Why invest in real estate using a Real Estate IRA?
It’s a question that anyone who’s come across this new type of investing finds themselves asking. And, after all, there are many people who only invest in real estate using out-of-pocket cash or, more often, retrieving a loan from the bank.
Well, we’re here to tell you that these traditional methods of investing in real estate don’t disappear when you invest in real estate through an IRA. In fact, you’ll find that it’s the opposite: there are actually a number of advantages when you decide to invest in real estate using a Real Estate IRA. But knowing about those advantages and realizing them are two different things. Towards that end, we believe that knowledge is power. That’s why we’ve put together this brief guide to share three distinct advantages to investing in real estate through a Real Estate IRA rather than through traditional methods.
Advantage #1: Capital Gains Taxes
When you sell property within your, capital gains taxes are less of a concern, as we demonstrate here at our Real Estate IRA guide. This is important for anyone who wants to make sure that they realize the full potential of their real estate – and particularly important for someone who wants to diversify their portfolio using real estate, but doesn’t want to lose it all every single time that they transact real estate.
Anyone who’s ever had much of their investment go to capital gains taxes knows how important it is to legally and ethically reduce your tax burden so as to realize the most potential from your investments.
Advantage #2: Hands-Off
Investing in real estate through an IRA is great for people who enjoy a “hands-off” approach, because when you invest in a property through a Real Estate IRA, you’re going to have to hire a property manager to handle everything from collecting rental income to paying all expenses. This means that you can acquire a number of properties and not have to feel so hands-on; in other words, you don’t have to keep tinkering with your retirement assets even if they’re invested largely in real estate.
If you’re the “hands-off” type who prefers to pay someone else to do the work, this might be the right approach for you; particularly if you know a lot about real estate and prefer to invest, not to manage. Many people find that their investment style is surprisingly suited to real estate once they know how to read the market and how to invest intelligently.
Advantage #3: Tax Deferring
The chief advantage of retirement accounts often comes through tax deferring, and with a Real Estate IRA that allows you to invest in real estate, you’ll find that this advantage doesn’t suddenly disappear! In fact, a wise investor will be able to use their Real Estate IRA to get the most out of their investment. You’d be amazed at how much value some investors can generate while their money sits in their investment account.
[tweetthis twitter_handles=”@iraexpert” hidden_hashtags=”#RealEstateIRA”]The chief advantage of Real Estate IRAs comes through tax deferring…[/tweetthis]
Of course, there are number of rules and regulations to remember here, and we recommend you check some of them out at our Real Estate IRA guide. But we don’t think that the rules and regulations will be intimidating; in fact, you’ll see that some of them can work out to your advantage. If you’re interested in using a Real Estate IRA or simply learning more about these fascinating retirement tools, you can contact us at 1-866-7500-IRA(472) or simply continue to browse our site for more tips, strategies, and lessons when it comes to managing your own financial future.
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