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Ken D'Alessandro

Broker Associate

Use Your IRA to Buy Real Estate



                  REAL ESTATE IS ON SALE

              IT IS A BUYER'S MARKET, ONLY IF YOU BUY !!!

        Foreclosures, bank owned properties & short sales.

  

                          Use Your IRA to Invest in Real Estate

 

Are stock market woes preventing you from building wealth in your retirement account? Making real estate investments through a self-directed IRA can re-build your savings and could provide a financially secure retirement.

 

A retirement account (traditional IRA, Roth Ira, SEP, ) is not an investment. It?s simply a special account that holds your investment. It can hold many types of investments, such as mutual finds, stocks, bonds and real estate.

 

The problem is that most companies that hold retirement accounts aren?t geared up to handle real estate. Therefore, they have no incentive to inform their customers that real estate is an alternative investment choice. That?s the main reason for the misconception that real estate can?t be held in a retirement account.

 

Let's get this straight: Retirement accounts can own real estate through a self-directed IRA account with a custodian that specializes in REAL ESTATE IRA?s.

 

Once you?re the proud owner of a self-directed IRA with an experienced custodian that can handle real estate, you get checkbook control. There are specific rules as to what you can and cannot do with your real estate IRA.

 

Some things you can do:

 

  1. Your real estate IRA can buy and sell many types of real estate including REOs ( bank owned),short sales, foreclosures,  raw land, rental properties, condos, fixer-uppers, commercial properties , FOREIGN PROPERTIES. Keep in mind it?s the self-directed real estate IRA that buys, owns, and sells the property. You don?t withdraw the money from the IRA to buy the property,  the custodian buys the property in the name of your self-directed real estate IRA.
  2. The property can be rented but the rental income is paid into your IRA, not to you.
  3. All the expenses of renting and operating the property must flow in and out of your self-directed real estate IRA.
  4. It is possible to finance a property that is owned by your IRA. But the financing must be ?non-recourse?. That means the property, not the IRA account, is the sole security for the loan. Most traditional lenders won?t provide non-recourse financing. However, seller financing or private loans are possibilities.

 

Some things you cannot do:

 

  1. Your real estate IRA cannot buy a property that you, your spouse, or certain family members already own. Likewise, your real estate IRA cannot sell a property it owns to you, your spouse or certain family members.
  2. You, your spouse or certain family cannot have any personal use of the property owned by your real estate IRA.
  3. Your IRA cannot lease the property to your business. Your business cannot use or occupy any part of the property.

 

 

Is a Real Estate IRA Right for you?

 

So, now you know you can use your retirement account to buy real estate. But the bigger issue is should you use your retirement account to buy real estate? The answer is, it depends on the type of real estate and your unique situation.

 

You already know your real estate IRA cannot own property that is used by you, certain family members or your business. Therefore, primary residences, second homes and vacation homes are not candidates.

 

Other types of real estate, such as raw land, handyman specials, and non-leveraged rental properties, are perfect candidates. The profit from these investments would be taxed if you owned the property personally. However, if  your real estate IRA  buys owns and sells the property, the profit would compound in your IRA tax-deferred or TAX FREE.

 

There is a limit on how much you can contribute each year to your retirement account. But there?s no limit on how much the account can earn!!!!

 

Take control of your future   Financial Independence is a must.

 

Our Team of experts can get you started in the right direction.

 

Don't delay, it's you future that's at stake.

  

For more information: www.ira2buyrealestate.com           ken@kendalessandro.com

 Frequently Asked Questions  

 

How It Works                  

 

"If I could have only one kind of investment it would be real estate"..Donald Trump

 

Learn about financing for 'AS IS' properties for work to be done after you close.