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Using A Self Directed IRA to Invest in Real Estate
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Posted On :
Sep-09-2010
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Article Word Count :
421
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Using a self directed IRA to benefit from the above average returns in real estate, in a tax sheltered/tax free environment is one of the best kept secrets in the real estate investing world.
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Using a self directed IRA to benefit from the above average returns in real estate, in a tax sheltered/tax free environment is one of the best kept secrets in the real estate investing world. Many investors who have zero knowledge about real estate investing also benefit from the great returns in real estate without having to deal with the management hassle of Real Estate.
Equity Trust Company is known to be the leader in managing self directed IRA’s. They currently have over 40,000 accounts under their guardianship.
Some of the benefits of a self directed IRA are:
• Earn profits or interest tax free
• Invest in any real estate including single families, multi-family investment, & commercial property investments.
• Use your IRA to be a private lender with experienced real estate investment companies (like mine) and earn 6-8% interest tax free.
• Rollover funds from your current IRA’s or 401k’s to invest in real estate, tax free.
Some of the potential downfalls:
• All proceeds, profits must be held in the Guardians possession. (Equity Trust Company)
• Cannot make withdrawals from account for non-investment use without tax ramifications
• Cannot use to invest in property already owned or owned/bought from direct family members
• Must start to take payments at age 65, similar to other IRA’s.
So why would you want to use an IRA to invest in real estate? The answer is to do it in a tax free environment! Yes, there are restrictions and specific guidelines, but this far out ways giving Uncle Sam up to half or profit or interest earned in the deal. If you can afford to wait to access earnings it would behoove you to setup a self directed IRA today.
If you are not a real estate investor, you can still benefit from investing in a real estate without the hassle of management. Our firm educates folks how to do this in a simple and clear way. Traditionally, the investor will receive a note and mortgage secured against a piece of real estate. In our case, this real estate will be in an excellent area, with superb income. Our firm does all the work and you (or your IRA) receives monthly interest checks, earning 6-8% interest.
We only do a handful of deals a year with folks that I have developed a long term relationship. I am more than happy to offer my opinion and help to people interested in using a self directed instrument to fulfill their investing goals.
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Article Source :
http://www.articleseen.com/Article_Using A Self Directed IRA to Invest in Real Estate_32364.aspx
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Author Resource :
To learn more about investing in real estate using a self directed IRA, visit my website at www.handsoffinvesting.com
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Keywords :
self directed IRA, Equity trust company, IRA, Real estate investing, Apartment investing, Cincinnati REIA ,
Category :
Finance
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Investing
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