How to Buy & Sell Properties in Your IRA
Hello does any have some information on how to use IRA to buy real estate?
A lot of investors make use of their IRA to invest in real estate
You'll want to do your homework & familiarize yourself with self-directed IRA's
George Blower, an attorney who practices in this area, is on this forum https://www.biggerpockets.com/...
and posts frequently on the topic here
If you decide to set one up, there are certain prohibited transactions you'll need to be aware of
https://www.irs.gov/retirement...
But definitely use a reliable firm & have a qualified professional help you to avoid problems
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Attorney
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@Monica De Lozadapadin - I've done it many times. Equity Trust company is probably the friendliest self directed IRA company. In this situation, the IRA owns the property. All income has to be deposited into the IRA and all expenses have to come out of the IRA. Needless to say there is administrative burden dealing with the IRA paperwork especially for paying vendors. Partnering with a property management company and having them hold the reserves can be the best solution. Reach out directly with any questions you have.
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It is pretty straightforward. First you need to open an IRA with a custodian allowing alternative investments. If you wish to bypass the custodian you may want to consider Checkbook IRA route. Then you do a direct rollover from your existing retirement account and start looking for investments. You make the offer in the name of the IRA, pay deposit from the IRA, you can also finance the purchase, but the loan must be non-recourse since as a disqualified person you are not allowed to provide a personal guarantee.
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Visit Equity Trust Corporation website where you will find documents, videos, and can probably attend a live chat.
Thank you for the info.
Thank you for the info.