Advantages of Investing In Real Estate Through Your Self-Directed IRA

Invest In Real Estate, The Ultimate Hard Asset

Owning income producing property through an IRA is one of many methods investors are using to create retirement income. Real estate is appealing to investors, partly because it takes a minimum down payment to acquire a whole lot of property, and because an IRA can be used to make the purchase.

An IRA allows individuals to purchase real estate investments such as rental property or even properties intended for renovation and resale. Investments purchased through an IRA are allowed to grow tax-free or tax-differed.

There are many different real estate investments and ways in which you may acquire them.       Cindy can assist in the purchasing of the property and an IRA custodian, such as Entrust Group or Vantage, can assist in the process of carrying out all of your custodial needs to comply with the IRS guidelines. We believe you should have more choice, control and flexibility when it comes to your self-directed IRA.

     

    Advantages of Investing In Real Estate Through Your Self-Directed IRA

    Real estate purchased through an IRA is considered a secure asset. Therefore, the investment is extended protection from personal bankruptcy filings. All transactions are conducted       separately from an individual’s personal finances.

   There are several tax advantages associated with investing through an IRA. Capital gains and income made on property or land purchased through an IRA are afforded tax-deferred        advantages. If the investment is made through a Roth IRA, the capital gains and income are exempt from tax.

   Real estate investments provide an opportunity to diversify your holdings. IRAs allow investors to go beyond the usual stock, bond, and mutual funds. Holding property in an IRA          account provides real benefits and investment options you just can’t get anywhere else.

    IRA-owned real estate assets can be handed down to future generations. These type of investments can sometimes appreciate in value. The investment, along with its value and tax          advantages are able to spill over into the next generation under beneficiary designations.

   Build Opportunities with a Real Estate IRA

With the proper guidance and servicing, you have the    ability to invest in almost any type of real estate      using your individual retirement account.

Types of Real Estate

Individual Retirement accounts may be used to invest in several different types of real estate transactions.

The most common transactions for real estate options are:

Homes, apartments and condominiums
Office buildings, retail stores, malls, and other commercial properties
Vacant land

Acquiring Real Estate When Your IRA Falls Short

When an IRA will not cover the full purchase price of real estate, investors can turn to non-recourse loans to fund the balance.
A non-recourse loan is obtained through a bank by the IRA, and the IRA becomes responsible for loan repayment.

As an IRA owner, you will not make any of these payments personally; your IRA must meet the requirements and make all the payments.  will ensure transactions are placed according to IRS guidelines.