Real estate is still one of the most common alternative investments for investors buying with a checkbook IRA LLC. By working with a provider of self-directed IRA plans, you can capitalize on the steady rental housing growth. Recent surveys show some of the most promising cities for owning rental properties include Dallas as well as Phoenix, Tampa, Austin, Orlando, San Antonio and Grand Rapids. Real estate investors often use retirement money to buy properties in Texas, Arizona, Florida, Michigan, California, Indiana, Pennsylvania and Nevada. Many of the best places to invest in real estate are areas with high foreclosure rates. When using a checkbook IRA LLC to buy real estate, you have the advantage of immediately placing bids on distressed properties because you hold the power to direct funds from your retirement account.
Enjoying the checkbook edge
A checkbook IRA LLC is retirement account structure approved by the IRS which lets you use retirement money to make tax-free financial moves for your retirement account’s growth and benefit. You don’t need custodian consent with a self-directed IRA with checkbook control. The situation involves a straightforward strategy. Specifically, you establish a LLC or limited liability company owned by the IRA. The account is then managed by the account owner, which is you as the investor. In addition to traditional and conservative real estate investments, you can also invest in more aggressive alternative investments. Checkbook control comes in handy in a number of situations.
Diversifying your stale portfolio
If you invested in stocks and bonds for most of your life, consider diversifying your retirement portfolio. Most people feel rental properties are lower risk and conservative, but do your own homework about which rental properties attract the best rental rate. Consider whether you want to manage a rental property in your own state or hire a property manager to oversee your long-distance real estate property.
Educating yourself about real estate
Some financial experts believe the reason so many Americans struggle with a retirement savings shortfall is because they lack education. As part of the individual investor revolution, take control of your future with education. Improving your financial literacy as it relates to a self-directed IRA is a step in a more powerful and autonomous position. As far as buying real estate, make sure to do comps on similar properties before making an offer or placing a bid. If possible take a tour of the neighborhood or talk to a Realtor in the area about the neighborhood. Most property managers will tell you the most attractive rental properties include downtown lofts in thriving and hip urban areas as well as larger homes in the suburbs ideal for families. After investing in your rental property, plan on spending money on key improvements such as adding a washer and dryer, stainless steel appliances, laminate flooring and other upgrades.
To get started with a self-directed IRA contact an IRA custodian or financial institution that keeps your records in order and helps you follow the IRS regulations. Setting up a self-directed IRA with checkbook control is simple even though the self-directed IRA is a complex vehicle with confusing IRS code. You can take pride in knowing you will receive numerous take benefits by buying real estate with a self-directed IRA. Also, you feel more comfortable with real estate, a tangible investment.
At New Standard IRA, we help you get the most out of your retirement money with a self-directed IRA. Owning a self-directed IRA puts you in control of the most important financial decisions. For more information about using a checkbook IRA LLC to buy real estate in top cities, please contact us.