In today’s episode, we uncover what self directed IRA’s are, and examine how you can start using them to build wealth towards retirement through real estate.
Joining us is Mat Sorensen, who is the CEO of Directed IRA and Directed Trust company, as well as an attoreney specializing in self-directed IRA. He is best know for his book ‘The Self Directed IRA Handbook”
He is here to give you everything you need to know to begin adding real estate into your long term investment strategy.
#matsorensen #selfdirectedIRAs #realestate…(read more)
LEARN MORE ABOUT: IRA Accounts
TRANSFER IRA TO GOLD: Gold IRA Account
TRANSFER IRA TO SILVER: Silver IRA Account
REVEALED: Best Gold Backed IRA
Investing in Real Estate with Self-Directed IRA’s – The Grow Wealth Experience Podcast – Ep. 4
In the world of finance, there are numerous investment opportunities available to individuals seeking to build wealth for their future. One of the most popular options is investing in real estate. Real estate investments offer the potential for long-term appreciation, recurring passive income, tax breaks, and more.
However, not everyone has the funds required to purchase a property outright. This is where self-directed IRAs come into play. In this episode of The Grow Wealth Experience Podcast, we explore the benefits of investing in real estate with a self-directed IRA.
What is a Self-Directed IRA?
A self-directed IRA is an IRA account that allows you to invest in a broader range of assets than what is usually allowed through conventional IRA accounts. With a self-directed IRA, investors have greater flexibility in choosing their investment options, including real estate, precious metals, private equity, and more.
Investing in Real Estate with a Self-Directed IRA
Investing in real estate with a self-directed IRA is similar to buying any other property. The primary difference is that you are using your IRA funds to make the purchase. This means that any income generated from the property, such as rental income or capital gains, goes back into your IRA, growing your retirement savings.
There are two primary ways to invest in real estate with a self-directed IRA: direct ownership and indirect ownership. Direct ownership involves purchasing a property with your IRA funds, while indirect ownership involves investing in a real estate investment trust (REIT) or a pooled investment fund.
Benefits of Investing in Real Estate with a Self-Directed IRA
One of the most significant benefits of investing in real estate with a self-directed IRA is the potential for long-term growth. Real estate has historically appreciated over time, providing investors with substantial returns on their investment. Additionally, real estate investments can provide a recurring passive income stream, making it an excellent option for those seeking regular cash flow in their retirement years.
Another advantage is potential tax benefits. Real estate investments held within a self-directed IRA are tax-deferred until funds are withdrawn, meaning that you can avoid paying capital gains taxes on the sale of the property until you retire. Additionally, if the property is an income-producing property, the rent received is tax-free to your IRA.
Conclusion
Investing in real estate with a self-directed IRA can be an excellent way to build wealth for your future. By using your IRA funds to invest in real estate, you can benefit from potential long-term appreciation, recurring passive income, and potential tax breaks. It is essential to consult with a financial advisor or IRA custodian to ensure that you fully understand the rules and regulations surrounding self-directed IRAs and real estate investing.
Thanks so much for having me on the podcast, Aysha. I had a great time!