Real Estate Investment With IRA Washington DC

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How To Invest In Real Estate With Your IRA

It’s a little-known fact that you can invest your tax-deferred or tax-free retirement funds in real estate. In fact, you can invest your retirement funds into nearly anything. The internal revenue code specifies only what an IRA cannot invest in, and those things are life insurance and collectibles. This leaves your investment choices nearly endless.

Increasing numbers of people are discovering the many benefits of investing in real estate with their retirement funds. Like returns from securities investments, the returns from an IRA real estate investment are realized tax-deferred in the retirement account, but unlike stocks and bonds, real estate is a tangible investment which the investor can see and have a direct hand in appreciating its value.

Set up a self-directed IRA account

To invest in real estate with your IRA, you must first create an account that supports investments in non-traditional assets. These types of accounts are commonly known as self-directed IRAs. There are two ways to create a self-directed IRA.