Investing with Real Estate with a Self Directed IRA
Investing with Real Estate with a Self Directed IRA
Did you know that you can use your retirement money to invest in real estate? Yes you can, here’s how:
1. Typically you need to have a retirement account from a former employer or a personal IRA; usually you can not use your current plan.
2. You need to find a custodian for self directed IRAs (search on google), I used CM Capital (http://www.cmcapitalservices.com/) and Preferred Trust Company (http://www.preferredtrustcompany.com/) let them know that I sent you) to manage my self directed IRA. The reason I use them is for their knowledge in the Real Estate field. You then work with them to transfer your retirement money into your new self directed IRA account. Check the fees for the company you plan on working with.
3. Once the money is in the account, the places you can invest money is almost unlimited, the list of places you CAN’T invest is a lot shorter:
a. Collections
b. Life Insurance
c. Prohibited transactions include investments with disqualified individuals (as defined by IRC 4975), “self-dealing” and receiving indirect benefits.
4. You CAN invest in Real Estate, however if you do purchase real estate and are not paying cash for a property it is difficult to get a loan. You will need a non-recourse loan; there are only a few companies that do this. I bought a fully renovated house that was already leased to own with property management in place from a company called Jacksonville Real Estate Wealth (http://www.jacksonvillerealestatewealth.com/). Check out their website and let them know that I sent you.
5. Any rents and/or income you receive from selling the property must be returned to your IRA account.
__________________
... Verses: 35 "but those who hope in the Lord will renew their strength. They will soar on wings like eagles; They will run and not grow weary, They will walk and not be faint." Isaiah 40:31 ...
Investing with Real Estate with a Self Directed IRA
Did you know that you can use your retirement money to invest in real estate? Yes you can, here’s how:
1. Typically you need to have a retirement account from a former employer or a personal IRA; usually you can not use your current plan.
2. You need to find a custodian for self directed IRAs (search on google), I used CM Capital (http://www.cmcapitalservices.com/) and Preferred Trust Company (http://www.preferredtrustcompany.com/) let them know that I sent you) to manage my self directed IRA. The reason I use them is for their knowledge in the Real Estate field. You then work with them to transfer your retirement money into your new self directed IRA account. Check the fees for the company you plan on working with.
3. Once the money is in the account, the places you can invest money is almost unlimited, the list of places you CAN’T invest is a lot shorter:
a. Collections
b. Life Insurance
c. Prohibited transactions include investments with disqualified individuals (as defined by IRC 4975), “self-dealing” and receiving indirect benefits.
4. You CAN invest in Real Estate, however if you do purchase real estate and are not paying cash for a property it is difficult to get a loan. You will need a non-recourse loan; there are only a few companies that do this. I bought a fully renovated house that was already leased to own with property management in place from a company called Jacksonville Real Estate Wealth (http://www.jacksonvillerealestatewealth.com/). Check out their website and let them know that I sent you.
5. Any rents and/or income you receive from selling the property must be returned to your IRA account.
... Verses: 35 "but those who hope in the Lord will renew their strength. They will soar on wings like eagles; They will run and not grow weary, They will walk and not be faint." Isaiah 40:31 ...