Is a Real Estate IRA Right For You?

Real Estate IRAIn 2013, yields on savings and bonds have been pretty dismal – consistently in the lower half of the single digits for high-grade securities. Dividends on stocks aren’t any better: The S&P is still near historical lows. Mutual funds, for their part, are largely stuck with the opportunities the stock and bond markets offer. Savings accounts are earning less than 1% interest. According to, the United States debt is nearly $17 trillion! The average Social Security check of $1,230 per month leaves many seniors living just a hair above the poverty level!

For these reasons, a special kind of retirement account called a self-directed real estate IRA is becoming increasingly popular. With a self-directed real estate IRA, you take full responsibility for the investments you make. You aren’t delegating your financial future to a stranger hundreds or thousands of miles away. You are in control of every transaction your IRA makes. Real estate is one of the most popular investments among self-directed real estate IRA account holders.

As of January 2013, one out of every 20 IRA accounts is self-directed – and that number is growing fast. Self-direction isn’t appropriate for every investor. But for those with knowledge and ability in real estate and related disciplines, a self-directed real estate IRA can be an excellent option.  If you can answer positively to most or all of these questions, opening a self-directed real estate IRA could be an excellent move for you.

Do I have any knowledge of real estate?

The fundamentals of real estate don’t change based on whether the assets are held in a retirement account or not.  You still need to identify investment properties that you can purchase at an advantageous price that have positive equity and/or can generate positive rental income on a monthly basis.

Do I want my retirement fund to grow?

If you do your proper due diligence and you know your real estate market then smart investments can build your equity and/or your monthly income. Some people do not get started in real estate IRA investing because they think they don’t have enough money in their retirement account to purchase real estate. What most people don’t realize is that your self-directed real estate IRA can borrow money via a non-recourse loan from a bank or private lender and it can partner with other self-directed IRAs and/or other individuals. Hint: Many people have old 401(k)s sitting with old employers, in many cases, these can be moved into a self-directed Real Estate IRA and used as a source of funds.

Does my real estate IRA have enough funds to cover Repairs?

Your real estate IRA will be responsible for covering the expense of any repairs related to the property it owns. It is important to plan and make sure enough funds are in the retirement account to cover repairs.

Do I Need More than $1,230 per Month to Live on During my Retirement?

Many people are realizing that $1,230 per month is not enough to live a comfortable retirement on. If you are among those people, taking control of your self-directed real estate IRA will put you in the driver’s seat so that you can begin growing your retirement funds.

For more information, and for a complimentary information kit, call American IRA at 877-7500-IRA (472).

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