How to Own Real Estate in Your
As you know, a self-directed IRA is a retirement account that
allows you to invest in real estate and grow your nest egg nicely in
a relatively short period of time. This type of account allows you to
hold a variety of investments, including real estate in it. On top of
that, investing with a self-directed IRA can be entirely tax-free.
You may currently
hold a 401(k) or an IRA account at commonly
used brokerage houses. If so, those particular brokerage houses
service these accounts with products they offer, such as stocks,
bonds, ETFs, and mutual funds. Self-directed IRAs are different in
that they must be set up with a trust company and you truly self-direct the
investments you wish to participate in. Doing that could mean buying yourself
business, owning investment property, or even real estate notes.
That in turn
could mean an amazing growth for your portfolio, one which in general
is much more difficult to attain through the stock market. If stock market returns
between 10 and 15 % on average, investing in real estate in a self-directed IRA
could mean return on investment much higher than that.
Owning real estate with
your self-directed IRA is truly intended to build wealth, and
there are rules that must be followed. For one thing, the account must be set
properly. And if you own a property in your self-directed IRA portfolio, it must
be for investment purposes. Generally speaking, real estate is a good investment
it can be very profitable.
Investing in real estate in your IRA can mean:
Holding real estate in a self-directed IRAs can also offer a viable
alternative to 1031
Exchanges as both defer gains.
You can invest in the local, national, and even
international real estate market and
purchase many types of investments.
Gabrielle is passionate about helping people just like you to leverage themselves
grow financially and personally. She does this in two ways: as a realtor, specializing
in residential and investment real estate in San Francisco and beyond, and as
expert in helping people roll their retirement funds (IRA and 401K money) from
much more volatile stock market into California real estate.
Gabrielle Dahms, Realtor
First Bay Area Realty