I'm sure you know that it is possible to invest in real estate through an IRA but are you aware of how simple this can be?
First of all, let's talk about the different self-directed accounts you can use:
Traditional IRA
Roth
Simplified Employee Pension (SEP)
Savings Incentive Match for Employees of small employers (SIMPLE)
Coverdell (education)
Health Saving Account (HSA)
If you don't have one of the above accounts already, you can set one up easily or roll over a 401K or another retirement account into one of these self-directed plans.
You'll want to speak with your accountant & retirement planner to determine which of the above vehicles makes the most sense to you. There are advantages & disadvantages to each. I'm obviously not a CPA, attorney or retirement planner but I can assist you in building your real estate investment portfolio.
Did you know that you can earn money tax-deferred into these accounts? And did you know that you don't have to have a lot of money in there to begin? Even with a $1,000 you could do wholesale buying. What is wholesale buying? Well, that's another post but the short answer is: Finding a property that is a great investment, getting it under contract & then assigning the rights of the contract to a third party for a fee. You never close on the property as long as the third party follows through with the terms of the original contract. The fee you earned goes back into your account, along with you original deposit - tax-deferred!
Another option for lower balances? Partner up with someone else. You can have many partners in a purchase & you'd simply own a certain percentage of the full amount. You can partner up with someone else's retirement plan, someone else's cash or even get financing!
This blog is getting pretty long now so I will continue this at a later date. Keep an eye out for part 2 & maybe part 3 to investing in your IRA.
As always, should you, or someone you know have questions about investing in real estate please do not hesitate to contact me at anytime.
Yours in Success,
Susan Milner, e-PRO GRI Realtor
(239) 218-2229
Yours in Success,
Susan Milner
Florida Future Realty, Inc
http://www.YouTube.com/FloridaFuture
(239) 542-8521
Susan@SusanMilner.com
We also handle Cape Coral Short Sales......
copyright 2008-2012 Susan Milner of Florida Future Realty Inc
Right on target - little known - less understood. You may want to check http://www.realtyira.com/ for some more info.
Happy Thanksgiving from The Marriott Group at Keller Williams Realty Professional Partners!