Invest Your IRA in Real Estate

INVESTING YOUR IRA IN REAL ESTATE

Beyond the Bank

You must first create a “Self-directed IRA” with an IRA custodian that handles real estate.  Roughly two dozen institutions in the U.S. can do this.  Some reliable companies include:

• Entrust in Oakland, CA, 800.392.9653
• PENSCO Trust Co. in San Francisco, 800.969.4472
• Sterling Trust Co. in Waco, TX, 800.955.3434
• Lincoln Trust in Denver, CO, 800.825.2501

Seek Professionals

An accountant will be very helpful in investigating tax issues and the property’s viability.  Also, work with a knowledgeable real estate broker who hasexperience with investment real estate.

Business First

If you are thinking of buying a vacation home, think again. One of the many constricting rules about self-directed IRAs is that you or your family cannot use the property for personal use.

Make it Easy

Most investors want property that will bring cash in but won’t demand much time. A good example of this is parking lots. They are low-maintenance and provide steady income when leased to a parking firm.

Have Cash

Don’t invest all of your IRA in property – you may need some liquidity to cover taxes, expenses, and minimum IRA withdrawals at age 701⁄2 (if your account is empty, the IRS can penalize you).

Please give us a call if you have any questions – we will be happy to assist you!