In general, a self-directed IRA can help its owners venture into real estate IRA investing. It is one option that your IRA custodian should inform you about when you discuss ways to invest your retirement money; which in the end, will help secure your future. Also referred to as “Real estate IRA LLC” this investment vehicle will allow you to choose different kinds of real estate and other related assets which you can use to expand your IRA account.
Assets Covered in Real Estate IRA Investing
When it comes to real estate IRA investing, you can choose from the following properties:
- Commercial properties and commercial papers
- Building bonds
- Apartment, condominiums and Co-Op buildings
- Foreclosure properties
- Limited Partnerships
- LLCs or Limited Liability Companies
- Offshore Properties
- Raw and Improved Lands
- Leveraged and Unleveraged Lands
- Single and Multi-Unit Family Homes
- Deeds and other Tangible Assets
- Mobile houses
- Real estate notes and other purchase options
- Tax liens and certificates
You can also discuss your choices with your chosen real estate IRA custodian and for sure you will be able to find the best types of real estate properties that you can invest your money into.
How Self Directed Real Estate IRA Investing Works
The process of purchasing and venturing into real estate with a self directed IRA works almost the same way as purchasing with your personal account or savings. The only difference is that through a self direct IRA purchase, you will only be using the IRA that you have opened. Here are some of the basic how to’s that you should definitely know about:
- Make sure that your self-directed real estate IRA LLC has been properly funded and set up.
- Decide on which type of property you wish to invest in. You can ask or seek expert advice from your real estate IRA custodian to help you with this process as well.
- Issue a check that amounts to the value of the property from your checkbook control IRA plan. Since this is a self directed account, you do not need the permission of your IRA custodian at all.
- The title of your investment should be placed under the name of your self-direct IRA LLC.
- All the expenses, income, deposits and withdrawals should go through the self directed IRA used in acquiring the property.
- Gains and income can be directed through your IRA –tax free.
Through the help of your custodian or adviser, you will be able to create a well structured real estate IRA investment without problems and difficulties.
- Checkbook IRAs
- Custodians for Self Directed IRAs
- Gold Backed IRA
- IRA for Self Employed
- IRA LLC Operating Agreement