Self-Directed IRA and Real Estate – A Popular Combination

Posted on August 6, 2013 by

Combining a self-directed IRA and real estate is a trend that is picking up speed fast! Real estate investors are redirecting their focus and purchasing homes with their self-directed IRAs in mass. Partly because they refuse to settle for living on the measly average $1,230 per month social security check that many retirees are forced to budget with.

Large companies are cutting back on their employees’ hours in preparation for the Obama Care regulations and this change is causing people to rethink their futures prompting them to obtain both a self-directed IRA and real estate investments. With their salaries shrinking, they are looking for alternative revenue streams to build their retirement accounts.

So why is real estate picking up steam? Many people have lost their homes to foreclosure, others can’t get financing due to the new bank regulations, and some people simply do not have enough confidence in the real estate market to buy a home so they are looking for rental properties to live in. For these reasons, the demand for rental properties is at an all-time high and real estate prices, while slightly on the rise, are still low enough to make this an investors’ market. Large cities listed in the top 10 fastest-growing U.S. cities of 2013 are among the most sought after in the rental market. There are droves of residential properties on the market at great prices and investors are buying them up quickly.

To maximize their profits and build their retirement accounts, investors are using both their self-directed IRA and real estate. Using their self-directed IRA to purchase real estate allows them to enjoy tax free profits for life in a Roth IRA and tax deferred profits in a Traditional IRA. An added benefit-you don’t even pay capital gains tax when you liquidate Roth IRA real estate!

Now is the time to act! Open and fund a self-directed IRA today so that the funds are there when you find that perfect real estate investment. In general it takes your current custodian 2 to 3 weeks to transfer your funds to a self-directed IRA so you need to get started now. Once you open and fund your IRA, you can immediately begin leveraging your self-directed IRA and real estate investments.

One of our most experienced clients said he likes the self-directed IRA and real estate combination because he enjoys the additional profits he keeps by avoiding those capital gains taxes and by collecting those profits tax free in his self-directed Roth IRA. In his case, he earns about 10% on his money and that is fantastic considering today’s nearly invisible interest rates on savings accounts, CDs, and money markets. Plus he has realized some sizeable increases in equity in many of his real estate holdings.

Many of our clients have 401(k)s from old employers sitting out there that they have forgotten about. These old 401(k)s can be a great way to get into self-directed IRA investing. For more information, to explore your options or for a free self-directed IRA Analysis please contact us at 1-866-7500-IRA(472) or click here.


These are merely examples. This is absolutely for illustration purposes only. You need to consult with the proper professionals when entering into this type of transaction.

American IRA, LLC does not give investment advice. We do offer guidance as to the rules and regulations related to their self-directed accounts and the benefits of different account types so that our clients can take that information to their professionals to discuss the ramifications of various decisions on their individual situation.

Jim HittJim Hitt is the Chief Executive Officer of American IRA and he has been committed to all aspects of investing for more than 30 years, using self-directed IRAs for his own investments since 1982. Jim’s forte is the financing and acquisition of real estate, private offerings, mortgage lending, business’s, joint ventures, partnerships and limited liability companies using creative techniques.

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