Did you know that you can create a retirement plan that you can control and invest the monies in real estate? It can be invested in rental properties or for rehab projects.
As the self-directed real estate IRAs are becoming more and more common in Central Virginia, I am starting to get more and more information about how they work in order to help my clients with this product.
The two biggest problems that I have found with these are:
1 - Funding - You almost have to have substantial monies from another plan to roll over into the IRA, as there are limitations as to what you can put in the IRA directly each year from your cash on hand. Plus, obtaining mortgages are difficult as the property must be in the IRA's name only, so substantial cash will be necessary.
2 - Trustee - You must find a company that can be trusted as your trustee. This person will have your retirement in their hands.
Are there any other problems or situations with these products that you know of?
Comments(2)