Real Estate IRA

Many people don’t know it, but it’s possible to use your IRA to purchase real estate, raw land, condo’s, time shares, provided that the real estate is not being used for your own personal use, such as a vacation home or office for your business...

Why do it?

The Qualifier

However, experts say the best types of real estate deals for an IRA are cash deals, real estate mutual funds and real estate investment trusts.

Please contact HPE Management for a referral. (703) 651-9169

Real Estate In IRA Strategies

Because the Real Estate IRA is best used when real property is bought for cash it requires large funds in IRAs. Although it is possible to leverage or mortgage real estate within the IRA it gets complicated and may have taxable consequences. This is one reason why its important to be sure to have good tax advisors and administrator to help you set this up.

Rollovers

Many people will have more than one retirement plan because of job changes. It is easy to roll or merge all your retirement accounts into one account. This is done at little or no cost and can increase the amount of cash available for a real estate purchase. It also serves the purpose of simplifying your holding so that you may more easily keep track of them. 

A transfer occurs when you move your existing pension plan to a new administrator without being in receipt of the money. Basically you have a new custodian. A rollover occurs when you actually move monies from one account into another. Done properly this is not a taxable event, money is moving from trustee to trustee and it is not a distribution of funds. 

Some Complications 

Strategies

Please contact HPE Management for a referral. (703) 651-9169