Invest Your 401K & IRA Dollars Into Real Estate

Take control of your retirement! Did you know that you can own or invest in real estate with your IRA or old 401k? Less and less are people able to rely on the “set it and forget it” method to prepare for retirement. Fewer companies than ever are able to offer pensions putting the burden of retirement preparation on the individual.

A Self-Directed IRA allows individuals to invest their retirement money into alternative assets such as real estate, private placements, promissory notes, and much more. The majority of people hold their IRAs in large brokerage houses. Those shops typically do not allow for investments into alternatives because of the administrative burden (and lack of commission!)

Most people appreciate the benefits of real estate ownership including cash flow, tax advantages and value creation. Yet, finding, acquiring and managing a property on your own is not easy and many don’t have access to private investment like those through DXE Properties. Further, what sometimes causes pause is the lack of liquidity associated with real estate investments. However, when using retirement dollars, you are able to leverage savings you can’t touch anyway and should be invested over longer periods of time. This method of investing can provide a win-win to investors!

A Few Advantages of Investing in Real Estate Through Your Self-Directed IRA1:

Real estate purchased through an IRA is considered a secure asset. Therefore, the investment is extended protection from personal bankruptcy filings. All transactions are conducted separately from an individual’s personal finances.

There are several tax advantages associated with investing through an IRA. Capital gains and income made on property or land purchased through an IRA are afforded tax-deferred advantages. If the investment is made through a Roth IRA, the capital gains and income are exempt from tax.

Real estate investments provide an opportunity to diversify your holdings. IRAs allow investors to go beyond the usual stock, bond, and mutual funds. Holding property in an IRA account provides real benefits and investment options you just can’t get anywhere else.

IRA-owned real estate assets can be handed down to future generations. These types of investments can sometimes appreciate in value. The investment, along with its value and tax advantages are able to spill over into the next generation under beneficiary designations.

There are number ways you can own real estate with your IRA. One of the most common is to utilize a SDIRA custodian. This minimal cost intermediary will serve as a middle man administering your investment transactions.

We have helped many of our investors through the process of setting up an SDIRA and we’d be happy to help you too.

Contact DXE to learn how you can put your 401K/IRA dollars to work today!