IRA REAL ESTATE INVESTMENT
Real Estate In An IRA
The IRS allows an IRA, Individual 401(k), HSA, or ESA to acquire real estate as an asset without penalty and while keeping the tax benefits associated with that account type.
An IRA can purchase any type of property, including residential and commercial real estate, raw land, agricultural, and more. The IRA can buy the property outright, meaning the IRA is the title holder. If the IRA does not have the full purchase price, the IRA can partner with a person, company/entity or another IRA, or it can secure a non-recourse loan (see below) to buy real estate.
Real estate in an IRA provides the opportunity to generate income from rent, appreciation, fixing and flipping and more.
Since the inception of IRAs, it has been possible to participate in real estate as an asset. What has not always been easy is finding an IRA provider who was willing to service this type of investment.
The IRS requires an authorized IRA provider for all IRAs, and not all IRA providers handle real estate, but New Direction IRA does. You, the IRAholder, select the property, negotiate the terms, and direct us to send money from your IRA to close the deal. We make sure that the paperwork substantiates that the asset is part of your IRA and, thus, deserves the tax benefits associated with the account type. Our knowledgeable staff will guide you through the IRA investment process and ensure that your transactions are prompt and accurate. We offer ongoing free education on SDIRA (Self Directed IRA) Real Estate investing and regulations.
Introduction to Real Estate IRA Basics
Many investors and even real estate professionals are unaware that retirement funds can be utilized to invest in real estate. Join us for an eye-opening introduction into the world of self-directed retirement investing. Learn how IRA and 401(k) funds can participate in real estate investments like rental properties, fix and flips, and even private lending. Walk away from this free presentation with a basic understanding of important factors like IRS rules, personal limitations, partnerships, financing options, and more
Are The Benefits Of Having Real Estate In An IRA?
- Real Estate is a tangible asset; you can see it and touch it.
- Real Estate is an asset that you have experience with and understand.
- Investment properties can potentially yield a cash stream as well as market appreciation.
- You have strategic control over the properties that your retirement account owns.
- You can apply your knowledge and expertise pertaining to the real estate market.
- You can buy, sell and exchange properties without tax consequence.
Real Estate IRA – Important Things To Know
- An IRA is its own financial and legal entity, and it is separate from your personal finances.
- As a separate legal entity, your IRA has it’s own name:
New Direction IRA, Inc FBO (client name) IRA
- The IRA is the owner of the real estate, not the IRA holder. Therefore, purchase and maintenance costs are paid by the IRA and all income (e.g. rent) goes back to the IRA.
- All legal documents related to an IRA-owned asset must be in the name of the IRA, not your personal name.
- For the documents associated with your IRA’s real estate acquisition to be complete and legal, they need to be signed by New Direction IRA (as the administrator for that account).
Call me for instructions and restrictions! I can help make your IRA work for you in the current market! EMAIL ME For my FREE 11 page INVESTING REPORT. 303-898-900
As a Realtor® with over 30 years of experience, I specialize in all areas of Denver and the Front Range including: Arvada, Aurora, Broomfield, Wheat Ridge, Littleton, Lakewood, Denver, Castle Rock, Castle Pines, Parker, Centennial, Golden, Evergreen, Greenwood Village, Westminster, Highlands Ranch and Lone Tree! I am working with New Construction Builders, Buyers, Sellers and Investors.
I use cutting edge technology in all of my Marketing!