Okay, so you’re convinced. You don’t only believe that real estate is a great investment – and one of those investments that helps you diversify your portfolio – but you believe that it would be a great investment for your nest egg. In other words, you’re ready for a Real Estate IRA. You can see the future, and it’s a future bright with plenty of financial security and peace of mind.
But there’s just one problem. You don’t know how to get from A to B. And you’re not sure that you want to learn the hard way. You’re afraid of a steep learning curve when it comes to a Real Estate IRA, so you find yourself paralyzed and not doing anything at all. You’re stuck where you are, not taking action toward your goal even though you know what the goal is.
We’ve all been there. That’s why we’ve put together eight tips to help you reduce your learning curve, grow confidence, and ultimately, help you achieve the goal of putting together a successful Real Estate IRA.
Building the Real Estate IRA from the Beginning
- Tip #1: Do your homework. Research is one of the most valuable tools of the investor. And while it might seem like it’s difficult for you to do research if you’ve never done it before, you can always buy books that will help guide you through the process of building a Real Estate IRA from the ground up. So do your homework. Do anything that can help you learn about real estate, whether it’s reading the local listings to get a feel for your area or simply checking out a few books from the library on weekends.
- Tip #2: Avoid “paralysis by analysis.” If you’ve ever heard of this phrase, it’s likely because it’s such a widespread problem amongst investors and anyone else struggling to take action in their lives. If nothing else, you can always divide the process of building a Real Estate IRA into baby steps to ensure that you start taking action rather than languishing in rationalization and procrastination.
- Tip #3: Start small. There is no requirement in real estate that every single venture be large. You don’t have to start out at the absolute top – you can start small if you want. Not only will this help you gain invaluable experience, but it will teach you that the process of investing in a Real Estate IRA is not as scary as you once might have thought.
Sustaining Long-Term Success in Your IRA
- Tip #4: Stick with what you know. There are plenty of options for investing in real estate when using an IRA, including buying raw land and single-family homes, so make sure that you stick with the area you know best. Playing to your strengths is a great way to watch your IRA grow over time.
- Tip #5: Use debt wisely. You can still use debt to finance a loan within real estate investments in an IRA, so make sure that you use this debt wisely. It’s an advantage, sure, but it’s also a slight risk. So make sure that you’re confident in each transaction before you sign on the dotted line.
- Tip #6: Build over time. Don’t expect automatic, overnight growth. Those who succeed in real estate are able to take a long-term approach and not succumb to the whims of any individual season. Keep persistent and stay at it.
If you want to know more about investing in real estate as part of your nest egg, be sure to contact us at 866-7500-IRA(472) or continue to browse AmericanIRA.com for more information.