The Self-Directed [SD] Individual Retirement Account [IRA]
An individual retirement account [IRA] helps you to earn and earmark funds for retirement savings, as well as to shelter those savings from certain taxes and lawsuits. Self-directed [SD] gives you the power to directly choose the investments of the IRA.
A Self-Directed Individual Retirement Account Investing in Real Estate Enjoys the Following Advantages:
SD IRA affords investing in the stability of real esate in relation to stocks
SD IRA can purchase real estate using all cash, leveraging, or partnering with another investor, trust, or partnership
SD IRA loans protect your personal assets in the event of default or foreclosure
An SD IRA enjoys faster growth via the combination of real estate appreciation and cash flow
The Process of Real Estate Purchase with a Self-Directed IRA
Here is a general overview of the process of purchasing property with SD IRA Funds.
Transfer funds to an SD IRA custodian
Find a property with a professional REALTOR
Your REALTOR will create the purchase agreement which is the offer on the property in the name of the SD IRA and send that offer to your custodian
With your permission, your custodian will release funds for purchase – the purchase agreement does not constitute authority
Your SD IRA custodian will sign at closing – you will own the deed
Your SD IRA custodian will distribute the funds appropriately
You will make management decisions
The rental income and expenses will be handled within the SD IRA
Regulations of Real Estate Purchase with a SD IRA
You can purchase real estate from anyone except the persons listed below. You can lease to anyone except the persons listed below.
Your lineal descendants and spouses of descendants (children, sons-and daughters-in-law, grandchildren, etc.)
Your parents, grandparents, great-grandparents, etc.
Anyone providing services to the IRA and their families
Any company, trust, or partnership in which a disqualified person holds 50% or more interest and or voting power
Any fiduciary of the IRA
Siblings are not considered disqualified persons. Your custodian will be able to guide you if you have questions.
Please consult with your financial advisor for a professional consultation
Short selling our home was the most humiliating thought for us. We were referred to Nicole by our neighbor. She held our hand through the entire process and she made us realize it was the best choice for us. We were less stressed and were able to start fresh and that was a relief. She was truly empathetic and sympatheticCharles and Wendy
The data relating to real estate for sale on this web site comes in part from the INTERNET DATA EXCHANGE Program of the Greater Las Vegas Association of REALTORS® MLS. Real estate listings held by brokerage firms other than this site owner are marked with the IDX logo. GLVAR deems information reliable but not guaranteed.
Copyright 2019 of the Greater Las Vegas Association of REALTORS® MLS. All rights reserved.
Information last updated on 2019-05-25.