Many people don't realize it is possible to purchase real estate through a self-directed IRA!
What is a self-directed IRA or real estate IRA?
The term 'self-directed' simply means that you, as an individual, have complete control over selecting and directing your own individual retirement account or 401k investments.
Once established, your account can buy real estate, notes, limited partnerships, commercial paper, and many other types of assets. With a self-directed individual retirement account or real estate IRA, you make all of the decisions regarding your investments.
The self-directed IRA custodian or administrator completes the documents required to establish your account and purchase your investment. A real estate IRA is simply a self-directed IRA that holds real estate.
What are the benefits of a self-directed IRA or real estate IRA?
The largest benefit of a self-directed IRA or real estate IRA is that you can invest in what you know. Period.
With the great tax advantages provided by all individual retirement accounts and 401ks, as well as the wider range of possible investments of a self-directed IRA or real estate IRA, you can potentially build wealth and secure your future much more effectively than through traditional retirement plans.
With a self-directed IRA or real estate IRA, you are not limited to the investment offerings of an IRA custodian or trustee - you have much greater flexibility in the number of investment choices you have. You are not limited to investing in stocks, bonds, or mutual fund investments that are set up by the custodian.
Self-directed IRAs and real estate IRAs require a specific type of custodian or trustee and specific documents to be executed. For a self-directed IRA to exist, the account needs to be held with an IRA custodian or administrator who allows investments into nontraditional investments.
Ask us about companies we've worked with to help clients buy investment properties through a self-directed IRA!