Investing in Hotels and Motels

I recently had a conversation with an individual that was considering investing his IRA into a motel. He was a successful executive in the hotel industry so he felt he knew what to look for when considering the many hotel and motel opportunities. He is typical long term employee that had an employer sponsored 401K that allowed him to invest in a select few mutual funds. Over the years he had contributed a substantial amount of salary deferrals, along with company matching he had accumulated a nice little nest egg. The problem is as far as he was concerned, was that he was investing in things he didn’t understand. He was investing in things he had no control over and it just wasn’t working, he always wanted to invest something he knew and understood.
After leaving his job of many years and doing some research he discovers that he could roll his 401k to a self directed IRA and take checkbook control of those funds. His research revealed to him that he could invest his retirement funds into investments that he could control, investments that he understands. His expertise has always been hotels and motels and now he could use his retirement funds to invest in just that. He shared with me some of the properties he was looking into.
He found a fifteen unit motel in Pagosa Springs, Colorado it has an owner’s house, lobby and office on 3.5 acre of land with room for commercial expansion. It also has a workshop and full RV hookups. Asking price is $499,000. His research also tells him that the annual income for this hotel is in the neighborhood of $150,000.
He also showed me a new motel and restaurant that was recently built on a location with high traffic in Kickapoo River Valley. The restaurant seats ninety people and includes an ice cream shop, drive thru window and sales of gourmet coffees, snacks and other beverages. The Motel has 19 units that could sleep seventy four people. The motel is already set up with Wi-Fi, cable TV microwave oven and a refrigerator in each room. The motel and restaurant is considered turnkey. The asking price for this business is $945,000.
These are just a couple of the many motels he is considering for his self directed IRA. I explained to him he needs to know the rules of investing his IRA into a business. He is very confident that he understands the rules and this is good use of his retirement funds.
So what about you, what are you passionate about? What do you know and understand? And why are you not using your retirement funds to invest in that? You can be take checkbook control of your retirement thru and IRA owned LLC and invest in what you know and understand. In investment choices you control and are comfortable with and investment direction that you understand. Take charge of your retirement future today, contact us now we will help you get started with your IRA owned LLC. Remember now cares about your retirement future more than you do.