| A real estate IRA is a type of self directed IRA. | | | | undeveloped land. Other common advantages |
| A self directed IRA is an investment option for | | | | include reduction of taxable income, asset |
| those who want to have more control over their | | | | protection, estate planning, and possible tax |
| retirement investments. | | | | deferment. |
| Unlike traditional IRAs these type of investments | | | | One of the popular features of this kind of IRA, in |
| allow you to diversify your portfolio, by using | | | | any case, is the limited custodial participation and |
| your retirement funds to invest in loans, | | | | reduced custodial fees. This means that self |
| businesses, real estate, and other opportunities. | | | | directed IRA holder does not have to pay |
| IRAs were created in 1975, as part of the | | | | additional special, asset based, holding, or other |
| Employee Income Security Act of 1974, or | | | | related types of fees, including transactional fees |
| ERISA, and self directed IRAs were also created | | | | for each check from your investment that you |
| during this time. Most investment choices during | | | | draw. |
| this time included real estate and notes. | | | | If you are interested in pursuing this IRA type, |
| Technically, self directed IRAs are no different | | | | you should be sure to learn and adhere to the |
| from traditional IRAs. | | | | rules and regulations that govern the |
| They differ in their investment options, since | | | | management of these types of accounts. There |
| most traditional IRAs only permit investment | | | | are certain steps that you must follow in order to |
| options in approved stocks, mutual funds, bonds, | | | | insure that your IRA will be official and that you |
| and CDs. This type of IRA allows, in addition to | | | | will be able to qualify for the associated benefits |
| the investment types mentioned above, for tax | | | | and deductions. |
| lien certificates and private placements. | | | | It is crucial that you define your investment |
| There are several different options for real estate | | | | before you take any other action towards a self |
| IRA investing depending on how the real estate | | | | directed real estate IRA or traditional IRA. Your |
| investment is acquired. | | | | financial advisor can assist you in making sound |
| If you have purchased it from an unrelated party | | | | investment decisions and should be consulted |
| paid cash for it, and plan to not use it for personal | | | | before you agree to any investment type. |
| reasons while it is part of your IRA, then normal | | | | Your retirement fund is vital to your future, which |
| rules and restrictions, which vary by lender, state, | | | | is why you should always research your options |
| and circumstance, apply. | | | | when it comes to investing it. Researching and |
| You can use your IRA to purchase commercial | | | | learning about a particular topic is the first step to |
| property, residential or rental property, loan | | | | a successful start. |
| extensions, partial notes, tax liens certificates, and | | | | |