Utilizing Your IRA-401K for Real Estate Investment- A Guide

by | May 7, 2024 | Traditional IRA




No one chooses to retire poor, or even with just the essentials to get by. Yet millions of Americans miss the opportunity to change the course of their financial future because they don’t know their options.

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Time Stamp:
0:00 Meet Vince Tomich
2:14 Who is Marshall Reddick
7:09 Free Consultation with an Advisor
08:24 Meet Brett Synicky
09:59 Who is Sense Financial
11:47 Conventional vs. Self-Directed
13:39 What is a Self-Directed IRA?
18:14 Benefits of a Self-Directed IRA
19:10 Checkbook IRA: How it Works?
20:54 What is a Solo 401(k)
23:13 Solo 401(k) How it Works
24:36 Benefits
26:20 Contribution Limits
28:14 Participant Loan
30:40 Roth Contributions
32:20 Cost Effective/Checkbook Control
34:45 Disqualified Person
38:53 Purchasing Real Estate
41:50 Complimentary Consultation
47:13 Learn More!

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Investing in real estate can be a lucrative way to grow your wealth and create a diversified investment portfolio. If you have an Individual retirement account (IRA) or a 401K, you may be wondering if it is possible to use these funds to invest in real estate. The good news is that it is possible to invest in real estate using your retirement funds, but there are some rules and guidelines that you need to be aware of.

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The most common way to invest in real estate using your IRA or 401K is through a self-directed IRA or 401K. A self-directed IRA or 401K allows you to invest in a wider range of assets, including real estate, than a traditional IRA or 401K. With a self-directed IRA or 401K, you can invest in a variety of real estate assets, including rental properties, commercial properties, and even raw land.

Before you can invest in real estate using your IRA or 401K, you will need to set up a self-directed IRA or 401k account with a custodian that allows for real estate investments. Once you have set up your self-directed account, you can start looking for investment opportunities in the real estate market.

When investing in real estate using your IRA or 401K, it is important to follow the rules and regulations set forth by the IRS. For example, all income and expenses related to the real estate investment must flow through your IRA or 401k account, and you cannot use the property for personal use. Additionally, any profits or gains from the real estate investment must be reinvested back into your IRA or 401k account.

When investing in real estate using your retirement funds, it is also important to do thorough research and due diligence on potential investment properties. Make sure to assess the property’s rental income potential, location, and potential for appreciation. It may also be beneficial to consult with a real estate professional or financial advisor who has experience in real estate investments.

Investing in real estate using your IRA or 401K can be a great way to diversify your investment portfolio and potentially grow your wealth. By following the rules and regulations set forth by the IRS and doing thorough research on potential investment properties, you can make smart and profitable real estate investments using your retirement funds.

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