Millcreek Commercial Helps People Invest Their 401K (SDIRA) in Commercial Real Estate

Millcreek Commercial allows you to purchase any amount of high quality commercial property through your retirement accounts.

At Millcreek Commercial, we help investors jointly own commercial real estate through their self-managed retirement accounts. We love helping our clients grow their portfolio. “

– Kevin G. Long, President

PLEASANT GROVE, UTAH, U.S., April 30, 2021 / – Millcreek Commercial lets you purchase any amount of high quality commercial property through your retirement accounts. Adding real estate to your retirement plan creates a level of stability that is otherwise difficult to achieve.

There is a common misconception that a Self Directed Retirement Account (SDIRA) cannot own financed property. In Mat Sorensen’s manual on the self-directed IRA, he debunks this myth. “It is possible for an IRA to obtain a loan to buy real estate in connection with their money investment. However, the loan must not result in an extension of the prohibited transaction under IRC §4975 (c) (1) (B) ”(p. 117).

“Watch our webinar with special guest Mat Sorenson,” said Kevin Long, president of Millcreek Commercial. “Mat has been at the forefront of the self-directed IRA industry for over a decade. He is CEO of Directed IRA, partner at KKOS Lawyers, national speaker, senior podcast host, best-selling author, and self-directed retirement investor.”

Due to this restriction, real estate is usually owned with your retirement savings account via a so-called non-recourse loan. A non-recourse loan is a type of mortgage loan that is secured by the property itself with no personal guarantee from the owner of the SDIRA, and the borrower, SDIRA, or the owner of the SDIRA is not responsible for any loss suffered by the lender if the collateral increases in value to lose.

Done right, using your SDIRA can be a smart way to grow your wealth.

The property management dilemma
With a no recourse loan, you can use your SDIRA to purchase investment property. This is an extremely effective strategy for expanding your investment portfolio. Managing your investment property is challenging because you cannot do any of the improvements or required maintenance yourself.

– Self-management option
Owning property and managing the property within your retirement account is cumbersome and restrictive. For example, if you need to fix a sprinkler head, as an individual you can’t just hop in there and do the repair yourself. You’ll need to hire a third party to complete the repair for you. Gathering quotes for simple repairs, organizing a repair schedule, and always going back to your IRA custodian to request payment of bills can be exhausting.

– Property management option
An alternative to self-management is to use a qualified property management company. A real estate manager can reduce the friction of owning investment properties in your retirement account by collecting rents, removing their fees and other real estate costs, and transferring the balance to your retirement account. Decisions can be made quickly, and your IRA custodian does not issue payments to vendors and suppliers.

– Single tenant, net rental option
Owning commercial property within your self-directed IRA is also an option and may be the best choice for many investors. In an STNL (Single Net Leasing) property with a single tenant, the tenant does all the heavy lifting. The renter buys property insurance, pays property tax, hires the plumber, receives the HVAC deal, and maintains the landscaping. The burden of managing a property does not apply to the landlord and is taken over by the tenant.

Increase your portfolio growth
CVS and Wells Fargo have a perfect product for your SDIRA if your goal is long-term growth. CVS signs and guarantees a 467 No Recourse Loan from Wells Fargo. It works because every penny of the rent from CVS goes straight to the repayment of the Wells Fargo mortgage. The non-recourse loan enables compliance with the prohibited transaction rules when investing in a self-directed IRA.

These loans must meet the LTV requirements of around 75%. There is a significant prepayment penalty and the loan must be paid back during the initial rental period, which is typically 25 years.

If you had $ 250,000 available in your SDIRA, you could use this secret weapon by buying $ 1,000,000 from a CVS. You bring the $ 250,000 from your retirement account and $ 750,000 of the no recourse loan is allocated to you as CVS guarantees the loan and Wells Fargo doesn’t care who the debt belongs to.

This strategy strengthens your SDIRA through the use of smart leverage backed by a first class tenant with a credit rating.

At Millcreek Commercial, we help investors jointly own commercial real estate through their self-managed retirement accounts. We’ll help you convert your current investment into one that is compatible with owning real estate. This model allows you to manage your retirement accounts and convert some of those funds into commercial real estate.

Self-directed IRAs are best suited for savvy investors who already understand the alternative investments and want to diversify into an account with tax advantages.

About Millcreek Commercial
Millcreek Commercial takes the benefits of investing in commercial real estate to the next level with a high performing model that generates monthly passive income, does not require heavy lifting and provides tax protection for our co-owners. The company helps investors generate passive income monthly by owning premium commercial real estate that is both recession-resistant and fully managed. Millcreek offers attractive programs for 1031 Exchange, self-directed IRA (SDIRA), and money investors. The Millcreek Commercial is located in the Salt Lake City metropolitan area and is privately owned.


Millcreek Commercial spokesman
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Millcreek Commercial Spokesperson, Rainboost Digital Communications

April 30, 2021, 15:00 GMT

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