The Beginner’s Guide to Real Estate Investment in Self-Directed IRA’s
Great wealth begins with Self-Directed IRAs.
If you’re like a lot of retirement investors, you have one pervading thought that happens all the time: “Am I doing enough to ensure my long-term security?” It’s not an easy thought, but sometimes it has the benefit of spurring you to greater action.
So, you start researching. You look online for answers. You learn about portfolio diversification. You learn about mutual funds, Roth IRAs, and more. And the more you read about it, the less convinced you are that the “usual route” or the road most traveled is the route for you. You want more. You want more security, more assurance that your portfolio will continue to thrive even in adverse economic climates.
Finally, you turn to one investment conclusion that’s been around since investments themselves: the concept of real estate. You’re aware of the wisdom that real estate is a finite resource, which means that over a long enough time period, its value will generally go up. But there’s just one question remaining: how do you incorporate real estate investments into your retirement portfolio to protect yourself from fluctuations in the other places in which you’re investing?
Getting Started with Real Estate Investments: the Self-Directed IRA
If you’re going to put a portion of your retirement investments into real estate, it begins with a Self-Directed IRA. That’s right: many people think of IRAs as places to put money for investments like mutual funds and the stock market, but the truth is that a Self-Directed IRA comes with all sorts of flexibility for creating a portfolio of your own design. And one of the most popular items that people can invest in with a Self-Directed IRA is real estate.
But how specifically can you put enough money in a retirement account to invest in real estate? Well, you can use the money you already have to roll over into a Self-Directed IRA. But there are plenty of strategies that even beginners can take advantage. For example, you can borrow money within your real estate IRA to purchase real estate, which gives you more leverage that you might otherwise have with a typical IRA.
It Works Like Usual Real Estate Investments – with a Few Changes
In many ways, your real estate investments within your Self-Directed IRA will work just like any usual real estate investment you might make—with a few subtle distinctions. You can check out our Real Estate resource to find out the limitations and advantages that come attached with investing in real estate through an IRA. One example of a limitation is that you’re not permitted to manage nor service the property yourself—but you can collect profits and rental income within the IRA.
Understanding the differences between investing in real estate through a Self-Directed IRA won’t only be integral in making sure that you follow all of the rules, but that you take advantage of all of the built-in strategies that can work for you with a Self-Directed IRA.
[tweetthis twitter_handles=”@iraexpert” hidden_hashtags=”#SelfDirectedIRA”]Great wealth begins with Self-Directed IRAs.If you’re like…[/tweetthis]
What’s great about a Real Investment Self-Directed IRA is that it will allow you to make retirement investments that are outside of the stock market, giving you more freedom and flexibility to take the reins of your financial future and provide a well-diversified portfolio for yourself in retirement. If you want to learn more about Real Estate Investment, be sure to check out our Real Estate link or simply call us at 1-866-7500-IRA(472) to find out more about real estate investments within a Self-Directed IRA account and how they work. We’ll be glad to hear from you!
Images by: presentermedia.com