The Self-Directed Real Estate IRA

The Self-Directed Real Estate IRA

 

An IRA is an Individual Retirement Arrangement, more commonly known as an Individual Retirement Account, which allows individuals to put aside money for retirement. To encourage savings, there are many tax benefits associated with these retirement accounts.
 
The term "self-directed" simply means that you, as the individual account owner, have complete control over selecting and directing your individual retirement account investments. A self-directed account will give you access to nontraditional assets, such as real estate, notes, limited partnerships, commercial paper and many other alternative investments.
 
A self-directed IRA allows you to expand your investment options beyond stocks and CDs, providing a better opportunity to diversify your retirement portfolio.
 
 
Real Estate IRAs
 
Self-directed IRAs that focus heavily on real estate investments are often referred to as "Real Estate IRAs." With a Real Estate IRA, your retirement funds can invest in all kinds of real estate and real estate-related assets. The most popular real estate investment options for you self-directed IRA are commercial and residential real estate.
 
Commercial Real Estate includes properties such as retail, office and condominium buildings. Your IRA can get a non-recourse loan or partner with other funding sources to obtain cash for these types of investments. Residential Real Estate is the process of “flipping” homes or holding onto rental properties.
 
When making direct real estate investments, keep in mind that the property becomes an asset of your IRA. This means your IRA owns it. You do not own it, personally, nor can you use it for personal reasons. All income and expenses generated by the property go in and out of the IRA.
 
With Mortgage Notes, you can be a real estate lender with your IRA funds and help others purchase new properties. You set the terms of the loan, including time frames and interest rates.
 
Those with a good understanding of recovering markets can invest in Real Estate Options, which can also be a helpful tool in navigating your investment opportunities. Your IRA can also take advantage of purchasing distressed properties by purchasing real estate at foreclosure or buying real estate owned (REO) properties, which are owned by a bank.

 

An IRA is an Individual Retirement Arrangement, more commonly known as an Individual Retirement Account, which allows individuals to put aside money for retirement. To encourage savings, there are many tax benefits associated with these retirement accounts. 

The term "self-directed" simply means that you, as the individual account owner, have complete control over selecting and directing your individual retirement account investments.

A self-directed account will give you access to nontraditional assets, such as real estate, notes, limited partnerships, commercial paper and many other alternative investments. A self-directed IRA allows you to expand your investment options beyond stocks and CDs, providing a better opportunity to diversify your retirement portfolio.  

Real Estate IRAs 

Self-directed IRAs that focus heavily on real estate investments are often referred to as "Real Estate IRAs." With a Real Estate IRA, your retirement funds can invest in all kinds of real estate and real estate-related assets. The most popular real estate investment options for you self-directed IRA are commercial and residential real estate. 

Commercial Real Estate includes properties such as retail, office and condominium buildings. Your IRA can get a non-recourse loan or partner with other funding sources to obtain cash for these types of investments. Residential Real Estate is the process of “flipping” homes or holding onto rental properties. 

When making direct real estate investments, keep in mind that the property becomes an asset of your IRA. This means your IRA owns it. You do not own it, personally, nor can you use it for personal reasons. All income and expenses generated by the property go in and out of the IRA. 

With Mortgage Notes, you can be a real estate lender with your IRA funds and help others purchase new properties. You set the terms of the loan, including time frames and interest rates. 

Those with a good understanding of recovering markets can invest in Real Estate Options, which can also be a helpful tool in navigating your investment opportunities. Your IRA can also take advantage of purchasing distressed properties by purchasing real estate at foreclosure or buying real estate owned (REO) properties, which are owned by a bank.

Contact Information

Photo of Prestige Properties Team Real Estate
Prestige Properties Team
RE/MAX Advance Realty
www.homeinsouthflorida.com
954-862-2645


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