How to buy Real Estate using your IRA or 401K

By
Real Estate Agent with RE/MAX BAY TO BAY sl3033371

How to buy Tampa Real Estate with your IRA or 401K?

Think you can't buy a home as an investment? Looking for a creative way to take advantage of the #2 in US foreclosure market here in Tampa?

I attended a 3 hour seminar the other day that was great!

Here are some different options you have to buy a home, land or to get a downpayment for a loan using tax deffers IRA'S AND 401K's.

Your tax deferred and possibly tax free investing choices are:

  1. land, (raw large parcels or single lots)
  2. A  resale or builder inventory home (use as rental only)
  3. Commercial property that you lease out.

Downfall:

The most important thing to remember is that you cannot live in the home. It has to be an investment, therefore a rental home, or vacant land are some of your options for purchasing.  You can't even use a beach house for personal use. It has to be a rental property under the guidelines.

How do I use my 401K to buy real estate?

Move your 401K to a Self Directed IRA. Can only be done if you no longer work at previous job.

Need a downpayment of to get a Conventional or FHA loan?

You can borrow 50K or 50% whichever is less from your 401K

You can also use your business partner or spouse's IRA for a downpayment or to pay cash for a property.  You have 50K, they have 150K, save closings costs from lenders which can be 3-6% of the total purchase price.

Right now in Pinellas, Hillsborough and Pasco Couties there are 7,309 properties that are 200K or under, 3 bedroom 2 bath. 

If you have been thinking of buying land or rental and commercial properties in the Tampa Bay Area please give us a call to discuss your options. 813 784 7744 Rae.  Emai: realtyrae@yahoo.com

All information is believed to be accurate. Always consult your financial advisior and CPA before making any changes to your assets!

Filed under: Downpayment Assistance, First Time Home Buying Advice, Investing in Real Estate using 401K and IRA's, Tampa Real Estate Investors

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Rae Catanese

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