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Investing Your IRA in Real Estate

Did you know you could use your self directed IRA funds to invest in Real Estate?!? After working with several clients on investment purchases through their IRA we thought it was time to touch base on the topic! It seems like many investors are unaware of this great opportunity.

How does it work?

Well, first off you should contact an investment specialized agent in the local market you wish to invest, preferable an agent with experience working with IRA related purchases. Also, touch base with your IRA custodian to see what requirements they may have for you to make a real estate investment. Then its time to locate a piece of real estate to acquire! Of course you must have liquid funds in your IRA account ready to invest at the time of purchase. The basic rules are very simple… the purchase MUST be an investment, you cannot occupy the property. All income must be directed right back into the IRA and all related expenses MUST be paid directly from the IRA. The beauty here is that the income and appreciation from the sale stay withing the IRA account and can be re-invested. Better yet the income and profits are returned to the IRA account tax deferred (or possible tax-free!).

By not paying taxes on the growth, your real estate IRA retains more principal to build income for your retirement.

In today’s world diversifying your investments is the key to success.

Advanta IRA is one of the custodians that we have worked with directly, you may find more information on their website as well:  You may also contact me directly for more information on the topic.

As an investor you should always consult with your accountant or financial adviser to determine which form of investment is best to meet your goals.

Mike Wittmann – Realty Group SWFL

Real estate word cloud

Posted by: Realty Group of Southwest Florida on November 4, 2015
Posted in: Uncategorized