Real Estate as Investment Part II: The Power of a Real Estate IRA

Using your retirement account to purchase a home isn’t for everyone, but there are other ways to invest in Real Estate if you already own your home or you’re not quite ready to buy a property outright. Consider the Real Estate IRA.

What is a Real Estate IRA? It is a self-directed retirement account that you can use to hold real estate as an investment through a traditional IRA or a Roth IRA. You are in control. You can choose, buy, sell and flip9 real estate assets held within your account.

Real estate has historically appreciated over time, an ideal scenario for long-term investment. As property values increase, this type of investment can provide a steady income stream from rent, and income grows tax-free within the IRA.

An informative article in Forbes lays out what it is, how it works, and the pros and cons of investing in this type of self-directed IRA. An article buy The Entrust Group below outlines the rudiments.

Free Report: The Power of Real Estate IRA Investments

By The Entrust Group

Entrust clients have a long track record—35 years—of investing in real estate using their tax-advantaged retirement savings accounts. Part of our mission is to educate investors, and our new real estate report is a prime example of that effort. The report’s detailed analysis of both purchases and sales data is a valuable tool for investors, financial and retirement advisors, and real estate professionals.

For example, we now know that real estate investment using self-directed accounts is catching on in new parts of the country. In 2016, Missouri made its first appearance among the top five states where Entrust clients bought property. On the sales side, Tennessee and New Mexico broke into the top five.

Single and multifamily properties continued to be the preferred type of property bought (78 percent) and sold (71 percent). Because rental revenue is often a goal of real estate investors, the report also contains insights into the national rental market, courtesy of Zillow.

You can use a Traditional or Roth self-directed IRA to invest in real estate, and most clients choose one of those two vehicles—although in 2016, we noticed a growing number of clients using Individual 401(k) accounts for their real estate investments.

You’ll find more useful information and interesting insights when you download your FREE copy of Entrust’s 2017 Real Estate Investor Market Research Report. For more information, please visit www.theentrustgroup.com.