Have you considered using your IRA to buy real estate investment properties? For those who like being in the driver’s seat, a significant plus is that self-directed IRAs give you more control than the Traditional or Roth IRA investment options, adding much-desired diversity to your holdings in alternative assets.
A self-directed IRA is an individual retirement account that allows you to invest in a wide range of alternative assets, including real estate. This type of IRA gives you more control over your investments than a traditional or Roth IRA, as you can choose the specific properties to invest in and manage them directly.
There are several potential benefits to using a self-directed IRA to invest in real estate, including the potential for rental income, tax advantages, and the ability to diversify your retirement portfolio. However, there are also some potential drawbacks to consider, such as the fees associated with managing a self-directed IRA and the potential risks of investing in real estate.
If you would like to take advantage of these benefits, read on as we explore how to buy Raleigh, Durham, Clayton, Smithfield, Rocky Mount, Selma, Wilson, Goldsboro, Kinston real estate investment properties using your IRA. Please note that this article is for informational purposes, not financial or legal advice. You should also consult with a financial advisor or tax professional to determine if this type of investment is appropriate for your specific financial situation and retirement goals.
Directly
An advantage of this investment method is that the income from your rental properties is in a tax-deferred account. As a result, you will pay the taxes upon receiving the funds during retirement.
There are several potential benefits to using a self-directed IRA to invest in real estate. Here are some of the major advantages:
- Diversification: Investing in real estate with a self-directed IRA can help diversify your retirement portfolio, potentially reducing your overall risk. Real estate can provide a steady income stream through rental income, as well as the potential for appreciation over time.
- Tax Advantages: Using a self-directed IRA to invest in real estate can provide tax advantages, as the income and gains from the investment are generally tax-deferred or tax-free, depending on the type of IRA you have.
- Control: With a self-directed IRA, you have more control over your investments, including the ability to choose the specific properties you want to invest in, manage them directly, and make decisions about when to buy, sell, or rent out the property.
- Potential for Higher Returns: Real estate investments can potentially offer higher returns than traditional investment options like stocks and bonds. By using a self-directed IRA to invest in real estate, you may be able to take advantage of these higher returns while still maintaining the tax benefits of your retirement account.
- Flexibility: A self-directed IRA can provide flexibility in terms of the types of real estate investments you can make. For example, you can invest in rental properties, commercial properties, or even raw land, depending on your investment goals and risk tolerance.
However, there are strict regulations concerning self-dealing and investing in your or a close family member’s property. Another caveat is that the property purchase involves none of your funds.
Instead, investors must fully fund the purchase from the IRA, so ensure you leave room for the unexpected. Investors at NC TLC Estate can help you take the proper steps as you assess potential investments and learn the trusted formula that real estate investors rely on every day to earn the highest returns. In addition, the professional buyers at NC TLC Estate help investors make sound real estate investments within a comfortable working budget.
Traditional
The traditional or Roth IRA is for those who prefer a more hands-off approach to buying Raleigh, Durham, Clayton, Smithfield, Rocky Mount, Selma, Wilson, Goldsboro, Kinston real estate investment properties using your IRA to invest in REITs or real estate mutual funds.
REITs are companies that procure and manage investment properties without any of the duties of a landlord falling onto the investor.
Of course, there are pros and cons to REITs. Some of these disadvantages are the limited future potential income and the fact that you aren’t building equity. In addition, there are fewer tax benefits when investors select the traditional method. However, by working with professional buyers like those at NC TLC Estate, you will have the advantage of their shared knowledge as guidance toward which option best suits your investment strategy and personal preferences.
Talk to one of the professional buyers at NC TLC Estate today and find out how easy it is to build a healthy real estate portfolio and look forward to your retirement with peace of mind.
Working with investors at NC TLC Estate is the best way to buy Raleigh, Durham, Clayton, Smithfield, Rocky Mount, Selma, Wilson, Goldsboro, Kinston real estate investment properties using your IRA.
The professional buyers at NC TLC Estate are active investors in the Raleigh, Durham, Clayton, Smithfield, Rocky Mount, Selma, Wilson, Goldsboro, Kinston real estate market. The professional buyers at NC TLC Estate keep a keen eye on local developments and national trends that help guide them to the most suitable investments among your options to select the one that will increase the return on their investment to the highest potential.
And don’t forget to ask about our current inventory of listings here at NC TLC Estate of the best investment properties available in Raleigh, Durham, Clayton, Smithfield, Rocky Mount, Selma, Wilson, Goldsboro, Kinston.
Over the years, these seasoned pros have to build a team that performs with an investor’s mindset to save you time and money and help you make wise investments.
Of course, the benefits of working with these experts are that you will also have access to our highly regarded property management team at NC TLC Estate, who can help you with everything from tenant screening and placement to full-time on-site management. In addition, the professional buyers at NC TLC Estate can help you understand how landlords benefit from happy tenants. Call NC TLC Estate at 919-920-7081.