| Investing with a Self-Directed IRA |
While we carry on underwriting potential properties, we remain conservative in our approach. We are hopeful to acquire properties this year; however, we want to be certain it is the right fit for our investors and meets our criteria. By being cautious, we are able to identify opportunities to acquire deals that are a sound investment for investors. Thank you for your continued support while we work to help investors’ grow their portfolios, fund retirements, and expand one’s knowledge. Today’s educational subject is on how Self-Directed IRAs (SDIRAs) are a great way to take control of your retirement account and invest in assets outside the stock market. With an SDIRA, you can invest in real estate, private companies, and precious metals. Here we will provide an overview of how SDIRAs work and discuss some of the benefits of using them to invest in real estate. We’ll also cover some important things to keep in mind when using an SDIRA to invest in property. SDIRAs are a type of IRA that allows you to direct how your money is invested. With a Self-Directed IRA, it can provide you with greater flexibility and control over your retirement savings. With a traditional IRA, you leave investment decisions up to your financial advisor or the company managing your account. With an SDIRA, you have the power to choose where your money goes, and put your dollars to work. This can be a great way to take control of your retirement savings and invest in assets that you’re passionate about. One of the benefits of using an SDIRA to invest in real estate is that you can use the money in your account to purchase property. You can then use the rental income from the property to help fund your retirement. This can be a great way to supplement your income during retirement. Another benefit of investing in real estate with an SDIRA is that you may be able to garner tax breaks. Talk to knowledgeable CPA, financial advisor, and/or qualified trustee or custodian (i.e reputable companies like Quest Trust, UDirect IRA, IRA Club, Provident Turst, etc.) to learn more about how Self-Directed IRAs can work for you. |
Self-directed IRAs have became more recognized in recent years due to individuals searching for options to investing in Wall Street. An SDIRA is an IRA that offers you the opportunity to invest in a greater variety of assets than a traditional IRA. One of the primary advantages of accessing a traditional SDIRA to invest in real estate is that you can apply the proceeds from the sale of your property to reinvest in other properties without paying any immediate taxes on the gains. Why? The reason is all of the gains from the sale of your investment property are tax-deferred. Plus, you can utilize the dollars in your SDIRA to fund the acquisition of investment property. This can be a fantastic approach to get your capital working for you, and boost your return on investment. Another advantage of investing in real estate through an SDIRA, is that you’ll have more power over your investment than you would if you were investing in stock and Wall Street. With an SDIRA, you can choose the properties preferred to invest in and when to sell them. You’re not subject to the stock market “rollercoaster,” so you can maintain your investment for the length of period you prefer. There are a few things to note with an SDIRA:First, you’ll need to identify a custodian. A custodian is a financial institution that will hold and manage your IRA assets. Once you’ve decided on a custodian, you’ll want to confirm they have experience with self-directed IRAs and real estate investments. For instance, if you’re planning to invest in a multifamily syndication, you should look for a custodian that has expertise with that process. We recommend checking out Quest Trust Company, IRA Club, Provident Trust Group and other custodians with experience in this area. When you choose a custodian for your self-directed IRA, you open an account with them, and place funds in your account, you then can get started on investing! The world of real estate investing can be daunting, yet with the right guidance and/or specialized knowledge, you can make well-informed decisions that will help lead to long-term success. Reach out to experienced professionals in the industry and do your research before investing so you make sound, decisions for your financial future. Next, you’ll need to determine the kinds of property you desire to invest in. When it comes to choosing what type of property to invest in, there are several different options. I personally chose multifamily real estate investments because they offer the potential for great returns while still providing a scalable asset class. With multifamily housing, you can offer tenants an attractive living experience that will always be in demand. It’s also beneficial to have professional on-site staff managing operations so that properties run more smoothly and consistently provide a reliable cash flow.While investing in an SDIRA can be a smart move, there are certain taxes you should consider. The Unrelated Business Income Tax (UBIT) can apply to income produced from specific kinds of investments, like real estate. Discuss this with your CPA, and what is most suitable for you. That way, you can be certain that investing with an SDIRA is the right choice for you. SDIRA investing can be a great way to diversify your portfolio, and it offers lots of potential benefits. You’ll have more control over your investments, you can leverage your capital, and you receive tax-deferred gains. It’s important to work with an experienced sponsor team and custodian. And confirm with your CPA about any possible tax implications. Investing in real estate through SDIRA can be a great strategy for you, if you’re looking for an alternative way to invest your money, especially beyond the whims of the stock market “rollercoaser.” |
| I’m here to answer any questions you may have about using an SDIRA for investing in real estate. Investing in real estate can be a smart way to diversify your portfolio and increase the potential for financial freedom and success. So don’t hesitate to ask me any questions you have or schedule a meeting to chat – I’m happy to help! Let’s work together towards a better financial future. If you’re interested in learning more about this topic, click here. If you are interested in future investment opportunities, click here. By Kelsie Mans-Ray KMR Multifamily Acquisitions / Syndicator  NOTE: This information is of a general, educational nature and may not be construed as tax, financial, or legal advice pertaining to a specific offering, exemption or situation. |
An Investor’s Guide to Profits – ROI, IRR & CoC
February 9, 2023
