Does anyone believe that Real Estate is a good investment because prices have come down so much in recent years? Do you think that Real Estate will be worth more in ten to fifteen years from now? Do you wish you had money to buy now but just don’t have a down payment? Well maybe you do.

Have you ever heard of a Self Directed Retirement Account? Do you know you can buy Real Estate with funds from you self directed account and any gains are tax deferred just like any other gains you may have. All real property is eligible. There are some rules to follow with buying Real Estate, as there are with all IRA’s but some good tax advise from your accountant will help clear the way. Here are a few

  • The transaction may be leveraged using the property as collateral for the loan. The loan must be non-recourse, meaning that the loan is secured by a pledge of collateral, typically real property.
  • The entire transaction must flow through the IRA
  • Fractional interests are allowed, usually as tenants in common.
  • You may not buy or sell a property you already own to or from your IRA. Your IRA cannot deal with “disqualified people”. Disqualified people include lineal realatives.
  • You may not live in a property owned by your IRA.
  • Your business may not lease or be located in a property owned by your IRA.

The tax savings can be significant and rolling your money into a self directed IRA is fairly easy to do. Try googling “Self Directed IRA” or “Self Directed Retirement Account”. You will be surprised at what you will find. I would not ask your retirement account holder as they most likely do not offer that type of account. They may even tell you it can’t be done, but it can.

Look into it, you have nothing to loose and the opportunity to buy Real Estate hasen’t been this good in a very long time.

For more information you can contact me at jeff@cbredpath.com

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