Why Should Investors Own Real Estate Through Real Estate IRAs?
You get it. You’re on board with the idea of real estate as a key investment for your future retirement nest egg. You know that owning real estate can be a great way to ensure that you have a proper income even in your retirement years – an income for which you won’t have to keep working yourself to the bone. But then you hear about an idea like Real Estate IRAs and you wonder, “well, what’s the point of having my real estate through that kind of account? Can’t I just own it?”
You can simply own real estate, yes. But that’s not the point when it comes to this favorite investment of people planning for retirement. In fact, you’ll find that when it comes to investing in real estate, there are many advantages to be had in owning it through a Real Estate IRA – and the disadvantages aren’t prohibitive, either. Let’s look through the characteristics of a Real Estate IRA to learn what they’re all about and figure out the answer to this question, “why?”
Making the Most of Real Estate IRAs and Their Advantages
When you own real estate free and clear on your own, that can be a great thing. But it also means you might be leaving yourself somewhat vulnerable to circumstance.
IRAs come with tax and asset protection advantages that you can’t realize simply by putting your money out there. Making sure that you have a degree of protection when it comes to real estate isn’t just wise, but it can sometimes be necessary. After all, real estate is an investment with which other people will interact – tenants and the like – and that means there are certain risks involved.
There are, of course, risks involved with every kind of investment, so these risks don’t make real estate a poor choice. It simply means that you have to know the best way to go about your investments in order to create a secure portfolio that you can feel proud of. For example, a loan to your IRA must be non-recourse, which means that if you default on the loan, the lender can only claim the property for which they have loaned you money. That’s the kind of protection that will help you feel safer with your money in real estate.
Don’t Give Up Your Freedoms and Flexibility
Another great advantage in using Real Estate IRAs is that you don’t have to give up many of the great advantages that can make real estate such a powerful investment. For example, you can still use leverage to make real estate purchases with an IRA – see the previous discussion on non-recourse loans. When many people think “IRA,” they think about limited contributions…but the truth is there are plenty of other freedoms afforded to an IRA.
[tweetthis twitter_handles=”@iraexpert” hidden_hashtags=”#RealEstateIRAs”]Don’t Give Up Your Freedoms and Flexibility-Great advantage using Real Estate IRAs [/tweetthis]
You can use Real Estate IRAs to select from a broad range of investment options, including raw land, single family homes, townhouses, condominiums, duplexes, apartment buildings, and commercial properties. This means that you don’t have to limit yourself when it comes to looking at the larger real estate market as a whole; you can make many of the same choices as you would in any real estate investment, with the added protections of an IRA.
Want to know more about investing in real estate through an IRA? Then we encourage you to check out more of our website, or simply contact us at 866-7500-IRA(472) to learn what Real Estate IRAs can do to protect you and your investments for years to come. You’ll find that there are fewer ways to achieve peace of mind than to have income generated through real estate.
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