3 Benefits Of Purchasing Real Estate IRA

To fully maximize your allowable investments, you need to have a retirement plan that allows you to select your own investments.

A truly self-directed retirement plan allows you the freedom to invest in many types of assets. By investing in real estate, you are able to diversify your portfolio maximizing your potential investment goals.

1. Build or buy your dream home potentially tax free or tax deferred.

Your IRA can purchase your dream retirement property. With this asset you may attain rental income that is tax-free or tax-deferred to pay the initial cost of the home.

Then, when you are ready to move into your dream retirement house you may distribute without penalty at age 59½ (or 5 years in a Roth IRA) any property from your IRA as a normal distribution.

2. Leverage your funds with non-recourse loans. Diversifying your investments.

If your IRA does not have enough money to pay for the entire purchase on its own, you may finance or leverage any income producing property.

The property is used as the collateral for the loan. Because the property belongs to the IRA, the debt must be repaid from assets within the IRA, whether income from the property, permissible contributions, or other assets income in your IRA.

3. Attaining long term wealth through rental income.

Rental income can pay for the initial cost or the mortgage of the property. As well as any other expenses this property incurs.

For example: The property management company expenses, upgrades inside and outside the property, and maintenance.

You will never have to pay for these expenditures out of pocket.

Any extra income grows tax-deferred, and will potentially be tax-free if utilizing a Roth IRA or be used to supplement any other investments.