Follow the advice of Warren Buffet and many others who came before him and invest in what you know. An offshore IRA gives you the power to diversify offshore and invest in what you understand at the right price.
An offshore IRA placed in an offshore company, where you are the manager of that company, gives you checkbook control. The IRS can then pay your research and travel expenses and you can buy what you know, which is not possible in a self directed IRA.
- The offshore company is usually structured as a limited liability company.
In a self directed IRA, you can recommend investments to your custodian or advisor. If he is comfortable with the investment, he will proceed. If he is not, then he will block the transfer… which is quite common with offshore investments.
The bottom line is that the custodian does not have the time or desire to understand and vet the offshore project. Are you going to pay him thousands to visit a build in Panama? Probably not… but you are willing to spend your time and money to get to know the city and the investment.
- The custodian has some liability if the investment goes south. In an offshore IRA LLC, this is all on your shoulders.
So, while an offshore real estate investment is filled with risk and uncertainty for the self directed custodian, it is something you can become knowledgeable in, which means it is the perfect investment for your offshore IRA.
If you want to research and invest in high returning international real estate or hard assets, like physical gold or wood, you should be making these investments through an offshore IRA held by an offshore company.
You should only buy what you know, and you are the only one who is willing to spend the time and make the effort to get to know a real estate project offshore.