Did you know that you can invest in real estate with the money in your IRA?

Its true.

Like most things, there are governing rules.

The good news is as long as you stay within the guidelines you can do some really great things including buying investment real estate with your IRA funds.

With a self-directed IRA you are in control and can actually team-up with people who make millions every year by knowledgeably and skillfully investing in real estate all over the country with IRA funds.

Most people don’t know the first thing about picking profitable stocks so they leave it to their equally clueless stock broker or mutual fund manager.

It has always been my opinion that if those guys new what was best for you to make your millions then why aren’t they living the high life and retired already?

You would think the people who chose where literally trillions of dollars are invested in on a daily basis would be making more money than they do.

Anyways, it has been my experience that if you want to create wealth or even just enough monthly cash flow to cover your living expenses and a little more all you have to do is find people who are actually successfully doing what you aim to do and then do what they do.

Investing profitably in real estate with your IRA funds is very straight forward and simple though you do need people with certain skill sets and specific knowledge to do so and remain compliant with the regulations governing the use of qualified funds.

The rules to using your IRA funds to purchase real estate.

1. A third party custodian.

First off, a third party custodian or holding company is needed to roll your current IRA funds into for it to be called “self-directed”. This is simple to do. There is typically very little or no cost to do this.

Once funds are securely held in this new account with this new management partner then you are free to begin looking for properties to invest in.

2. You are not allowed to leverage with your IRA funds.

What this means is that you cannot put a certain percent down and take a mortgage on the rest. The purchase needs to be completely IRA funds or a mix of IRA funds and personal funds etc.

As long as there isn’t a loan or debt being incurred in the transaction.

3. You decide where the monthly revenue goes.

You generally have two choices here.

A. You can elect to have all the revenue go straight back into your IRA account to continue to add to your savings or…

B. You can elect to have the revenue or profits come to you. In which case you will be required to claim this as income and pay your income-tax like any other earned income or qualified account disbursement.

4. You can buy many things with your self-directed IRA funds.

You can actually buy gold, silver, and other assets. You cannot buy life insurance.

5. Losses including depreciation cannot be deducted in taxes.

Deductions from owning investment properties is usually a big plus for investors however, when holding property in an IRA, you are prohibited from writing off those otherwise tax deductions.

6. What kind of property can you buy?

You are investing in real estate for the purpose of making a profit therefore it is a business purchase or asset purchase.

This means that the real estate you buy must not be  a personal residence, second home or occasional rental.

Another aspect to this is you can’t use your IRA to purchase a property you already own. The property must be a new purchase directly into the IRA.

Learn more…

There are many reputable custodian companies you can contact for more specific information about your situation and general rules governing the use of IRA funds to purchase investment real estate.

There are also reputable real estate investment companies who specialize in locating, making rent ready, placing tenants, and managing these properties all over the country. I personally use and recommend Strongbrook REIC.

They helped us purchase two properties in Indianapolis with our IRA funds.

Included in your Free Game Plan is a snapshot of your investing potential including using self-directed IRA funds to further your financial goals.

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Buy Investment Real Estate with Your IRA Funds by Joe Nielsen