Real Estate IRA Investing: How It Works
Discover the simple process of investing in Real Estate with retirement funds.
- All Agents
- Video 1 min.
The Rules: Investing in Real Estate With an IRA
Learn how to maintain tax advantages for your self-directed account.
- All Agents
- Video 2 min.
Free Education & Tools
Sign up today and gain access to a treasure trove of innovative educational materials designed to fuel your success. From engaging videos and in-depth guides to comprehensive white papers and dynamic marketing tools, we've got it all. Plus, enjoy the convenience of automatic delivery right to your inbox.
Partnering
Partnering involves combining your IRA funds with funds from various sources, such as another IRA, someone else, or your personal funds to make the investment purchase. By partnering your IRA, you can potentially afford to purchase a property outright or make a more substantial investment.
Direct Purchase
A direct purchase refers to the process of acquiring a property solely using funds from your self-directed account, utilizing your savings to make a full cash payment for the investment. This method offers a straightforward and expedited approach to financing your purchase.
Non-Recourse Loan
A non-recourse loan is when the account owner is not personally liable. The loan is to the IRA and in the IRA's name, not the individual's. If there's a default or foreclosure, the lender can only seek repayment from the IRA property. The non-recourse lender can't go after personal assets owned by the account holder.
Checkbook Control
Creating an IRA LLC is one strategy IRA investors have used to purchase real estate, to gain what is known as “checkbook control” over their IRA, allowing greater control. To do this you will establish an LLC and you’ll fund the LLC checking account from your Self-Directed IRA.
Step 1- Opening an Account
The process is as simple as completing a form online. You will need an ID and a credit card for payment.
Step 2- Determine Your Investment Strategy
Explore the different investment strategies available to maximize your savings.
Step 3- Fund Your Account
This is the process of adding retirement funds to your self-directed account. You can do this by transferring funds from another IRA, by moving an old 401(k) from a previous employer, or by making a contribution.
Step 4- Make the Investment
The purchasing process is very similar to a normal purchase, with the only difference being that the asset is owned by the IRA. As a result, both the offer and purchase contract are made in the IRA's name.
Example: IRAR Trust FBO John Doe Account Number 123456
IRAR works with title to fund your IRA's investment purchase.
Step 5- Manage the Investment
Secure Act 2.0
Case Study Part 1: How I Crafted My Real Estate Investment Strategy with an IRA LLC
Case Study Part 2: How My IRA Got a Non-Recourse Loan to Invest in Real Estate
Our Team is the Best in the Industry
Get accurate information from the top experts in the industry. Our team members boast an impressive 8-30 years of experience in the field of self-directed retirement. Benefit from learning from the absolute best. Schedule a call today!