Real Estate IRAs
Earn 50% More on Real Estate Deals with an IRA
Historically, real estate has provided many Americans with a stable investment vehicle that provides both income and appreciation. One of the greatest tools available to real estate investors is government-sponsored retirement plans, such as IRAs.
Very few Americans realize that they have the option to self-direct their IRAs and other retirement plans into real estate, and benefit from the tax advantages those plans provide. Investments in IRAs benefit from tax-deferred profits or in some cases tax-free profits. Imagine not having to pay taxes right away, or ever, on your real estate deals. Instead of paying 25%, or 30%, or even 50% of your profits to the government in taxes, you get to keep it.
Unfortunately,
most investors believe that their only IRA investment options are bank CDs or the stock market and mutual funds, not real estate. If you currently are a successful real estate investor, or are just looking to diversify your retirement portfolio, the combination of real estate and your IRA can be very powerful.
The tremendous advantages a real estate IRA and other self directed retirement plans offer Americans include the following:
- The power of compound interest
- Reduction of taxable income
- Asset protection
- Estate planning
Click for more information on the Benefits of a Real Estate IRA. However, not all real estate IRA custodians are the same! See Why Equity Trust is the Preferred Choice for real estate IRA investing.
Please refer to Real Estate IRA Investment Procedures and to the Step-by-Step: Real Estate Direction of Investment Guide.
Real Estate IRA Investing With Knowledge, Expertise and Comfort
The greatest advantage a real estate IRA holds for real estate investors is that they can apply their knowledge in investment areas in which they are already successful (and comfortable) to their IRAs and other retirement plans.
Here is a partial list of real estate investments that you can make with your self-directed Equity Trust Real Estate IRA:
- Raw land
- Single family homes
- Apartments
- Mobile Homes
- Commercial Real Estate
- Real Estate Notes
- Mortgages
- Tax Liens
Your Rate of Return is Based on Your Knowledge and Expertise in Real Estate
When you combine the advantages of a self directed IRA with your knowledge of real estate, IRA investments give you the ability to compound investments tax free/deferred. The rate of return on your investments will be based on your knowledge and expertise in real estate; IRA investing is not based on the ups-and-downs of the stock market.
What kind of wealth can be created for you and your family with an Equity Trust self directed real estate IRA? Find out with an Equity Trust Self Directed IRA Wealth Calculator.
Why Haven't I Heard of the Real Estate IRA Before?
Most IRA custodians do not offer truly self directed IRAs/real estate IRAs. They will only allow you to invest in their approved list of investment options, not real estate. IRA investing at a bank will probably be limited to CDs; at a brokerage firm, to stocks, bonds and mutual funds.
Are There any Downsides to Investing in a Real Estate IRA?
There are not any downsides to real estate IRAs per se, but there are certain types of transactions that you can not perform through an IRA. Basically, the IRS prohibits “self dealing,” which are investments in which you or your family members of lineal descent have prior ownership. (For more information, please see prohibited IRA transactions.)
Additionally, no investment (aside from FDIC-insured deposits) is guaranteed and real estate investing is not for everyone. However, most successful real estate investors feel that the investment risk of a real estate IRA is much less than that associated with investing solely in the stock market.
You are in Complete Control of Your Retirement Accounts
The most important things to remember are that:
- With an Equity Trust self directed real estate IRA, the type of investments you make will be exactly the same kind you presently are making for your personal account. The only difference is that the profits in your real estate IRA investments are tax free/deferred.
- You need Equity Trust to serve as your real estatet IRA custodian because the IRS does not allow you to personally “touch” your self-directed IRA account. Our truly self directed IRA program gives you complete control and flexibility.
As a passive custodian, Equity Trust does not sell investment products or give investment advice, so you will never have to worry about conflicts of interest or high-pressure sales tactics.
How to Invest in a Real Estate IRA
For more information on Equity Trust self directed IRAs in general, please see Self Directed IRA Investment at Equity Trust Frequently Asked Questions.
For more specific information on Equity Trust Real Estate IRA investing, please see Self Directed Real Estate IRA at Equity Trust Frequently Asked Questions.
How do I get Started Investing in a Real Estate IRA?
If you are ready to take control of your retirement funds with a truly self directed real estate IRA, please see the following links for more information:
How to open an Equity Trust Real Estate IRA.
How to transfer or rollover an existing retirement account to an Equity Trust self directed IRA.
Please refer to our Step-by-Step Guide to using your Equity Trust Self Directed IRA to invest in real estate.