How to Use Your IRA to Buy Real Estate in – Part 2

We wrote a recent article about putting local investment property into your self directed IRA… if you haven’t checked that one out… head over here.

Looking to add to your real estate portfolio here in ? Using your IRA may be a great fit. Read this article to see how...

Looking to add to your real estate portfolio here in ? Using your IRA may be a great fit. Read this article to see how…

In this article we’ll walk through some more things to look out for and how to use your IRA to buy real estate in Connecticut and New York.

So lets dive in!

Putting your money into an IRA or similar investment vehicle can be a great idea.

Everybody knows that.

But with taxes on their way up, it might be an even better idea to create a self-directed IRA, which will allow you to widen your investment options to include local investment real estate in order to defer your taxes and end up earning a better rate of return in the long run.

If you are considering this option, it might be a good idea to determine if it’s a good move for you, and if it is, here’s how to use your IRA to buy real estate in .

A Few Quick SD IRA for Real Estate Facts

  • In order to use your IRA to buy real estate, that property must be a business, not a personal home, a second home, or a rental (but there is a simple way to put rental properties into a SD IRA… below)
  • The property you buy must not be something you already own
  • It must also be a purchase directly into the IRA

How to Use Your IRA to Buy Real Estate in

It is possible to buy rental property with an IRA, but you must open a custodial account then transfer money into it. It’s a simple process that we can help you out with. Just give us a call at 800-523-4204 and we can walk you through the process.

There are many rules associated with this type of transaction, so be sure you understand and agree to them before you buy. It is also possible to buy a home for the purpose of “flipping” it, but only if you are in the flipping business.

Furthermore, there is a limit to the number of flipped properties you can purchase in one year in with your self directed IRA.

Again, the best course of action is to determine the rules for the process to make sure you can live with them.

SD IRA Investing Limits

The rules that govern these types of investments do not allow a traditional mortgage with an IRA.

Instead, you need to have enough money in your IRA to make the purchase. There are costs associated with administering the IRA, so you must make sure that your IRA has enough money in it to cover those expenses too.

Again, if you don’t already have a great self directed IRA custodian… reach out to us and we can connect you with the ones we know of who are very real estate friendly. Just give us a call at 800-523-4204 or shoot us an email through our Contact form and say “I’m looking for SD IRA resources for buying investment properties”… and we’ll get back to you right away.

Basic Rules of Investing (even with real estate)

There are many rules in investing that can help you determine a good purchase from a bad one. One of the most important is to diversify your portfolio.

As tempting as a real estate purchase might be in , it’s a good idea to follow this advice when using your IRA to make a purchase. Just as is the case with any big investment, it’s always a good idea to check with a qualified financial adviser before you make a purchase to get an independent view of the long term as well as the short term outlook.

In the end, using your IRA to invest in local Connecticut and New York investment properties can be a great route.

It helps you grow your portfolio using real estate with the tax benefits of the IRA.

If you’re looking for investment properties here in join our Jeff and Jenna Sells Houses! Preferred Property Buyers List through the link below.

FREE: Join Our Preferred Buyers List For Access To Our High Discount
Investment Properties Here >>

About Jeffrey

Mr. Weiller has some 35 years of experience in the real estate and capital business which includes 100s of residential real estate investment deals putting deserving American families left behind by the mortgage crisis on a path to home ownership. Other experience includes secured financing deals ranging in size to $100 million, investment property sales, landlord representation, and tenant representation. Prior to forming NYCL. Up until the tragic events of September 11th, 2001, specialized in the World Trade Center submarket of New YorkCity and worked in the smoking aftermath helping surviving businesses relocate. Previously was business partner with one of the top dealmakers/leasing brokers in the country. Together completed many major transactions including: the sale of the Colgate Development Site in Jersey City, NJ, with 6 million square feet of development rights to Hartz Mountain/Leonard Stern, two 1 million sq. ft. leases with Prudential Securities and Paine Webber Securities for which entire office buildings were built and rebuilt around, the sale of 100,000 sq. ft. of air rights on Broadway to the Related Companies and represented VNU and Thomson Reuters Publishing, both major publishing companies, nationally in their multi-million square foot portfolios of real estate and has had daily dealings with major Manhattan and nationwide property owners and completed many tax lien foreclosures in New Jersey for his own account.

Get More Real Estate Market Info... Subscribe Below!

Learn more about us and find other resources on buying investment properties with us. Like us, follow us, connect!

Comments are closed.