An IRA is like retirement insurance, so why would you want to gamble your retirement insurance by investing in real estate? Because in these days and times, it is harder to find an investment that will actually make your money grow. One of the ways you can greatly increase your IRA over time is with IRA real estate investing. But don’t just plunge in at the deep end. Take your time to learn what you’re doing.
What About The Taxes?
One of the things you might have heard about IRA investing in real estate is that you have to pay a lot in taxes. Not true. You only pay taxes when you withdraw your money. Any profit that you make with IRA real estate investing is tax deferred. You won’t pay taxes until you start to withdraw money at retirement. Also, check the fine print. Many IRA real estate investing plans will let you make early withdrawals without having you pay penalties. This is great if you need a sudden large loan, like for your kid’s college or for home repair.
Granted, there are some complicated tax laws surrounding IRA real estate investing, depending on what kind of IRA you have, but if you know your real estate and hire a firm or service willing to help you out, than they can help you safely navigate the tax waters. There are companies that deal specifically with people interested in IRA real estate investing.
Where The Big Boys Play
In order to be successful in investing overall, and not just IRA investing in real estate, you need to have variety in your portfolio. Having a sensible piece of real estate can help you get that needed variety. This is what professional investors and huge businesses do.
Many millionaires have been made through the investment of real estate. You will find that most of the nations richest people have some ties to real estate. The savvy investor will have at least some real estate as part of his or her portfolio.
This is why IRA real estate investing has become so popular.
As investors are seeing their dollars shrink while investing in the stockmarket, some are using their IRA to invest in real estate and seeing 12% or more gains. Real estate may just be the perfect investment vehicle.
If you have been playing the stock market and doing perhaps Forex trading, then you have already experienced some the the decision making that is used in IRA real estate investing. The same reason you chose stocks, bonds, gold bullion, forex, TIC investing or securities, is the same reason you would choose IRA real estate investing as a means to make your money grow.
So how do you get started?
First of all, your funds will need to be rolled into a Self Directed IRA. You need to find a custodian for your funds that understands IRA investing and takes care of all the paperwork involved in the process of purchasing the real estate. They will be able to tell you what you can or cannot invest in, so you stay within IRS guidelines. You can GOOGLE Self Directed IRAs and find a company to work with.
I don’t want to become a landlord you say?
There are companies that offer turnkey real estate, that has renters and property management in place. They can help you choose the right property, with positive cash flow and built in equity.
The property can appreciate in value over time, so when you sell, the profit will also go back to your IRA, making your return on investment go through the roof!
The IRA will own the property, and any profit that is made from the property goes back to the IRA, just like profit from any other investment. The difference is that if you have chosen the right investment, you will finally see your money grow! Cairnhill 16