Welcome to Joseph A. Emanuelli Playa Hermosa, Costa Rica Sign in | Help

Guanacaste, Costa Rica by Joseph Emanuelli

Real information and stories from Guanacaste , Costa Rica. Presneted by a long time expat living and working in Costa Rica
Costa Rica, Playa Hermosa Guanacaste. How Do I use my IRA to Purchase in Costa Rica?

Hello from Playa Hermosa,

            Today is just a beautiful day in Playa Hermosa. The sun is shining, there is a light breeze and the temperatures are in the mid 80’s. God I love living here. Sorry I just had to write it!!

This past week I had the great pleasure of working with some clients, that have already become my friends as this was their fifth trip in the past three years to Costa Rica and more to the point Playa Hermosa, looking for that place to eventually call home. We really hit it off three years ago and have just stayed in touch. Back then they were honest and open and said “we are still 3 years away from making the move”. This trip they are not quite ready to pull the trigger yet, but are very very close. They just need to organize some things back in the California and set some things in motion here. Which I am glad to say I was able to get them started on the items here in Costa Rica to get the ball rolling so they can finally achieve their dreams.

We spent one day looking at the properties they picked from my web page. After they decided on the home that they fell in love with, I recommended that we go ahead and write an offer to tie up the property so they do not lose it to another buyer.

Ok I know what you are thinking “when is he going to get to the meat of this blog”, well hold on and keep reading it is just a few paragraphs down. When I had the purchase sale agreement ready based on what they wanted to offer, I found out that they did not have all the funds readily available to consummate the deal. So thinking on my feet I offered them another solution. USE their IRA!

Most people think that the IRA is just for retirement, and investing in stock, bonds and mutual funds. Most if not all custodial brokerages that handle IRA’s say that you can self-direct your investment. Well this is true and false. They only allow you to direct the investments in the funds and investment vehicles that they offer and other similar brokerages offer. If you ask them “can I purchase investment real estate”, they will again lead you towards a RIF (real estate investment fund) or similar type of investment. This is not what you want is it? You want to purchase the investment property in Costa Rica, for the future growth and rental potential and when you hit the age of retirement and can start pull from your IRA, it could be your future retirement home.

Well there is a way to do it and it is LEGAL by the United States IRS code.  (As a side note I am looking into the use of a RSP (retirement savings plan) for my Canadian friends to see if it can be done as well) It is called a truly self-directed IRA. I know I have done it. I actually own part of a mall in Arizona utilizing my IRA. It was a very easy process.

First you will have to roll over your IRA from the custodian company you presently have it with to Equity Trust Company. (See the video below) remember you are not cashing it out, you are ROLLING it over so there will be no tax implications. Then once the funds are in your new account with Equity Trust, you can fill out a form to have them purchase the investment property in Costa Rica. There will be other forms to fill out and legal guidelines and requirements as well that will be discussed with you by one of their investment experts.

So if you ever wondered how you could afford that investment property in Costa Rica, now there is a way.

Just Click below this link to get starter and learn how to use your IRA to invest in Costa Rica.

Self-Directed IRA Overview Video

As always, thanks to my steady followers for stopping by my blog. I hope you enjoy some of my rants, craziness and even some good information, if you want to make a comment just send me an email to jaaechef@gmail.com , my personal email address or post it here. If you have an interest in or are just curious about Costa Rica and the possibility of owning your own piece of Paradise just click this link and have a look around.


I look forward to hearing from you! May the Sun Shine on you no matter where you are!!

“Pura Vida” Pure Life Baby!!


No Comments

New Comments to this post are disabled