plans are generally limited to a predetermined list of mutual funds and while traditional IRAs have more flexibility than 401K’s, they are not structured to allow real estate investments.

Both 401K’s and traditional IRA’s can be rolled over into a self-directed IRA that allow much greater flexibility and almost always allow investments in real estate. While many investors do utilize the self-directed IRA to capitalize on real estate opportunities, they typically purchase one or two properties, take out mortgages, subject themselves to tenancy risk, and often buy properties with negative cash flow, creating a potential drain on the IRA. Repairs and maintenance expenses are also often difficult to manage through the restictions of the IRA and mishandling of these transactions can inadvertently trigger an IRA disbursement and tax penalty instead of a legitimate property expense.

Investing in real estate through a fund like Cloud Nine allows you to utilize the parameters of the self-directed IRA and provides a passive investment, no unexpected and immediate maintenance emergencies, instant diversification and the comfort of a professional team overseeing every asset under management.

If you currently have a self-directed IRA and would like to invest in Cloud Nine then fill out the form and include the name of your current administrator so we can determine if we are currently registered with them. If we are not this process can be completed in 7-10 days. You can also use this form if you require our assistance rolling over your existing qualified plan into a self-directed IRA.