How to Buy Real Estate with an IRA

Although IRA rules prohibit the use of IRA funds to purchase real estate for personal use, many investors are not aware that they can purchase investment real estate by using IRA monies. Learn to make the most of your investments using this feature of an IRA.

Difficulty: Easy

Instructions

1. Talk to your financial advisor regarding your investment intentions, and how these may or may not be eligible for support from your IRA funds.

2. Find a reputable third-party intermediary to help you manage this investment before dipping into invested IRA monies.
   

3. Understand the two different ways to use your IRA in purchasing real estate. One method relies on the IRA to own the real estate through a self-directed IRA custodian. A second relies on IRA funds for the purchase, but the real estate is owned outright.
   

4. Use financial and legal counsel to determine which way of using your IRA to purchase real estate is best for you.

5. Locate an independent IRA custodian that deals with real estate transactions and arrange your investment plan.

Tips & Warnings

• It is important to select an IRA custodian who is knowledgeable about real estate investments because the custodian holds title to the real estate.
• It is possible to sell properties held by your IRA as long as the purchaser is not a family member.

[talk2nath]

on 8/20/2008 am really interested in real estate investment tips. will realy like to know more on mutual fundss invetsments.
nath
www.flyhow.blogspot.com

[Rockney]

on 4/17/2008 wow! I never knew of this strategy.

[profit]

on 1/1/2008 I've been finding some good deals for positive cash flow rentals in Jackson, MS. There's info @ http://irvinehillsllc.com/Properties/Cashflow/Cashflow.html