If you want to get the most out of your retirement, we have three words for your: knowledge is power. No, we’re not talking about any sort of “inside” knowledge when it comes to investing, or any sort of illegal trips and tricks. We’re talking about real investing knowledge: knowledge about the different types of accounts and investments you have available to you, and how to use those accounts and investments to the best of your ability. And one of the most important things for people to learn is how to use their Real Estate IRA in the best way possible.

Why a Real Estate IRA? Because self-directing this type of IRA allows you to utilize some amazing things that you simply can’t get when you invest in other types of accounts and asset classes. With real estate, you’ll be able to tap into your experience with this asset class…and possibly even get a lot of value out of it if this is your first foray into the world of real estate. How is that possible? Well, knowledge is power. Here are some tips and strategies for getting the most out of your Real Estate IRA.

Know Your Real Estate IRA Options

It starts with knowing your options. You can check out our Real Estate IRA tips and advice for greater detail, but here are some of the things that most beginning investors don’t know about this type of IRA:

• Selling property within a Real Estate IRA means that you won’t have to worry about capital gains taxes. Since this is a major issue for anyone dealing with a lot of real estate, it’s important to know that this is an option if you want to invest in real estate for retirement.
• When owning real estate within a Roth IRA, you can collect rental income tax-free. This gives you a major leg-up and helps you maximize your returns.
• You can borrow money within a Real Estate IRA in order to purchase real estate. This happens through non-recourse loans; non-recourse loans allow you a certain amount of protection for your other assets.
• In using a Real Estate IRA, a property manager will collect rent and handles expenses, allowing you to collect the profit with barely living a finger.

Using a Real Estate IRA in the right way for your goals means knowing these options available to you, knowing how the IRA works, and the specific strategies above that investors use to maximize their gains.

Know the Rules

Of course, a Real Estate IRA is not a license to do anything you want with the real estate. There are rules, such as the fact that you won’t be able to live in the real estate while you invest in it. This prevents people from using their own home in a Real Estate IRA for any tax benefits. And you’ll want to remember that your IRA will be the owner of the property, which is important for tax purposes.

Are you interested in using a Real Estate IRA—or even simply learning more about how the process works? If so, be in touch with us. You can browse the link above, continue to read our blog articles here at AmericanIRA.com, or you can get in touch with us directly by calling 1-866-7500-IRA. We’ll be glad to talk to you and help you understand what Self-Directed IRAs are and how they work. After all, knowledge is power—especially when it comes to making sure that you have a retirement plan you can be proud of.