Rental Property Investor · Reedsburg, WI · Member since 2011 · 1k+ posts · 857 votes
5y
@Shelby Willitts, both my 3 partners and I all use Self Directed IRAs (SDIRA) and SOLO401Ks that are very similar (But you must be self employed). We love it.
As to @Greg Scott's comment asking if 'it makes sense' because real estate investing is ALREADY 'tax advantaged' (you will hear a lot of that) I would argue that IF you already have funds in a retirement account, the question THEN becomes 'how to make the best use of those funds'.
You don't want to compare real estate outside of a retirement account to real estate INside a retirement account. You want to compare "what is the best use of these funds ALREADY inside of your account'. For us, that is a big portion of real estate. Stocks give an average of about a 10% return with moderate risk, and real estate give us a 12-20%+ return, with much less risk in our opinion.
As far as how to do it there are quite a few good Plan Providers here in the forums, such as @Dmitriy Fomichenko (who we use) @Brian Eastman, @Carl Fischer, @Bill Hampton, @George Blower just to name a few. When I called to find a provider all of the ones on here I talked to seems WAY more personable than a few of the large companies such as Equity Trust.
Real Estate Broker · Lake Charles, LA · Member since 2021 · 9 posts · 0 votes
4y
I am in the process (first time) of using my Solo 401K. to purchase a rental property. From my understanding- that is very similar to the self directed IRA. The solo can be used if you own your own business and you don't have any other employees-it has to be set up in a trust name. I'm using that plus also going to have a non resource loan for 1/2 of the purchase price. have signed a contract and am set to close on April 7, 2022!