Where were we? Oh yes, I remember. Investing in real estate through your Individual Retirement Account (IRA). The lowdown is you can buy real estate through a traditional IRA, Roth, Simple, SEP, 401K, Health Savings Account, and even Coverdell Savings Account for the kids. Better, you can borrow the money for purchase through your IRA or even take over a property that has existing financing already in place.
What it comes down to is that it is not hard to make real estate a part of your retirement planning. As we chronicle in these pages, if you make the switch away from the stock market and into income properties, it’s likely you will be able to significantly move up your retirement date. With a prudent leveraging strategy, you’ll be creating your own wealth using other people’s money (like the bank), and what could be better than that?
As with any investment option regulated by a governmental body, there are some restrictions but they are not onerous by any means. If you want the word directly from the horse’s mouth, the Internal Revenue Service states: “IRA law does not prohibit investing in real estate but trustees are not required to offer real estate as an option.”
There you have it. The fact the trustee isn’t required to offer the real estate option is a very good idea to make darn sure you are the one choosing and directing your own IRA investments. Whatever it takes to get yourself in that position, do it.
Next time, we’ll continue with more specifics regarding IRA real estate investing.
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