FAQ: Can I Use an IRA to Buy Real Estate?

By
Real Estate Agent with Mossy Oak Properties Outdoor Realty NC #254382

If you are like most other people, your savings/retirement fund has probably been effected over the past 5 years. What if there was a way to invest in real estate at one of the best times in US history to buy through your retirement account? THERE IS.

We are working with a growing number of investors that have discovered that they can use money in their IRA's to buy real estate - anything from raw land to single family homes to commercial buildings.

Can I benefit from tax advantages when investing inside of an IRA? You can't deduct property taxes or mortgage interest, and you can't use depreciation. When you sell a property, a traditional IRA turns the profit into ordinary income rather than capital gains. With a ROTH IRA, profit would be tax-free.

Can I finance a real estate investment if I don't have enough money in my IRA? Although it does add a lot more complexity to the deal, you CAN finance a real estate transaction through an IRA. Since you can't personally guarantee a loan through an IRA, you will have to fina a bank that will allow you to finance the purchase through a non-recourse loan. If you like help finding a provider, please give us a call and we'll be glad to help.

Who are some custodians that offer self-directed IRA's that I can use to start investing?

Equity Trust Company

http://www.trustetc.com/

The Entrust Group

http://www.theentrustgroup.com/

PENSCO Trust

http://www.pensco.com/

 

If you would like more information on some of our investment programs, please give us a call today.

Comments (1)

David Grbich
Realty One Group - www.FindCARealEstate.com - San Juan Capistrano, CA
Orange County Real Estate - 949-500-0484

An IRA is a great source of funds for investors to buy real estate - thanks for sharing!

Jun 04, 2012 12:13 AM