In this video, Tim Levy and Brian Finkelstein discuss Self-Directed IRAs and Self-Directed Solo 401(k)s and how to use each for investing in real estate. Both are great tools for buying property and making real estate investments If interested in learning about the basics of Self Directed investing, more tips for real estate investing or setting up your own Self-Directed IRA or Solo 401(k), please contact Broad Financial using the information below!

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ABOUT BROAD FINANCIAL
Broad Financial takes the complex process of Self-Directed Retirement Investing and puts it into a clear and concise road map. Customers appreciate their personal service and welcome the relief and peace of mind they afford to them as they take steps to assure the financial growth and safety of their retirement accounts.

Broad Financial is a Shopper Approved company obtaining an A+ with the Better Business Bureau. They are here to encourage you to take a more active role in the investing of your retirement account, to invest what you know best and believe in and to broaden the breadth of your diversification.

Disclaimer: Broad Financial LLC does not provide legal, tax, or investment advice. Please consult with your tax or legal advisor before making investment decisions.

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Investing in Real Estate with a Self-Directed IRA and Solo 401(k)

Real estate has always been considered a reliable and lucrative investment option. It offers the potential for long-term growth, passive income, and a hedge against inflation. While many people are aware of the traditional means of investing in real estate, such as buying a rental property or investing in a real estate investment trust (REIT), there are alternative ways to invest in this asset class that can provide even greater flexibility and control – using a Self-Directed IRA and Solo 401(k).

A Self-Directed IRA (Individual retirement account) and Solo 401(k) are retirement accounts that allow individuals to make their own investment decisions, including investing in real estate. Unlike traditional IRAs and 401(k)s offered by banks and financial institutions, which typically limit investments to stocks, bonds, and mutual funds, a Self-Directed IRA and Solo 401(k) allow for a broader range of investment options, including real estate.

One of the primary advantages of investing in real estate with a Self-Directed IRA or Solo 401(k) is the potential to grow your retirement savings tax-free. Contributions to these accounts are made with pre-tax dollars, and any income or gains from real estate investments made within the account are tax-deferred or tax-free, depending on the type of account. This can significantly boost the growth potential of your investments over time.

Another key benefit is the ability to diversify your retirement portfolio. Real estate investments can provide a hedge against stock market volatility and offer a stable source of income, especially through rental properties. By investing in real estate within a Self-Directed IRA or Solo 401(k), you can ensure that your retirement savings are not overly reliant on the performance of traditional financial markets.

Unlike traditional property purchases, investing in real estate with a Self-Directed IRA or Solo 401(k) involves a few additional steps. First, you need to set up a Self-Directed IRA or Solo 401(k) account with a qualified custodian or administrator that specializes in these types of accounts. They will ensure that all IRS rules and regulations are followed, and help you navigate the complexities of investing in real estate with a retirement account.

Once your account is set up, you can start exploring different real estate investment opportunities. The options are vast – you can invest in residential or commercial properties, fix-and-flip projects, raw land, or even invest indirectly through private real estate funds or syndications. The key is to conduct thorough due diligence and choose investments that align with your financial goals and risk tolerance.

It’s worth noting that investing in real estate with a Self-Directed IRA or Solo 401(k) comes with some restrictions. For example, you cannot use the property for personal use or purchase from or sell to family members. Additionally, any expenses related to the property must be paid from the IRA or 401(k) funds, without comingling with personal funds. Adhering to these rules is crucial to maintain the tax-deferred or tax-free advantage of these accounts.

If you’re considering investing in real estate with a Self-Directed IRA or Solo 401(k), working with a knowledgeable and experienced custodian or administrator, like Broad Financial, can make the process much smoother. They offer a wide range of investment options, personalized customer service, and help ensure compliance with IRS regulations.

Investing in real estate with a Self-Directed IRA or Solo 401(k) can be a powerful wealth-building strategy. It allows you to take advantage of the lucrative real estate market while enjoying the tax benefits of retirement accounts. By diversifying your investment portfolio and harnessing the potential of real estate, you can set yourself on the path toward a secure and comfortable retirement.