Today's real estate market has a multitude of great deals for investors. Many people do not realize that they can purchase investment properties with their retirement plans. They are commonly known as self-directed IRAs. You must use a third party administrator to handle the transactions. This is normally a trust company that specializes in self-directed IRAs. All costs of the investment property come out of your retirement funds. That means repairs, taxes, and insurance along with the original purchase. All profits, such as rental income, go right back in the retirement fund. There are several reputable trust companies that are skilled in self-directed IRAs. Equity Trust and Pensco are two of the most well known. They will be able to guide you how to use a self-directed IRA to purchase real estate.
Using your IRA as tool to invest in Real Estate is right now one of the best moves people can make to start their investment journey and to help their retirement fund grow faster.
A real estate investment instead of a regular retirement plan will take more effort than you may think and you might not be prepared for it. If you plan to lease the property its never that easy. I've been managing apartments for 2 decades and it's not stress free. Contracts, maintenance costs, and complaints are just some of the things you live with on a daily basis. If you don't think this is something you can do don't gamble your retirement on real estate. If you plan to buy it then sell it later on then I'd caution you again on how volatile the industry is. If you are however knowledgable in real estate speculation and you can afford it then it could work in your favor.
