Our offices will be closed Monday, January 20th in observance of the Martin Luther King, Jr. holiday.[close]
Historically, real estate has given many Americans with a stable investment vehicle that offers both income and appreciation. One of the greatest tools available to real estate investors is the self-directed IRA – a government-sponsored retirement plan that allows real property investments.
Most investors believe that their only IRA investment options are bank CDs, the stock market, and mutual funds.
Few Americans realize that they have the option to self-direct their IRAs and other retirement plans into real estate—and that they can benefit from the tax advantages those plans provide.
IRA investments earn tax-deferred/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 keep it.
A self-directed real estate IRA is technically no different than any other IRA (or 401k). The government created the IRA to allow investments to grow tax-free or tax-deferred compounded over time to maximize growth. The IRA can also qualify for yearly tax-deductions (depending on the account), provide asset protection and assets can be passed to future generations.
A self-directed real estate IRA is unique because it allows investments in real property.
Most IRA custodians only allow approved stocks, bonds, mutual funds and CDs. A self directed IRA custodian, such as Equity Trust, allows that type of investment in addition to any type of real estate investment, such as, residential real estate, commercial real estate, raw land, and mobile homes, etc.