If you follow Real Estate and the stock market like we do, the crash of the Real Estate market happened at the worst possible time in 2007 because both the stock market and the Real Estate markets imploded at the same time.
Thankfully both markets have rebounded, and as of 2015 thousands of investors in Orange County are using their IRA accounts to buy Real Estate.
How Do You Buy Real Estate Using Your IRA?
Let’s say you became aware of a home for sale in Kansas City which would net you monthly cash flow.
You could take $20,000 from your IRA and invest that money into the home that you purchase.
Once you use this strategy it’s important to know that your IRA will own the home so all proceeds from the rental property must go back into your IRA account.
Huge Benefit from Buying Real Estate with Your IRA Account
The benefit of using this strategy is that you will be able to use your money to invest in affordable Real Estate across the country now, and in many cases you may not have to pay a dime in taxes later.
Potential Obstacles You May Face With This Strategy
Before buying a home make sure you contact your CPA to discuss your plan to purchase a home using your IRA account and you should also contact your IRA plan administrator to see if your plan will allow this as well.
To make this IRA strategy work you may need to set up an IRA account which is self-directed. This could be either a regular or Roth IRA account, and you could also be required to set up a limited liability company (LLC) or another entity to hold onto the assets for you.
For more information about the Orange County Real Estate market, or to view the latest homes for sale, contact Fred Sed & Associates today by calling us at (949) 272-0125.
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