Top States With Out-of-State Real Estate Investments in Equity Trust IRAs
A recent Wall Street Journal article cast a spotlight on self-directed real estate investing and shared that an increasing number of investors are investing in properties in Cleveland due to favorable pricing. Investors are flocking to Ohio from as far away as California to take advantage of the housing prices and resale potential.
As we’ve highlighted, some Equity Trust self-directed investors are interested in real estate as an alternative investment but are priced out of their local market or have knowledge of other markets in the country.
For these reasons and more, investors have found benefits in investing in a rental property or fix-and-flip outside of their home state.
Which states receive the highest proportion of out-of-state real estate investing activity? We looked at clients’ real estate purchases in their self-directed IRAs to reveal where the percentage of non-resident purchases was the highest.
Top 10 States Out-of-Town Real Estate Investors Purchase Properties in their Equity Trust IRAs:
1. Washington, D.C.
2. North Dakota
7. Nevada (tie)
7. Vermont (tie)
9. New Mexico
Curious to see how other states rank? Here is the entire map showing the percentage of each state’s Equity Trust IRA real estate purchases that were made by out-of-state investors.
Interested in more real estate investor data? Check out the most expensive states for Equity Trust real estate investors.
Whether you’re interested in investing in real estate across town or on the other side of the country, here’s some education that can help you prepare. Access the Ultimate Real Estate Investing Resource Guide now for tips from experienced investors and educators.
Rental payments are sent to Equity Trust for the benefit of (FBO) your IRA. The checks or money order should be made payable to: “Equity Trust Company Custodian FBO [Your Name] IRA.” Once received, the checks or money orders are deposited into your IRA. All checks must be sent to Equity Trust with a payment coupon.
No. This is considered a prohibited transaction (see IRC 4975). You may not purchase a property, or interest in a property, that’s currently owned by a disqualified person, which includes yourself.
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