To grow your IRA, investing in real estate is a good option. Some people don’t know that IRA real estate investing is even an option. Others have heard of it and want to know how it’s done. No matter which category you fall into, keep reading and learn.
Today’s news reports indicate that Wall Street is falling. Stock values are plunging. The Dow Jones is out by 150 points. This is all due mainly to rising oil prices and what is being described as a “beleaguered banking sector.” For those who own an IRA, investing in real estate is a way to grow, rather than lose money in the stock market.
Diversification is always recommended. If you invest too much in one area, your chances of ending up with a loss, rather than a profit, are much higher. So how do you get going with IRA real estate investing?
First, you must have a self-directed account. If you currently own an account where the broker does most of the work for you, then you may need to educate yourself a bit. Now, not just any self-directed account will do. You should find a broker that offers IRA investments in real estate options. Not all do. In fact, most don’t.
Inside an IRA, investing in real estate is a bit tricky. Your account custodian must be able to hold titles in your name until you are ready to sell. If you want to hold the rental property in the account, which is perfectly fine, the custodian must be willing to hold the deed for an unspecified period of time.
You’ll also want to make sure the brokerage is familiar with IRA real estate investing. Don’t choose someone who just hung up a sign and opened an office. There are many tax issues and paperwork for which the custodian is responsible. Remember, this is the money that will fund your retirement. You want someone with experience to help you.
Once you’ve found the right custodian and your self-directed account is set up, you’re ready to jump right into IRA real estate investing. But wait, are you familiar with buying, selling, or maintaining rental properties?
Remember, the custodian is like a monitor. He is not allowed to advise you on which properties to buy. You have to go out and find them yourself.
If you’re not exactly sure how to go about it, you may want to get some help before you jump into IRA real estate investing with both feet. There are some experienced investors out there who are willing to “take you by the hand,” so to speak, and help you find deals that are likely to be profitable.
Some of the best ones to consider are rental units that are already occupied. With something like that, your account has immediate income.
If you really want to grow your IRA, investing in real estate can allow you to do so, sometimes very quickly. As long as you make the right deals and get a little help from the right people.
