Real Estate IRA
Welcome to our Real Estate IRA investment page, where you will find useful information about real estate IRA investing and our services. Since the inception of IRAs, it has been possible to purchase real estate as an asset. What has not always been easy is finding an IRA provider who was willing to allow this type of investment. With an account at New Direction IRA, you can seek out the real estate deal and direct us to fund the purchase with your IRA or Qualified Plan money. Our personalized service makes the investment process as easy on our clients as possible. Our expert staff is here to help you learn how the process works. We offer excellent, ongoing education on Self-Directed IRA Real Estate investing and much of it is available free on the web. We spend significant time and energy on education because we feel that investors who know what their account can do will be prepared to capitalize on a good deal when they see one. Contact us today and speak with an IRA specialist.
Why consider Real Estate in your Self Directed IRA?
- Real Estate is a tangible asset; you can see it and touch it.
- Real Estate can be a leveraged investment if you choose.
- Income properties can potentially yield a cash stream as well as market appreciation.
- You have strategic control over the properties that your retirement account purchases.
- You always know where it is.
Are you ready to open your Self Directed IRA for real estate investments?
Click here to download a copy of our Self Directed IRA application packet. This packet includes everything you need to open an account: application, fee schedule, and introduction information.
Top 5 ‘Best Practices’ to Purchasing Real Estate in an IRA or 401k
When deciding to purchase real estate as a retirement plan investment, there are some important guidelines to be aware of to ensure that you avoid losing special tax treatment or paying penalties for an error. Keep these items in mind as you navigate the investment process.
- Do not personally accept rent money or other income from the IRA’s property. All income flows into the IRA, and all expenses need to be paid from the IRA account.
- You may not personally use the property. The IRS does not allow you to personally benefit from your retirement plan investments until distributed at retirement age. Personal use of the IRA’s investment property is a violation of the IRS rules.
- All contracts should be in the name of your IRA, not your personal name. The property is owned by the IRA and this should be reflected in all legal documents from the offer to the purchasing contract to the contract with the lawn company. Contact our office for specific details on titling.
- You cannot purchase the IRA’s investment property from yourself. Similarly, you cannot sell the IRA’s investment property to yourself. This scenario constitutes self dealing, which is not permitted.
- You cannot remodel the property yourself, for free or for pay. Anything that adds value to the property such as a renovation or an addition should be performed by a paid third party company at market rate.
Remember the primary concern in following these guidelines is keeping your account tax-deferred (or tax-free if a Roth). There are other rules which our office or your real estate broker can help you with when your IRA buys real estate. Feel free to contact our office and speak with a member of our educational staff.
How much does it cost to have a Real Estate IRA?
We offer a variety of fee options to fit your personal needs. Our annual administration fees start at only $295/year per property (regardless of value). Our fees drop from there depending on the number of properties you hold in your IRA. On average, our competitors fees for a $100,000 property start at $425+ per year! $600 if your property is valued at $200,000. Click here to see our fee schedule.
Real Estate is the number one investment held in self-directed IRAs, maybe it’s the right one for yours.
Download our special report entitled “Real Estate IRAs – The Secrets of Off the Charts Wealth Development” and find out how to take control today. Just enter your email in the Newsletter Subscription box at the upper left corner of this page and get your FREE report within minutes!
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For more information, call us toll-free at 1-877-742-1270.
