Did you know that you can use your retirement account to invest in non-traditional assets such as real estate? In order to do so you need to convert your existing IRA or 401k account into self directed IRA or 401k.
In a Self Directed IRA or 401k, the account holder makes all the investment related choices for his or her account. The account holder conducts his own due-diligence on the potential investment, chooses his own investment advisor and decides how much to invest. Because a Self Directed IRA and 401k are considered to be “Qualified Plan”, investments made with this account are grow in the tax-deferred or tax-free (in case of Roth IRA) environment.
Unlike with conventional retirement accounts, which are managed by conventional custodians such as Fidelity, Charles Schwab, Merrill Lynch or Chase, etc., where they limit investment choices to stocks, bonds and mutual funds, investment options with self directed IRA are virtually limitless. Here are few examples:
- Commercial and Residential real estate
- Non-exchange traded real estate investment trusts (REITs)
- Tax Liens and Tax Dees
- Offshore Hedge funds
- Mortgage Notes and Trust deeds
- Private businesses or LLCs
- Limited partnerships (LPs)
- Secured and Unsecured loans to businesses and individuals
- … and much more!
With a self-directed IRA, your options include, but are not limited to:
- Buying Investment Property
- Lending money to a private business owner
- Lending money to another investor to purchase investment property (become a bank)
- Invest in a non-publicly traded business
Please CONTACT US to learn more about earning better returns in your IRA or 401k by investing in real estate.